Trex Q4 sales exceed expectations, adjusted EPS beats

Overview

• Decking and railing maker's Q4 revenue exceeded expectations, driven by railing sales

• Co reports adjusted EPS of $0.04, beating expectations of a $0.02 loss

• Company repurchased $50 mln shares in Q4, authorized $150 mln buyback for 1H 2026

Outlook

• Trex expects 2026 revenue between $1.185 bln and $1.230 bln

• Company anticipates 2026 adjusted EBITDA of $315 mln to $340 mln

• Trex projects double-digit growth in railing sales for 2026

Result Drivers

• RAILING SALES - Higher than anticipated railing sales in Q4 contributed to exceeding revenue expectations, per CEO Bryan Fairbanks

• NEW PRODUCTS - New products accounted for 24% of full year sales, up from 18% the prior year, indicating successful product introductions

• GROWTH INITIATIVES - Profitability impacted by one-time charges from growth initiatives, including plant start-up and digital transformation costs

Company press release: ID:nBw7b67Wja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Trex Company Inc is $47.50, about 17.9% above its February 23 closing price of $40.28

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago

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