Trex (NYSE:TREX) Issues Quarterly Earnings Results

Trex (NYSE:TREX) posted its quarterly earnings results on Tuesday. The construction company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.05, FiscalAI reports. The business had revenue of $161.13 million during the quarter, compared to analyst estimates of $144.39 million. Trex had a net margin of 16.22% and a return on equity of 20.57%. The company’s revenue was down 3.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.09 earnings per share.

Here are the key takeaways from Trex’s conference call:

• Trex’s product innovation drove momentum — products introduced in the last 36 months represented 24% of 2025 sales (up from 18%), and railing delivered robust double‑digit growth with a plan to double railing market share by 2028.
• The Little Rock (Arkansas) campus remains on schedule, will produce on‑site plastic pellets to reduce reliance on external sourcing, and management expects the completed capacity to enable cost optimization and meaningful additional free cash flow.
• Q4 results showed a 4% sales decline to $161M and GAAP gross margin falling to 30.2% (vs. a restated 42.3%) largely due to the accounting change from LIFO to FIFO and a $6M warranty reserve, yielding just $2M in net income ($0.02/share).
• For 2026 Trex guides to $1.185–$1.23B in sales (low‑ to mid‑single‑digit growth) and $315–$340M adjusted EBITDA, and the board authorized a $150M share repurchase for H1 2026 with buybacks singled out as a key use of capital going forward.
• Management is increasing targeted SG&A and marketing (digital tools, sample programs and dealer/pro incentives) to drive demand and lead generation — early digital metrics are up, but these investments raise near‑term expense and execution risk.

Trex Trading Up 0.7%

NYSE:TREX opened at $41.73 on Thursday. The company has a 50-day moving average price of $40.43 and a 200-day moving average price of $45.61. The stock has a market cap of $4.48 billion, a price-to-earnings ratio of 23.58 and a beta of 1.58. Trex has a 12 month low of $29.77 and a 12 month high of $68.78.

Trex News Summary

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus — Trex reported Q4 revenue of $161.1M and EPS of $0.04, above estimates, signaling resilience despite seasonal weakness; management pointed to one‑time charges tied to product/plant investments that should convert to ROI in 2026. MarketBeat: Q4 Earnings Surprise Could Offer TREX Stock a Path to Recovery
• Positive Sentiment: CEO succession plan appears smooth — longtime CEO Bryan Fairbanks will retire April 28; COO Adam Zambanini is named successor, and early market reaction suggests confidence in continuity of operations. BusinessWire: Trex Company Announces CEO Succession Plan
• Positive Sentiment: 2026 revenue/EBITDA targets and product pipeline support medium‑term growth — management outlined a $1.185B–$1.23B sales target and emphasized railing and new product momentum (including fire‑resistant decking focused on the West). These guideposts underpin the constructive analyst moves. Seeking Alpha: Trex outlines 2026 sales target
• Positive Sentiment: Analyst upgrades/price target increases — Loop Capital upgraded TREX to Buy and raised its PT to $53; UBS raised its PT to $58 and keeps a Buy — both imply meaningful upside and likely support buying interest. Benzinga: Analyst notes
• Neutral Sentiment: Market positioning — institutional ownership is high and some analysts remain cautious; the stock has traded down from its 12‑month high and technicals are mixed, so volatility may persist as investors weigh execution vs. consumer demand. MarketBeat: Company profile
• Negative Sentiment: Large selloffs by funds weigh on sentiment — Wasatch Advisors sold a large position (~$63M) last quarter and another fund recently trimmed ~107,000 shares (~$4.3M), which increases near‑term supply pressure and can amplify downside if momentum fades. Fool: Wasatch sells Trex shares
• Negative Sentiment: Conflicting analyst view — Barclays raised its PT but kept an Underweight rating at $39, reflecting lingering concerns on demand and margin durability; that keeps a portion of sell‑side influence leaning cautious. Benzinga: Barclays note

Institutional Trading of Trex

Several institutional investors and hedge funds have recently bought and sold shares of TREX. Empowered Funds LLC bought a new stake in Trex during the 4th quarter valued at approximately $50,000. Kestra Advisory Services LLC bought a new stake in shares of Trex during the fourth quarter valued at approximately $67,000. UMB Bank n.a. grew its stake in Trex by 70.2% in the fourth quarter. UMB Bank n.a. now owns 2,185 shares of the construction company’s stock worth $77,000 after purchasing an additional 901 shares during the period. Smartleaf Asset Management LLC raised its holdings in Trex by 1,120.1% in the second quarter. Smartleaf Asset Management LLC now owns 2,245 shares of the construction company’s stock worth $123,000 after purchasing an additional 2,061 shares in the last quarter. Finally, Voleon Capital Management LP purchased a new position in Trex during the second quarter valued at $203,000. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on TREX. Bank of America restated an “underperform” rating and set a $36.00 price target (down from $67.00) on shares of Trex in a research report on Wednesday, November 5th. Wall Street Zen cut shares of Trex from a “hold” rating to a “sell” rating in a report on Saturday, January 10th. Zelman & Associates lowered shares of Trex from an “outperform” rating to a “neutral” rating in a report on Wednesday, November 5th. Zacks Research raised shares of Trex from a “strong sell” rating to a “hold” rating in a report on Tuesday, February 3rd. Finally, UBS Group boosted their price objective on shares of Trex from $52.00 to $58.00 and gave the company a “buy” rating in a research report on Wednesday. Ten research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Trex currently has a consensus rating of “Hold” and a consensus target price of $47.38.

Trex Company Profile

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.