Trex Company, Inc.

Trex is changing parts of its distribution network while ramping production in Arkansas. Initial distributor stocking helped quarterly revenue, while higher delivery, manufacturing and selling costs limited earnings growth.

Quarterly results

Quarters ended September 30. Dollar amounts in millions. Revenue, net income and operating cash flow are GAAP; adjusted EBITDA and free cash flow are non-GAAP.

Measure	2026	2025
Revenue	$359.5	$285.3
Net income	$52.5	$51.8
Adjusted EBITDA	$99.5	$90.4
Operating cash flow	$152.6	$196.9
Free cash flow	$134.6	$139.6

Adjusted EBITDA removes specified digital-transformation and startup costs, as well as an equipment write-down. Free cash flow deducts purchased intangibles in addition to property and equipment.

Distributor stocking and the outlook

Management estimates initial distributor orders at $30 million. Removing only those orders leaves $329.5 million of quarterly sales, above the original $305 million to $320 million forecast, which already anticipated some stocking. Shipments to distributors are distinct from purchases by homeowners.

The annual sales forecast rose to $1.296 billion to $1.306 billion from $1.215 billion to $1.250 billion. Adjusted EBITDA guidance increased to $355 million to $360 million from $335 million to $350 million.

Borrowing and cash

At September 30, cash and cash equivalents were $3.3 million and revolving borrowings were $170 million, compared with $133.5 million at December 31, 2025. Trex repaid $83 million of revolving borrowings during the quarter.

The company had $526.9 million of available revolving credit at September 30 and was compliant with its loan covenants. It also repurchased $55.1 million of shares during the quarter; nine-month cash used for buybacks was $208.6 million. Trex expects total 2026 share repurchases of about $300 million by year-end.

Read our comparison of Trex's sales with its original forecast.