Trex (NYSE:TREX) Announces Quarterly Earnings Results, Beats Estimates By $0.07 EPS

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

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 Up 16.5%

Trex stock traded up $8.22 during mid-day trading on Wednesday, reaching $58.23. 3,134,553 shares of the company’s stock traded hands, compared to its average volume of 1,928,067. Trex has a 12-month low of $29.77 and a 12-month high of $58.31. The stock has a 50 day moving average of $45.74 and a two-hundred day moving average of $43.23. The company has a market cap of $6.05 billion, a price-to-earnings ratio of 34.60, a PEG ratio of 2.93 and a beta of 1.46.

Analyst Ratings Changes

TREX has been the topic of several recent analyst reports. Melius Research initiated coverage on Trex in a research note on Tuesday, October 6th. They set a “buy” rating and a $62.00 target price on the stock. Stifel Nicolaus set a $55.00 price objective on Trex and gave the company a “buy” rating in a research report on Monday, October 19th. Stephens boosted their target price on Trex from $45.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft upgraded 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 report on Thursday, October 8th. Finally, UBS Group restated a “buy” rating and issued a $61.00 target price (up from $59.00) on shares of Trex in a report on Tuesday, July 14th. Thirteen equities 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. Based on data from MarketBeat, Trex presently has an average rating of “Hold” and an average price target of $50.48.

Insider Activity at Trex

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

About Trex

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.