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Dec 31, 2024
Trex Q4 2024 Earnings Report
Trex reported a decline in Q4 revenue and profitability due to reduced channel inventory but maintained strong demand for premium products.
Key Takeaways
Trex reported Q4 2024 net sales of $168 million, down 14.4% year-over-year due to a $45 million reduction in channel inventory. Gross margin declined to 32.7%, and net income dropped to $10 million. EPS came in at $0.09, while EBITDA fell to $29 million. The company expects 5-7% revenue growth in 2025 and an adjusted EBITDA margin exceeding 31%.
Q4 revenue declined 14.4% to $168 million due to inventory reductions.
Net income fell to $10 million from $22 million in the prior year.
EPS dropped to $0.09, reflecting weaker profitability.
2025 guidance projects 5-7% revenue growth and stable EBITDA margins.
Forward Guidance
Trex expects 5-7% revenue growth in 2025, supported by strong demand for premium products and an expanding railing portfolio.
Positive Outlook
- Expected revenue growth of 5-7% in 2025.
- Adjusted EBITDA margin projected to exceed 31%.
- New product introductions expected to drive demand.
- Increased penetration in the $3.3 billion railing market.
- Continued investment in branding and innovation.
Challenges Ahead
- Q1 2025 revenue to be impacted by inventory strategy shift.
- Ongoing cost pressures affecting profitability.
- Flat Repair & Remodel market expected in 2025.
- Higher capital expenditures due to Arkansas facility expansion.
- Potential macroeconomic headwinds impacting consumer spending.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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