Trex (TREX) investor relations material

Executive summary

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

• Accelerated Arkansas facility expansion to meet increased demand, targeting 50% capacity by year-end 2026, with momentum continuing into Q3 and beyond.

• Strategic investments in branding, talent, and organizational capabilities, including digital transformation and enhanced marketing, are supporting long-term growth.

• The company is executing a wood conversion strategy, targeting the large market share held by wood decking, especially in the Southern Sun Belt.

• Reaffirmed full-year 2026 guidance and long-term goal of $2 billion in annual revenue by 2030.

Financial highlights

• Q2 2026 net sales: $418 million (up 8% year-over-year); gross margin: 37.9% (down from 40.8% in Q2 2025) due to product mix and Arkansas depreciation.

• Net income for Q2 2026 was $62 million; diluted EPS: $0.60; adjusted EPS: $0.62, including a $0.03 impact from a $5 million non-cash write-down.

• Adjusted EBITDA: $112 million (down from $122 million year-over-year).

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

• Six-month net sales rose 4.6% year-over-year to $761.4 million.

Outlook and guidance

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

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

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

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

• Maintenance capex projected at 5–6% of sales over the next five years.