Trex (NYSE:TREX) Announces Quarterly Earnings Results

Trex (NYSE:TREX) announced its earnings results on Wednesday. The construction company reported $0.55 earnings per share 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 company had revenue of $359.50 million for the quarter, compared to analyst estimates of $314.86 million. During the same quarter last year, the company earned $0.51 earnings per share. The firm’s quarterly revenue was up 26.0% compared to the same quarter last year.

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 Performance

TREX traded up $8.22 during mid-day trading on Wednesday, reaching $58.23. 3,134,553 shares of the stock were exchanged, compared to its average volume of 1,928,067. The stock has a market capitalization of $6.05 billion, a PE ratio of 34.60, a price-to-earnings-growth ratio of 2.93 and a beta of 1.46. The company has a 50 day moving average price of $45.74 and a two-hundred day moving average price of $43.23. Trex has a 1 year low of $29.77 and a 1 year high of $58.31.

Analysts Set New Price Targets

Several equities analysts recently commented on TREX shares. Deutsche Bank Aktiengesellschaft raised shares of Trex from a “hold” rating to a “buy” rating and increased their price objective for the company from $53.00 to $57.00 in a research note on Thursday, October 8th. Barclays reiterated an “underweight” rating and set a $42.00 price target (up from $36.00) on shares of Trex in a report on Tuesday, July 14th. Zacks Research cut Trex from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 14th. Truist Financial raised their price objective on Trex from $55.00 to $60.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Finally, UBS Group restated a “buy” rating and set a $61.00 price objective (up from $59.00) on shares of Trex in a research report on Tuesday, July 14th. Thirteen research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $50.48.

Insider Activity at Trex

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of the business’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 transaction, the senior vice president directly owned 67,794 shares in the company, valued at $3,394,445.58. The trade was a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.93% of the company’s stock.

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.