Trex Reports Strong Q1 Sales, Expects 5%-7% 2025 Revenue Growth

Trex Company reported first-quarter 2025 revenue of $340 million, surpassing consensus estimates and driven by strong demand for its premium composite decking and railing products in both retail and professional channels. Despite a 9% year-over-year revenue decline, the company beat Wall Street's expectations and saw improved order momentum from March into April. New products launched in the past 36 months contributed approximately 22% of sales, up from 10% the prior year, supporting growth in market share and dealer conversions, including accelerated recruitment for its TrexPRO program. CEO Bryan Fairbanks highlighted Trex's strategic channel positioning and contractor network as key competitive advantages, with national accounts forecasting substantial volume growth for 2025, especially in key regions like the western U.S. Analysts maintain an "Outperform" rating on the stock, with an average price target implying nearly 20% upside from current levels. However, Trex's operating margin declined from 31.9% to 24% year-over-year, and the company posted a GAAP profit slightly below analyst estimates, reflecting some pressure on profitability amid market challenges.