NYSE$TREX

Trex Co Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Trex reported strong Q1 2024 results, driven by double-digit sell-through for premium products and early buy program.

Trex Company reported net sales of $374 million, a gross margin of 45.4%, and net income of $89 million, or $0.82 per diluted share, for the first quarter of 2024. EBITDA was $133 million with an EBITDA margin of 35.6%. The company reaffirms full year guidance.

  • Net sales increased by 57% year-over-year to $374 million.
  • Gross margin improved to 45.4%, up 580 basis points from the prior year.
  • Net income reached $89 million, or $0.82 per diluted share.
  • EBITDA was $133 million, with a margin of 35.6%.

Headline financials

Total Revenue

$374M

Previous: $239M+56.5%
EPS (adj)

$0.82

Previous: $0.38+115.8%
Capital Expenditures

-$37.7M

Previous: -$39.2M+3.8%
Free Cash Flow

$51.4M

Previous: $1.94M+2548.3%
Net Income

$89.1M

Previous: $41.1M+116.6%
Operating Income

$119M

Previous: $56.9M+109.0%
Gross Profit

$170M

Previous: $94.4M+79.6%
Cash & Equivalents

$3.05M

Previous: $3.92M-22.0%
Total Assets

$1.29B

Previous: $1.13B+14.1%
Stock-Based Comp

$3.16M

Previous: $1.97M+60.0%

Revenue & EPS history

Trex · Revenue · Quarterly

$374M

Q1 2024+56.5%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Trex expects second quarter sales to be in the $380 million to $390 million range and reaffirms full year guidance for revenues of $1.215 billion to $1.235 billion and EBITDA margin to be in the range of 30.0% and 30.5%.

Tailwinds

  • Outdoor Living category continues to thrive.
  • Consumers remain in their homes longer.
  • Consumers prioritize investments that offer fuller enjoyment of their outdoor spaces.
  • Investments increase the value of their homes.
  • Trex remains the primary beneficiary of the ongoing conversion from wood to composites.

Headwinds

  • 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 and raw materials.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.1%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+2.4%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+26.8%

Q3 2013

Best reaction

-31.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-2.2%-0.7%
Q4 2025+0.7%-1.9%-14.3%
Q3 2025-31.1%-31.5%-26.7%
Q1 2025-1.0%+3.6%-2.8%
Q4 2024+1.2%+5.1%-5.8%
Q3 2024+9.8%+10.0%+15.7%
Q2 2024-20.4%-19.5%-19.4%
Q1 2024-3.8%-2.5%-11.7%
Q4 2023-0.7%+0.9%+5.8%
Q3 2023+3.6%+15.5%+29.4%
Q2 2023+9.7%+4.8%+2.9%
Q1 2023+10.2%+2.6%+5.4%
Q4 2022+2.0%-4.1%+5.9%
Q3 2022-10.6%-14.3%-7.0%
Q2 2022-16.0%-8.7%-27.2%
Q1 2022+5.7%+13.2%+16.5%
Q4 2021-8.0%-17.4%-22.0%
Q3 2021+16.2%+13.6%+23.0%
Q2 2021+0.3%+8.4%+14.4%
Q1 2021-2.5%-3.8%-10.1%
Q4 2020-11.2%-10.7%-14.7%
Q3 2020+2.0%+14.5%+6.2%
Q2 2020-0.3%-0.2%+9.3%
Q1 2020+18.8%+25.2%+27.1%
Q4 2019-2.4%-10.0%-23.4%
Q3 2019-6.6%-0.7%-2.8%
Q2 2019+14.3%+12.5%+18.4%
Q1 2019-8.9%-11.0%-19.2%
Q4 2018-1.2%+0.7%-9.7%
Q3 2018-0.5%+7.6%+5.0%
Q2 2018+20.2%+21.4%+30.1%
Q1 2018+12.6%+9.1%+19.4%
Q4 2017-4.9%+0.2%-3.1%
Q3 2017+22.8%+17.1%+31.1%
Q2 2017+3.4%+6.5%+3.1%
Q1 2017-7.5%-10.8%-7.9%
Q4 2016-5.7%-5.0%-0.4%
Q3 2016+11.0%+22.3%+27.6%
Q2 2016+17.4%+22.2%+27.7%
Q1 2016-6.5%
Q4 2015+16.9%
Q3 2015-2.9%
Q2 2015-10.6%
Q1 2015+0.3%
Q4 2014+4.1%
Q3 2014+7.7%
Q2 2014+18.5%
Q1 2014-10.9%
Q4 2013+10.8%
Q3 2013+26.8%
Q2 2013-11.7%
Q1 2013+8.4%
Q4 2012+7.6%
Q3 2012+12.4%
Q2 2012-5.9%
Q1 2011-6.9%
Q1 2012-0.5%
Q4 2009+3.6%
Q4 2011+3.6%
Q3 2011+7.5%
Q3 2010+7.5%
Q2 2011-13.5%
Q4 2010-13.5%
Q2 2010-13.5%
Q1 2010-2.5%

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