Trex Company Reports Q3 2026 Revenue Growth of 26% Amid Margin Pressures
Trex Company (TREX) reported strong third-quarter results for 2026, with net sales reaching $360 million, a 26% increase year-over-year. This growth was bolstered by a $30 million distribution load-in from new partners, though underlying sales growth sat in the teens. Despite the revenue surge, adjusted gross margins fell to 36.9% from 41% in the prior year, pressured by higher diesel fuel prices, labor inefficiencies, and increased depreciation from recent capacity investments. Management raised its full-year Adjusted EBITDA guidance to a range of $355 million to $360 million and expects production improvements to bolster margins in the fourth quarter. The company also demonstrated strong cash management, generating $135 million in free cash flow while utilizing funds for $55 million in share repurchases and $83 million in debt repayment.
Tickers: $TREX
Topics: adjusted EBITDA free cash flow gross margin decline net sales growth share repurchases