Trex (TREX) Q1 2026 Earnings Transcript

Thursday, May 7, 2026 at 4:30 p.m. ET Call participants * Chief Executive Officer -- Adam Zambanini * Chief Financial Officer -- Prithvi Gandhi Takeaways * Net Sales -- $343 million, reflecting a 1% increase, with volume driven by both consumer demand and channel stocking for peak buying season. * Gross Margin -- 40.5%, about 100 basis points above internal expectations due primarily to favorable product mix and operational efficiencies, offset by higher depreciation from new Arkansas decking lines. * Gross Profit -- $139 million, with margin improvement mainly attributed to higher-margin decking products and lower railing sales. * SG&A Expenses -- $56 million (16.2% of sales); excluding $1 million in digital transformation costs and $0.2 million in Arkansas start-up costs, core SG&A was $54 million, below the company's plan due to favorable medical claims and timing of expenses. * Adjusted EBITDA -- $103 million, up 2% on the back of positive pricing, cost control, and timing of certain expenses. * Free Cash Flow -- Negative $143 million, an almost 40% year-over-year improvement as capital expenditures declined alongside inventory and receivables build for peak season....

Source: https://www.fool.com/earnings/call-transcripts/2026/05/09/trex-trex-q1-2026-earnings-transcript/