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Jun 30
Trex Q2 2025 Earnings Report
Trex reported Q2 2025 results with a modest revenue increase driven by new products, but experienced margin compression due to startup and conversion costs.
Key Takeaways
Trex delivered Q2 2025 revenue growth of 3% year-over-year, powered by successful new product launches and strong channel performance. However, gross margin declined due to temporary production adjustments and facility startup costs. Net income fell year-over-year, though adjusted results were more stable.
Q2 revenue reached $388 million, a 3% increase from Q2 2024.
Gross profit was $158 million, or 40.8% margin; adjusted gross profit was $161 million.
Net income was $76 million; adjusted net income was $79 million.
SG&A expenses rose to $56 million as the company increased brand investments.
Trex
Trex
Trex Revenue by Segment
Revenue by Segment
Trex Residential Revenue
CapyFin.com Forward Guidance
Trex reaffirmed full-year guidance, projecting 5–7% revenue growth and EBITDA margins above 31%, despite continued softness in the repair and remodel market.
Positive Outlook
- Full-year 2025 revenue growth guidance of 5–7% reaffirmed
- Adjusted EBITDA margin expected to exceed 31%
- Third quarter gross margin projected to expand by 100 basis points
- Strong demand in Western U.S. driving market penetration
- Recent launches like SunComfortable decking technology gaining traction
Challenges Ahead
- Gross margin declined due to temporary production strategy changes
- SG&A expenses rose due to investments and Arkansas startup costs
- Q2 net income declined year-over-year
- Ongoing cost headwinds from tariffs on aluminum and steel
- Repair and Remodel market projected to remain below 2024 levels