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Dec 31, 2025
Trex Q4 2025 Earnings Report
Trex Q4 2025 Earnings Report
Key Takeaways
Trex reported fourth quarter 2025 net sales of $161 million, exceeding guidance despite a slight year-over-year decline. Profitability was impacted by one-time charges related to growth initiatives, including Arkansas plant start-up costs and railing conversion expenses, while the company authorized a new $150 million share buyback program.
Fourth quarter sales of $161 million exceeded the midpoint of guidance, driven by strong railing sales.
New products accounted for 24% of full-year sales, up from 18% in the prior year.
Profitability was impacted by a $6.0 million increase in warranty reserves and $1.0 million in start-up/conversion costs.
The Board authorized a new $150 million share buyback program for the first half of 2026.
Forward Guidance
For the full year 2026, Trex expects to outperform a flat repair and remodel market with revenue growth and healthy EBITDA margins.
Positive Outlook
- Full year 2026 revenue guidance of $1.185B to $1.230B.
- Full year 2026 Adjusted EBITDA guidance of $315M to $340M.
- Anticipated double-digit growth in railing sales in 2026.
- Meaningful increase in home center stocking locations heading into the 2026 season.
- Planned introduction of several new products over the next twelve months.
Challenges Ahead
- Broader repair and remodel market is anticipated to be flat year-over-year.
- Challenged repair and remodeling industry backdrop persists.
- Ongoing costs associated with the Arkansas campus start-up.
- Increased sales and marketing spend required to support contractor base.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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