Trex Company reports Q3 EPS 51c, consensus 57c

Reports Q3 revenue $285M, consensus $301.7M. “Our leading position in both the pro channel and home centers served us well in the third quarter, and remains a long-term competitive advantage for Trex,” said Bryan Fairbanks, President and CEO. “This positioning enabled Trex to effectively capture incremental demand across our decking, railing, and accessory product portfolio. While we saw signs of improvement in Repair and Remodel spending as the season began, the second half of the season reflected the weaker market conditions that the industry has experienced in the past two years. This resulted in lower-than-anticipated third quarter sales, and we expect this trend to continue in the seasonally slower fourth quarter. Within this environment, our level-loading program has allowed us to work together with our channel partners to enable them to carry lower inventory levels heading into year-end, and we are adjusting our production accordingly. In the third quarter we increased our spending on branding and R&D to support future growth. Products launched within the last 36 months accounted for 25% of trailing-twelve-month sales, demonstrating the strong alignment of our new products with consumer preferences, and we have several new launches planned for 2026. Investments in branding and a refreshed marketing campaign have produced significant increases in early purchase intent indicators. Trex’s product sample program and website traffic are both up over 50% year-over-year, and our improved cost calculator is driving higher completion rates and generating double-digit increases in lead generation. Gross margin in the quarter benefitted from higher sales volumes and efficiencies from our continuous improvement projects resulting in adjusted EBITDA, which excludes one-time charges, of $90 million, 33% ahead of last year’s third quarter.”