NYSE$TREX

Trex Co Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Trex's second quarter sales increased, driven by premium products, and gross margin expanded due to higher utilization and production efficiencies.

Trex Company reported a 6% increase in net sales to $376 million for the second quarter of 2024, driven by premium products. Gross margin improved to 44.7%, and EBITDA margin expanded to 34.6%. The company is guiding to third quarter revenues of $220 million to $230 million and maintaining full year EBITDA margin guidance of 30% to 30.5%.

  • Net sales for the second quarter of 2024 reached $376 million.
  • Gross margin stood at 44.7% for the quarter.
  • Net income amounted to $87 million, with diluted earnings per share of $0.80.
  • EBITDA was reported as $130 million, with an EBITDA margin of 34.6%.

Headline financials

Total Revenue

$376M

Previous: $357M+5.6%
EPS (adj)

$0.80

Previous: $0.71+12.7%
Capital Expenditures

-$73.2M

Previous: -$82.4M+11.1%
Free Cash Flow

$13.8M

Previous: -$5.32M+359.3%
Net Income

$87M

Previous: $77M+12.9%
Operating Income

$117M

Previous: $105M+11.6%
Gross Profit

$168M

Previous: $156M+7.5%
Cash & Equivalents

$1.17M

Previous: $4.23M-72.3%
Total Assets

$1.27B

Previous: $1.07B+18.7%
Stock-Based Comp

$3.84M

Previous: $2.59M+48.1%

Revenue & EPS history

Trex · Revenue · Quarterly

$376M

Q2 2024+5.6%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Trex expects 2024 revenue to range from $1.13 billion to $1.15 billion and third quarter revenue to range from $220 million to $230 million. The company is maintaining its full year EBITDA margin guidance range at 30.0% to 30.5%.

Tailwinds

  • Mid-market and premium product sales are encouraging.
  • Channel inventory levels at the end of the year are expected to be slightly lower than 2023 year-end levels.
  • Maintaining full year EBITDA margin guidance range at 30.0% to 30.5%.
  • SG&A as a percentage of net sales is projected to be flat with the prior year at approximately 16%.
  • Depreciation and amortization is estimated between $53 million and $55 million.

Headwinds

  • Uncertain economic outlook.
  • Softness in the entry-level segment.
  • Adjusting sales guidance for the full year due to economic uncertainty.
  • Tax rate is expected to be in the 25% to 26% range.
  • The company is taking a measured approach

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 2024

Historical avgQ2 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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