Latest news with #BryanFairbanks
Business Wire
11 hours ago
- Business
- Business Wire
Trex Company Announces Departure of Chief Financial Officer
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. (NYSE:TREX), the world's largest manufacturer of wood-alternative decking and railing and a leader in high-performance, low-maintenance outdoor living products, today announced that Brenda Lovcik has resigned as Senior Vice President and Chief Financial Officer (CFO) to accept a position in Minnesota, near to her family. 'We appreciate Brenda's contributions to the Trex Company and the financial experience she brought to our organization. Brenda has been a valuable member of our executive leadership team, and we wish her the very best in her future endeavors,' said Bryan Fairbanks, President and Chief Executive Officer (CEO). Ms. Lovcik will continue to serve as CFO through August 5, 2025, at which time the CFO responsibilities at Trex will be assumed on an interim basis by Bryan Fairbanks. Mr. Fairbanks served as CFO from August 2015 until being named CEO and a member of the Board in April 2020. Trex is pleased to reiterate its guidance for full year 2025 revenue growth of 5%-7% and Adjusted EBITDA margin to exceed 31% and is on track to achieve its second quarter revenue guidance of $370 million to $380 million. The company has begun a search to identify the next CFO. About Trex Company For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world's #1 brand of sustainably made wood-alternative decking, and residential railing, as well as a leader in high performance, low-maintenance outdoor living products. Trex boasts the industry's strongest distribution network with products sold through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex ® brand. Based in Winchester, Va., Trex is proud to have been named America's Most Trusted ® Outdoor Decking ^ 5 Years in a Row (2021-2025). The company also holds a place on Barron's list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America's Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor's Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15 th consecutive year. For more information, visit You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand's YouTube channel (TheTrexCo). Forward-Looking Statements The statements in this press release regarding the Company's expected future performance and condition constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company's current and newly developed products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company's business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company's products; the availability and cost of third-party transportation services for the Company's products and raw materials; the Company's ability to obtain raw materials, including scrap polyethylene, wood fiber, and other materials used in making our products, at acceptable prices; increasing inflation and tariffs in the macro-economic environment; the Company's ability to maintain product quality and product performance at an acceptable cost; the Company's ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Yahoo
13-06-2025
- Business
- Yahoo
Unpacking Q1 Earnings: Trex (NYSE:TREX) In The Context Of Other Home Construction Materials Stocks
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including Trex (NYSE:TREX) and its peers. Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies. The 12 home construction materials stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts' consensus estimates. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture. Trex reported revenues of $340 million, down 9% year on year. This print exceeded analysts' expectations by 3.5%. It was a decent quarter for the company with a narrow beat of analysts' adjusted operating income estimates. 'First quarter sales exceeded our expectations driven by the continued strength of our premium products and our prominent position in both retail and the pro-channel,' said Bryan Fairbanks, President and CEO. The stock is down 2.7% since reporting and currently trades at $56.73. Is now the time to buy Trex? Access our full analysis of the earnings results here, it's free. Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products. Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $156.87. Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free. Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets. Masco reported revenues of $1.80 billion, down 6.5% year on year, falling short of analysts' expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Interestingly, the stock is up 4.1% since the results and currently trades at $63.86. Read our full analysis of Masco's results here. Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation. American Woodmark reported revenues of $400.4 million, down 11.7% year on year. This print came in 6.6% below analysts' expectations. It was a softer quarter as it also recorded full-year EBITDA guidance missing analysts' expectations. American Woodmark had the weakest performance against analyst estimates among its peers. The stock is down 2.4% since reporting and currently trades at $55.20. Read our full, actionable report on American Woodmark here, it's free. Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components. Quanex reported revenues of $452.5 million, up 70% year on year. This number beat analysts' expectations by 3.2%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Quanex delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 16.5% since reporting and currently trades at $19.93. Read our full, actionable report on Quanex here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
TREX Q1 Earnings Call: New Product Mix and Distribution Strategy Drive Outlook Amid Margin Pressures
Composite decking and railing products manufacturer Trex Company (NYSE:TREX) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 9% year on year to $340 million. Its non-GAAP profit of $0.60 per share was in line with analysts' consensus estimates. Is now the time to buy TREX? Find out in our full research report (it's free). Revenue: $340 million vs analyst estimates of $328.4 million (9% year-on-year decline, 3.5% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.59 (in line) Adjusted EBITDA: $95.91 million vs analyst estimates of $99.59 million (28.2% margin, 3.7% miss) Operating Margin: 24%, down from 31.9% in the same quarter last year Organic Revenue fell 9% year on year (56.5% in the same quarter last year) Market Capitalization: $6.12 billion Management pointed to robust demand for Trex's premium composite decking and railing products as a key factor behind higher-than-expected sales in the latest quarter, despite a year-over-year revenue decline. CEO Bryan Fairbanks highlighted that new product launches contributed 22% of trailing 12-month sales, more than twice last year's level, underscoring the company's emphasis on portfolio innovation. Channel inventory practices also played a role, with the company implementing a new inventory strategy to reduce volatility and better align production with market demand. Management also cited distribution enhancements and dealer conversions as supporting factors during the quarter. Looking ahead, management expects mid to high-single-digit sales growth for the year, supported by continued momentum in premium and entry-level product lines and further expansion in the railing segment. Fairbanks expressed confidence that Trex will outperform the broader repair and remodel market, referencing pent-up demand and market share gains as drivers. CFO Brenda Lovcik added that margin improvements are anticipated in the second half, as costs associated with product changeovers and new manufacturing initiatives subside. Management remains watchful of potential headwinds, such as tariffs on aluminum and steel, but has initiated mitigation strategies including supplier diversification and inventory planning. Management attributed quarterly results to strong uptake of recently launched products, expanded dealer relationships, and ongoing investments in manufacturing and digital transformation. New product launches: Products introduced in the past three years now account for 22% of sales, with management highlighting consumer and contractor enthusiasm for features like the SunComfortable technology, originally developed for the Transcend Lineage line and now expanded to other offerings. Dealer conversions and channel strategy: Trex accelerated dealer conversions and TrexPro contractor recruitment, aided by last year's distribution enhancements, leading to improved brand alignment and market reach. Inventory strategy shift: The company's new approach to inventory management aims to reduce quarterly volatility and ensure partners are stocked appropriately, allowing more consistent production and improved operating efficiency. Manufacturing investment: The Arkansas campus began producing recycled plastic pellets, reducing reliance on external suppliers and supporting cost efficiency across manufacturing sites. This milestone advances Trex's broader continuous improvement program. Segment performance: While demand for premium products remained strong, the entry-level segment began to recover, supported by refined product specifications and expanded color options in the mid-tier Select line. Railing products also saw double-digit growth, benefiting from expanded distributor partnerships. Trex's management sees product innovation, distribution expansion, and operational improvements as central to its growth and margin outlook for the remainder of the year. Product mix evolution: Continued investment in new products, including expanded color options and proprietary technologies, is expected to drive share gains in both the premium and entry-level segments. Management believes this will help Trex outpace the broader repair and remodel market. Operational efficiency gains: The ongoing ramp-up of the Arkansas manufacturing campus and continuous improvement initiatives are projected to enhance margins, particularly as costs tied to product transitions diminish in the second half of the year. Tariff and supply chain mitigation: While less than 5% of cost of sales is directly exposed to tariffs, Trex is taking proactive steps such as supplier diversification, inventory pre-builds, and negotiations with vendors to offset potential cost pressures. Management is monitoring the regulatory environment for further impacts. In upcoming quarters, the StockStory team will watch (1) whether new product introductions continue to gain traction among both contractors and consumers, (2) the pace and impact of expanded distributor relationships on geographic and segment growth, and (3) margin progression as the Arkansas facility ramps up and one-time costs decline. Execution on inventory management and tariff mitigation will also remain important indicators of operational effectiveness. Trex currently trades at a forward P/E ratio of 25.8×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Trex Co Inc (TREX) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: $340 million, a decrease of 9% compared to $374 million in Q1 2024. Gross Profit: $138 million with a gross margin of 40.5%, down from $170 million and 45.4% margin in Q1 2024. Net Income: $60 million or $0.56 per diluted share, a decrease of 32% from $89 million or $0.82 per diluted share in Q1 2024. Adjusted Net Income: $64 million or $0.60 per diluted share. Adjusted EBITDA: $101 million, down 24% from $133 million in Q1 2024. SG&A Expenses: $56 million or 16.5% of net sales, compared to $51 million or 13.5% of net sales in Q1 2024. Adjusted SG&A Expenses: $55 million or 16% of net sales. Full-Year 2025 Guidance: Net sales growth of 5% to 7%, adjusted EBITDA margin to exceed 31%, SG&A expenses approximately 16% of net sales. Q2 2025 Sales Guidance: Expected to be in the range of $370 million to $380 million. Capital Expenditures: Projected to be approximately $200 million for the full year 2025. Warning! GuruFocus has detected 4 Warning Signs with TREX. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Trex Co Inc (NYSE:TREX) reported higher-than-expected sales in the first quarter, driven by strong demand for premium products and effective positioning in home centers and the pro channel. New products launched within the last 36 months accounted for approximately 22% of trailing 12-month sales, showcasing Trex's innovation and market share gains. The company successfully converted more dealers to the Trex brand, with TrexPro recruitment and qualification significantly ahead of the previous year. Trex launched a new marketing campaign highlighting the performance advantages of its products, including marine-grade decking and SunComfortable technology. The new manufacturing campus in Arkansas began producing recycled plastic pellets, contributing to cost savings and enhancing operational efficiency. Net sales decreased by 9% compared to the previous year, primarily due to the absence of a $40 million channel inventory build that occurred last year. Gross margin decreased by 490 basis points, impacted by railing conversion costs, lower production levels, and changes to the production process for entry-level decking. Net income decreased by 32% year-over-year, reflecting higher expenses related to strategic initiatives and startup costs. The company faces potential impacts from tariffs, with less than 5% of cost of sales projected to be affected, primarily related to aluminum and steel purchases. Trex incurred several expenses tied to strategic initiatives, including startup costs for the Arkansas operation and investments in digital transformation, impacting short-term profitability. Q: Can you explain the changes made to the enhanced decking and the expected impact on sales? A: Bryan Fairbanks, President and CEO, explained that customer feedback led to manufacturing changes in the enhanced decking to improve strength and aesthetics. These changes are expected to result in stronger sales, although there were some changeover costs in the first quarter. Q: Are the factors impacting Q1 margins expected to continue into Q2? A: Brenda Lovcik, CFO, stated that the factors affecting Q1 margins, such as railing conversion costs and production changes, are temporary and will reverse in the second half of the year. Q: How do you expect seasonality to affect sales in the second half of the year? A: Bryan Fairbanks noted that the company expects a typical seasonal pattern, with strong sales in Q2, a slight decline in Q3, and a significant drop in Q4 as the channel prepares for the next year. Q: How are the new distributor relationships impacting sales and market presence? A: Bryan Fairbanks highlighted that the focus of distributors on Trex products has led to significant dealer conversions and improved market presence, particularly with the new railing products. Q: What are the priorities for capital allocation moving forward? A: Bryan Fairbanks stated that the priorities remain acquisitions, organic growth, and share buybacks. The company expects increased free cash flow as capital expenditures decline after the Arkansas facility development. Q: How is the entry-level product segment performing, and what are the expectations? A: Bryan Fairbanks noted that the entry-level segment is stabilizing, with sequential improvements seen over the past two quarters, driven by pent-up demand in the repair and remodel market. Q: Can you provide more details on the impact of tariffs and mitigation strategies? A: Bryan Fairbanks mentioned that less than 5% of cost of sales is impacted by tariffs, with mitigation efforts including supplier negotiations and sourcing adjustments. The company is committed to minimizing the impact. Q: What are the expected benefits of the digital transformation initiatives? A: Brenda Lovcik outlined that the digital transformation aims to optimize business processes, enhance data utilization for decision-making, and improve customer experience, ultimately driving operational efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Trex's (NYSE:TREX) Q1 Sales Top Estimates
Composite decking and railing products manufacturer Trex Company (NYSE:TREX) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 9% year on year to $340 million. Its GAAP profit of $0.56 per share was 4.1% below analysts' consensus estimates. Is now the time to buy Trex? Find out in our full research report. Revenue: $340 million vs analyst estimates of $328.4 million (9% year-on-year decline, 3.5% beat) EPS (GAAP): $0.56 vs analyst expectations of $0.58 (4.1% miss) Adjusted EBITDA: $95.91 million vs analyst estimates of $99.59 million (28.2% margin, 3.7% miss) Operating Margin: 24%, down from 31.9% in the same quarter last year Free Cash Flow was -$79.49 million compared to -$211.8 million in the same quarter last year Market Capitalization: $6.06 billion 'First quarter sales exceeded our expectations driven by the continued strength of our premium products and our prominent position in both retail and the pro-channel,' said Bryan Fairbanks, President and CEO. Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Trex's 7.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Trex's recent performance shows its demand has slowed as its annualized revenue growth of 5.4% over the last two years was below its five-year trend. This quarter, Trex's revenue fell by 9% year on year to $340 million but beat Wall Street's estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to grow 10.8% over the next 12 months, an improvement versus the last two years. This projection is healthy and indicates its newer products and services will spur better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Trex has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 24.5%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Trex's operating margin decreased by 2.2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q1, Trex generated an operating profit margin of 24%, down 7.8 percentage points year on year. Since Trex's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Trex's EPS grew at an unimpressive 6.5% compounded annual growth rate over the last five years, lower than its 7.8% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of Trex's earnings can give us a better understanding of its performance. As we mentioned earlier, Trex's operating margin declined by 2.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Trex, its two-year annual EPS growth of 14.8% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q1, Trex reported EPS at $0.56, down from $0.82 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Trex's full-year EPS of $1.82 to grow 23.8%. We were impressed by how significantly Trex blew past analysts' revenue expectations this quarter. On the other hand, its EPS missed and its EBITDA fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 1.4% to $57.50 immediately after reporting. Trex didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
