Trex posts Q2 gains
Winchester, Virginia-based Trex Company posted second quarter net sales of $376 million, an increase of 5.6 percent.
Net income increased 16.8 percent to 90.0 million.
President and CEO Bryan Fairbanks said sales were led by the company’s premium products, including Trex Transcend Lineage and Trex Signature decking. Contractor lead-time in these products averaged six to eight weeks, he said.
The company pointed to softness in the entry-level segment.
Lower-priced lines performed below expectations, he said, a result that was “consistent with recent data indicating lower than anticipated purchasing by consumers in this segment.”
Fairbanks added:”We expect additional softness in this market in the second half of this year. Conversely, our premium product sales continue to outperform entry-level products, and pro channel inventories are aligning with projected demand.”
The CEO described the economic environment as “uncertain.”
"Looking ahead to the second half of 2024, we see encouraging data related to our mid-market and premium product sales and expect that channel inventory levels at the end of the year will be slightly lower than 2023 year-end levels,” Fairbanks said.
Positive macro trends include the large number of decks in the U.S. that are beyond replacement age, the CEO said. Also, the record growth in U.S. homes that are candidates for remodel projects, and “the ongoing conversion from wood to composites.”
