Residential demand pushes Trex Q1 sales
Trex reported first quarter 2021 sales leaped 23% to $246 million compared to sales of $200.4 million in the first quarter of 2020.
Residential sales increased 25% to $233 million for the period while commercial products contributed $13 million to sales for the quarter.
In the company’s financial report, Trex said attributed growth in residential sales to “sustained broad-based demand and continued strong secular trends across the company’s outdoor living products and consumers’ increasing preference for environmentally sustainable products.”
The Winchester, Va.-based composite decking and accessories manufacturer also reported a first quarter net income of $49 million. This marks a 14% increase over a net income of $42 million in the first quarter a year ago.
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The Bottom Line: Strong residential decking demand pushes Trex sales up 23% as the company’s net income increases 14% to $49 million.
What the CEO said: “Sustained demand for Trex Residential products and accelerated market share gains from wood drove first quarter sales growth, laying the foundation for another year of strong double-digit revenue growth in 2021,” said Trex President and CEO Bryan Fairbanks. “At the same time, capacity expansion at our new state-of-the-art manufacturing facility in Virginia is coming on faster than originally anticipated. We now expect all lines in our new plant to be fully operational by the end of May, 30 days ahead of schedule.”
When completed, capacity expansion investments will provide Trex with approximately 70% more capacity when compared to 2019 volume levels.
Company info: Click here to read the full first quarter financial report from Trex.