Trex Company ( (TREX) ) has released its Q1 earnings. Here is a breakdown of the information Trex Company presented to its investors.
Trex Company, Inc., the world’s largest manufacturer of wood-alternative decking and railing, is a leader in high-performance, low-maintenance outdoor living products. Based in Winchester, Virginia, Trex has been a pioneer in the composite decking industry for over 30 years.
In the first quarter of 2025, Trex Company reported net sales of $340 million, exceeding its guidance due to strong demand for its premium products. The company also reaffirmed its full-year revenue growth guidance of 5%-7% and expects an adjusted EBITDA margin to exceed 31%.
Key financial highlights for the quarter include a gross profit of $138 million and an adjusted EBITDA of $101 million. New products accounted for 22% of sales over the trailing twelve months, and the company continues to expand its market share through pro-dealer conversions and enhanced distribution coverage. Trex also launched new innovations such as the SunComfortable™ heat-mitigating technology.
Looking ahead, Trex anticipates second-quarter revenue between $370 million and $380 million, with expectations of improved gross margins in the latter half of the year. The company remains optimistic about its growth prospects, driven by strong demand for its premium and entry-level products, as well as double-digit growth in its railing product sales.