Trex Q1 sales rise 1%, adjusted profit beats estimates

Trex

07/05/2026 11:40

Overview

U.S. decking maker's Q1 sales rose 1%, slightly beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company authorized $150 mln share repurchase and expanded buyback program

Outlook

Trex reaffirms 2026 net sales guidance of $1.185 bln to $1.23 bln

Company expects Q2 2026 net sales between $388 mln and $403 mln

Trex anticipates robust free cash flow in 2026 as capital expenditures decline

Result Drivers

PREMIUM DECKING & RETAIL GAINS - Q1 results driven by positive performance in premium decking portfolio and recent shelf space wins in retail channels

PRODUCT MIX & OPERATIONAL EFFICIENCIES - Strong margins attributed to favorable mix of higher margin premium decking boards and margin improvement from operational excellence programs

NEW PRODUCT LAUNCH - Recently launched PVC decking product performed well, leading to geographic expansion beyond initial rollout

Company press release: ID:nBwccWLY2a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$343 mln
$340.13 mln (21 Analysts)
Q1 Adjusted EPS
Beat
$0.59
$0.51 (21 Analysts)
Q1 Adjusted Net Income
Beat
$62.32 mln
$53.64 mln (16 Analysts)
Q1 Net Income
$61.4 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 2 "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 $47.00, about 17.8% above its May 6 closing price of $39.91

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)