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 gains in railing and new product innovations.

• Maintains #1 brand position in outdoor decking, with strong consumer awareness and market share across all channels.

• New products released in the last 36 months accounted for 24% of 2025 sales, up from 18% in 2024.

• Leadership transition announced: Adam Zambanini to become CEO following Bryan Fairbanks' retirement in April.

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

Financial highlights

• Q4 2025 net sales were $161M, down 4% year-over-year, but $17M above guidance midpoint due to strong railing sales; full-year net sales rose 2% to $1.2B.

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

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

• Full-year 2025 net sales reached $1.17B, up 2% year-over-year; net income was $190M ($1.78/share); adjusted net income was $201.7M ($1.88/share); adjusted EBITDA was $336M.

• Free cash flow rebounded to $125M in 2025 after a negative $93M in 2024; net debt improved to $130M in 2025 from $201M in 2024.

Outlook and guidance

• 2026 net sales expected between $1.185B and $1.23B, representing low to mid-single-digit growth in a flat-to-down R&R market; adjusted EBITDA guidance for 2026 is $315M–$340M.

• Q1 2026 net sales projected at $335M–$355M.

• Capital expenditures for 2026 forecast at $100M–$120M, down from $233M in 2025 as Arkansas facility nears completion.

• $8M in EBITDA adjustments anticipated for 2026.

• Anticipates outperforming a flat R&R market, driven by new product launches and expanded shelf space.