Trex sales edge ahead

Trex, the wood alternative decking manufacturer, reported fourth quarter 2023 sales increased 2% to $196 million from sales of $192 million in the fourth quarter 2022.

The Winchester, Virginia-based company said sales in the quarter were driven by increased volume and the absence of the residual channel inventory drawdown that occurred in the 2022 fourth quarter.

For the full year 2023, Trex saw sales of about $1.1 billion, flat compared to consolidated 2022 sales.

The manufacturer posted a net income of $22 million for the fourth quarter, nearly a 14% decline from a net income of $25.5 million for the same period in the prior fiscal year.

The company’s full-year net income hit $205 million, rising nearly 11% from a 2022 net income of $185 million.

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The Bottom Line: Trex sees fourth quarter sales move ahead 2% as profits for the year rise by nearly 11%.

What the CEO said: “Fourth quarter results represented a strong finish to the year,” said Trex President and CEO, Bryan Fairbanks. “Sales were above the high end of our guidance range, reflecting strong demand for Trex products heading into 2024. Channel sell-through remained at mid-single-digit levels in the fourth quarter and channel inventories ended the year at historically low levels.”

“Also, our recently launched products are continuing to gain traction in the marketplace,” Fairbanks added. “Notably, our Trex Transcend Lineage decking line, which offers consumers the look and feel of wood together with heat mitigation technology has garnered considerable consumer interest, along with Trex Select® T-Rail, our high-performance, value-priced composite rail system, and the premium Trex Signature® decking line, which replicates the graining and color richness of tropical hardwoods.”

Company info: Click here to read the full fourth quarter 2023 and full-year financial report from Trex.