Trex(US:TREX)2023-03-10 18:38Company Overview & Strategy - Trex has over 30 years of leadership in the outdoor living industry, focusing on sustainable product innovation and driving conversion from wood [3] - The company's strategic growth drivers include leveraging the Trex brand, consumer engagement, channel support, licensing, and wood conversion [5] - Trex is expanding its reach through unparalleled distribution networks, targeting contractors, DIY enthusiasts, and international markets [5] - The company optimizes operations through a unique recycling business model, vertical integration, cost reduction, and consistent improvement in manufacturing throughput [5] - Trex is expanding with a 3rd production site in Arkansas, providing proximity to raw materials, a strong labor market, and key growth regions for wood conversion [7] Market & Product - The decking & railing market is valued at $8 billion, with composite share for 2021 at approximately 25%, up over 300 bps compared to 2020 [6] - A 1% gain in wood market share is worth $80 million in annual composite sales [6, 8] - Trex's new product introductions include Trex Lineage, setting a new standard for style in outdoor living [11, 15] Financial Performance & Capital Allocation - Trex has attractive long-term financial performance with a 14% CAGR in consolidated adjusted sales [28] - The company's capital allocation strategy involves reinvesting in the business, capacity expansion, and share repurchases, with over $630 million in capital expenditures since 2016 [5, 25] - Trex anticipates $400 million in plant expenditures for the Arkansas site through a modular building approach, with spending occurring into 2026 [25] - The company spent $395 million in FY 2022 on share repurchases [26]