Trex Company Q2 sales beat estimates, driven by volume growth
TREX•Outlook
- Trex reaffirms full-year 2026 net sales guidance of $1.215 bln to $1.25 bln
- Company expects Q3 2026 net sales between $305 mln and $320 mln
- Trex targets $2 bln in annual revenue by 2030
Quarterly results
- U.S. decking maker's Q2 sales rose 8%, beating analyst expectations
- Adjusted EPS for Q2 missed analyst expectations
- Company approved an additional $150 mln share buyback and reaffirmed full-year guidance
What drove results
- Volume growth - Co said Q2 sales increase was driven mainly by broad-based volume growth across product lines, price points, and channels
- Consumer demand - Co cited improved consumer demand, especially for entry-level Trex Enhance decking, aided by marketing efforts to drive conversion from wood to composite
- Production inefficiencies - Co said gross margin was impacted by higher mix of railing sales, increased depreciation from Arkansas facility, and temporary production inefficiencies caused by uneven demand patterns
