Decking and railing products maker Trex posts rise in Q3 net sales; announces $50 mln buyback

Trex

04/11/2025 22:05

Overview

Trex Q3 net sales rose 22.1% yr/yr to $285 mln, adjusted EPS missed estimates

Adjusted net income for Q3 missed analyst expectations

Company announces $50 mln share repurchase program

Outlook

Trex revises full-year 2025 revenue guidance to $1.15 bln to $1.16 bln

Company revises full-year adjusted EBITDA margin to 28.0% to 28.5%

Trex anticipates muted Repair and Remodel activity for rest of year

Result Drivers

NEW PRODUCTS - Products launched within the last 36 months accounted for 25% of trailing-twelve-month sales, indicating strong alignment with consumer preferences

BRANDING AND R&D - Increased spending on branding and R&D has led to significant increases in early purchase intent and lead generation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Miss
$0.51
$0.56 (20 Analysts)
Q3 Adjusted Net Income
Miss
$54.71 mln
$61.77 mln (17 Analysts)
Q3 Net Income
$51.77 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

Wall Street's median 12-month price target for Trex Company Inc is $66.61, about 28% above its November 3 closing price of $47.94

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBwbjNWkQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)