Financial Data and Key Metrics Changes - In Q3 2024, net sales were $234 million, a decrease of 23% compared to $304 million in Q3 2023, primarily due to a $70 million reduction in channel inventory [17] - Gross margin was 39.9%, down 190 basis points from 41.8% in the prior year, attributed to lower utilization rates [17] - Net income was $41 million or $0.37 per diluted share, a decrease of 38% from $65 million or $0.60 per diluted share in Q3 2023 [19] - Year-to-date net sales totaled $984 million, a 9% increase compared to $899 million in the first nine months of 2023 [20] - EBITDA was $331 million or 33.7% of net sales, up from $285 million in the prior year, with EBITDA margin expanding by 200 basis points [21] Business Line Data and Key Metrics Changes - Sell-through for premium products increased at a high single-digit rate in Q3, while lower-priced products remained stable [6] - New product development accounted for approximately 18% of year-to-date net sales, indicating strong alignment with consumer preferences [8] Market Data and Key Metrics Changes - The company expects the repair and remodel market to return to low single-digit growth in 2025, supported by lower interest rates and increased home turnover [15] - The residential railing market is projected to grow, with Trex aiming to double its market share from approximately 6% to 12% over the next five years [9][73] Company Strategy and Development Direction - New product launches are a strategic priority, with a focus on expanding the railing portfolio and entering adjacent markets [8][12] - The Arkansas facility development is critical for future growth, with production efficiencies expected to significantly increase capacity [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing long-term growth opportunities, citing strong brand awareness and a trusted distribution network [29] - The company anticipates continued challenges in the repair and remodel market but expects to outperform the market due to new product introductions [15][27] Other Important Information - The company has returned over $100 million to shareholders through stock repurchases and invested $152 million in capital expenditures year-to-date [23] - The total capital expenditure for the Arkansas facility is expected to be approximately $550 million, with $340 million already invested [23] Q&A Session Summary Question: What are the assumptions for Q4 sell-through? - Management indicated that premium products are expected to sell through at a high single-digit rate, while entry-level products are anticipated to decline in the mid-single digits [31] Question: How does the EBITDA margin guide for '25 exceed 31%? - The guidance excludes one-time costs and is based on continued margin expansion due to cost reductions [32] Question: Why is inventory days on hand higher than historical levels? - The increase is attributed to new product launches and a strategic decision to maintain higher inventory levels to reduce operational fluctuations [33] Question: What is the expected channel inventory reduction in Q4? - The company expects a reduction of $20 million to $30 million primarily in the distribution channel [36] Question: What are the implications of the recycled plastic startup in Arkansas? - The startup will replace the need for purchasing external pelletized recycled materials, leading to cost benefits [37] Question: What is the expected impact of the railing transition costs? - The transition costs are associated with merchandising and launching new products, with a focus on ensuring proper market introduction [38] Question: How does the company view the differentiation in sell-through between premium and entry-level products? - The differentiation is largely demographic, with entry-level consumers being more affected by economic conditions [52] Question: What is the expected growth for the R&R market in 2025? - The company expects low single-digit growth for the R&R market based on current market conditions [50] Question: Will there be a pre-buy program in 2025? - Yes, there will be a pre-buy program, but it is expected to be smaller than in previous years due to current inventory levels [56]

Trex (TREX) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 15.63%. A quarter ago, it was expected that this maker of fencing and decking products would post earnings of $0.79 per share when it actually produced earnings of $0.80, delivering a surprise of 1.27%. Over the last four qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14649 Trex Company, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1910453 (State or other jurisdiction of in ...

NEWS RELEASE TREX COMPANY REPORTS THIRD QUARTER 2024 RESULTS Continued Strength in Consumer Demand for Premium Products New Railing Product Introductions to Accelerate Market Share Gains Provides Update on New Arkansas Facility Reaffirms Full Year 2024 Sales Guidance and Expects to Achieve High End of EBITDA Guidance Range WINCHESTER, Va. –October 28, 2024– Trex Company, Inc. (NYSE:TREX), the world's largest manufacturer of wood-alternative decking and railing, and a leader in high-performance, lowmaintenan ...

The market expects Trex (TREX) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 28, 2024, might help the stock move higher if these key numbers are bett ...

With numerous short-term and long-term catalysts working in its favor, Trex makes for a compelling investment at today's prices. Since 2009, Trex (TREX -2.93%) has delivered total returns of roughly 3,200%, despite being tied to the highly cyclical United States housing industry. Trex, which has manufactured composite decking, railing, and adjacent products since 1998, grew rapidly to become the leader in the $8 billion market. Despite these incredible returns over the last 15 years, the company's share pri ...

WINCHESTER, Va., Aug. 21, 2024 (GLOBE NEWSWIRE) -- In a world increasingly focused on sustainability, Trex Company [NYSE:TREX] is committed to doing its part to tackle America's growing plastic waste problem. Through the NexTrex® Grassroots Movement, Trex works together with eco-minded businesses, municipalities, educational institutions and other organizations across the country to responsibly dispose of polyethylene (PE) plastic waste and give it new life as beautiful, durable and environmentally friendly ...

A tough economy is weighing on growth. Trex (TREX -21.49%) used cost controls to deliver an earnings beat despite lower-than-expected revenue, but investors were more focused on the company's weak forecast for future demand. The stock is plunging post earnings, down 21% as of 1:30 p.m. ET. Lagging revenue in a tough market Trex is a maker of composite decking and wood alternatives. The company is tied to the housing and remodeling industries, and its value proposition includes a higher up-front cost in exch ...

Financial Data and Key Metrics Changes - In Q2 2024, net sales were $376 million, a 6% increase from $357 million in Q2 2023 [13] - Net income rose to $87 million or $0.80 per diluted share, up 13% from $77 million or $0.71 per diluted share a year ago [15] - EBITDA increased by 11% to $130 million, representing 34.6% of net sales, compared to $117 million or 32.8% of net sales in the previous year [15] - Year-to-date net sales for the first half of 2024 totaled $750 million, a 26% increase compared to $595 million in the first half of 2023 [16] - Gross margin improved to 44.7%, an 80 basis point increase from 43.9% in Q2 2023 [14] Business Line Data and Key Metrics Changes - Premium product sell-through grew at a double-digit rate, while entry-level product sales were below expectations [6][14] - The introduction of new products, such as Trex Transcend Lineage decking and Trex Signature lines, has been successful in appealing to higher-income consumers [6][8] - The Trex Select T-Rail product has gained market acceptance, leading to dealer and contractor conversions [8] Market Data and Key Metrics Changes - The company anticipates a decline in sales due to accelerated weakness in the entry-level product category and reduced pro channel inventories [11] - Approximately 60% of the projected sales decline is attributed to channel inventory reductions, with the remainder due to softness in low-end products [11] - The outdoor living category remains more resilient than the general repair and remodel market, with Trex positioned to benefit from long-term growth drivers [12] Company Strategy and Development Direction - New product introductions are a strategic priority to drive future growth, with a focus on offering better options than competitors [8] - The company aims to increase penetration in the $3.3 billion railing market and has launched new premium railing products [9] - Trex is committed to sustainability and has published its 2023 sustainability report, highlighting its efforts in circularity and community engagement [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite current economic uncertainty and consumer spending weakness, Trex is well-positioned for long-term success [12] - The company expects Q3 sales to range from $220 million to $230 million, with slight gross margin deterioration anticipated [19] - Management remains optimistic about the long-term demand for Trex products, driven by the aging decks in the U.S. and the trend of converting wood decks to composite [12][13] Other Important Information - Year-to-date operating cash flow was $20 million, a decrease from $108 million in 2023, primarily due to increased accounts receivable and inventory levels [17] - The company invested $73 million in capital expenditures related to the Arkansas manufacturing facility, which is on track for production startup in the first half of 2025 [17] Q&A Session Summary Question: Can you provide additional color on sell-through in the second half given channel destocking? - Management indicated that sell-through declined to a low single-digit in Q2 and expects a low single-digit decline in Q3 and a high single-digit decline in Q4, primarily due to channel inventory adjustments [22][23] Question: What is the company's willingness to continue ramping investments in new products? - Management affirmed that they will continue to pursue new markets and product investments despite the current operating environment [24] Question: Is there pressure on pricing, particularly at the low end? - Management noted that there has not been significant pricing pressure, and they have not seen deflationary factors affecting their business [38] Question: How is the company addressing inventory levels? - Management acknowledged elevated inventory levels due to new product rollouts and indicated a willingness to hold more inventory to service the market effectively [62] Question: What indicators suggest continued deceleration in sell-through into Q4? - Management mentioned tracking web metrics that indicated weakness starting in mid-June, which correlated with overall market performance [66]

Trex (TREX) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.27%. A quarter ago, it was expected that this maker of fencing and decking products would post earnings of $0.72 per share when it actually produced earnings of $0.82, delivering a surprise of 13.89%. Over the last four qua ...