Trex | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 418.02 M

Revenue: As of FY2026 Q2, the actual value is USD 418.02 M, beating the estimate of USD 415.7 M.

EPS: As of FY2026 Q2, the actual value is USD 0.6, missing the estimate of USD 0.6294.

EBIT: As of FY2026 Q2, the actual value is USD 86.19 M.

Second Quarter 2026 Financial Highlights

Trex Company, Inc. reported net sales of $418 million, an 8% increase from $388 million in the prior year period, driven primarily by volume growth across product categories, price points, and distribution channels.

Gross profit was $158 million, with a gross margin of 37.9%, compared to a gross profit of $158 million and a gross margin of 40.8% in the prior year period. The gross margin was impacted by a higher mix of railing sales, increased depreciation expense from the Arkansas facility, and temporary production inefficiencies.

Selling, General, and Administrative Expenses (SG&A) were $67 million, or 16.1% of net sales, up from $56 million, or 14.4% of net sales, in the prior year.

Net income was $62 million, compared to $76 million in the prior year.

Adjusted net income was $63 million, down from $79 million in the prior year period.

Adjusted EBITDA was $112 million, compared to $122 million in the prior year period.

Cash Flow

Free cash flow for the second quarter of 2026 was $182 million, benefiting from seasonal working capital and lower capital expenditures as the Arkansas facility neared completion.

Net cash provided by operating activities for the three months ended June 30, 2026, was $214,165 thousand, compared to $249,751 thousand for the same period in 2025. For the six months ended June 30, 2026, net cash provided by operating activities was $95,740 thousand, compared to $95,739 thousand for the same period in 2025.

Expenditures for property, plant and equipment for the three months ended June 30, 2026, were - $29,632 thousand, compared to - $46,788 thousand in 2025. For the six months ended June 30, 2026, expenditures were - $52,737 thousand, compared to - $126,275 thousand in 2025.

Purchased intangibles for the three months ended June 30, 2026, were - $2,690 thousand, compared to - $4,266 thousand in 2025. For the six months ended June 30, 2026, purchased intangibles were - $4,542 thousand, compared to - $4,901 thousand in 2025.

Operational Metrics and Capital Allocation

The timing of the Arkansas facility’s capacity expansion has been accelerated, with the facility expected to operate at 50% capacity by year-end, and the ramp-up of decking production was accelerated by more than six months to the third quarter of 2026.

Trex Company, Inc. repurchased approximately $51 million in shares during the quarter and approved an additional $150 million for share repurchases in the back half of the year. The company also repaid $130 million outstanding under its revolving credit facility.

Trex Company, Inc. is targeting $2 billion in revenue by 2030.

Outlook / Guidance

Trex Company, Inc. reaffirmed its full-year 2026 guidance, projecting net sales between $1.215 billion and $1.250 billion and adjusted EBITDA between $335 million and $350 million. The company also provided third-quarter revenue guidance in the range of $305 million to $320 million. Other full-year 2026 guidance includes depreciation and amortization of approximately $85 million, SG&A at around 18% of net sales, interest expense between $8 million and $10 million, an effective tax rate of 25.5% to 27.0%, and capital expenditures between $100 million and $120 million.