The composite decking maker reaffirmed its recently raised 2026 guidance, approved an additional $150 million buyback and said its Arkansas facility is expected to reach 50% capacity by year-end.
Trex reported second-quarter 2026 net sales of $418 million, up 8% from a year earlier, as volume-driven growth across product lines, price points and channels signaled improving consumer demand for composite decking and railing. Net income fell to $62 million from $76 million, while adjusted EBITDA declined to $112 million from $122 million as margin was pressured by a higher mix of railing sales, increased depreciation tied to the Arkansas facility and temporary production inefficiencies during uneven order patterns. The company said stronger July orders are supporting better utilization and allowing it to bring forward the ramp-up of decking production in Arkansas by more than six months to the third quarter of 2026, with the site expected to operate at 50% capacity by year-end. Trex also said its distribution transition is tracking to plan, repurchased about $51 million of stock in the quarter, repaid $130 million on its revolving credit facility and won board approval for up to $150 million of additional repurchases in the second half. The company reaffirmed its recently raised full-year 2026 outlook for net sales of $1.215 billion to $1.25 billion and adjusted EBITDA of $335 million to $350 million, gave third-quarter revenue guidance of $305 million to $320 million and maintained its goal of reaching $2 billion in annual sales by 2030.