Trex (TREX) investor relations material

Executive summary

• Q2 2026 net sales reached $418 million, up 8% year-over-year, driven by broad-based demand, volume growth, and strong execution across products and channels.

• Accelerated Arkansas facility expansion targets 50% capacity by year-end 2026 to meet increased demand.

• Strategic investments in branding, talent, and digital transformation support sustained growth and competitive positioning.

• The company is focused on wood-to-composite conversion, especially in the Southern Sun Belt, leveraging innovation and operational efficiency.

• Multi-year investment cycle completed, positioning for margin expansion and free cash flow growth.

Financial highlights

• Q2 2026 net sales: $418 million (up 8% year-over-year); gross margin: 37.9% (down from 40.8% in Q2 2025).

• Net income for Q2 2026 was $62 million; diluted EPS: $0.60; adjusted EBITDA: $112 million; adjusted EPS: $0.62 (includes $0.03 impact from $5M non-cash write-down).

• Six-month net sales rose 4.6% year-over-year to $761.4 million; six-month net income was $123.3 million.

• Free cash flow: $182 million, used for $51 million in share repurchases and $130 million in debt repayment.

• 2025 revenue was $1.2B, with adjusted EBITDA of $336M and margin of 28.5%.

Outlook and guidance

• Full-year 2026 net sales guidance: $1.215–$1.25 billion; adjusted EBITDA: $335–$350 million.

• Q3 2026 net sales guidance: $305–$320 million.

• Full-year adjusted gross margin expected at ~38%, up from 37.5% previously, driven by higher capacity utilization at Arkansas.

• Long-term goal reaffirmed: $2 billion in annual sales by 2030, with 2/3 organic growth and 1/3 from M&A.

• Expecting gross margin profile to increase by 500bps over the next three years, driven by manufacturing efficiencies.