Trex Company Exceeds Expectations in 2024 Q4, Sets Stage for Record-Breaking New Product Launches
Trex Company, a leading manufacturer of high-performance outdoor living products, has reported strong-than-expected results for its fourth quarter and full year 2024. The company exceeded its revenue guidance for both sales and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key indicator of financial performance.
In his opening remarks on the conference call, Bryan Fairbanks, President and Chief Executive Officer of Trex Company, expressed gratitude to the company's channel partners, distributors, contractors, and consumers for driving its performance in 2024. He also thanked the Trex team members at every level for their dedication to excellence.
The company experienced strong demand for its premium products in the fourth quarter, with strengthening sequential demand for value-priced products. This outperformance is a testament to the positive operating leverage gained on higher utilization and production efficiencies yielded by the company's continuous cost-out programs.
Trex Company has prioritized new product development and market launches as long-term growth drivers. Products launched within the last 36 months accounted for approximately 20% of its full-year revenues, demonstrating the success of this strategy. The company is poised to launch a record number of new products in 2025, with between 10-15 new products slated for introduction.
The premium decking line, Transcend Lineage, continued to drive strong consumer demand at the high end of the market, thanks to its innovative heat mitigating technology, SunComfortable. This feature has garnered very positive responses from channel partners and consumers alike.
In late 2024, Trex Company introduced two new colors to its enhanced decking line, both featuring SunComfortable technology. The company also announced a new generation of Trex Select decking with three new colors, fresh patterns, and SunComfortable technology. This second-generation select product will continue to fill the needs of mid-priced buyers in the $4.50 to $5 per linear foot price range.
With its strong track record and strategic initiatives in place, Trex Company is well-positioned for continued long-term growth and success.
