Trex Company, Inc. has recently released its 10-K report, providing an in-depth look at its operations and financial performance for the year ended December 31, 2025. The company, headquartered in Winchester, Virginia, is the world's largest manufacturer of high-performance, low-maintenance wood-alternative decking and railing products, as well as outdoor living products and accessories. Trex's products are marketed under the brand name Trex®, with a focus on using renewable resources and enhancing the outdoor living experience.
In the 10-K report, the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The report includes a discussion of the company's expected financial position, operating results, business strategy, and financing plans. It also highlights forecasted demographic and economic trends relating to the industry and similar matters. The report emphasizes that the company's actual results could be materially different from its expectations due to various factors, including market acceptance of products, costs associated with product development, sensitivity to general economic conditions, and competitive markets.
Financial Performance Highlights for the Twelve Months Ended December 31, 2025: Net sales reached $1,174,267,000, representing a 2.0% increase compared to the previous year. Gross profit amounted to $459,964,000, reflecting an 8.4% decrease from the prior year. Net income was $190,415,000, showing a decrease of 20.1% compared to the previous year. EBITDA stood at $320,918,000, representing a 14.8% decrease from the prior year. * Diluted earnings per share were $1.78, reflecting a 19.1% decrease from the previous year.
The report also details the company's capital expenditures and intangibles. In 2025, Trex spent a total of $233.6 million on capital expenditures, including investments in construction, safety, environmental initiatives, and its ERP tool. Additionally, the company repurchased 1,526,927 shares of its outstanding common stock in 2025 under its stock repurchase programs.
Furthermore, the report discusses critical accounting estimates, including the area of product warranty. Trex warrants its products for specific warranty periods and maintains a warranty reserve for the settlement of product warranty claims. The company accrues for the estimated cost of product warranty claims at the time revenue is recognized based on historical claims experience and future claims projections. The report also highlights a change in the methodology used to estimate the product warranty liability, resulting in an increase in the reserve during the period.
Today the company's shares have moved 1.51% to a price of $43.73. For more information, read the company's full 10-K submission here.
