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Sep 30, 2022
Trex Q3 2022 Earnings Report
Trex's third quarter results were consistent with expectations, as the company focused on cost efficiency and repurchased 1.7 million shares.
Key Takeaways
Trex Company reported third quarter 2022 results with net sales of $188 million and net income of $15 million. The company focused on cost efficiency and repurchased 1.7 million shares. They reaffirmed fourth quarter revenue and EBITDA margin guidance.
Consolidated net sales were $188 million.
Net income was $15 million; diluted earnings per share of $0.14, excluding severance charges.
EBITDA was $32 million; EBITDA margin of 17.0%, excluding severance charges.
The company repurchased 1.7 million shares of its outstanding common stock.
Trex
Trex
Forward Guidance
The company reaffirmed its guidance for net sales of $180 million to $190 million and its expectation for full year EBITDA margin of 27% to 29% and fourth quarter EBITDA margin of 22% to 25%.
Positive Outlook
- Industry-leading brand
- Market leading products
- Manufacturing efficiency
- Well positioned as the prime beneficiary of long-term trends towards outdoor living
- Focus on wood conversion while operating in a sustainable and socially responsible manner
Challenges Ahead
- Extent of market acceptance of the Company’s current and newly developed products
- Costs associated with the development and launch of new products and the market acceptance of such new products
- Sensitivity of the Company’s business to general economic conditions
- Impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products
- Availability and cost of third-party transportation services for the Company’s products