TREX CO INC
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
TREX$54.74-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0000950170-25-102135
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001193125-25-264987
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 91 current paragraphs.
61 unchanged; 20 reworded; 10 added; 7 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Trex Simplifies Railing Specification with Interactive Design Tool. The Trex® Deck Railing Designer was launched in an effort to simplify the railing selection process with speed, accuracy, and efficiency in mind. This new tool delivers 3D visualization and instant material estimates which simplifies the planning process for both homeowners and contractors.
Current report
Trex Broadens Western U.S. Reach Through Expansion with International Wood Products, LLC (IWP). IWP will exclusively stock Trex® decking and railing products at its newly opened facility in Salt Lake City, Utah strengthening Trex's presence in Utah and across the Intermountain West.
Current report
Trex Celebrates Completion of 2025 Sunset Idea House in Palm Springs. Featuring performance engineered™ products and modeled for eco-conscious design, Trex decking and railing have been featured in the Sunset Idea House creating durable, functional, and sleek outdoor living spaces.
Current report
Gross profit as a percentage of net sales, gross margin, was 40.5% in the 2025 quarter compared to 39.9% in the 2024 quarter. The increase was primarily the result of operational savings and lower labor costs, partially offset by tariffs on certain aluminum and steel railing products and lower production levels.
Current report
The effective tax rate for the 2025 quarter was 26.5% compared to 25.3% for the 2024 quarter. The increase in the effective rate was primarily due to a reduction in the allowable deduction for foreign derived intangible income.
Current report
EBITDA increased 27.2% to $86.4 million for the 2025 quarter compared to $67.9 million for the 2024 quarter. The increase in EBITDA was primarily due to volume growth in net sales.
Current report
Nine Months Ended September 30, 2025 Compared To The Nine Months Ended September 30, 2024
Current report
Total net sales increased by $29.3 million, or 3%, in the 2025 nine-month period compared to the 2024 nine-month period. The increase was substantially all driven by products introduced within the last 36 months.
Current report
The effective tax rate for the 2025 nine-month period was 26.1% compared to 25.4% for the 2024 nine month period. The increase in the effective rate was primarily due to excess tax expense from stock-based awards in 2025 and excess tax benefit from stock-based awards in 2024, as well as a reduction in the allowable deduction for foreign derived intangible income.
Current report
As of September 30, 2025, the Company had $111.3 million in borrowings outstanding under its revolving credit facility. The total availability under the revolving credit facility was $435.6 million as of September 30, 2025, which reflects a reduction for outstanding letters of credit totaling $3.1 million.
Removed paragraphs (7)
Previous report
Trex Takes On Real Life In New "Trex Vs" AD Campaign. This new series of commercial spots and digital concepts showcases how the brand's Performance-Engineered™ decking and railing enhance and stand up to everyday life.
Previous report
Trex's 2024 Sustainability Report highlights how circular innovation is adding value to the business. The comprehensive report details the Company's continued leadership in materials circularity, environmental stewardship, and social responsibility.
Previous report
The effective tax rate for the 2025 quarter was comparable to the 2024 quarter and was 25.9% and 25.6%, respectively.
Previous report
Six Months Ended June 30, 2025 Compared To The Six Months Ended June 30, 2024
Previous report
Total net sales decreased by $22.3 million, or 3%, in the 2025 six-month period compared to the 2024 six-month period. The decrease was substantially all due to a decrease in volume, primarily related to our revised channel inventory strategy which resulted in reduced volume in the first half of the year.
Previous report
The effective tax rate for the 2025 six-month period and the 2024 six month period was 25.9% and 25.4%, respectively.
Previous report
At June 30, 2025, we had $245.4 million in outstanding borrowings under the revolving credit facility and borrowing capacity under the facility of $304.6 million.
Reworded paragraphs (20)
Previous wording
Highlights and Financial Performance Quarter-to-Date and Year-to-Date –a summary of financial performance and highlights for the three months and six months ended June 30, 2025, a general discussion of factors that may affect our operations, and a description of relevant financial statement line items.
Current wording
Highlights and Financial Performance Quarter-to-Date and Year-to-Date –a summary of financial performance and highlights for the three months and nine months ended September 30, 2025, a general discussion of factors that may affect our operations, and a description of relevant financial statement line items.
Previous wording
Results of Operations — an analysis of our consolidated results of operations for the three months and six months ended June 30, 2025 compared to the three months and six months ended June 30, 2024.
Current wording
Results of Operations — an analysis of our consolidated results of operations for the three months and nine months ended September 30, 2025 compared to the three months and nine months ended September 30, 2024.
Previous wording
*A reconciliation of Net Income (GAAP) to EBITDA (non-GAAP) is presented on pages 19 and 21 of this Quarterly Report on Form 10-Q under “Net Income and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).”
Current wording
*A reconciliation of Net Income (GAAP) to EBITDA (non-GAAP) is presented on pages 21 and 22 of this Quarterly Report on Form 10-Q under “Net Income and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).”
Previous wording
Capital expenditures. During the six months ended June 30, 2025, our capital expenditures were $126.3 million primarily related to $97.6 million for the Arkansas manufacturing facility, $5.9 million in cost reduction initiatives, and $7.4 million in capacity expansion in our existing facilities and safety, environmental and general support.
Current wording
Capital expenditures. During the nine months ended September 30, 2025, our capital expenditures were $188 million primarily related to $144.2 million for the Arkansas manufacturing facility, $13.8 million in safety, environmental and general support, $8.3 million in purchased intangibles related to digital transformation, and $12.4 million in all other including cost reduction initiatives and capacity expansion in our existing facilities.
Previous wording
Below is the discussion and analysis of our operating results and material changes in our operating results for the three months ended June 30, 2025 (2025 quarter) compared to the three months ended June 30, 2024 (2024 quarter), and for the six months ended June 30, 2025 (2025 six-month period) compared to the six months ended June 30, 2024 (2024 six-month period).
Current wording
Below is the discussion and analysis of our operating results and material changes in our operating results for the three months ended September 30, 2025 (2025 quarter) compared to the three months ended September 30, 2024 (2024 quarter), and for the nine months ended September 30, 2025 (2025 nine-month period) compared to the nine months ended September 30, 2024 (2024 nine-month period).
Previous wording
Net sales increased by $11.3 million, or 3%, in the 2025 quarter compared to the 2024 quarter. The increase was substantially all due to an increase in volume.
Current wording
Net sales increased by $51.6 million, or 22.1%, in the 2025 quarter compared to the 2024 quarter. The increase was substantially all due to an increase in volume.
Previous wording
Selling, general and administrative expenses increased $4.5 million to $55.7 million, or 14.4% of net sales, in the 2025 quarter. The increase primarily related to increases of $3.3 million in branding, $1.1 million in personnel related expenses, $0.6 million in Arkansas start-up costs, and $0.5 million in facilities and support, partially offset by decreases in other areas.
Current wording
Selling, general and administrative expenses increased $6.1 million to $45.0 million, or 15.8% of net sales, in the 2025 quarter. The increase primarily related to increases of $2.5 million in branding, $1.8 million in digital transformation, $0.9 million in research and development, and $0.8 million of other increases.
Previous wording
Gross profit as a percentage of net sales, gross margin, was 40.7% in the 2025 six-month period compared to 45.0% in the 2024 six-month period. The decrease in gross margin was primarily the result of lower production year over year as we level load our facilities, inefficiencies associated with start-up costs at our Arkansas facility, and changes to our production process driven by refinements made to our Enhance® decking.
Current wording
Gross profit as a percentage of net sales, gross margin, was 40.6% in the 2025 nine-month period compared to 43.8% in the 2024 nine-month period. The decrease in gross margin was primarily the result of inefficiencies associated with start-up costs at our
Previous wording
Gross profit as a percentage of net sales, gross margin, was 40.8% in the 2025 quarter compared to 44.7% in the 2024 quarter. The decrease was primarily the result of lower production year over year as we level load our facilities, inefficiencies associated with start-up costs at our Arkansas facility, and changes to our production process driven by refinements made to our Enhance® decking. The higher costs due to the production refinements will not continue into the third quarter.
Current wording
Arkansas facility, higher raw material costs, changes to our production process driven by refinements made to our Enhance® decking product line in 2025, and tariffs, partially offset by pricing.
Previous wording
Selling, general and administrative expenses increased $10.0 million to $111.8 million, or 15.4% of net sales, in the 2025 six-month period. The increase primarily related to increases of $6.6 million in branding, $2.1 million in personnel related expenses, $1.7 million in Arkansas start-up costs, $0.9 million in digital transformation, offset partially by decreases of $1.4 million in other expenses.
Current wording
Selling, general and administrative expenses increased $16.1 million to $156.8 million, or 15.5% of net sales, in the 2025 nine-month period. The increase primarily related to increases of $9.1 million in branding, $2.7 million in digital transformation, $2.3 million in Arkansas start-up costs, and $2.2 million in personnel related expenses.
Previous wording
Total EBITDA decreased 18.7% to $214.1 million for the 2025 six-month period compared to $263.5 million for the 2024 six-month period. The decrease in EBITDA was driven primarily by lower net sales and gross profit.
Current wording
Total EBITDA decreased 9.3% to $300.5 million for the 2025 nine-month period compared to $331.4 million for the 2024 nine-month period. The decrease in EBITDA was driven primarily by lower gross profit and higher selling, general, and administrative expenses.
Previous wording
We finance operations and growth primarily with cash flows from operations, borrowings under our revolving credit facilities, operating leases and normal trade credit terms from operating activities. At June 30, 2025, we had $5.5 million of cash and cash equivalents.
Current wording
We finance operations and growth primarily with cash flows from operations, borrowings under our revolving credit facilities, operating leases and normal trade credit terms from operating activities. At September 30, 2025, we had $11.4 million of cash and cash equivalents.
Previous wording
Cash provided by operations was $95.7 million during the 2025 six-month period compared to cash provided by operations of $19.6 million during the 2024 six-month period. The $76.1 million increase in cash provided by operating activities was primarily related to a decrease in inventories in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease in inventories is the result of lower production in 2025.
Current wording
Cash provided by operations was $292.6 million during the 2025 nine-month period compared to cash provided by operations of $152.4 million during the 2024 nine-month period. The $140.2 million increase in cash provided by operating activities was primarily related to a decrease in inventories in the nine months ended September 30, 2025 compared to an increase in inventories in the nine months ended September 30, 2024. The decrease in inventories in 2025 is the result of lower production driven by our strategy to level load our facilities.
Previous wording
Capital expenditures in the 2025 six-month period were $126.3 million primarily related to $97.6 million for the Arkansas manufacturing facility, $5.9 million in cost reduction initiatives, and $7.4 million in capacity expansion in our existing facilities and safety, environmental and general support.
Current wording
Capital expenditures. During the nine months ended September 30, 2025, our capital expenditures were $188 million primarily related to $144.2 million for the Arkansas manufacturing facility, $13.8 million in safety, environmental and general support, $8.3 million in purchased intangibles related to digital transformation, and $12.4 million in all other including cost reduction initiatives and capacity expansion in our existing facilities.
Previous wording
Net cash provided by financing activities in the 2025 six-month period consisted primarily of net borrowings under our line of credit.
Current wording
Net cash used in financing activities in the 2025 nine-month period consisted primarily of net payments on our line of credit.
Previous wording
Stock Repurchase Program. On May 4, 2023, the Trex Board of Directors adopted a new stock repurchase program of up to 10.8 million shares of its outstanding common stock, and terminated the existing Stock Repurchase Program. This repurchase program has no set expiration date. During the six months ended June 30, 2025, the Company did not repurchase any shares of its common stock under the 2023 Stock Repurchase Program.
Current wording
Stock Repurchase Program. On May 4, 2023, the Trex Board of Directors adopted a new stock repurchase program of up to 10.8 million shares of its outstanding common stock, and terminated the existing Stock Repurchase Program. This repurchase program has no set expiration date. During the nine months ended September 30, 2025, the Company did not repurchase any shares of its common stock under the 2023 Stock Repurchase Program.
Previous wording
The Second Amendment provides us with Revolving A Loans in the maximum principal amount of $400,000,000 (Revolving A Loans), Revolving B Loans in the maximum principal amount of $150,000,000 (Revolving B Loans), and Letters of Credit and Swing
Current wording
The Second Amendment provides us with Revolving A Loans in the maximum principal amount of $400,000,000 (Revolving A Loans), Revolving B Loans in the maximum principal amount of $150,000,000 (Revolving B Loans), and Letters of Credit and Swing Line Loans (as defined in the Credit Agreement). The Second Amendment extends the maturity date of the Revolving B Loans from December 22, 2024 to December 22, 2026.
Previous wording
With respect to Revolving B Loans (as defined in the Credit Agreement), for any day, the rate per annum is a tiered pricing based upon the Consolidated Debt to Consolidated EBITDA Ratio. The applicable rate for Revolving B Loans that are Base Rate Loans range between 0.20% and 1.15%. and the applicable rate for Revolving B Loans that are Term SOFR/Term SOFR Daily Floating Rate range between 1.20% and 2.15%.
Current wording
With respect to Revolving B Loans (as defined in the Credit Agreement), for any day, the rate per annum is a tiered pricing based upon the Consolidated Debt to Consolidated EBITDA Ratio. The applicable rate for Revolving B Loans that are Base Rate Loans ranges between 0.20% and 1.15%. and the applicable rate for Revolving B Loans that are Term SOFR/Term SOFR Daily Floating Rate range between 1.20% and 2.15%.
Previous wording
Capital Requirements. Our capital expenditure guidance for 2025 is $190 million to $210 million. In addition to the construction of the Arkansas facility, our capital allocation priorities for 2025 include expenditures for internal growth opportunities, manufacturing cost reductions, upgrading equipment and support systems, and acquisitions which fit our long-term growth strategy as we continue to evaluate opportunities that would be a good strategic fit for Trex, and return of capital to shareholders.
Current wording
Capital Requirements. Our capital expenditure guidance for 2025 is $210 million to $220 million. In addition to the construction of the Arkansas facility, our capital allocation priorities for 2025 include expenditures for internal growth opportunities, manufacturing cost reductions, upgrading equipment and support systems, and acquisitions which fit our long-term growth strategy as we continue to evaluate opportunities that would be a good strategic fit for Trex, and return of capital to shareholders.
Previous wording
As previously announced, the Company anticipates spending approximately $550 million on the Arkansas facility, of which we have already invested $484 million.
Current wording
As previously announced, the Company anticipates spending approximately $550 million on the Arkansas facility, of which we have already invested $519 million.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
EBITDA decreased 9.3% to $118.2 million for the 2025 quarter compared to $130.4 million for the 2024 quarter. The decrease in EBITDA was driven primarily by lower gross profit.
Previous report — wording carried elsewhere
Line Loans (as defined in the Credit Agreement). The Second Amendment extends the maturity date of the Revolving B Loans from December 22, 2024 to December 22, 2026.