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Trex Tumbles 28% After Earnings Miss and Guidance Cut on Remodeling Slowdown

The guidance reset highlights remodeling demand damaged by higher borrowing costs.

Overview

  • Trex posted adjusted EPS of $0.51 for Q3, missing Visible Alpha estimates by $0.06.
  • Revenue rose 22.1% to $285.3 million but still came in below analyst expectations.
  • The company now projects Q4 sales of $140 million to $150 million, below prior assumptions.
  • Full-year revenue is forecast at $1.15 billion to $1.16 billion, roughly flat versus 2024 after previously targeting 5% to 7% growth.
  • 2025 adjusted EBITDA margin guidance was cut to 28.0% to 28.5% from above 31%, and shares fell about 28% to their lowest level in more than six years as management flagged continued softness into the seasonally slow fourth quarter.