Trex Company, Inc. announced financial results for the Q2 2025. Notwithstanding adverse weather conditions, net sales for the Q2 2025 increased by 3% year-over-year, totaling $388 million, compared to $376 million in the prior-year period. This increase was driven by the strength of the Trex brand, new product introductions, and increased investments driving national brand awareness across the most relevant traditional and digital platforms.
Gross profit was $158 million, and gross margin was 40.8%, compared to gross profit of $168 million and gross margin of 44.7% in last year’s Q2. This decrease was due to its revised inventory strategy to level-load its production facilities, which resulted in lower Q2 production compared to the prior year.
Net income was $76 million, or $0.71 per diluted share, compared to $87 million, or $0.80 per diluted share, reported in the Q2 2024. Excluding the one-time charges incurred in the Q2, adjusted net income was $79 million and adjusted diluted earnings per share was $0.73. Adjusted EBITDA was $122 million.
“Our prominent position in both the pro channel and home centers enabled Trex to deliver another quarter of sales performance that exceeded expectations,” said Bryan Fairbanks, President and CEO. “This unique positioning is the result of decades of relationship-building with our channel partners and is an integral part of our strategy to market our broad portfolio of Trex-branded products wherever consumers are making their decking and railing choices.
“In the Q1, we began production at our new state-of-the-art plastic processing facility in Arkansas, and the early performance results have been very promising. Production rates and yields are already surpassing our initial expectations, and the facility is helping reduce the need for external material purchases at our decking operations in Virginia and Nevada. Importantly, these production results reaffirm our expectations that, once fully built out, Arkansas will be a model for efficient, vertically integrated, and self-sufficient production. These benefits strengthen our ability to serve our channel partners and position us to capitalize on growth opportunities well into the future. The advanced processing technology used in this new facility will enable us to expand our sourcing of cost-efficient recycled materials, while reinforcing our commitment to sustainability,” Mr. Fairbanks noted.
Trex Company, Inc. is the world’s largest manufacturer of wood-alternative decking and residential railing products.
