Overview

• U.S. decking maker's Q1 sales rose 1%, slightly beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company authorized $150 mln share repurchase and expanded buyback program

Outlook

• Trex reaffirms 2026 net sales guidance of $1.185 bln to $1.23 bln

• Company expects Q2 2026 net sales between $388 mln and $403 mln

• Trex anticipates robust free cash flow in 2026 as capital expenditures decline

Result Drivers

• PREMIUM DECKING & RETAIL GAINS - Q1 results driven by positive performance in premium decking portfolio and recent shelf space wins in retail channels

• PRODUCT MIX & OPERATIONAL EFFICIENCIES - Strong margins attributed to favorable mix of higher margin premium decking boards and margin improvement from operational excellence programs

• NEW PRODUCT LAUNCH - Recently launched PVC decking product performed well, leading to geographic expansion beyond initial rollout

Company press release: ID:nBwccWLY2a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$343 mln	$340.13 mln (21 Analysts)
Q1 Adjusted EPS	Beat	$0.59	$0.51 (21 Analysts)
Q1 Adjusted Net Income	Beat	$62.32 mln	$53.64 mln (16 Analysts)
Q1 Net Income		$61.4 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Trex Company Inc is $47.00, about 17.8% above its May 6 closing price of $39.91

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

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