Trex Company Reports Q3 Disappointment, Shares Plunge 31%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy TREX?
Source: Globenewswire
- Performance Decline: Trex Company reported Q3 2025 net sales of $285 million, which was 5% below the midpoint of its guidance and a sequential decline of approximately 26%, indicating challenges in inventory management that could undermine future market confidence.
- Guidance Revision: The company revised its 2025 sales growth forecast down to nearly 0%, reflecting a pessimistic outlook on market demand, which may raise investor concerns about its long-term growth potential.
- Stock Price Volatility: Following the earnings report on November 4, 2025, Trex's share price plummeted from $47.04 to $32.43, a decline of 31.07%, demonstrating the market's strong reaction to its disappointing performance, which could impact the company's financing capabilities.
- Management Confidence Erosion: Due to the poor performance, Trex's management may face increased pressure, leading to more stringent scrutiny of future strategic adjustments and investment decisions, thereby affecting corporate governance and market positioning.
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Analyst Views on TREX
Wall Street analysts forecast TREX stock price to rise
17 Analyst Rating
8 Buy
7 Hold
2 Sell
Moderate Buy
Current: 42.650
Low
32.00
Averages
43.56
High
57.00
Current: 42.650
Low
32.00
Averages
43.56
High
57.00
About TREX
Trex Company, Inc. is a manufacturer of wood-alternative decking and residential railing and outdoor living products and accessories, marketed under the brand name Trex. The Company’s segment is Trex Residential. Its product categories include decking and accessories, railing, and fencing. Its decking products are made in a proprietary process that combines reclaimed wood fibers and recycled polyethylene film. Its decking and accessories include Trex Signature decking, Trex Transcend Lineage decking, Trex Transcend decking, Trex Select decking, Trex Enhance decking, Trex Hideaway Fastener Collection, and Trex DeckLighting outdoor lighting system. Its Trex Transcend decking product can also be used as cladding. Its railing products include Trex Signature X-Series railing, Trex Signature Aluminum railing, Trex Transcend railing, Trex Select railing, Trex Select T-Rail, and Trex Enhance railing. Its Trex Seclusions composite fencing product is offered through two specialty distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trex Company Showcases Performance-Engineered Outdoor Solutions
- High-Performance Showcase: At IBS 2026, Trex Company highlighted its performance-engineered outdoor living solutions aimed at helping builders tackle climate challenges, thereby enhancing market competitiveness and customer trust.
- Fire-Resistant Decking Innovation: The newly launched Trex Refuge™ fire-resistant PVC decking meets stringent building codes, addressing the needs of fire-prone areas and enhancing Trex's market differentiation in safety and design.
- Mid-Tier Composite Expansion: The Trex Select® decking line has introduced heat-mitigation technology, providing durable and aesthetically pleasing options for price-sensitive builders, further broadening its product range to meet diverse customer needs.
- Fencing Product Growth: Trex emphasized the low-maintenance advantages of its composite fencing at the show, offering various styles and colors to meet modern homeowners' dual demands for privacy and aesthetics, driving growth in the outdoor living solutions market.
See More
Trex Company Showcases Innovative Outdoor Solutions
- High-Performance Outdoor Solutions: At IBS 2026, Trex Company showcases its Performance-Engineered™ outdoor living solutions aimed at helping builders tackle climate-related challenges, thereby enhancing their competitive edge in the market.
- Fire-Resistant Decking Innovation: Trex Refuge™ is an ignition-resistant PVC decking line that meets strict building codes and has passed rigorous industry tests, making it suitable for fire-prone areas and increasing its market appeal.
- Mid-Tier Composite Expansion: The Trex Select® decking series introduces heat-mitigation technology, providing durable and aesthetically pleasing options for price-sensitive builders, thus broadening market coverage and meeting diverse design needs.
- Fencing Product Line Growth: Trex launches a range of low-maintenance composite fencing options that offer privacy and security, addressing modern homeowners' needs and demonstrating the company's ongoing innovation in outdoor living solutions.
See More
Trex Company Unveils New Exhibit at 30th Anniversary
- Innovative Exhibit Launch: Trex Company will unveil a new exhibit at the 2026 International Builders' Show (IBS), covering 3,000 square feet, aimed at redefining the future of outdoor living through performance, beauty, and sustainability, reinforcing its leadership in the composite decking industry.
- Product Showcase and Experience: The booth features a fluid design with dedicated product stations highlighting Trex's composite decking, railing systems, and other outdoor living products, utilizing a mix of physical samples and digital content to enhance customer experience and drive sales.
- Technology Innovation Display: The Performance Lab will offer hands-on experiences showcasing Trex's proprietary SunComfortable™ technology and fire-resistant features, emphasizing the products' superior performance in extreme environments, further solidifying its market leadership.
- Celebration Activities and Customer Engagement: Throughout the show, Trex will host a series of events, including a reception to celebrate its 30th anniversary and a meet-and-greet with an Instagram influencer, aimed at strengthening customer relationships and enhancing brand awareness.
See More
Trex Named America's Most Trusted Outdoor Decking for Six Consecutive Years
- Trust Recognition: Trex has been named '2026 America's Most Trusted Outdoor Decking' for six consecutive years, establishing a benchmark for trust in the industry and reflecting high consumer recognition of its product quality and service, thereby solidifying its market leadership.
- Consumer Survey Insights: Lifestory Research conducted a 12-month survey of nearly 4,000 Americans, with Trex achieving the highest satisfaction scores and a five-star trust rating among nine outdoor decking brands, showcasing its significant advantage in a competitive market.
- Product Innovation and Diversity: Since the mid-1990s, Trex has continuously innovated, offering low-maintenance, eco-friendly composite decking products that include deck drainage, lighting, and outdoor kitchen components, meeting consumer demand for high-performance and sustainable products.
- Long-term Brand Value: Trex's success lies not only in product performance but also in its long-standing brand trust and deep emotional connection with consumers, which enhances its resilience in future market competition and positions it for sustained growth potential.
See More
Madison Asset Management Fully Exits Trex Holdings
- Complete Exit: Madison Asset Management sold all 1,893,081 shares of Trex during Q4 2025, with an estimated transaction value of $97.82 million, reflecting a significant decline in the fund's Trex position and indicating reduced market confidence in the company.
- Poor Stock Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year and underperforming the S&P 500 by 52 percentage points, highlighting the company's vulnerability in the current economic climate.
- Sales Growth Potential: Despite challenges, Trex reported a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, demonstrating its innovation capabilities and potential market demand that may attract long-term investors.
- Reasonable Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that, given its historical annual sales growth of 12%, the current stock price remains attractive and could present a good buying opportunity for investors.
See More
Madison Asset Management Liquidates Trex Position Worth $98 Million
- Position Liquidation: Madison Asset Management sold all 1,893,081 shares of Trex in Q4 2025 for an estimated $97.82 million, indicating a significant decline in the fund's Trex position and reflecting a pessimistic outlook on the company's future performance.
- Poor Market Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year, significantly underperforming the S&P 500 by 52 percentage points, suggesting serious challenges to its competitive position in the market.
- Sales Growth Potential: Despite market volatility, Trex achieved a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, indicating strong innovation capabilities and demand that could lay the groundwork for future recovery.
- Attractive Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that the current stock price remains attractive in light of its long-term growth potential, which may draw interest from long-term investors.
See More
Trex Company Showcases Performance-Engineered Outdoor Solutions
- High-Performance Showcase: At IBS 2026, Trex Company highlighted its performance-engineered outdoor living solutions aimed at helping builders tackle climate challenges, thereby enhancing market competitiveness and customer trust.
- Fire-Resistant Decking Innovation: The newly launched Trex Refuge™ fire-resistant PVC decking meets stringent building codes, addressing the needs of fire-prone areas and enhancing Trex's market differentiation in safety and design.
- Mid-Tier Composite Expansion: The Trex Select® decking line has introduced heat-mitigation technology, providing durable and aesthetically pleasing options for price-sensitive builders, further broadening its product range to meet diverse customer needs.
- Fencing Product Growth: Trex emphasized the low-maintenance advantages of its composite fencing at the show, offering various styles and colors to meet modern homeowners' dual demands for privacy and aesthetics, driving growth in the outdoor living solutions market.
See More
Trex Company Showcases Innovative Outdoor Solutions
- High-Performance Outdoor Solutions: At IBS 2026, Trex Company showcases its Performance-Engineered™ outdoor living solutions aimed at helping builders tackle climate-related challenges, thereby enhancing their competitive edge in the market.
- Fire-Resistant Decking Innovation: Trex Refuge™ is an ignition-resistant PVC decking line that meets strict building codes and has passed rigorous industry tests, making it suitable for fire-prone areas and increasing its market appeal.
- Mid-Tier Composite Expansion: The Trex Select® decking series introduces heat-mitigation technology, providing durable and aesthetically pleasing options for price-sensitive builders, thus broadening market coverage and meeting diverse design needs.
- Fencing Product Line Growth: Trex launches a range of low-maintenance composite fencing options that offer privacy and security, addressing modern homeowners' needs and demonstrating the company's ongoing innovation in outdoor living solutions.
See More
Trex Company Unveils New Exhibit at 30th Anniversary
- Innovative Exhibit Launch: Trex Company will unveil a new exhibit at the 2026 International Builders' Show (IBS), covering 3,000 square feet, aimed at redefining the future of outdoor living through performance, beauty, and sustainability, reinforcing its leadership in the composite decking industry.
- Product Showcase and Experience: The booth features a fluid design with dedicated product stations highlighting Trex's composite decking, railing systems, and other outdoor living products, utilizing a mix of physical samples and digital content to enhance customer experience and drive sales.
- Technology Innovation Display: The Performance Lab will offer hands-on experiences showcasing Trex's proprietary SunComfortable™ technology and fire-resistant features, emphasizing the products' superior performance in extreme environments, further solidifying its market leadership.
- Celebration Activities and Customer Engagement: Throughout the show, Trex will host a series of events, including a reception to celebrate its 30th anniversary and a meet-and-greet with an Instagram influencer, aimed at strengthening customer relationships and enhancing brand awareness.
See More
Trex Named America's Most Trusted Outdoor Decking for Six Consecutive Years
- Trust Recognition: Trex has been named '2026 America's Most Trusted Outdoor Decking' for six consecutive years, establishing a benchmark for trust in the industry and reflecting high consumer recognition of its product quality and service, thereby solidifying its market leadership.
- Consumer Survey Insights: Lifestory Research conducted a 12-month survey of nearly 4,000 Americans, with Trex achieving the highest satisfaction scores and a five-star trust rating among nine outdoor decking brands, showcasing its significant advantage in a competitive market.
- Product Innovation and Diversity: Since the mid-1990s, Trex has continuously innovated, offering low-maintenance, eco-friendly composite decking products that include deck drainage, lighting, and outdoor kitchen components, meeting consumer demand for high-performance and sustainable products.
- Long-term Brand Value: Trex's success lies not only in product performance but also in its long-standing brand trust and deep emotional connection with consumers, which enhances its resilience in future market competition and positions it for sustained growth potential.
See More
Madison Asset Management Fully Exits Trex Holdings
- Complete Exit: Madison Asset Management sold all 1,893,081 shares of Trex during Q4 2025, with an estimated transaction value of $97.82 million, reflecting a significant decline in the fund's Trex position and indicating reduced market confidence in the company.
- Poor Stock Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year and underperforming the S&P 500 by 52 percentage points, highlighting the company's vulnerability in the current economic climate.
- Sales Growth Potential: Despite challenges, Trex reported a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, demonstrating its innovation capabilities and potential market demand that may attract long-term investors.
- Reasonable Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that, given its historical annual sales growth of 12%, the current stock price remains attractive and could present a good buying opportunity for investors.
See More
Madison Asset Management Liquidates Trex Position Worth $98 Million
- Position Liquidation: Madison Asset Management sold all 1,893,081 shares of Trex in Q4 2025 for an estimated $97.82 million, indicating a significant decline in the fund's Trex position and reflecting a pessimistic outlook on the company's future performance.
- Poor Market Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year, significantly underperforming the S&P 500 by 52 percentage points, suggesting serious challenges to its competitive position in the market.
- Sales Growth Potential: Despite market volatility, Trex achieved a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, indicating strong innovation capabilities and demand that could lay the groundwork for future recovery.
- Attractive Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that the current stock price remains attractive in light of its long-term growth potential, which may draw interest from long-term investors.
See More
