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Trex Company, Inc. (NYSE:TREX) reported better-than-expected fourth quarter results and provided an upbeat outlook for 2025, sending shares up 6% in after-hours trading Monday.
The wood-alternative decking manufacturer posted Q4 adjusted earnings per share of $0.09, surpassing analyst estimates of $0.04. Revenue came in at $168 million, exceeding the consensus forecast of $159.29 million. While sales declined 14.4% YoY due to a $45 million reduction in channel inventory, the results topped expectations.
For the full year 2024, Trex saw net sales increase 5.2% to $1.2 billion. Net income rose 10.2% to $226 million, or $2.09 per diluted share. EBITDA grew 10.4% to $360 million, with EBITDA margin expanding 150 basis points to 31.3%.
Looking ahead, Trex provided an optimistic outlook for 2025. The company expects full-year net sales between $1.21 billion and $1.23 billion, representing 6% YoY growth at the midpoint and surpassing the analyst consensus of $1.21 billion.
"We continue to see positive Residential sell-through growth, strong contractor backlogs, and favorable customer surveys, that all suggest optimism as we head into 2025," said Bryan Fairbanks, President and CEO of Trex.
Fairbanks highlighted the company’s strategic priorities, including introducing a record number of new decking and railing products. He noted that products launched within the last 36 months accounted for approximately 18% of 2024 revenues.
The company expects adjusted EBITDA margin to exceed 31% in 2025, consistent with 2024 levels despite increased investments in branding and product innovation.
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