Trex Earns 79 Cents per Share

After the close, Trex (TREX) reported fiscal Q2 earnings of 79 cents per share. Wall Street had been expecting 67 cents per share.

Sales rose 24% to $386 million. That was just above the company’s own range of $375 million to $385 million. EBITDA is up 41% to $129 million.

“Trex executed effectively on our wood-to-composite market share conversion strategy during the second quarter as consumers continued to invest in enhancing their outdoor living experience. Revenue increased 24%, aided primarily by favorable pricing as well as mid-single digit growth in volume at Trex Residential, reflecting both consumer demand and continued distributor inventory build, particularly in the pro channel. We delivered strong EBITDA margins in the second quarter as a result of our pricing, favorable mix, focused cost reduction efforts and production efficiencies, enabling us to successfully offset ongoing raw material and logistics inflationary pressures, while we continued to invest in our brand. Supported by our strong free cash flow, we repurchased 2.8 million shares of our outstanding common stock during the quarter, which we believe will provide long-term benefits to our shareholders,” said Bryan Fairbanks, President and CEO of Trex.

During the quarter, Trex bought back 2.8 million shares for an average price of $60.39 per share. They still have 4.3 million left in the current authorization.

Trex said it expects a significant slowdown in business for the rest of this year. Trex sees Q3 revenue of $185 million to $195 million, and Q4 between $180 million and $190 million.

Posted by on August 8th, 2022 at 4:19 pm


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