Trex Company, Inc. reported third‑quarter 2025 results that showed net sales of $285 million, a 22.1% year‑over‑year increase, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $90 million, up 27.2% from the same period last year. Gross profit climbed to $115 million, giving a gross margin of 40.5%, an improvement of 60 basis points over the 39.9% margin reported in Q3 2024. Diluted earnings per share (EPS) were $0.48, while adjusted EPS were $0.51—both figures fell short of the consensus estimate of $0.56–$0.58.
The revenue miss can be traced to a broader slowdown in the Repair and Remodel sector, which has been the primary driver of demand for Trex’s decking, railing and accessory lines. Management noted that inventory levels at distribution partners were being reduced through a level‑loading program, which helped mitigate the impact of weaker consumer spending but also limited the company’s ability to capture the full upside of the 25% of trailing‑twelve‑month sales that came from new product launches.
The EPS miss reflects the same demand weakness that weighed on revenue, but it was partially offset by a 60‑basis‑point expansion in gross margin. Lower labor costs and efficiencies at the Arkansas plastic‑processing plant helped keep margins healthy, yet the company still missed analyst expectations because the revenue shortfall was larger than the margin improvement could compensate for. The adjusted EPS of $0.51, while higher than the diluted figure, still fell short of the $0.56–$0.58 consensus.
Guidance for the remainder of the year was revised downward. Trex now expects fourth‑quarter sales of $140 million to $150 million, compared with the $170 million range previously cited, and full‑year 2025 net sales of $1.15 billion to $1.16 billion, essentially flat with 2024. Adjusted EBITDA margin guidance was cut to 28.0%–28.5% from the prior 31.0%–31.5% range, reflecting management’s view that the softer market conditions will persist. The company also announced a $50 million share‑repurchase program to be executed over the next 12 months, signaling confidence in its long‑term value creation.
CEO Bryan Fairbanks emphasized that the company is not seeing share‑shifts at the ground level and that the level‑loading program has helped keep inventory levels manageable heading into year‑end. He highlighted continued momentum in the premium product segment, the success of new product launches, and the company’s focus on cost control and R&D. Fairbanks also noted that the share‑repurchase program underscores management’s confidence in Trex’s long‑term prospects.
The results illustrate a mixed picture: while revenue and EPS fell short of expectations, the company achieved a 22.1% year‑over‑year revenue growth and a 27.2% increase in adjusted EBITDA, underscoring underlying operational strength. Gross‑margin expansion signals effective cost management, but the revenue miss and guidance cut point to ongoing headwinds in the Repair and Remodel market. The company’s continued investment in new products and its share‑repurchase program suggest a long‑term strategy aimed at sustaining growth and shareholder value despite short‑term market softness.
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