Trex Q3 net sales rise 26% on volumes, adjusted EPS beats estimates
Overview
US composite decking maker's Q3 net sales rose 26% yr/yr to record high
Adjusted EPS and adjusted net income for Q3 beat analyst expectations
Company raised full-year 2026 guidance on strong execution and demand momentum
Outlook
Trex raises 2026 net sales guidance to $1.30 bln-$1.31 bln
Company expects Q4 2026 net sales of $175 mln-$185 mln
Trex anticipates Arkansas facility to reach 50% capacity by year-end
Result Drivers
VOLUME-DRIVEN GROWTH - Co said sales growth was primarily due to broad-based volume increases, with minimal benefit from pricing
WOOD CONVERSION STRATEGY - Co attributed demand strength to continued success executing its wood conversion strategy and ongoing market share gains
DISTRIBUTION TRANSITION - Co said enhanced distribution strategy and inventory placements with new partners contributed to sales, with $30 mln in revenue from initial distribution load-in
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $0.55 | $0.48 (20 Analysts) |
Q3 Adjusted Net Income | Beat | $55.66 mln | $48.20 mln (16 Analysts) |
Q3 Net Income | $52.49 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 7 "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 $56.00, about 12% above its November 3 closing price of $50.00
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago
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(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.)