{"id":959486,"date":"2026-05-07T06:33:12","date_gmt":"2026-05-07T10:33:12","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/trex-company-reports-solid-first-quarter-2026-results\/"},"modified":"2026-05-07T06:33:12","modified_gmt":"2026-05-07T10:33:12","slug":"trex-company-reports-solid-first-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/trex-company-reports-solid-first-quarter-2026-results\/","title":{"rendered":"Trex Company Reports Solid First Quarter 2026 Results"},"content":{"rendered":"

<\/p>\n

Trex Company Reports Solid First Quarter 2026 Results<\/b><\/p>\n

Launches Five Long-Term Strategic Priorities<\/b><\/p>\n

Well Positioned Heading Into Peak Deck-Building Season with Recent Home Center Stocking Wins<\/b><\/p>\n

Executes and Expands Significant Share Repurchase Program<\/b><\/p>\n

Reaffirms Full Year 2026 Guidance<\/b><\/p>\n

First Quarter Financial Highlights<\/span><\/b><\/p>\n

\nNet sales of $343 million<\/p>\n

\nGross margin of 40.5%<\/p>\n

\nNet income of $61 million and diluted earnings per share of $0.58<\/p>\n

\nAdjusted net income of $62 million and adjusted diluted earnings per share of $0.59<\/p>\n

\nAdjusted EBITDA of $103 million<\/p>\n

WINCHESTER, Va.–(BUSINESS WIRE<\/a>)–
\nTrex Company, Inc. [NYSE:TREX], the world\u2019s 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 first quarter of 2026.<\/p>\n

\nCommenting on the quarter, Adam Zambanini, President and CEO, said, \u201cWe entered 2026 with strong momentum and a renewed sense of energy and excitement driving the entire organization forward. During the quarter, Trex delivered solid results driven primarily by positive performance in our premium decking portfolio and supported by recent shelf space wins in retail. The Company also delivered strong margins, reflecting product mix, operational efficiencies and cost discipline.\u201d<\/p>\n

\n\u201cDuring the quarter, we began to take decisive actions aligned with our new long-term strategic priorities, positioning the Company to return to above-industry growth through unmatched innovation, enhanced execution, and renewed investment in our brand, marketing, and customer experience.<\/p>\n

Long-Term Strategic Priorities<\/b><\/p>\n

\nTrex recently launched five priorities to define a focused, durable path to long-term profitable growth and increased shareholder value:<\/p>\n

    \n
  1. Create an Unbreakable Bond with End Users:<\/b> Deepen brand preference and loyalty across consumers, contractors, and pros through superior marketing, product experience, and service.\n<\/li>\n
  2. Launch High\u2011Performance Innovation:<\/b> Continue to expand Trex\u2019s leadership in material science and performance through products that represent the next generation of outdoor living solutions.\n<\/li>\n
  3. Optimize Channels for Growth:<\/b> Strengthen distribution effectiveness and ensure Trex products are readily available across retail, dealer, and pro channels to drive above-market growth.\n<\/li>\n
  4. Lower the Cost of Railing:<\/b> Drive cost efficiencies and design advancements to enhance margin structure and accelerate share gains in this fast\u2011growing product line.\n<\/li>\n
  5. Growth Enablement:<\/b> Invest in the foundation \u2013 culture, technology, and talent \u2013 that powers sustainable growth. We\u2019re strengthening our organization by aligning around accountability, upskilling for digital and commercial excellence, and fostering an innovation\u2011driven culture that empowers teams to act with speed and discipline.\n<\/li>\n<\/ol>\n

    \n\u201cAs I noted last quarter, driving growth through innovation remains a key priority. Our recently launched PVC decking product is performing well, leading us to expand into geographies beyond our initial West Coast rollout. The fire-rated product category represents an attractive market opportunity, and we are committed to competing aggressively to capture share in this and other potential growth areas through unmatched product innovation.<\/p>\n

    \n\u201cOur refined incentive and marketing programs have been very well received by our channel partners further strengthening these valued relationships. We also are excited about the next phase of our consumer- and pro-focused marketing campaign centered around our \u201cPerformance-Engineered for Your Life Outdoors\u2122\u201d brand platform, which launched in May 2025. As we move forward, the Trex brand and our value proposition will become increasingly visible and strategically positioned, with the impact of these programs further enhanced by our investment in digital tools. In the first quarter our digital metrics showed consistent growth across key leading indicators, with high\u2011intent behaviors meaningfully outpacing overall traffic, signaling more deliberate consumer engagement,\u201d noted Mr. Zambanini.<\/p>\n

    Q1 2026 Financial Summary<\/span><\/b><\/p>\n

    All financial results comparisons made are against the prior-year period unless otherwise noted:<\/i><\/p>\n

    \nNet sales were $343 million compared to $340 million, an increase of 1%, due to positive price\/mix in the quarter.<\/p>\n

    \nGross profit was $139 million with gross margin of 40.5%, compared to gross profit of $138 million and gross margin of 40.5%. There were no adjustments to this year\u2019s gross profit while last year\u2019s adjusted gross profit, which excluded railing conversion costs of approximately $4 million, was $142 million. A favorable mix of higher margin premium decking boards and margin improvement from continued operational excellence programs helped to offset a $4M increase in depreciation expenses related to our Little Rock production facility. The Company experienced no impact on gross margins related to increased oil prices during the quarter.<\/p>\n

    \nSelling, general, and administrative expenses were $56 million, representing 16.2% of net sales, compared to $56 million, or 16.5% of net sales in the prior year. Excluding digital transformation costs and Arkansas facility start-up expenses of $1.2 million and $1.5 million, SG&A was $54 million and $55 million, respectively. The Company continued to increase its investment in branding and marketing programs to drive future growth. Other expenses, including personnel and healthcare related expenses, were lower than expected due to cost containment and timing.<\/p>\n

    \nNet income was $61 million, or $0.58 per diluted share, compared to net income of $60 million, or $0.56 per diluted share in the prior year. Adjusted net income was $62 million, with adjusted diluted EPS of $0.59, compared to adjusted net income of $64 million with adjusted diluted earnings per share of $0.60.<\/p>\n

    \nAdjusted EBITDA of $103 million compared favorably to an adjusted EBITDA of $101 million in the prior year.<\/p>\n

    \nFree cash flow was ($143) million, a 39% improvement from last year, reflecting effective management of working capital and lower capital expenditures as we finish the new Little Rock facility.<\/p>\n

    \nDuring the quarter, the Company authorized significant share repurchase programs including a $100 million ASR program and $50 million of additional discretionary repurchases as part of an existing share repurchase authorization. The Company intends to complete the $150 million repurchase program in the second quarter. Share repurchases remain a key aspect of the Company\u2019s capital allocation strategy.<\/p>\n

    New Developments & Recognitions<\/span><\/b><\/p>\n