NYSE$TREX

Trex Co Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Trex's third quarter results exceeded expectations due to sustained consumer demand for premium products and effective cost management.

Trex Company reported net sales of $234 million for the third quarter of 2024, a decrease of 23% compared to the prior-year quarter. Net income was $41 million, or $0.37 per diluted share. The company reaffirmed its full-year sales guidance and expects to achieve the high end of its EBITDA guidance range.

  • Net sales reached $234 million.
  • Gross margin was 39.9%.
  • Net income amounted to $41 million, with diluted earnings per share at $0.37.
  • EBITDA was $68 million, resulting in an EBITDA margin of 29.1%.

Headline financials

Total Revenue

$234M

Previous: $304M-23.1%
EPS

$0.37

Previous: $0.57-35.1%
Gross Margin

39.9%

Previous: 43.1%-7.4%
SG&A Expense

$38.9M

Previous: $44.5M-12.6%
EBITDA

$67.9M

No prior period
Adjusted EBITDA

$67.9M

No prior period
Capital Expenditures

-$151M

Previous: -$113M-34.1%
Free Cash Flow

-$111M

Previous: -$47.7M-132.8%
Net Income

$40.6M

Previous: $65.3M-37.9%
Operating Income

$54.3M

Previous: $86.4M-37.1%
Gross Profit

$93.2M

Previous: $131M-28.8%
Cash & Equivalents

$12.8M

Previous: $4.64M+176.4%
Total Assets

$1.27B

Previous: $997M+27.1%
Stock-Based Comp

$2.67M

Previous: $2.82M-5.4%

Revenue & EPS history

Trex · Revenue · Quarterly

$234M

Q3 2024-23.1%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Trex reaffirmed net sales guidance at the midpoint of $1.14 billion and expects EBITDA margin to reach the high end of its guidance at 30.5%.

Tailwinds

  • Expanded railing line expected to increase penetration of the railing market.
  • Exclusive decking distributors will adopt exclusivity for Trex® railing.
  • Cost-out programs are expected to continue to be successful.
  • Underlying EBITDA margin in 2025, adjusted for one-time costs, is expected to exceed 31%.
  • Trex is positioned to capture the greatest share of the industry’s growth opportunities.

Headwinds

  • Initial cost of transition to expanded railing line estimated at $5 million in 2025.
  • One-time Arkansas start-up costs.
  • Unspecified risks and uncertainties that could cause actual results to differ materially.
  • Sensitivity of the business to general economic conditions.
  • Potential impacts from global public health pandemics and geopolitical conflicts.

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 Q3 2024

Historical avgQ3 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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