Trex Posts Record Q2 Revenue of $418M, Accelerates Arkansas Expansion, and Authorizes $150M Buyback
TREX sits 44% above its 52-week low of $29.77.
Summary
Trex delivered record Q2 revenue of $418M, up 8% YoY, beating estimates on volume growth, with adjusted EBITDA of $112M. Net income fell to $62M ($0.60 EPS) from $76M a year ago, pressured by higher railing mix, depreciation, and production inefficiencies, while gross margin contracted to 37.9% from 40.8%. The company accelerated its Arkansas capacity expansion by over six months to Q3 2026, aiming to capture Sunbelt demand and wood conversion. A new $150M buyback was authorized, adding to the existing program, and $130M of revolver debt was repaid. Free cash flow was strong at $182M. The raised guidance is reaffirmed, and July order activity suggests improving utilization ahead.
At the time of this announcement, TREX was trading at $43.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.7B. The 52-week trading range was $29.77 to $66.36. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.