Trex (TREX) Q4 2024 earnings summary

Executive summary

• Full-year 2024 net sales rose 5.2% to $1.2B, with net income and EPS up 10.2% year-over-year, driven by strong demand for premium and value-priced products and record new product launches.

• Q4 results exceeded expectations, with strategic focus on new product development, expanded market availability, and branding initiatives.

• Significant investments in the Arkansas facility and digital transformation to enhance efficiency and consumer experience.

• Secured new and expanded distribution commitments for railing products and expanded network in key U.S. and Canadian regions.

• Returned over $100M to shareholders via share repurchases in 2024.

Financial highlights

• Q4 2024 net sales were $168M, down 14.4% year-over-year, with channel inventories reduced by $45M.

• Q4 gross margin was 32.7%, net income $10M ($0.09/share), EBITDA $29M (17.2% margin), net income margin 5.8%.

• Full-year 2024 net sales reached $1.2B, gross profit $486M, gross margin 42.2%, net income $226M ($2.09/share), EBITDA $360M (31.3% margin).

• SG&A was $180M (15.6% of sales) for 2024; operating cash flow was $144M, down from $389M, due to increased inventories.

• Repurchased 1.6M shares for $100M in 2024.

Outlook and guidance

• 2025 net sales expected at $1.21–$1.23B, up 5–7% year-over-year, with adjusted EBITDA margin to exceed 31%.

• Adjusted EBITDA expected at $378M–$385M, despite higher branding and innovation investments.

• Q1 2025 revenue guidance: $325–$330M, with $40M in sales shifting to later quarters due to inventory strategy.

• SG&A to be ~16% of net sales; CapEx projected at $200M for 2025, mainly for Arkansas campus expansion.

• Double-digit growth anticipated in railing product sales; Repair & Remodel market expected to be flat.