Trex Company (TREX1) AI Stock Analysis
Trex Company
(BMV:TREX1)
No summary available
Trex Company (TREX1) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- MXN 5.21B
- Dividend Yield
- ―
- Average Volume (3M)
- 4,156
- Price to Earnings (P/E)
- 30.4
- Beta (1Y)
- -0.17
- Revenue Growth
- -3.30%
- EPS Growth
- -11.91%
- Country
- Mexico
- Employees
- 1,839
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Construction Materials
Trex Company Business Overview & Revenue Model
Company Description
Trex Company, Inc. is a leading U.S. manufacturer and distributor specializing in outdoor living products for both residential and commercial applications. The company's operations are segmented into Trex Residential and Trex Commercial. For its resi...
Trex Company Earnings Call Summary
The call was predominantly positive: the company delivered better-than-expected Q2 sales (+8% YoY), broad-based product/channel momentum (double-digit railing growth and improved entry-level sales), strong adjusted EBITDA ($112M) and free cash flow ($182M), raised full-year guidance and expanded share repurchase authorization ($150M). Near-term margin pressure resulted from product mix, accelerated Little Rock depreciation and temporary manufacturing inefficiencies (a >100 bp drag in Q2), plus a $5M noncash write-down. Management expects operational efficiency and Little Rock to drive margin accretion primarily in 2027, and provided conservative near-term guidance given geopolitical uncertainty. Overall, positives (top-line beat, cash generation, strategic initiatives and upgraded guidance) materially outweigh the temporary and manageable lowlights.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management raised its outlook and gave specific near‑term targets: Q2 net sales were $418M (+8% YoY) with gross profit $158M (37.9% gross margin), adjusted EBITDA $112M and adjusted diluted EPS $0.62 (‑$0.03 impact from a $5M write‑down); free cash flow was $182M used to repurchase ~$51M of stock and repay $130M of revolver. For Q3 they guide net sales of $305M–$320M and expect adjusted gross margin around mid‑37% (adjusted); for the full year they raised adjusted gross margin to ~38% (from 37.5%) and set adjusted EBITDA guidance of $335M–$350M, while targeting SG&A of ~18% of sales (Q2 GAAP SG&A $67M, 16.1%; adjusted $66M). They authorized up to an additional $150M of share repurchases for the balance of 2026, expect to bring ~50% of Little Rock lines into production by year‑end (Little Rock to be accretive to margins primarily in 2027), noted capacity to serve $1.8–$2.0B of revenue, and highlighted that every 1% share taken from wood equals roughly $80M of incremental sales.
Trex Company Risk Analysis
Trex Company disclosed 2 risk factors in its most recent earnings report. Trex Company reported the most risks in the "Tech & Innovation" category.
Latest Risks Added
0 New RisksTrex Company Peers Comparison
Overall Rating
AWI74Outperform
WMS65Neutral
SWIM57Neutral
ROCK53Neutral
JELD41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AWI | 74Outperform | $6.96B | 22.21 | 35.94% | 0.82% | 9.11% | 7.22% |
| WMS | 65Neutral | $10.21B | 23.23 | 23.40% | 0.56% | 10.37% | 4.62% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| SWIM | 57Neutral | $859.99M | 156.87 | 1.31% | ― | 10.50% | ― |
| ROCK | 53Neutral | $1.19B | -138.28 | -0.96% | ― | 14.47% | -220.54% |
| JELD | 41Neutral | $109.32M | -0.21 | -1054.21% | ― | -8.13% | -44.66% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MX:TREX1 | Trex Company | 845.68 | -254.32 | -23.12% | |
| AWI | Armstrong World Industries Inc | 166.34 | -24.76 | -12.96% | |
| ROCK | Gibraltar Industries, Inc. | 40.10 | -21.38 | -34.78% | |
| WMS | Advanced Drainage Systems | 135.43 | -1.66 | -1.21% | |
| JELD | JELD-WEN | 1.26 | -2.94 | -70.00% | |
| SWIM | Latham Group Inc | 7.31 | 0.04 | 0.55% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.