Latest news with #railing
Yahoo
7 days ago
- Business
- Yahoo
Trex Broadens Western U.S. Reach Through Expansion With IWP
Strategic move reinforces Trex's leadership position and supports ongoing growth in the Mountain Region WINCHESTER, Va., August 13, 2025--(BUSINESS WIRE)--Trex Company, Inc. (NYSE: TREX), the world's largest manufacturer of wood-alternative decking and residential railing products, is expanding its partnership with International Wood Products, LLC (IWP), strengthening its presence in the Western U.S. through increased channel support and enhanced product accessibility. As part of this initiative, IWP will now exclusively stock Trex® decking and railing at its newly opened facility in Salt Lake City, Utah, and continue to do so at all six of its distribution centers across the region. This development builds on the long-standing success of the Trex-IWP relationship in the Pacific Northwest and California. The addition of IWP's new facility will further bolster Trex's coverage in the Intermountain West, a key growth area within the national housing market, while complementing the company's existing distributor relationships across the region. "This expansion further strengthens our world-class distribution network which supports market growth and drives customer success," said Kevin Brennan, Vice President, North American Pro Channel Sales at Trex. "IWP has proven to be a strong Trex partner, and we are pleased they will be expanding their footprint in a region with significant opportunity." "We are thrilled to expand our relationship with Trex and look forward to bringing another great product to our valued customers in Utah and across the Intermountain West," said Josh Hamilton, President of International Wood Products. "Our relationship with Trex has been built on mutual trust and shared values, and we are incredibly proud of the success we have achieved together. By exclusively stocking Trex decking and railing products at all six of our distribution facilities in the West, including Salt Lake City, we will offer a comprehensive selection of premium solutions to our valued customers across the region." Strategic Highlights: Expanded Market Coverage – Strengthens Trex's presence in Utah and across the Intermountain West, reinforcing the brand's commitment to serving the growing housing market with reliable access to industry-leading products. Comprehensive Product Availability – IWP will stock the full line of Trex decking and railing products, including the new Trex Select™ aluminum and Trex Enhance™ steel railing systems, offering solutions for a wide range of product types and budgets. Sustained Channel Investment – This move underscores Trex's strategy to support continued conversion from wood to composite decking and to double its share of the $3.1 billion residential railing market over five years. This expansion reinforces Trex's ongoing commitment to channel excellence, long-standing distributor partnerships, and the delivery of high-performance, sustainable outdoor living products. To learn more, visit For more about IWP, visit About Trex Company For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world's #1 brand of sustainably made, wood-alternative decking and residential railing, and a leader in high performance, low-maintenance outdoor living products. Boasting the industry's strongest distribution network, Trex sells products through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America's Most Trusted® Outdoor Decking** 5 Years in a Row (2021-2025). The company also holds a place on Barron's list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America's Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor's Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15th consecutive year. For more information, visit You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand's YouTube channel (TheTrexCo). **2021-2025 DISCLAIMER: Trex received the highest numerical score in the proprietary Lifestory Research 2021-2025 America's Most Trusted® Outdoor Decking studies. Study results are based on the experiences and perceptions of people surveyed. Your experiences may vary. Visit About International Wood Products International Wood Products, LLC (IWP) is an independent, full-service stocking distributor and manufacturer of quality building materials providing service to building materials suppliers in the Western United States. View source version on Contacts Corinne RacineL.C. Williams & Associates(312) 565-4615cracine@
Yahoo
05-08-2025
- Business
- Yahoo
Trex's (NYSE:TREX) Q2 Sales Top Estimates
Composite decking and railing products manufacturer Trex Company (NYSE:TREX) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 3% year on year to $387.8 million. On the other hand, next quarter's revenue guidance of $300 million was less impressive, coming in 1% below analysts' estimates. Its non-GAAP profit of $0.73 per share was 2.8% above analysts' consensus estimates. Is now the time to buy Trex? Find out in our full research report. Trex (TREX) Q2 CY2025 Highlights: Revenue: $387.8 million vs analyst estimates of $377.1 million (3% year-on-year growth, 2.8% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.71 (2.8% beat) Adjusted EBITDA: $122 million vs analyst estimates of $117.9 million (31.5% margin, 3.5% beat) Revenue Guidance for Q3 CY2025 is $300 million at the midpoint, below analyst estimates of $303.1 million Operating Margin: 26.4%, down from 31.1% in the same quarter last year Free Cash Flow Margin: 52.3%, up from 42% in the same quarter last year Market Capitalization: $6.8 billion 'Our prominent position in both the pro channel and home centers enabled Trex to deliver another quarter of sales performance that exceeded expectations,' said Bryan Fairbanks, President and CEO. Company Overview Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Trex's 7.7% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Trex's annualized revenue growth of 7.6% over the last two years aligns with its five-year trend, suggesting its demand was stable. This quarter, Trex reported modest year-on-year revenue growth of 3% but beat Wall Street's estimates by 2.8%. Company management is currently guiding for a 28.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and suggests its newer products and services will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Trex has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 24.5%. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, Trex's operating margin decreased by 3.3 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, Trex generated an operating margin profit margin of 26.4%, down 4.6 percentage points year on year. Since Trex's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Trex's EPS grew at an unimpressive 4.5% compounded annual growth rate over the last five years, lower than its 7.7% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. We can take a deeper look into Trex's earnings to better understand the drivers of its performance. As we mentioned earlier, Trex's operating margin declined by 3.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Trex, its two-year annual EPS growth of 10.7% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q2, Trex reported adjusted EPS at $0.73, down from $0.80 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 2.8%. Over the next 12 months, Wall Street expects Trex's full-year EPS of $1.79 to grow 34.1%. Key Takeaways from Trex's Q2 Results We enjoyed seeing Trex beat analysts' revenue expectations this quarter. We were also happy its EBITDA outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter slightly missed. Overall, this print was mixed. The stock remained flat at $64.50 immediately following the results. Sure, Trex had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
