Trex stock price rises due to better-than-expected performance and leadership transition

LootboxPhobia · 2026-02-25T09:06:29+00:00

Trex's Q4 performance exceeded expectations, with an adjusted earnings per share of $0.04 and revenue reaching $161 million. The company's sales in the latter half of the year showed bright prospects, with projected revenue for fiscal year 2026 between $1.185 billion and $1.23 billion. President Bryan Fairbanks will retire in 2026, with his successor being Adam Zambanini.

LootboxPhobia

2026-02-25 09:06:29

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Investing.com – Trex Company Inc. (NYSE:TREX) reported fourth-quarter results that exceeded analyst expectations. The company announced a leadership succession plan on Tuesday, and its stock rose 4% in after-hours trading.

This wood alternative flooring manufacturer posted adjusted earnings of $0.04 per share for the quarter, surpassing the consensus estimate of -$0.01. Revenue reached $161 million, above the expected $144.49 million, but down 4% from $168 million in the same period last year. Stronger-than-expected railing sales in the second half of the quarter, along with slightly better-than-forecasted flooring shipments in December, drove revenue above expectations.

President and CEO Bryan Fairbanks stated, “Q4 sales exceeded expectations, marking a resilient year amid a challenging repair and renovation industry. Our performance was above the midpoint of our Q4 revenue guidance, mainly due to stronger-than-expected railing sales in the latter half of the quarter, continuing to demonstrate the strength of our product portfolio.”

For fiscal 2026, Trex issued a revenue guidance of $1.185 billion to $1.23 billion. The midpoint of $1.208 billion is slightly below the analyst consensus of $1.23 billion. The company expects full-year adjusted EBITDA to be between $315 million and $340 million.

For fiscal 2025, revenue is projected to grow 2% to $1.2 billion. New products accounted for 24% of annual sales, up from 18% last year, with railing sales growing at a double-digit rate. In the fourth quarter, the company repurchased $50 million of common stock and announced an authorized $150 million share repurchase plan for the first half of 2026.

Additionally, Trex announced that Fairbanks will retire after nearly 23 years with the company, effective April 28, 2026. Current Executive Vice President and COO Adam Zambanini will succeed as President and CEO.

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