Trex raises 2026 sales outlook to $1.296B–$1.306B
Trex raised its 2026 revenue and adjusted EBITDA ranges; fourth-quarter net sales guidance is $175 million to $185 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Trex Company, Inc. (TREX) reported third-quarter 2026 net sales of $360 million, up 26.0% from $285 million, and adjusted EBITDA of $100 million, up 10% from $90 million. Net income was $52 million and diluted earnings per share were $0.52, compared with $52 million and $0.48 a year earlier. Gross margin was 36.0%, versus 40.5%.
For the first nine months, net income was $175.8 million versus $188.1 million, and operating cash flow was $248.4 million versus $292.6 million. Trex estimated approximately $30 million of third-quarter revenue came from initial distribution load-in. It repurchased approximately 1.2 million shares for $55 million and repaid $83 million outstanding under its revolving credit facility. Its Arkansas facility is on track to have approximately 50% of its existing decking production capacity operational by year-end; Trex said a mechanical issue that raised startup costs had been resolved.
Trex raised full-year 2026 guidance to net sales of $1.296 billion–$1.306 billion and adjusted EBITDA of $355 million–$360 million. Fourth-quarter net sales guidance is $175 million–$185 million. The company expects to complete its Board-authorized $150 million share repurchase program by year-end, bringing total 2026 share repurchases to approximately $300 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net sales increased 26.0% to $360 million.
- Moderate pointThird-quarter adjusted EBITDA rose 10% to $100 million.
Negative
- Moderate pointNine-month net income was $175.8 million, versus $188.1 million.
- Moderate pointNine-month operating cash flow was $248.4 million, versus $292.6 million.
- Moderate pointGross margin was 36.0%, versus 40.5% a year earlier.
Filing Explained
At September 30, Trex reported $170,000 thousand on its line of credit and $3,271 thousand in cash and equivalents.
Trex’s quarterly results release reports 100,648,634 common shares outstanding at
The
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
free cash flow financial
distribution load-in financial
wood conversion strategy technical
adjusted gross profit financial
Earnings Snapshot
Full-year 2026 net sales: $1.296 billion–$1.306 billion; adjusted EBITDA: $355 million–$360 million. Fourth-quarter 2026 net sales: $175 million–$185 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did TREX report for Q3 2026?
What is TREX's 2026 financial guidance?
What affected TREX's Q3 2026 gross margin?
How did TREX's distribution transition affect channel inventory?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Trex Company, Inc. issued a press release announcing financial results for the three and nine months ended September 30, 2026. A copy of such press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Trex Company, Inc. herewith furnishes the following exhibits:
Exhibit Number |
|
Description of Exhibit |
99.1 |
|
Press release dated November 4, 2026, announcing financial results for the three and nine months ended September 30, 2026. |
|
|
|
104.1 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
Trex Company, Inc. |
|
|
|
|
Date: |
November 4, 2026 |
|
/s/ Prithvi S. Gandhi |
|
|
|
Prithvi S. Gandhi |
|
|
|
Senior Vice President and Chief Financial Officer |
Exhibit 99.1
News release
TREX COMPANY REPORTS Strong Third QUARTER 2026 RESULTS, DELIVERING BACK-TO-BACK RECORD QUARTERS
26% Net Sales Growth Drives Record High Third Quarter Revenue
Sales Driven by Broad Strength Led by Wood Conversion Focus
Successfully Executing Enhanced Distribution Strategy
Arkansas on Schedule to Operate at 50% Capacity by Year-End
Raising 2026 Guidance on Strong Execution and Positive Outlook
Third Quarter Financial Highlights
WINCHESTER, Va. – November 4, 2026 – Trex Company, Inc. [NYSE:TREX], the world’s largest manufacturer of wood-alternative composite decking and railing, and a leader in high-performance, low-maintenance outdoor living products, today announced financial results for the third quarter of 2026.
“We delivered an exceptional third quarter as we successfully executed our enhanced distribution strategy, began the ramp-up of our Arkansas manufacturing facility, generated record third quarter revenue, and again increased our full-year outlook,” said Adam Zambanini, President and CEO.
“Growth reflected strong underlying customer demand with additional benefit from distribution-related inventory investments. Our growth remains overwhelmingly volume-driven, with minimal benefit from pricing.
“We believe our underlying performance was driven primarily by Trex-specific initiatives and continued market share gains rather than any meaningful improvement in broader end-market conditions. Demand remained strong across all levels of decking products, demonstrating the effectiveness of our wood conversion strategy and our ability to attract a broader range of homeowners into the Trex brand.
“Our investments in marketing, innovation, and brand development continue to strengthen demand for Trex products and support our long-term growth objectives. These efforts, combined with our category leadership and expanded market reach, provide a strong foundation to continue gaining market share and delivering long-term growth across a range of market environments.
“The enhanced distribution strategy announced last quarter was executed successfully and remains on schedule. During the quarter, we completed inventory placements with our new and expanded distribution partners while inventory held by our former distribution partner continued to be reduced. Although inventory levels increased at selected distribution partners during the transition, overall channel inventory remained comparable to the prior year.
“Importantly, the transition was completed with minimal disruption across the channel and has strengthened our route-to-market capabilities. Together with our distribution partners, we believe we are now better positioned to support accelerated growth and capitalize on future market share opportunities.
“To support our long-term growth strategy, we continue to make excellent progress ramping production at our Arkansas facility. The facility remains on track to have approximately 50% of its existing decking production capacity operational by year-end. While startup costs were higher than anticipated during the quarter largely due to certain mechanical issues that have since been resolved, we continue to expect Arkansas to drive meaningful margin expansion over time through improved manufacturing efficiency, lower logistics costs, and closer proximity to key Sunbelt growth markets.
“The facility was also designed with future expansion in mind, allowing us to efficiently add production lines and increase capacity as demand grows. This provides Trex with substantial flexibility to support both near-term growth opportunities and our long-term objective of significantly expanding the business.
“Given our strong year-to-date performance, continued demand momentum, and confidence in our strategic initiatives, we are pleased to raise our full-year guidance once again,” Mr. Zambanini concluded.
Q3 2026 Financial Summary
All financial results comparisons made are against the prior-year period unless otherwise noted:
2
Net sales increased 26.0% to $360 million from $285 million, reflecting broad-based volume growth led by the Trex Enhance® product line, supported by strong consumer demand, continued success executing our wood conversion strategy, and ongoing market share gains. We estimate that approximately $30 million in revenue came from initial distribution load-in.
Gross profit was $129 million, with gross margin of 36.0%, compared to gross profit of $115 million and gross margin of 40.5% in the prior-year period. Excluding Arkansas plant startup costs, adjusted gross profit was $133 million, compared to adjusted gross profit of $117 million in the prior-year period.
Gross margin performance reflected higher transportation-related input costs associated with increased diesel prices, as well as higher depreciation resulting from recent capacity investments. Startup costs at the Arkansas facility were higher than anticipated due to a temporary mechanical issue that created operational inefficiencies during the quarter. The issue has been resolved, and the Company expects startup-related costs to moderate as production volumes increase as the facility advances toward full utilization.
Selling, general, and administrative expenses were $56 million, representing 15.7% of net sales, compared to $45 million, or 15.8% of net sales, in the prior-year period. Excluding digital transformation costs, SG&A was $55 million compared to $43 million in the prior year. The increase primarily reflects investments in people, capabilities, and brand-building initiatives designed to accelerate consumer demand and support future growth.
Net income was $52 million, or $0.52 per diluted share, compared to net income of $52 million, or $0.48 per diluted share, in the prior year. Adjusted net income was $56 million, with adjusted diluted earnings per share of $0.55, compared to adjusted net income of $55 million, with adjusted diluted earnings per share of $0.51.
Adjusted EBITDA increased 10% to $100 million from $90 million in the prior-year period.
Free cash flow for the quarter was $135 million, reflecting strong operating performance, seasonal working capital benefits, and lower capital expenditures as construction of the Arkansas facility approaches completion.
During the quarter, the Company repurchased approximately 1.2 million shares for $55 million and repaid $83 million outstanding under its revolving credit facility. The Company anticipates completing its Board-authorized $150 million share repurchase program by year-end, bringing total share repurchases during 2026 to approximately $300 million.
Other Quarter Highlights
3
Summary & Outlook
“We are pleased to raise our full-year guidance, reflecting the strength of our year-to-date execution, continued demand for our products, and confidence in our strategic growth initiatives,” said Prith Gandhi, Senior Vice President and CFO.
“While the broader market environment remains mixed, contractor engagement, consumer interest, and demand for Trex products continue to be strong. We believe our investments in distribution, manufacturing capacity, branding, innovation, and organizational capabilities are positioning Trex to continue gaining market share and creating long-term value for shareholders.
“We also continue to generate significant free cash flow, supported by strong operational performance and declining capital expenditures as construction nears completion at Arkansas facility. Our capital allocation priorities remain focused on investing in growth, returning capital to shareholders through share repurchases, and pursuing strategic acquisitions,” concluded Mr. Gandhi.
The Company is raising its full-year 2026 guidance, highlighted by increased revenue and adjusted EBITDA expectations.
4
Full Year 2026 Guidance |
||||
|
|
Low |
|
High |
Net sales |
|
$1,296M |
|
$1,306M |
Adjusted EBITDA |
|
$355M |
|
$360M |
Depreciation and amortization |
~$85M |
|||
Adjusted SG&A |
~17% of net sales |
|||
Interest expense |
|
$4M |
|
$6M |
Effective tax rate |
|
26.0% |
|
27.0% |
CapEx |
|
~$100M |
||
Q4 2026 Guidance |
||||
|
|
Low |
|
High |
Net Sales |
|
$175M |
|
$185M |
Trex has not provided a reconciliation of forward-looking Adjusted EBITDA to net income, the most directly comparable GAAP measure, because certain items required for such reconciliation are outside of Trex’s control and/or cannot be reasonably predicted without unreasonable efforts. The probable significance of these items cannot be determined at this time.
Conference Call & Webcast Information
Trex will hold a conference call to discuss its third quarter 2026 results on Wednesday, November 4, 2026, at 8:00 a.m. ET. To participate on the day of the call, dial +1-800-715-9871, or internationally +1-646-307-1963, approximately ten minutes before the call, and tell the operator you wish to join the Trex Company Conference Call.
A live webcast of the conference call will be available in the Investor Relations section of the Trex Company website at 3Q26 Earnings Webcast. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available within 24 hours of the call on the Trex website. The audio replay will be available for 30 days.
Use of Non-GAAP Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). To supplement our consolidated financial statements reported on a GAAP basis, we provide the following non-GAAP financial measures, adjusted gross profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and free cash flow. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors’ ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP and are not meant to be
5
considered superior to or a substitute for our GAAP results. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of these non-GAAP financial measures to GAAP information are included below. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Non-GAAP Reconciliation Tables
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
|
|
Three Months Ended |
Nine Months Ended |
||||
TREX COMPANY, INC. |
|
2026 |
|
2025 |
2026 |
|
2025 |
|
|
(Unaudited) |
(Unaudited) |
||||
Gross profit |
|
$129,473 |
|
$115,438 |
$426,839 |
|
$411,300 |
Railing conversion |
|
— |
|
271 |
— |
|
5,521 |
Arkansas start-up |
|
3,209 |
|
1,378 |
3,209 |
|
2,659 |
Adjusted gross profit |
|
$132,682 |
|
$117,087 |
$430,048 |
|
$419,480 |
Reconciliation of GAAP Net Income to Adjusted Net Income
|
|
Three Months Ended |
Nine Months Ended |
||||
TREX COMPANY, INC. |
|
2026 |
|
2025 |
2026 |
|
2025 |
|
|
($ in thousands, except per share data) |
($ in thousands, except per share data) |
||||
Net income |
|
$52,493 |
|
$51,770 |
$175,772 |
|
$188,113 |
Railing conversion |
|
- |
|
271 |
- |
|
5,521 |
Digital transformation |
|
1,042 |
|
1,749 |
3,209 |
|
2,680 |
Arkansas start-up^ |
|
3,281 |
|
1,965 |
4,142 |
|
4,939 |
Income tax effect |
|
(1,159) |
|
(1,036) |
(1,955) |
|
(3,402) |
Adjusted net income |
|
$55,657 |
|
$54,719 |
$181,168 |
|
$197,851 |
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$0.52 |
|
$0.48 |
$1.70 |
|
$1.75 |
Adjusted diluted earnings per share |
|
$0.55 |
|
$0.51 |
$1.76 |
|
$1.84 |
^Arkansas start-up costs for the three months ended September 30, 2026 were $3,209 in cost of sales and $72 in selling, general, and administrative expenses. Arkansas start-up costs for the nine months ended September 30, 2026 were $3,209 in cost of sales and $933 in selling, general, and administrative expenses. Arkansas start-up costs for the three months ended September 30, 2025 were $1,378 in cost of sales and $587 in selling, general, and administrative expenses. Arkansas start-up costs for the nine months ended September 30, 2025 were $2,659 in cost of sales and $2,280 in selling, general, and administrative expenses.
6
Reconciliation of GAAP Net Income to Adjusted EBITDA
TREX COMPANY, INC. |
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
($ in thousands) |
|
($ in thousands) |
||||
Net income |
|
$52,493 |
|
$51,770 |
|
$175,772 |
|
$188,113 |
Interest expense |
|
843 |
|
— |
|
3,170 |
|
— |
Income tax expense |
|
19,186 |
|
18,627 |
|
63,276 |
|
66,346 |
Depreciation and amortization |
|
22,166 |
|
16,012 |
|
59,903 |
|
46,068 |
Other expenses ^ |
|
496 |
|
— |
|
5,169 |
|
— |
Railing conversion |
|
— |
|
271 |
|
— |
|
5,521 |
Digital transformation |
|
1,042 |
|
1,749 |
|
3,209 |
|
2,680 |
Arkansas start-up^^ |
|
3,281 |
|
1,965 |
|
4,142 |
|
4,939 |
Adjusted EBITDA |
|
$99,507 |
|
$90,394 |
|
$314,641 |
|
$313,667 |
^Non-cash write down of obsolete equipment
^^Arkansas start-up costs for the three months ended September 30, 2026 were $3,209 in cost of sales
and $72 in selling, general, and administrative expenses. Arkansas start-up costs for the nine months
ended September 30, 2026 were $3,209 in cost of sales and $933 in selling, general, and administrative
expenses. Arkansas start-up costs for the three months ended September 30, 2025 were $1,378 in
cost of sales and $587 in selling, general, and administrative expenses. Arkansas start-up costs
for the nine months ended September 30, 2025 were $2,659 in cost of sales and $2,280 in selling,
general, and administrative expenses.
Reconciliation of Cash from Operation to Free Cash Flow
TREX COMPANY, INC. |
|
Three Months Ended |
||
|
|
2026 |
|
2025 |
|
|
($ in thousands) |
||
Net cash provided by operating activities |
|
$152,622 |
|
$196,889 |
Expenditures for property, plant and equipment |
|
(16,635) |
|
(53,941) |
Purchased intangibles |
|
(1,407) |
|
(3,379) |
Free cash flow |
|
$134,580 |
|
$139,569 |
7
GAAP Financial Statement Tables
TREX COMPANY, INC. |
|
|||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(Unaudited) |
|
|
(Unaudited) |
|
||||||||||
Net sales |
|
$ |
359,504 |
|
|
$ |
285,348 |
|
|
$ |
1,120,926 |
|
|
$ |
1,013,142 |
|
Cost of sales |
|
|
230,031 |
|
|
|
169,910 |
|
|
|
694,087 |
|
|
|
601,842 |
|
Gross profit |
|
|
129,473 |
|
|
|
115,438 |
|
|
|
426,839 |
|
|
|
411,300 |
|
Selling, general and administrative expenses |
|
|
56,455 |
|
|
|
45,041 |
|
|
|
179,452 |
|
|
|
156,841 |
|
Other expenses |
|
|
496 |
|
|
|
- |
|
|
|
5,169 |
|
|
|
- |
|
Income from operations |
|
|
72,522 |
|
|
|
70,397 |
|
|
|
242,218 |
|
|
|
254,459 |
|
Interest expense, net |
|
|
843 |
|
|
|
- |
|
|
|
3,170 |
|
|
|
- |
|
Income before income taxes |
|
|
71,679 |
|
|
|
70,397 |
|
|
|
239,048 |
|
|
|
254,459 |
|
Provision for income taxes |
|
|
19,186 |
|
|
|
18,627 |
|
|
|
63,276 |
|
|
|
66,346 |
|
Net income |
|
$ |
52,493 |
|
|
$ |
51,770 |
|
|
$ |
175,772 |
|
|
$ |
188,113 |
|
Basic earnings per common share |
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
$ |
1.71 |
|
|
$ |
1.75 |
|
Basic weighted average common shares outstanding |
|
|
101,719,534 |
|
|
|
107,244,573 |
|
|
|
103,018,450 |
|
|
|
107,217,689 |
|
Diluted earnings per common share |
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
$ |
1.70 |
|
|
$ |
1.75 |
|
Diluted weighted average common shares outstanding |
|
|
101,827,361 |
|
|
|
107,332,641 |
|
|
|
103,102,802 |
|
|
|
107,304,543 |
|
Comprehensive income |
|
$ |
52,493 |
|
|
$ |
51,770 |
|
|
$ |
175,772 |
|
|
$ |
188,113 |
|
8
TREX COMPANY, INC. |
||||
|
|
September 30, |
|
December 31, |
|
|
2026 |
|
2025 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$3,271 |
|
$3,807 |
Accounts receivable, net |
|
222,914 |
|
48,091 |
Inventories |
|
181,189 |
|
238,665 |
Prepaid expenses and other assets |
|
18,674 |
|
19,843 |
Total current assets |
|
426,048 |
|
310,406 |
Property, plant and equipment, net |
|
1,049,158 |
|
1,049,733 |
Operating lease assets |
|
46,275 |
|
52,632 |
Goodwill and other intangible assets, net |
|
35,831 |
|
31,529 |
Other assets |
|
10,329 |
|
9,141 |
Total assets |
|
$1,567,641 |
|
$1,453,441 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$51,763 |
|
$34,759 |
Accrued expenses and other liabilities |
|
120,591 |
|
77,030 |
Accrued warranty |
|
4,697 |
|
5,416 |
Line of credit |
|
170,000 |
|
133,500 |
Total current liabilities |
|
347,051 |
|
250,705 |
Deferred income taxes |
|
130,845 |
|
85,833 |
Operating lease liabilities |
|
35,262 |
|
41,755 |
Non-current accrued warranty |
|
27,290 |
|
24,324 |
Other long-term liabilities |
|
16,788 |
|
16,560 |
Total liabilities |
|
557,236 |
|
419,177 |
Stockholder's Equity: |
|
|
|
|
Preferred stock, $0.01 par value per share, 3,000,000 shares authorized; none issued and outstanding |
|
— |
|
— |
Common stock, $0.01 par value per share, 360,000,000 shares authorized; 141,319,518 and 141,208,139 shares issued and 100,648,634 and 105,737,266 shares outstanding at September 30, 2026 and December 31, 2025, respectively |
|
1,413 |
|
1,412 |
Additional paid-in capital |
|
162,230 |
|
155,316 |
Retained earnings |
|
1,965,619 |
|
1,789,847 |
Treasury stock, at cost, 40,670,884 and 35,470,873 shares at September 30, 2026 and December 31, 2025, respectively |
|
(1,118,857) |
|
(912,311) |
Total stockholders’ equity |
|
1,010,405 |
|
1,034,264 |
Total liabilities and stockholders’ equity |
|
$1,567,641 |
|
$1,453,441 |
9
TREX COMPANY, INC. |
||||
|
|
Nine Months Ended |
||
|
|
2026 |
|
2025 |
|
|
(unaudited) |
||
Operating Activities |
|
|
|
|
Net income |
|
$175,772 |
|
$188,113 |
Adjustments to reconcile net income to net cash |
|
|
|
|
provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
59,903 |
|
46,068 |
Deferred income taxes |
|
45,012 |
|
- |
Stock-based compensation |
|
8,096 |
|
6,460 |
Loss on disposal of property, plant and equipment |
|
5,169 |
|
507 |
Other non-cash adjustments |
|
(309) |
|
(169) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(174,823) |
|
(75,641) |
Inventories |
|
57,476 |
|
57,731 |
Prepaid expenses and other assets |
|
5,378 |
|
8,236 |
Accounts payable |
|
23,438 |
|
13,150 |
Accrued expenses and other liabilities |
|
49,112 |
|
30,512 |
Deferred Revenue |
|
227 |
|
- |
Income taxes receivable/payable |
|
(6,088) |
|
17,660 |
|
|
|
|
|
Net cash provided by operating activities |
|
$248,363 |
|
$292,627 |
|
|
|
|
|
Investing Activities |
|
|
|
|
Expenditures for property, plant and equipment |
|
(69,373) |
|
(180,214) |
Purchased intangibles |
|
(5,949) |
|
(8,280) |
Proceeds from sales of property, plant and equipment |
|
89 |
|
358 |
|
|
|
|
|
Net cash used in investing activities |
|
$(75,233) |
|
$(188,136) |
|
|
|
|
|
Financing Activities |
|
|
|
|
Borrowings under line of credit |
|
656,000 |
|
679,547 |
Principal payments under line of credit |
|
(619,500) |
|
(770,847) |
Repurchases of common stock |
|
(208,634) |
|
(4,033) |
Proceeds from employee stock purchase and option plans |
|
906 |
|
901 |
Financing costs |
|
(2,438) |
|
6 |
|
|
|
|
|
Net cash used in financing activities |
|
$(173,666) |
|
$(94,426) |
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
(536) |
|
10,065 |
Cash and cash equivalents at beginning of period |
|
3,807 |
|
1,292 |
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$3,271 |
|
$11,357 |
10
About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainable, wood-alternative decking and railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry’s strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking^ for the past 6 years (2021-2026). The company also holds a place on Barron’s list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America’s Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor’s Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 16th consecutive year. For more information, visit Trex.com.
^Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Forward-Looking Statements
The statements in this press release regarding the Company’s expected future performance and condition constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company’s actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company’s current and newly developed products, including fire-rated and PVC decking products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company’s business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the availability and cost of third-party transportation services for the Company’s products and raw materials; the Company’s ability to obtain raw materials, including scrap polyethylene, wood fiber, and other materials used in making our products, at acceptable prices; increasing inflation, oil prices, and tariffs in the macro-economic environment; the Company’s ability to maintain product quality and product performance at an acceptable cost; the Company’s ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and
11
consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts, including the ongoing conflict in the Middle East and its potential effect on consumer confidence; risks associated with the Company’s digital transformation initiatives and related costs; risks associated with the startup, construction, and operational transition of the Company’s Arkansas facility; risks associated with changes to the Company's distribution model, including potential disruption to sales channels and customer relationships; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company’s actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Lee Coker
VP, Corporate Development & Investor Relations
540-542-6321
Eric Prouty
Casey Kotary
ADVISIRY Partners
212-750-5800
eric.prouty@advisiry.com
casey.kotary@advisiry.com
12