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Dec 31, 2020
Trex Q4 2020 Earnings Report
Trex reported strong Q4 2020 results with residential product sales growth.
Key Takeaways
Trex Company reported a 39% increase in consolidated net sales, reaching $228 million in Q4 2020. Trex Residential Products net sales increased 40% to $214 million. The diluted earnings per share was $0.37, and the EBITDA margin was 27.9%.
Consolidated net sales increased 39% to $228 million.
Trex Residential Products net sales increased 40% to $214 million.
Diluted earnings per share of $0.37.
EBITDA margin of 27.9%.
Trex
Trex
Forward Guidance
Trex anticipates another year of strong double-digit sales growth in 2021 and expects first quarter consolidated net sales to range from $235 million to $245 million, representing year-on-year growth of 20% at the midpoint.
Positive Outlook
- Another year of strong double-digit sales growth is expected in 2021.
- First quarter consolidated net sales to range from $235 million to $245 million, representing year-on-year growth of 20% at the midpoint.
- Growth to expand in the second and third quarters as capacity increases and as we backfill inventory in the channel.
- Incremental EBITDA margin to be between 35% to 40%.
- Demand for Trex Residential products continues to benefit from positive secular trends.
Challenges Ahead
- Startup related expenses will continue as we ramp up production at our Virginia facility.
- Higher inflation.
- More normalized selling, general and administrative expenses partially offset by cost savings projects.
- Tax rate is anticipated at approximately 25%.
- Depreciation will range from $35 million to $40 million increasing throughout the year.