TREX NYSE Russell 1000 Earnings call
Trex Company, Inc. (TREX) · Q2 2026 results and valuation
Share price: $54.28 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 7 May 2026
Net income up 0.8% on the previous quarter, guidance raised. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+0.8%
Net income vs Q1 2026
Guidance raised
Net income 61.9M vs 61.4M
Revenue +21.7%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
New
Trex is now considered one of the leading brands in fire and marine applications, exceeding expectations for its Life Outdoors campaign performance.
Valuation
Is Trex Company, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.0% growth a year (3-year revenue growth), the model's fair value is $16.59 a share — the stock trades 227% above it. Today's price assumes 17.7% growth a year.
Current price
$54.28
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.7% for 10 yrs
Fair value / share
$16.59
Buy below
$12.44
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance ↑
Full-year gross margin outlook raised by half a percentage point, with Q3 expected at 37.5%.
Source quote
“And then you raised the gross margin outlook for the full year by 50 basis points, which with the third quarter coming in at 37.5%, it sort of implies...”
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Guidance
Trex now expects full year adjusted gross margin to come in at approximately 38%, up from the 37.5% it previously expected, primarily driven by higher capacity utilization with Little…
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Figure
Trex reported strong results and improving demand trends, which the company states reinforces its belief that it is well positioned.
Source quote
“Our strong results, improving demand trends and progress against our strategic priorities reinforce our belief that we are well positioned...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Stronger demand, continued gains in key growth categories and disciplined investment in our strategic priorities reinforce our confidence in both our near-term outlook and our long-term growth potential.”
“We will continue leveraging our world-class material science capabilities to develop innovative, high-performing and more cost-effective products that further expand the opportunity ahead.”
“While our sales performance was exceptionally strong, profitability reflected the pace at which demand accelerated during the quarter, along with several strategic choices that supported our long-term growth objectives.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 418.0M | 343.4M | +21.7% | 387.8M | +7.8% |
| Gross profit | 158.3M | 139.0M | +13.9% | 158.1M | +0.1% |
| Operating income | 86.2M | 83.5M | +3.2% | 102.4M | −15.8% |
| Net income | 61.9M | 61.4M | +0.8% | 75.9M | −18.5% |
| EPS | 0.60 | 0.58 | +3.4% | 0.71 | −15.5% |
| P/E today 26.0 | 29.4 | 20.2 | +9.2 | 29.4 | +0.0 |
Topics
Most discussed now
- Trex doesn't look at it like siding and trim companies do, which is annual price increases.
- Collin, in terms of cash flow, as typical in prior years, most of the cash flow generation in the second...
- I feel really good about the campaign, and Trex is only in year # 2.
- On the distribution upgrades that you asked about load-ins and all that, yes, there is some initial new ordering from...
- That's something that's going to definitely help fuel the growth.
Faded since Q1 2026
- Dropped A favorable mix of higher-margin premium decking products and lower sales of railing and margin improvements from continued operational…
- Dropped Adam has talked about areas of interest: number one, vertical integration and margin expansion; two, the whole outdoor living space...
- Fading With its level-load production strategy implemented in 2025, Trex elected to reduce channel inventories for the early part of 2026...
- Fading Trex still sees the high end doing really well on the decking side, and it is definitely focused on converting...
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; Other events · SEC 8-K