Trex Company sees Q4 revenue $185M-$195M, consensus $187.5M

The company states: “Our year-to-date performance reflects a substantial year-on-year recovery supported by consumer demand for our expanded portfolio of Trex products. Decking, railing and adjacencies represent a $14 billion market opportunity for Trex, which we plan to capture though programs to successfully increase attachment rates of railing to our decking products, additional investments in new products, and the continued cultivation of our market leading distribution platform. We expect to retain our position as the industry’s greenest and lowest cost manufacturer thanks to our unique use of recycled materials together with the benefits of ongoing cost-out programs and the future benefits from our world class Arkansas facility. Based on our current market visibility we are projecting fourth quarter revenues of $185 million to $195 million, reflecting both seasonally low demand and our expectation that year-end channel inventories will be below those of year-end 2022. With the fourth quarter estimates, this would imply full year revenue of $1.09 billion using the mid-point of the guidance. This is an increase from the prior guidance of $1.04 billion to $1.06 billion for the year. Additionally, we now expect our full year adjusted EBITDA margin to range from 29% to 29.5% compared to the 28% to 29% range we previously provided, which includes our expectation that SG&A spending will represent 15% to 16% of net sales for the year.”