Trex Company Inc
NYSE:TREX

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Trex Company Inc Logo
Trex Company Inc
NYSE:TREX
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Price: 36.22 USD 1.09%
Market Cap: 3.9B USD

Trex Company Inc
Investor Relations

Trex Company Inc. has carved out a remarkable niche in the outdoor living industry, becoming the leading manufacturer of wood-alternative decking and railing products. Founded in 1996, Trex demonstrated a visionary commitment to sustainability by pioneering composite materials that blend recycled wood and plastic. This innovative approach not only resonates with eco-conscious consumers but also provides durable, low-maintenance solutions that outperform traditional timber. As the popularity of outdoor spaces has surged, especially post-pandemic, Trex has capitalized on this trend, positioning itself at the forefront of a booming market that emphasizes quality, longevity, and environmental responsibility.

Investors looking at Trex Company Inc. will find a company with a strong track record of revenue growth and profitability, driven by its innovative product offerings and robust brand loyalty. With a focus on expanding its production capacity and advancing its distribution capabilities, Trex is poised to capture a larger share of the outdoor living market. Furthermore, its strategic investments in research and development ensure that it stays ahead of competitors, continually enhancing its products to meet changing consumer demands. As sustainability becomes a focal point for both consumers and investors alike, Trex stands out as a compelling choice for those interested in combining financial opportunity with environmental stewardship.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 4, 2025
AI Summary
Q3 2025

Revenue Growth: Trex reported Q3 2025 net sales of $285 million, up 22% year-over-year, but this was 5% below the midpoint of the company’s guidance.

Profitability: Gross margin improved to 40.5% (up 60 bps YoY), with gross profit rising 23.9% and adjusted EBITDA up 33%.

Market Conditions: Consumer demand softened after July, with sell-through growth slowing to low single digits, impacting results across all channels.

Muted Outlook: The company lowered full-year sales guidance to $1.15–$1.16 billion (flat YoY) and expects a muted Q4, with anticipated sales of $140–$150 million.

SG&A and Marketing: Trex is increasing branding and marketing spend in response to a more competitive market, targeting SG&A at 18% of net sales in 2026.

Margin Headwinds: 2026 gross margins are expected to decrease by about 250 basis points due to depreciation from the Arkansas facility and product mix changes.

Share Repurchase: The board authorized a $50 million share buyback program, reflecting confidence in long-term prospects.

Arkansas Facility: Continued investment in the new state-of-the-art Arkansas plant is ahead of expectations and will be largely completed next year, with associated depreciation ramping in 2026.

Key Financials
Net Sales (Q3 2025)
$285 million
Net Sales (Q3 2024)
$234 million
Gross Profit (Q3 2025)
$115 million
Gross Profit (Q3 2024)
$93 million
Gross Margin (Q3 2025)
40.5%
Gross Margin (Q3 2024)
39.9%
Adjusted EBITDA (Q3 2025)
$90 million
Adjusted EBITDA (Q3 2024)
$68 million
Net Income (Q3 2025)
$52 million
Net Income (Q3 2024)
$41 million
Earnings Per Share (Q3 2025)
$0.48 per diluted share
Earnings Per Share (Q3 2024)
$0.37 per diluted share
Net Sales (YTD 2025, 9 months)
$1 billion
Net Sales (YTD 2024, 9 months)
$984 million
Net Income (YTD 2025, 9 months)
$188 million
Net Income (YTD 2024, 9 months)
$217 million
Earnings Per Share (YTD 2025, 9 months)
$1.75 per diluted share
Earnings Per Share (YTD 2024, 9 months)
$1.99 per diluted share
Operating Cash Flow (YTD 2025, 9 months)
$293 million
Operating Cash Flow (YTD 2024, 9 months)
$152 million
Capital Expenditures (YTD 2025, 9 months)
$188 million
Full-Year Net Sales Guidance (2025)
$1.15–$1.16 billion
Q4 2025 Net Sales Guidance
$140–$150 million
Full-Year Adjusted EBITDA Margin Guidance (2025)
28%–28.5%
SG&A Expenses Guidance (2025)
16.5%–17% of net sales
Interest Expense Guidance (2025)
less than $2 million
Depreciation Guidance (2025)
$60 million–$65 million
Effective Tax Rate Guidance (2025)
26%
Share Repurchase Authorization
$50 million
Gross Margin Guidance Change (2026)
down approximately 250 bps
SG&A Target (2026)
approximately 18% of net sales
Earnings Call Recording
Other Earnings Calls

Management

Ms. Brenda K. Lovcik
Senior VP & CFO
No Bio Available
Ms. Amy M. Fernandez
Senior VP, Chief Legal Officer & Secretary
No Bio Available
Dr. Anand Kangala
VP & Chief Information Officer
No Bio Available
Ms. S. Leslie Adkins
Group VP of Marketing and ESG Development
No Bio Available
Frank J. De Iuliis
Group Vice President of Retail & International Sales
No Bio Available
Jacob T. Rudolph
Senior VP & Chief Human Resources Officer
No Bio Available
Viktoriia Nakhla
AdvisIRy Partner
No Bio Available

Contacts

Address
VIRGINIA
Winchester
160 Exeter Dr
Contacts
+15405426300.0
www.trex.com