Residential Products Drive Trex Growth

Trex Company, Inc. had consolidated net sales of $336 million for the third quarter of 2021, an increase of 45 per cent over net sales of $232 million in the third quarter of 2020. Trex residential net sales increased 46 per cent to $319 million, with Trex commercial contributing $17 million to net sales. The increase in net sales was largely due to volume growth across all Trex residential product lines; however, labour shortages constrained the extent of the volume growth. Consolidated gross margin for the quarter was 38.2 per cent compared to 36.7 per cent in the year-ago quarter. Third quarter 2021 gross margin for Trex residential and Trex commercial were 38.9 per cent and 24 per cent, respectively, compared to 37.4 per cent and 24.4 per cent last year. Net income was $74 million compared to $43 million. Earnings before taxes increased 76 per cent to $108 million and EBITDA margin was 32.2 per cent compared to $68 million and 29.4 per cent last year.