NYSE$TREX

Trex Co Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Trex Company reported strong results driven by sustained demand and market share gains.

Trex Company reported a 41% increase in consolidated net sales, reaching $312 million in Q2 2021. Diluted earnings per share increased by 29% to $0.53, and EBITDA grew by 36% to $92 million. The company's residential segment saw a 43% increase in net sales, driven by strong demand and the completion of a capacity expansion program.

  • Consolidated net sales increased 41% to $312 million.
  • Diluted earnings per share increased 29% to $0.53.
  • EBITDA increased 36% to $92 million with an EBITDA margin of 29.4%.
  • Trex Residential net sales increased 43% to $299 million.

Headline financials

Total Revenue

$312M

Previous: $221M+41.2%
EPS (adj)

$0.53

Previous: $0.41+29.3%
Gross Margin

38.0%

Previous: 41.9%-9.3%
SG&A Expense

$36M

Previous: $13.20+272727172.7%
Capital Expenditures

-$94.8M

Previous: -$62.6M-51.5%
Free Cash Flow

-$33.5M

Previous: -$15.4M-117.4%
Net Income

$61.4M

Previous: $47.2M+30.0%
Operating Income

$82.4M

Previous: $63.4M+29.9%
Gross Profit

$118M

Previous: $92.4M+28.0%
Cash & Equivalents

$5.47M

Previous: $12.2M-55.3%
Total Assets

$899M

Previous: $671M+34.0%
Stock-Based Comp

$2.13M

Previous: $1.53M+39.5%

Revenue & EPS history

Trex · Revenue · Quarterly

$312M

Q2 2021+41.2%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For the third quarter of 2021, the company expects consolidated net sales to range from $320 million to $330 million, representing 40% year-over-year growth at the midpoint of the range.

Tailwinds

  • Continued strong broad-based demand for Trex Residential outdoor living products.
  • Further build-out of new decking lines in Virginia will continue, and those new lines are scheduled to be available for production by the end of this year.
  • Expansion initiatives will serve the core residential market.
  • Expansion initiatives will enable the company to actively pursue future growth opportunities, including the expansion of international sales.
  • Expansion initiatives will enable the company to pursue the entrance of Trex Residential products into the home builder market.

Headwinds

  • Market acceptance of newly developed products.
  • Costs associated with the development and launch of new products.
  • Sensitivity to general economic conditions.
  • Impact of seasonal and weather-related demand fluctuations.
  • Availability and cost of third-party transportation services.

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 Q2 2021

Historical avgQ2 2021

+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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