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Dec 31, 2022
Trex Q4 2022 Earnings Report
Trex's Q4 2022 operating results exceeded expectations, driven by a strong sequential recovery in gross margin and adjusted EBITDA margin amid channel inventory recalibration.
Key Takeaways
Trex Company reported Q4 2022 net sales of $192 million and net income of $10 million, or $0.09 per diluted share. Adjusted EPS was $0.23, and adjusted EBITDA was $46 million, representing 24.1% of net sales. The company completed the sale of Trex Commercial Products and returned approximately $50 million to shareholders through share repurchases.
Q4 operating results exceeded expectations with strong sequential recovery in gross margin and adjusted EBITDA margin.
Channel inventory recalibration was completed by year-end 2022.
The company returned approximately $50 million to shareholders through share repurchases in Q4 2022.
Trex Commercial Products was divested, allowing focus on the outdoor living strategy.
Forward Guidance
Trex anticipates first quarter 2023 net sales to be in the range of $230 million to $240 million and expects full year 2023 EBITDA margin to be in the 26% to 27% range. Capital expenditures for 2023 are anticipated to be in the $130 million to $140 million range.
Positive Outlook
- Channel inventory recalibration completed by year-end 2022.
- Strategically focused on residential business to drive wood conversion.
- Will continue to invest in the Trex brand and commercialize new products.
- Recently announced the regional launch of our premium Trex Signature® decking product.
- Doubled the number of color options available for our recently launched Trex Transcend® Lineage™ product line.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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