Wood-alternative decking and railing manufacturer Trex posted consolidated net sales of $228.2 million for the fourth quarter 2020, jumping 39% from net sales of $164.7 million in the fourth quarter 2019.
Trex Residential Products net sales increased 40% to $214 million driven by continued demand across all product lines during a quarter that traditionally experiences reduced home improvement and construction activity, the company said.
Trex Commercial Products contributed $15 million to consolidated fourth quarter sales.
Consolidated net sales in 2020 were $881 million, rising 18% above the $745 million in 2019. Sales of Trex Residential Products net sales were up 19% to $828 million for the year. Trex Commercial Products contributed an additional $53 million to consolidated net sales.
Net income for the fourth quarter was $43 million, up 22% from a net income of $35 million in the prior fourth quarter.
For the full year, Trex reported a net income of $176 million, increasing 21% from a net income of $145 million in 2019.
The Bottom Line: Profits at Trex climb 22% to $43 million during the fourth quarter as decking demand drives a 39% increase in sales for the period.
What the CEO said: “Demand for Trex Residential products continues to benefit from positive secular trends, including growth in the outdoor living category, renewed focus on the home, the shift in populations from urban to suburban and smaller metropolitan areas, and consumers’ increasing preference for sustainable products,” said Trex CEO and President, Bryan Fairbanks. “With the strength of outdoor living trends continuing, we expect our brand leadership and new capacity to allow us to drive growth across our product portfolio, including a significant opportunity for conversion from wood to Trex sustainable composite decking and railing.”
Company info: The full fourth quarter 2020 financial report from Trex is available here.