TREX CO INC
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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, 2026 · Filed Nov 4, 2026
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 2026-06-30; filed 2026-08-04.
0001193125-26-332813
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001193125-26-447251
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 94 previous paragraphs and 93 current paragraphs.
60 unchanged; 23 reworded; 8 added; 9 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 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 (8)
Current report
Trex Company Upgrades Distribution Network. Specialty Building Products (SBP) will be Trex's sole national distributor of decking and railing products across North America. In addition, Trex expanded its regional relationships with WS Building Materials (formerly Snavely, Weekes, and Logan), Coastal Forest Products, and BlueLinx.
Current report
Trex selects Fencing Supply Group (FSG) as Exclusive National Distributor for Trex® Fencing. Trex fencing is available nationwide at FSG, a premier wholesale distributor of fencing and outdoor living products and supplies in the United States.
Current report
Trex Expands Outdoor Living Portfolio with Premium Lighting and Finishing Solutions. Trex is expanding its portfolio with an upgraded collection of Trex®Lighting, along with new Trex Select® Aluminum Gates and marine grade stainless steel fastening solutions.
Current report
Trex Celebrates 30 Years of Innovation with Vision to own the Backyard. Trex believes the next era of growth will come from helping consumers think beyond a deck to an entire outdoor experience.
Current report
EBITDA increased 9.6% to $94.7 million for the 2026 quarter compared to $86.4 million for the 2025 quarter. The increase in EBITDA was primarily due to the increase in net sales.
Current report
Nine Months Ended September 30, 2026 Compared To The Nine Months Ended September 30, 2025
Current report
Total EBITDA increased 0.5% to $302.1 million for the 2026 nine-month period compared to $300.5 million for the 2025 nine-month period.
Current report
Cash provided by operations was $248.4 million during the 2026 nine-month period compared to cash provided by operations of $292.6 million during the 2025 nine-month period. The $44.3 million decrease in cash provided by operating activities was primarily related to increased account receivable due to higher net sales, partially offset by increases in accounts payable, accrued expenses, and deferred taxes.
Removed paragraphs (9)
Previous report
Trex Named Among America's Climate Leaders by USA Today. Trex was among 500 U.S. companies that are making measurable progress in reducing their carbon footprint and taking meaningful climate action.
Previous report
Trex's 2025 Sustainability Report, 'For Today and Tomorrow.'The report published in June, highlights Trex's unique commitment to the quality, durability, and sustainability of its products.
Previous report
Trex Named to TIME's List of America's Best Companies 2026. Trex was the only decking brand to be included in this year's roster. In addition, Trex was ranked among the Top 100 Sustainable Engineering, Manufacturing & Medical Technology Companies.
Previous report
Conflict with Iran. To date, U.S. and Israel's conflict with Iran has not materially affected our business or our results of operations. We will continue to closely monitor the potential economic impact of the conflict on commodity and fuel prices, supply chains, pricing of raw materials, and its impact on consumer confidence. We cannot predict the impact continued conflict may have on the economy, our industry, or our business.
Previous report
EBITDA decreased 10.7% to $105.6 million for the 2026 quarter compared to $118.2 million for the 2025 quarter. The decrease in EBITDA was driven primarily by lower gross profit and the write down of assets.
Previous report
Six Months Ended June 30, 2026 Compared To The Six Months Ended June 30, 2025
Previous report
Total EBITDA decreased 3.1% to $207.4 million for the 2026 six-month period compared to $214.1 million for the 2025 six-month period. The decrease in EBITDA was driven primarily by lower gross profit and the write down of assets.
Previous report
Cash provided by operations was $95.7 million during the 2026 six-month period compared to cash provided by operations of $95.7 million during the 2025 six-month period. Accounts receivable increased more during the six months ended June 30, 2026 than during the comparable prior-year period, primarily due to higher sales volume. This unfavorable impact on operating cash flow was partially offset by lower tax payments compared to the 2025 six-month period.
Previous report
On July 29, 2026, the Board of Directors authorized a new share repurchase program allowing for the repurchase of up to $150.0 million of the Company's common stock. Management believes the authorization provides flexibility in the Company's capital allocation strategy and reflects confidence in the Company's long-term cash flow generation and financial position. Future repurchases will depend on business conditions, available liquidity, market conditions, and other investment opportunities.
Reworded paragraphs (23)
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, 2026, 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, 2026, 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, 2026 compared to the three months and six months ended June 30, 2025.
Current wording
Results of Operations — an analysis of our consolidated results of operations for the three months and nine months ended September 30, 2026 compared to the three months and nine months ended September 30, 2025.
Previous wording
*A reconciliation of Net Income (GAAP) to EBITDA (non-GAAP) is presented on pages 20 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 20 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, 2026, our capital expenditures were $57.3 million primarily related to $20.0 million for the Arkansas manufacturing facility, $6.5 million in cost reduction initiatives, $4.5 million for our ERP tool and other platforms, and $26.3 million in all other including capacity expansion in our existing facilities.
Current wording
Capital expenditures. During the nine months ended September 30, 2026, our capital expenditures were $75.3 million primarily related to $33.8 million for the Arkansas manufacturing facility, $8.3 million in safety, environmental and general support, $6.0 million in purchased intangibles related to digital transformation, and $24.8 million in all other including cost reduction initiatives and capacity expansion in our existing facilities.
Previous wording
Selling, General and Administrative Expenses. The largest component of selling, general and administrative expenses is personnel related costs, which includes salaries, commissions, incentive compensation, and benefits of personnel engaged in sales and marketing, accounting, information technology, corporate operations, research and development, and other business functions. Another component of selling, general and administrative expenses is branding and other sales and marketing costs, which are used to build brand awareness. These costs consist primarily of advertising, merchandising, and other promotional costs. Other general and administrative expenses include professional fees, office occupancy costs attributable to the business functions previously referenced, and consumer relations expenses. As a percentage of net sales, selling, general and administrative expenses may vary from quarter to quarter due, in part, to the seasonality of our business.
Current wording
Another component of selling, general and administrative expenses is branding and other sales and marketing costs, which are used to build brand awareness. These costs consist primarily of advertising, merchandising, and other promotional costs. Other general and administrative expenses include professional fees, office occupancy costs attributable to the business functions previously referenced, and consumer relations expenses. As a percentage of net sales, selling, general and administrative expenses may vary from quarter to quarter due, in part, to the seasonality of our business.
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, 2026 (2026 quarter) compared to the three months ended June 30, 2025 (2025 quarter), and for the six months ended June 30, 2026 (2026 six-month period) compared to the six months ended June 30, 2025 (2025 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, 2026 (2026 quarter) compared to the three months ended September 30, 2025 (2025 quarter), and for the nine months ended September 30, 2026 (2026 nine-month period) compared to the nine months ended September 30, 2025 (2025 nine-month period).
Previous wording
Net sales increased by $30.2 million, or 7.8%, in the 2026 quarter compared to the 2025 quarter. The increase was due to an increase in volume and net price, offset by the mix of products sold.
Current wording
Net sales increased by $74.2 million, or 26.0%, in the 2026 quarter compared to the 2025 quarter. The increase was substantially all due to an increase in volume, partially offset by the mix of products sold.
Previous wording
Gross profit as a percentage of net sales, gross margin, was 37.9% in the 2026 quarter compared to 40.8% in the 2025 quarter. The decrease in gross margin was primarily the result of higher input and material costs, increased depreciation, lower production, and unfavorable mix.
Current wording
Gross profit as a percentage of net sales, gross margin, was 36.0% in the 2026 quarter compared to 40.5% in the 2025 quarter. The decrease was primarily the result of increased depreciation, higher transportation costs associated with increased diesel prices, and increased labor as production began at our Arkansas facility.
Previous wording
Selling, general and administrative expenses increased $11.7 million to $67.5 million, or 16.1% of net sales, in the 2026 quarter. The increase primarily related to increases of $4.1 million in personnel related expenses, $3.7 million in branding, and $2.8 million in services.
Current wording
Selling, general and administrative expenses increased $11.4 million to $56.5 million, or 15.7% of net sales, in the 2026 quarter. The increase primarily related to increases of $8.0 million in personnel related expenses and $3.4 million in branding.
Previous wording
The effective tax rate for the 2026 quarter was comparable to the 2025 quarter and was 26.2% and 25.9%, respectively.
Current wording
The effective tax rate for the 2026 quarter was 26.8% compared to 26.5% for the 2025 quarter.
Previous wording
Total net sales increased by $33.6 million, or 4.6%, in the 2026 six-month period compared to the 2025 six-month period. The increase was due to an increase in volume and net price.
Current wording
Total net sales increased by $107.8 million, or 10.6%, in the 2026 nine-month period compared to the 2025 nine-month period. The increase was primarily due to an increase in volume and net price.
Previous wording
Gross profit as a percentage of net sales, gross margin, was 39.1% in the 2026 six-month period compared to 40.7% in the 2025 six-month period. The decrease in gross margin was primarily the result of higher input and material costs, increased depreciation, and unfavorable mix, partially offset by increased productivity.
Current wording
Gross profit as a percentage of net sales, gross margin, was 38.1% in the 2026 nine-month period compared to 40.6% in the 2025 nine-month period. The decrease in gross margin was primarily the result of increased depreciation, higher transportation costs associated with increased diesel prices, unfavorable mix, and increased labor as production began at our Arkansas facility.
Previous wording
Other expenses increased $4.7 million in the 2026 six-month period. The increase was due to the write down of assets at our Virginia manufacturing facilities to reduce the carrying value of the assets to their estimated fair value.
Current wording
Other expenses increased $5.2 million in the 2026 nine-month period. The increase was primarily due to the write down of assets at our Virginia manufacturing facilities to reduce the carrying value of the assets to their estimated fair value.
Previous wording
Selling, general and administrative expenses increased $11.2 million to $123.0 million, or 16.2% of net sales, in the 2026 six-month period. The increase primarily related to increases of $5.1 million in branding, $3.4 million in services, and $1.1 million in personnel related expenses.
Current wording
Selling, general and administrative expenses increased $22.6 million to $179.5 million, or 16.0% of net sales, in the 2026 nine-month period. The increase primarily related to increases of $9.1 million in personnel related expenses, $8.4 million in branding, $3.2 million in digital transformation, and $0.9 million in Arkansas start-up costs.
Previous wording
The effective tax rate for the 2026 six-month period and the 2025 six-month period was 26.3% and 25.9%, respectively.
Current wording
The effective tax rate for the 2026 nine-month period was 26.5% compared to 26.1% for the 2025 nine month period.
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, 2026, we had $6.5 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, and normal trade credit terms from operating activities. At September 30, 2026, we had $3.3 million of cash and cash equivalents.
Previous wording
Capital expenditures in the 2026 six-month period were $57.3 million primarily related to $20.0 million for the Arkansas manufacturing facility, $6.5 million in cost reduction initiatives, $4.5 million for our ERP tool and other platforms, and $26.3 million in all other including capacity expansion in our existing facilities.
Current wording
Capital expenditures. During the nine months ended September 30, 2026, our capital expenditures were $75.3 million primarily related to $33.8 million for the Arkansas manufacturing facility, $8.3 million in safety, environmental and general support, $6.0 million in purchased intangibles related to digital transformation, and $24.8 million in all other including cost reduction initiatives and capacity expansion in our existing facilities.
Previous wording
Net cash used in financing activities in the 2026 six-month period consisted primarily of repurchases of common stock, partially offset by net borrowings on the revolving credit facility.
Current wording
Net cash used in financing activities in the 2026 nine-month period consisted primarily of repurchases of common stock, partially offset by net borrowings on our line of credit.
Previous wording
Stock Repurchase Program. On May 4, 2023, the Trex Board of Directors adopted a stock repurchase program (2023 Stock Repurchase Program) of up to 10.8 million shares of its outstanding common stock. On February 26, 2026, Trex entered into an Accelerated Stock Repurchase program ("ASR") under the 2023 Stock Repurchase Program. On April 28, 2026, the Trex Board of Directors authorized an additional 10 million shares to be repurchased under the 2023 Stock Repurchase Program. During the six months ended, June 30, 2026, the Company repurchased an aggregate of 3.9 million shares of its common stock, consisting of 2.6 million shares by the ASR program and 1.3 million shares under the 2023 Repurchase Program. As of June 30, 2026 the remaining number of shares available for repurchase under the 2023 Stock Repurchase Program is 13,470,185.
Current wording
Stock Repurchase Program. On May 4, 2023, the Board of Directors authorized the repurchase of up to 10.8 million shares of the Company's common stock under the 2023 Stock Repurchase Program, which has no expiration date. On April 28, 2026, the Board of Directors authorized an additional 10 million shares for repurchase under the 2023 Stock Repurchase Program, increasing the number of shares available for future repurchases under the 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
Base Rate Loans (as defined in the Credit Agreement) under the Revolving A Loan and the Swing Line Loans accrue interest at the Base Rate plus the Applicable Rate (as defined in the Credit Agreement) and Term SOFR Loans for the Revolving Loans accrue interest at the rate per annum equal to the sum of Term SOFR for such interest period plus the Applicable Rate (as defined in the Credit Agreement). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by BOA as its prime rate, and (c) the Term SOFR plus 1.0% subject to certain interest rate floors. Repayment of all then outstanding principal, interest, fees and costs is due at the end of the Term (as defined in the Credit Agreement).
Current wording
Base Rate Loans (as defined in the Credit Agreement) under the Revolving A Loan and the Swing Line Loans accrue interest at the Base Rate plus the Applicable Rate (as defined in the Credit Agreement) and Term SOFR Loans for the Revolving Loans accrue interest at the rate per annum equal to the sum of Term SOFR for such interest period plus the Applicable Rate (as defined in the Credit Agreement). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America (BOA) as its prime rate, and (c) the Term SOFR plus 1.0% subject to certain interest rate floors. Repayment of all then outstanding principal, interest, fees and costs is due at the end of the Term (as defined in the Credit Agreement).
Previous wording
At June 30, 2026, we had $253.0 million in outstanding borrowings under the revolving credit facility. The total availability under the revolving credit facility was $443.9 million as of June 30, 2026, which reflects a reduction for outstanding letters of credit totaling $3.1 million.
Current wording
At September 30, 2026, we had $170.0 million in outstanding borrowings under the revolving credit facility. The total availability under the revolving credit facility was $526.9 million as of September 30, 2026, which reflects a reduction for outstanding letters of credit totaling $3.1 million.
Previous wording
Capital Requirements. Our capital expenditure guidance for 2026 is $100 million to $120 million. Our capital allocation priorities for 2026 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 2026 is approximately $100 million. Our capital allocation priorities for 2026 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.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Selling, General and Administrative Expenses. The largest component of selling, general and administrative expenses is personnel related costs, which includes salaries, commissions, incentive compensation, and benefits of personnel engaged in sales and marketing, accounting, information technology, corporate operations, research and development, and other business functions.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2026, the Company repurchased 5.2 million shares of common stock under the 2023 Stock Repurchase Program. As of September 30, 2026, 12.2 million shares remained available for repurchase under the 2023 Stock Repurchase Program.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Other expenses increased $4.7 million in the 2026 quarter. The increase was due to the write down of assets at our Virginia manufacturing facilities to reduce the carrying value of the assets to their estimated fair value.
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.