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Trex Q3 net sales rise 26% on volumes, adjusted EPS beats estimates

By Reuters News


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


Reuters Recommended Reads

  • Nov 3 - Fortune Brands Q3 revenue misses estimates on execution issues

  • Nov 3 - Louisiana-Pacific Q3 adjusted EBITDA beats estimates on pricing

  • Nov 2 - Boise Cascade Q3 sales rise, beat estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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