Trex Company Reports Fourth Quarter and Full Year 2025 Results

Higher-Than-Expected Fourth Quarter Sales Capped a Year of Resilient Performance

New Products Accounted for 24% of Full Year Sales, Up From 18% the Prior; Double-Digit Growth in Railing Sales

Meaningful Increase in Home Center Stocking Locations Heading Into 2026

Repurchased $50 Million of Trex Common Stock in Q4; Board Authorizes $150 Million share buyback authorization for 1H 2026

2026 Guidance Anticipates Revenue between $1.185B and $1.230B and Adjusted EBITDA of $315 million to $340 million

Trex Company, Inc. (NYSE:TREX), the world's largest manufacturer of wood-alternative decking and railing, today announced financial results for the fourth quarter and full year of 2025.

Fourth Quarter 2025 Financial Highlights

• Net sales of $161 million
• Gross profit of $49 million / Adjusted gross profit of $50 million
• Gross margin of 30.2%
• Net income of $2 million and diluted earnings per share of $0.02 / Adjusted net income of $4 million and adjusted diluted earnings per share of $0.04
• Adjusted EBITDA of $22 million

Full Year 2025 Financial Highlights

• Net sales of $1.2 billion
• Gross profit of $460 million / Adjusted gross profit of $469 million
• Gross margin of 39.2%
• Net income of $190 million and diluted earnings per share of $1.78 / Adjusted net income of $202 million and adjusted diluted earnings per share of $1.88
• Adjusted EBITDA of $336 million

CEO Comments

"Fourth quarter sales exceeded expectations, capping a year of resilient performance within a challenging repair and remodeling industry backdrop," said Bryan Fairbanks, President and CEO. "Results came in above the midpoint of our fourth quarter revenue guidance primarily due to higher than anticipated railing sales in the back-half of Q4, continuing to demonstrate the strength of our product portfolio. Decking shipments in December were also slightly better than we had forecast. For the year, we estimate sell-through of Trex products was approximately 4%, once again outpacing growth in the broader Repair and Remodel ("R&R") market by a considerable margin. This performance demonstrates the strength of the Trex brand, our strong position in both the pro-channel and home centers, and the success of our new product introductions."

Notably, new products accounted for 24% of our full year 2025 sales and, as anticipated, railing sales increased at a significant double-digit rate for the year. The success of our new product launches is a strong indication of how well-aligned our product design and development programs are with consumer preferences."

"We also saw direct positive impacts from our refreshed branding and marketing programs in 2025, further strengthening Trex's competitive advantages and increasing our sample program volumes and website traffic. Our improved digital tools are helping to drive higher completion rates and are generating double-digit increases in lead generation for our contractors, and our step-up in incentive programs has resonated with our channel partners."

"Fourth quarter and full year profitability was impacted by several one-time charges associated with our growth initiatives. This included expanding distributor adoption of our full portfolio of railing products, start-up and initial production costs related to our plastic processing plant at our Arkansas campus, and digital transformation projects to strengthen real-time engagement with our channel partners. We will see returns on these investments in 2026 and beyond. Our continuous improvement programs and benefits from our level loading program continued to yield measurable production efficiencies throughout 2025," Mr. Fairbanks noted.

Fourth Quarter 2025 Results

Fourth quarter 2025 net sales were $161 million, compared to $168 million reported in the prior-year quarter.

Gross profit was $49 million, including a $6.0 million increase in warranty reserve estimate based on an actuarial review of our warranty provision, with gross margin of 30.2%, compared to gross profit of $71 million and gross margin of 42.3% in last year's fourth quarter. Adjusted gross profit, which excludes start-up costs associated with the Company's Arkansas plastic processing plant and railing conversion costs totaling approximately $1.0 million, was $50 million.

Selling, general, and administrative expenses were $45 million, representing 28.0% of net sales, compared to $39 million, or 23.4% of net sales, in the prior-year quarter, reflecting increased personnel-related costs. Excluding digital transformation costs and start-up expenses totaling $1.0. million, SG&A was $44 million, or 27.4% of net sales.

Fourth quarter 2025 net income was $2 million, or $0.02 per diluted share, compared to net income of $22 million, or $0.20 per diluted share reported in the 2024 fourth quarter. EBITDA totaled $20 million, compared to $45 million reported in the 2024 fourth quarter, and EBITDA margin was 12.7%, compared to the 26.9% reported in the prior-year period. Excluding the one-time charges incurred in the fourth quarter, adjusted net income was $4 million, and adjusted diluted earnings per share was $0.04.

Full Year 2025 Results

Full year consolidated net sales increased 2.0% to $1.2 billion. Gross profit was $460 million and gross margin was 39.2%, compared to gross profit of $502 million and gross margin of 43.6% in 2024. Full year adjusted gross profit, which excludes $6.4 million of railing conversion expenses and $2.7 million in start-up expenses, was $469 million.

Selling, general, and administrative expenses were $202 million, or 17.2% of net sales, compared to $180 million, or 15.6% of net sales in the year-ago period. Excluding $3.5 million related to digital transformation costs and $2.5 million of start-up expenses, SG&A was $196 million, or 16.7% of net sales.

Full year net income was $190 million, or $1.78 per diluted share, compared to net income of $238 million, or $2.20 per diluted share in 2024. EBITDA was $321 million, compared to $377 million in the prior year, and EBITDA margin was 27.3%, compared to 32.7% in the prior year. Excluding the one-time charges incurred during the year, adjusted net income was $202 million, and adjusted diluted earnings per share was $1.88. Adjusted EBITDA was $336 million.

Recent Developments & Recognitions

• Trex introduced the limited release of Trex^® Refuge™ Decking, a PVC solution engineered to address elevated fire-safety requirements in select markets. This launch underscores Trex's performance-engineered innovation strategy – delivering code-compliant, design-forward products tailored to specific environmental challenges, from heat mitigation and marine applications to dry, fire-prone conditions.
• Trex announced the addition of two new Enhance^® decking colors, expanding the availability of SunComfortable™ heat-mitigating technology* at an accessible price point. This expansion reinforces Trex's focus on converting potential wood buyers by pairing on-trend aesthetics with the durability, low maintenance, and ease of installation that define the Trex brand.
• Trex announced the expansion of its partnership with Specialty Building Products to provide statewide distribution coverage in Michigan. The move strengthens Trex's Midwest distribution footprint and enhances product availability for channel partners, supporting continued growth in a core regional market.
• Trex expanded its relationship with Weekes Forest Products in late 2025 to strengthen distribution in the upper Midwest, including Minnesota, Wisconsin, Iowa, and North Dakota. Weekes, based in Oakdale, MN, services these areas through distribution centers in St. Paul and Moorhead. This collaboration improves access to Trex's composite decking and railing products.

Summary and Outlook

Fairbanks continued, "2025 was a year of resilient performance for Trex, and we have entered 2026 with positive momentum across our organization."

"Recent decking and railing wins at the major home centers have meaningfully increased Trex stocking locations as we head into the 2026 deck building season. We gained significant traction with our railing products in 2025 that is projected to drive another year of double-digit growth in railing sales in 2026 – putting us on track to achieve our goal of doubling our share of the railing market by the end of 2028. In January of this year, we announced our first fire-rated decking board, with the limited launch of Trex® Refuge™ Decking – an ignition-resistant PVC decking line performance-engineered for use in select regions primarily in the west that have heightened fire-safety requirements. This is the first of several new products under development and scheduled to be introduced to the marketplace over the next twelve months."

"The additional incentives for dealers and contractors have demonstrated our recognition of their value, and we have already seen their increased commitment to Trex. A meaningful portion of our sales and marketing spend in 2026 will be allocated to support and further expand our contractor base, and Trex will continue to benefit from its leadership position in the home center and pro channel as well as our long-standing distribution relationships.

"In 2026, we expect that Trex will again outperform a challenged repair and remodel market that we anticipate to be flat year over year. Our success will be driven by new product introductions, additional home center shelf space wins, as well as momentum from our disciplined marketing, branding, and incentive programs. Our guidance for 2026 is for revenue to range from $1.185B to $1.230B and for adjusted EBITDA of $315M to $340M."

"Demonstrating our confidence in the long-term outlook for the Trex Company, we returned $50 million to our shareholders through the repurchase of 1.5 million shares of our outstanding common stock in the fourth quarter of 2025 at an average price of $32.75. Our Board of Directors has authorized a $150 million share repurchase program to be executed in the first half of 2026, and we intend to continue opportunistic share repurchases for the balance of the year, reflecting robust free cash flow generation expectations amid a reduction in capital expenditures, our commitment to return capital to shareholders, and the positive long-term outlook for Trex," Mr. Fairbanks concluded.

Fourth Quarter 2025 Conference Call and Webcast Information

Trex will hold a conference call to discuss its fourth quarter and full year 2025 results on Tuesday, February 24, 2026, at 4:30 p.m. ET. To participate on the day of the call, dial 1-844-792-3734, or internationally 1-412-317-5126, approximately ten minutes before the call, and tell the operator you wish to join the Trex Company Conference Call.

A live webcast of the conference call will be available in the Investor Relations section of the Trex Company website at 4Q25 Earnings Webcast. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available within 24 hours of the call on the Trex website. The audio replay will be available for 30 days.

Use of Non-GAAP Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). To supplement our consolidated financial statements reported on a GAAP basis, we provide the following non-GAAP financial measures of earnings before interest, income taxes, depreciation and amortization (EBITDA), and EBITDA as a percentage of net sales, EBITDA margin, adjusted gross profit, adjusted net income, adjusted diluted earnings per share (EPS), and adjusted EBITDA. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP and are not meant to be considered superior to or a substitute for our GAAP results. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of these non-GAAP financial measures to GAAP information are included below. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.

Reconciliation of gross profit (GAAP) to adjusted gross profit (non-GAAP) is as follows:

Reconciliation of net income (GAAP) to adjusted net income (non-GAAP) is as follows:

Reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) is as follows:

During the fourth quarter 2025, the Company changed its accounting method of valuing inventory from a last-in, first-out (LIFO) method to a first-in, first-out (FIFO) method. The Company has retrospectively applied the effects of the accounting change to all periods presented. The following tables summarize the effect of the accounting change from LIFO to FIFO on impacted line items in the Company's consolidated financial statements as follows:

About Trex Company

For more than 30 years, Trex Company (NYSE:TREX) has invented, reinvented, and defined the composite decking category. Today, the company is the world's #1 brand of sustainably made, wood-alternative decking and railing, and a leader in high-performance, low-maintenance outdoor living products. Boasting the industry's strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, deck lighting, outdoor kitchen components, fencing, pergolas, spiral stairs, lattice, cornhole and outdoor furniture – all marketed under the Trex^® brand. Based in Winchester, Va., Trex is proud to have been named America's Most Trusted® Outdoor Decking** for the past 6 years (2021-2026). The company also holds a place on Barron's list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America's Most Responsible Companies by Newsweek, ranked as one of the 100 Best ESG Companies by Investor's Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15^th consecutive year. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand's YouTube channel (TheTrexCo).

**2021-2026 DISCLAIMER: Trex received the highest numerical score in the proprietary Lifestory Research 2021-2026 America's Most Trusted^® Outdoor Decking studies. Study results are based on the experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.

Forward-Looking Statements

The statements in this press release regarding the Company's expected future performance and condition constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company's current and newly developed products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company's business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company's products; the availability and cost of third-party transportation services for the Company's products and raw materials; the Company's ability to obtain raw materials, including scrap polyethylene, wood fiber, and other materials used in making our products, at acceptable prices; increasing inflation in the macro-economic environment; the Company's ability to maintain product quality and product performance at an acceptable cost; the Company's ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

*NOTE: Trex SunComfortable decking stays cooler than original Trex boards, but like all decking, it will get hot in direct sun on hot days, especially darker colors. On such days, care should be taken to avoid extended contact between exposed skin and the deck surface, especially with young children and those with special needs.

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Prithvi S. Gandhi

Senior Vice President and CFO

540-542-6300

Lynn Morgen

Casey Kotary

ADVISIRY Partners

212-750-5800

[email protected]

[email protected]