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Trex Shares Climb on Upgraded 2026 Outlook and Strong Q2 Sales Preview
Shares of Trex Company (NYSE:TREX) gained 2.6% after the wood-alternative decking manufacturer raised its full-year 2026 financial guidance and announced preliminary second-quarter revenue that topped its prior forecast.
Upgraded Financial Outlook
Trex released preliminary results for the second quarter, anticipating sales of approximately $418 million. This figure surpasses its previous guidance range of $388 million to $403 million and the consensus analyst estimate of $397.6 million. Adjusted EBITDA for the quarter is expected to reach approximately $112 million.
In a statement, Senior Vice President and CFO Prith Gandhi attributed the performance to "strong sell through driven by consumer demand across our channels and products." Following the strong quarterly preview, the company raised its full-year 2026 guidance.
- Net Sales Forecast: Now projected between $1.215 billion and $1.250 billion.
- Adjusted EBITDA Forecast: Expected to range from $335 million to $350 million.
AdDistribution Network Overhaul
Alongside the financial update, Trex announced a significant realignment of its North American distribution network. Specialty Building Products is set to become the company's sole national distributor for decking and railing.
Trex is also expanding its regional distribution footprint with WS Building Materials, Coastal Forest Products, and BlueLinx to cover specific territories across the Midwest, New England, and the South. As part of this strategic shift, the company confirmed it will transition away from Boise Cascade as a distributor.