Trex Reports Record Third-Quarter 2026 Sales

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter 2026 net sales reached $360 million, up 26.0% from a year earlier, with full-year net sales guidance of as much as $1,306 million.

Trex Company, Inc. (TREX), the world’s largest manufacturer of wood-alternative composite decking and railing, reported record third-quarter 2026 revenue of $360 million, up 26.0% from $285 million a year earlier.

The company said growth was overwhelmingly volume-driven, with minimal benefit from pricing, and was led by the Trex Enhance product line. It attributed the increase to strong consumer demand, its wood-conversion strategy, and market-share gains, and said it estimated about $30 million of the quarter’s revenue came from initial distribution load-in under an enhanced distribution strategy announced the prior quarter.

President and CEO Adam Zambanini said Trex completed inventory placements with new and expanded distribution partners while inventory held by its former partner continued to be reduced. He said overall channel inventory remained comparable to the prior year and that the transition was completed with minimal disruption.

Gross profit was $129 million, and gross margin compressed to 36.0% from 40.5% in the year-ago quarter. The company cited higher transportation-related input costs associated with increased diesel prices and higher depreciation from recent capacity investments. Excluding Arkansas plant startup costs, adjusted gross profit was $133 million.

Startup costs at the Arkansas facility were higher than anticipated because of a temporary mechanical issue that created operational inefficiencies, the company said. The issue has been resolved. Arkansas startup costs in cost of sales were $3.2 million. The company said it expects startup-related costs to moderate as production volumes increase and the facility advances toward full utilization. It remains on track to have about 50% of existing decking production capacity operational by year-end.

Selling, general, and administrative expenses were $56 million, or 15.7% of net sales. Excluding digital transformation costs, SG&A was $55 million. The company said the increase primarily reflects investments in people, capabilities, and brand-building.

Net income was $52 million, or $0.52 a share, compared with $52 million, or $0.48 a share, a year earlier. Adjusted net income was $56 million, or $0.55 a share. Adjusted EBITDA increased 10% to $100 million from $90 million.

Free cash flow for the quarter was $135 million, which the company said reflected strong operating performance, seasonal working capital benefits, and lower capital expenditures as construction of the Arkansas facility approaches completion. During the quarter Trex repurchased about 1.2 million shares for $55 million and repaid $83 million on its revolving credit facility. It anticipates completing a board-authorized $150 million share-repurchase program by year-end, bringing total 2026 repurchases to about $300 million.

The company's full-year 2026 guidance calls for net sales of $1,296 million to $1,306 million and adjusted EBITDA of $355 million to $360 million. Fourth-quarter 2026 net sales guidance is $175 million to $185 million.

Senior Vice President and CFO Prith Gandhi said the company's outlook reflects year-to-date execution, continued demand, and confidence in strategic growth initiatives. He said contractor engagement, consumer interest, and demand for Trex products continue to be strong even as the broader market environment remains mixed.

Trex also appointed Brian J. Taylor as its first Chief Commercial Officer, announced a strategic relationship with Do it Best Group, and outlined a strategy to double the business over the next four years as it marks its 30th anniversary.