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Trex Company Reports Strong Results in Second Quarter – Residential Revenues Grew 43 % Reflecting Continued Broad - Based Demand - Additional Decking Lines to Further Boost Recently Expanded Capacity - -40 % Revenue Growth at Mid - point of Guidance Expected in Third Quarter 2021 - Second Quarter 2021 Highlights - Consolidated net sales increased 41 % to $ 312 million - Diluted earnings per share of $ 0.53 , up 29 % - EBITDA increased 36 % to $ 92 million ; EBITDA margin of 29.4 % Exhibit 99.1 WINCHESTER , Va .-- ( BUSINESS WIRE ) -- August 2 , 2021 -- Trex Company , Inc. ( NYSE : TREX ) , the world's # 1 brand of composite decking and railing and leader in high - performance , low - maintenance and eco - friendly outdoor living products and a leading national provider of custom - engineered commercial railing systems , today reported second quarter 2021 results and year - to - date performance . " Our strong second quarter revenue growth was driven by sustained broad - based demand across all Trex Residential product lines and market share gains from wood . The completion of our $ 200 million capacity expansion program in May enabled Trex Residential to convert significant customer demand into an impressive 43 % increase in sales . Additionally , we are pleased with the success of our tiered product strategy , which supports consumer decision - making by providing a range of product aesthetics , features and price points that have broad appeal and distinct competitive advantages over wood . With the largest part of our capacity expansion behind us , we will now pivot to cost reduction projects and continuous improvement opportunities . These efforts will be focused on automation , modernization , energy efficiency and raw material processing . " As expected , higher raw material costs and logistic expenses pressured second quarter gross margin . Together with the start - up expenses related to our capacity expansion program , these additional costs reduced gross margin by approximately 400 basis points compared to second quarter 2020. This negative impact was partially offset by robust sales growth in the Residential segment , which resulted in EBITDA growth of 36 % . The previously announced price increase that was effective August 1 , along with the continued benefits of greater - than - projected productivity experienced in our new Virginia facility , will serve to manage a portion of the inflationary pressures that we have experienced in the first half of this year , " said Bryan Fairbanks , President and CEO .