Trex Company (TREX)
NYSE:TREX
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Earnings Data
Report Date
Aug 10, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.62Last Year’s EPS
0.73Same Quarter Last Year
Moderate Buy
Based on 15 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed measured optimism: Trex reported modest top-line growth (Q1 net sales +1%) with stronger-than-expected gross margin (40.5%, +100 bps vs plan) and adjusted EBITDA growth (+2%). Management highlighted meaningful strategic progress—marketing and lead-generation gains (double-digit increase), distribution wins, aggressive $150M buyback execution ($100M ASR completed), near-complete Arkansas capacity that will substantially reduce future CapEx, and durable competitive advantages from a high recycled-content manufacturing base. Offsets include intentional Q1 volume level-loading, negative Q1 free cash flow (improved ~40% YoY), near-term margin headwinds (~250 bps full-year) driven by Arkansas depreciation and railing mix, expected SG&A step-up in Q2, weather-driven regional softness, and conservatism in guidance due to geopolitical and macro uncertainty. Overall, positives around execution, capital allocation, and structural advantages appear to outweigh short-term operational and margin headwinds.Company Guidance
Modest Revenue Growth
Net sales of $343 million in Q1, up 1% year-over-year, driven by consumer sales and channel stocking ahead of peak season.
Strong Gross Margin Performance
Gross profit of $139 million and gross margin of 40.5%, approximately 100 basis points better than internal expectations driven by favorable product mix (higher-margin decking) and operational improvements.
Adjusted EBITDA Expansion
Adjusted EBITDA of $103 million, up 2% year-over-year, supported by positive pricing, mix, and cost controls.
Improving Free Cash Flow Trajectory
Free cash flow was negative $143 million in Q1 but represented an almost 40% improvement versus the prior year; company projects a substantial CapEx decline in 2026 (to $100M–$120M from $224M in 2025) and maintenance CapEx in 2027 (~5%–6% of revenue).
Balance Sheet and Leverage Strength
Net debt leverage of 1x EBITDA, at the low end of the company target range (1x–2x), providing capacity for capital allocation priorities.
Aggressive Share Repurchase Execution
Executed a $100 million accelerated share repurchase (ASR) as part of a $150 million program and obtained board authorization to increase the repurchase program by 10 million shares.
Distribution and Retail Wins
Meaningful additional shelf-space wins at a national home center and expanded territories with two key distributors, strengthening channel presence and demand reach.
Material/Environmental Competitive Advantage
Vertically integrated domestic recycling infrastructure with ~95% recycled content (recycled LDPE) provides a more stable cost profile and competitive insulation from virgin resin/petrochemical volatility.
Lead Generation and Marketing Momentum
Investments in marketing and digital have driven a significant double-digit increase in lead generation and early green shoots (sample orders, improved pro lead quality).
New Reporting and Long-term Capacity
Introduced rolling 12-month sell-in (up 7%) and sell-out (up 6%) metrics to smooth volatility and reported Arkansas capacity build to effectively more than double revenue potential with limited incremental CapEx.
New Product Expansion
Introduced a PVC product (Trex Refuge) and initiated regional rollouts (strong West Coast start), entering an approximately $0.5 billion PVC market opportunity.
TREX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TREX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $39.91 | $39.19 | -1.80% |
Feb 24, 2026 | $41.45 | $41.70 | +0.60% |
Nov 04, 2025 | $47.04 | $32.43 | -31.06% |
Aug 04, 2025 | $64.30 | $65.76 | +2.27% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Trex Company (TREX) report earnings?
Trex Company (TREX) is schdueled to report earning on Aug 10, 2026, After Close (Confirmed).
What is Trex Company (TREX) earnings time?
Trex Company (TREX) earnings time is at Aug 10, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TREX EPS forecast?
TREX EPS forecast for the fiscal quarter 2026 (Q2) is 0.62.