TREX shares climbed 2.6% after the decking and railing manufacturer updated investors with preliminary second-quarter results and a higher full-year outlook for 2026.
The company said it expects second-quarter sales of approximately $418 million, which exceeds its earlier guidance band of $388 million to $403 million and is above the consensus estimate of $397.6 million. Trex also indicated adjusted EBITDA for the quarter is expected to be about $112 million.
Following the stronger-than-anticipated quarterly top line, Trex raised its full-year 2026 guidance. The company now projects net sales in a range from $1.215 billion to $1.250 billion, and expects adjusted EBITDA to fall between $335 million and $350 million.
In conjunction with the financial updates, Trex said it will realign its North American distribution network. As part of the changes, Specialty Building Products will serve as Trex’s sole national distributor for decking and railing products across North America. Trex will also expand its regional distribution footprint by assigning specific territories to other partners.
WS Building Materials will cover Wisconsin, Illinois, North Dakota, South Dakota, Indiana, Iowa, Nebraska and Missouri. Coastal Forest Products will operate as a regional distributor in New England and will cover New York, Connecticut, Rhode Island, New Hampshire, Vermont and Maine. BlueLinx will distribute Trex products in Louisiana, Arkansas, Mississippi, Alabama, Georgia, Tennessee, Kentucky and parts of Missouri, Illinois, Indiana, Ohio and West Virginia.
As part of the distributor reorganization, Trex will transition away from using Boise Cascade as a distributor.
"We anticipate second quarter sales to come in at approximately $418 million, above our guidance of $388 to $403 million with strong sell through driven by consumer demand across our channels and products," said Prith Gandhi, Senior Vice President and Chief Financial Officer.
The company said it will host a conference call at 5:00pm EST today to discuss the preliminary results and updated outlook.
The operational and commercial changes announced alongside the financial updates are focused on distribution strategy and partner alignment. Trex highlighted both improved near-term sales performance and a planned shift in how it routes product to market through national and regional distributors.
Investors responded to the combined financial beat and guidance raise with a modest uptick in the stock price following the release.