Overview
Decking and railing maker's Q4 revenue exceeded expectations, driven by railing sales
Co reports adjusted EPS of $0.04, beating expectations of a $0.02 loss
Company repurchased $50 mln shares in Q4, authorized $150 mln buyback for 1H 2026
Outlook
Trex expects 2026 revenue between $1.185 bln and $1.230 bln
Company anticipates 2026 adjusted EBITDA of $315 mln to $340 mln
Trex projects double-digit growth in railing sales for 2026
Result Drivers
RAILING SALES - Higher than anticipated railing sales in Q4 contributed to exceeding revenue expectations, per CEO Bryan Fairbanks
NEW PRODUCTS - New products accounted for 24% of full year sales, up from 18% the prior year, indicating successful product introductions
GROWTH INITIATIVES - Profitability impacted by one-time charges from growth initiatives, including plant start-up and digital transformation costs
Company press release: ID:nBw7b67Wja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Adjusted EPS | Beat | $0.04 | -$0.02 (19 Analysts) |
Q4 Adjusted Net Income | Beat | $3.83 mln | $779,430 (14 Analysts) |
Q4 Net Income | $2.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "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 $47.50, about 17.9% above its February 23 closing price of $40.28
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago
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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