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Sep 30
Trex Q3 2025 Earnings Report
Trex reported higher revenue, profit, and margins in Q3 2025 despite market headwinds.
Key Takeaways
Trex delivered strong Q3 2025 results with a 22% increase in revenue and a 28% rise in net income. Operating and EBITDA margins improved, and new product sales made up a significant portion of revenue. The company also revised its full-year guidance downward amid softer seasonal trends.
Revenue increased 22% YoY to $285 million
Net income rose to $52 million with adjusted EPS of $0.51
Gross margin expanded to 40.5% and adjusted EBITDA reached $90 million
New products accounted for 25% of trailing-twelve-month sales
Trex
Trex
Forward Guidance
Trex revised its full-year guidance lower, expecting Q4 revenue softness due to continued weakness in Repair & Remodel and end-of-year inventory management by distributors.
Positive Outlook
- Railing sales on track for double-digit growth in 2025
- Strong cash flow generation supports shareholder returns
- New product sales made up 25% of trailing 12-month revenue
- SunComfortable technology to expand in 2026 product launches
- Brand investments driving higher purchase intent and lead generation
Challenges Ahead
- Q4 revenue expected to be below original expectations
- Ongoing weakness in Repair and Remodel segment
- Seasonally slow quarter expected ahead
- Distributors reducing year-end inventories
- Expected 250 basis point gross margin decline in 2026 due to product mix and depreciation