Trex (TREX) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year results, with 2% year-over-year sales growth despite a challenging repair and remodel (R&R) market, driven by double-digit growth in the railing segment and new product launches representing 24% of 2025 sales, up from 18% in 2024.

• Maintains #1 brand position in outdoor decking, supported by strong consumer awareness, broad distribution, and a multi-tier product portfolio.

• Sustainability is central, with 95% of decking materials upcycled and significant community recycling initiatives.

• Announced CEO transition: Adam Zambanini to succeed Bryan Fairbanks in April 2026.

• Expanded home center stocking locations and distribution partnerships, positioning for further growth in 2026.

Financial highlights

• Q4 2025 net sales were $161 million, down 4% year-over-year, but exceeded guidance due to strong railing sales; full-year net sales rose 2% to $1.2 billion.

• Q4 gross profit was $49 million (30.2% margin), down from $71 million (42.3%) due to accounting changes and one-time costs; adjusted gross profit was $50 million.

• Q4 net income was $2 million ($0.02/share); adjusted net income was $4 million ($0.04/share).

• Full-year net income was $190 million ($1.78/share); adjusted net income was $202 million ($1.88/share).

• Operating cash flow for 2025 was $358 million, up from $144 million in 2024, driven by inventory reductions and higher collections.

Outlook and guidance

• 2026 net sales expected between $1.185 billion and $1.23 billion, with adjusted EBITDA guidance of $315 million–$340 million.

• Q1 2026 net sales expected between $335 million–$355 million.

• SG&A projected at ~18% of net sales for 2026; capital expenditures to decline to $100–$120 million as Arkansas facility nears completion.

• Gross margin for 2026 expected around mid-37%, about 100 basis points below 2025.

• $8 million in EBITDA adjustments anticipated for 2026.