Trex Company ( (TREX) ) has released its Q2 earnings. Here is a breakdown of the information Trex Company presented to its investors.
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Trex Company, Inc., headquartered in Winchester, Virginia, is the world’s leading manufacturer of wood-alternative decking and railing, specializing in high-performance, low-maintenance outdoor living products. The company has established itself as a pioneer in the composite decking category, offering a wide range of outdoor living solutions through a robust distribution network across six continents.
In the second quarter of 2025, Trex Company reported net sales of $388 million, surpassing guidance due to strong performance in new product sales, which accounted for 22% of the trailing twelve-month sales. The company reaffirmed its full-year 2025 guidance, projecting a revenue growth of 5% to 7% and an adjusted EBITDA margin exceeding 31%.
Key financial highlights for the quarter included a gross profit of $158 million and a net income of $76 million, with adjusted figures slightly higher at $161 million and $79 million, respectively. The company’s strategic focus on product innovation and expansion of its Trex Select® line, featuring new heat-mitigating technology, contributed significantly to its sales performance. Additionally, the new plastic processing facility in Arkansas has shown promising early results, enhancing production efficiency and sustainability efforts.
Despite a slight decrease in gross margin due to revised inventory strategies and start-up costs, Trex continues to invest in brand awareness and product innovation. The company’s strategic initiatives, including the launch of new decking products and expansion of its railing portfolio, are expected to drive future growth and strengthen its market leadership.
Looking ahead, Trex Company remains optimistic about its growth prospects, maintaining its full-year guidance amid challenging market conditions. With a focus on innovation and sustainability, the company aims to capitalize on growth opportunities and expand its market share in the outdoor living sector.