Achieved 2% sales growth in 2025 despite a third consecutive year of decline in the broader repair and remodel sector.
Attributed outperformance to robust growth in new products introduced over the last 36 months, which now represent 24% of total sales.
Executed a multiyear railing strategy resulting in double-digit growth and significant stocking wins across both Pro and home center channels.
Leveraged the Arkansas campus to begin on-site plastic pellet production, reducing reliance on expensive external sourcing and optimizing long-term costs.
Strengthened distribution by expanding relationships with key partners like International Wood Products and Specialty Building Products to improve regional access.
Maintained a unique competitive position as the only wood-alternative supplier with significant shelf presence in the two largest national home centers.
Utilized digital transformation tools to drive double-digit increases in contractor lead generation and website engagement, which management correlates with future revenue.
Guidance for 2026 assumes a slightly down to flat repair and remodel market, with Trex expecting low-to-mid single-digit revenue growth.
Anticipates continued double-digit growth in railing as the company works toward a goal of doubling its market share by the end of 2028.
Plans to maintain SG&A at approximately 18% of net sales to support branding and digital investments necessary for market share capture.
Expects a 100 basis point headwind to gross margins in 2026 driven by higher depreciation from the Arkansas facility and a shift in product mix toward railing.
Assumes net pricing will remain flat for the year as modest price increases are offset by higher market incentives to drive volume.
Transitioned inventory accounting from LIFO to FIFO to improve industry comparability, resulting in a non-cash restatement of prior-year margins.
Updated warranty reserve estimation methodology in Q4 2025, resulting in a $6 million expense.
Announced a CEO transition with Adam Zambanini to succeed Bryan Fairbanks in late April 2026, ensuring continuity in existing growth strategies.
Identified ignition-resistant PVC decking (Trex Refuge) as a critical entry point for fire-prone regions like California and Oregon.
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.
finance.yahoo.com
#Trex #Company #Earnings #Call #Summary
