Trex (NYSE:TREX) Announces Quarterly Earnings Results

Trex (NYSE:TREX) released its quarterly earnings data on Wednesday. The construction company reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.07, FiscalAI reports. Trex had a return on equity of 18.03% and a net margin of 14.68%. The business had revenue of $359.50 million during the quarter, compared to the consensus estimate of $314.86 million. During the same period in the prior year, the firm posted $0.51 EPS. The business’s revenue for the quarter was up 26.0% on a year-over-year basis.

Here are the key takeaways from Trex’s conference call:

• Trex reported record third-quarter revenue of about $360 million, up 26%. Management estimated underlying growth at roughly 15%—excluding about $30 million from new-distributor inventory load-ins—more than double its estimate of 6% growth for the overall decking category.
• Trex raised its full-year 2026 outlook, projecting net sales of $1.296 billion–$1.306 billion and adjusted EBITDA of $355 million–$360 million. It also generated about $135 million in quarterly free cash flow and repurchased $55 million of shares during the quarter.
• Adjusted gross margin fell to 36.9%, pressured by higher freight costs, labor inefficiencies, increased depreciation, and startup costs. More than $4 million of incremental inbound freight expense was tied primarily to higher diesel prices; Trex is considering a temporary surcharge for home-center sales.
• Trex said its Arkansas facility began production ahead of schedule and remains on track to have half its decking capacity operational by year-end, though a mechanical issue increased startup costs and was resolved. Management sees the facility supporting growth and efficiency over time, and reiterated its ambition to reach $2 billion in annual revenue by 2030.

Trex Stock Down 0.1%

Shares of TREX stock traded down $0.07 during trading on Thursday, hitting $57.08. The company had a trading volume of 2,367,666 shares, compared to its average volume of 1,943,470. The stock has a market capitalization of $5.93 billion, a price-to-earnings ratio of 33.97, a price-to-earnings-growth ratio of 2.90 and a beta of 1.46. The stock’s 50-day moving average is $45.95 and its two-hundred day moving average is $43.31. Trex has a 52 week low of $29.77 and a 52 week high of $60.21.

Insider Activity at Trex

In other news, SVP Amy M. Fernandez sold 1,050 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the completion of the sale, the senior vice president directly owned 67,794 shares of the company’s stock, valued at approximately $3,394,445.58. This trade represents a 1.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.93% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of analysts have recently commented on TREX shares. UBS Group reissued a “buy” rating and issued a $61.00 price objective (up from $59.00) on shares of Trex in a research note on Tuesday, July 14th. Stifel Nicolaus set a $55.00 target price on shares of Trex and gave the stock a “buy” rating in a report on Monday, October 19th. Citigroup reissued a “neutral” rating and issued a $52.00 price target (up from $43.00) on shares of Trex in a research note on Wednesday, July 15th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $56.00 price objective (up from $49.00) on shares of Trex in a research report on Friday, July 10th. Finally, Weiss Ratings upgraded shares of Trex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 1st. Thirteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $53.72.

Key Headlines Impacting Trex

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported Q3 revenue of $359.5 million, up 26% year over year and well above expectations, while adjusted earnings of $0.55 per share also topped estimates. The company described the quarter as a record, its second consecutive record quarter. Trex Shares Rise After Higher 3Q Profit, Sales
• Positive Sentiment: Management raised its 2026 sales outlook to $1.296 billion–$1.306 billion and set a longer-term goal of $2 billion in revenue by 2030. It cited execution of its distribution strategy and the ramp-up of its Arkansas facility as parts of the growth outlook. Trex raises sales outlook and sets 2030 revenue target
• Positive Sentiment: Bank of America upgraded TREX from “underperform” to “buy” and raised its price target to $65 from $46. Truist Financial also raised its target to $75 from $60 and maintained a “buy” rating, adding to the positive analyst sentiment.

Trex Company Profile

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company’s products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company’s focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.