Trex posts strong sales in Q2

Composite decking manufacturer Trex Company reported second quarter consolidated net sales increased 41% to  $312 million from second quarter 2020 sales of $221 million.

Trex Residential sales rose 43% to $299 million while Trex Commerical sales contributed $13 million in revenue.

The Winchester, Va.-based manufacturer said the increase also reflects a price increase that was effective Jan. 1 to address inflationary pressures.

The company reported a net income of $61 million for the quarter, rising 30% from a net income of $47 million for the same period a year ago.

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The Bottom Line: Profits increase 30% to $61 million for the deck maker as sales jump 41% to $312 million.

What the CEO said: “Our strong second quarter revenue growth was driven by sustained broad-based demand across all Trex Residential product lines and market share gains from wood,” said Bryan Fairbanks. president and CEO of Trex. 

Fairbanks also noted that the completion of a $200 million capacity expansion program in May enabled Trex Residential to convert significant customer demand into a 43% increase in sales. 

“With the largest part of our capacity expansion behind us, we will now pivot to cost reduction projects and continuous improvement opportunities,” the CEO said. “These efforts will be focused on automation, modernization, energy efficiency and raw material processing.”

Company info: Click here to read the full second quarter 2021 financial report from Trex.