At a glance
Trex Company Inc is worth $5.05B, about 28 times its fiscal 2025 earnings. Revenue grew 2.0% to $1.17B in fiscal 2025, with 16.2% kept as profit; over 5 years it has grown 5.9% a year. It pays no dividend; it spent $659.7M buying back its shares over FY2021–FY2025. The stock returned −1.6% over the past year with dividends reinvested and −14.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 42.4% in the 2020 crash (S&P 500: 33.7%) and 67.8% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Trex Company makes composite decking and railing: boards and rails that homeowners use to build backyard decks instead of wood. It calls itself the world's largest maker of these products, sold under the Trex brand and made in the United States. Its decking lines include Trex Signature, Transcend, Select and Enhance. They are made from a blend that is 95% reclaimed wood fibers and recycled polyethylene plastic film. Trex also sells railing, fencing, cladding (exterior wall boards), hidden fasteners and LED deck lighting. It licenses its name to other makers for items such as outdoor furniture and pergolas.
Trex sells to wholesale distributors and home centers, which resell mainly into the residential market. Most sales go through distributors that supply retail lumber dealers. Those dealers focus on professional contractors, remodelers and homebuilders. Trex products are stocked in more than 6,700 retail locations. Demand tracks home improvement spending far more than new home construction. Buyers pay more upfront than for wood in return for less upkeep: no sanding, staining or sealing, and no rot or splinters.
Trex reports a single business segment that covers all its products. Net sales were $1.17 billion in fiscal 2025, which ended December 31, 2025, up 2% from the prior year. Sales are concentrated: three customers made up about 73% of fiscal 2025 net sales.
Price history
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TREX -1.6% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $418.0M, up 7.8% from a year earlier, and net income was $61.9M (-18.5%).
- For fiscal 2025, revenue was $1.17B (+2.0% year over year; +5.9% a year from FY2020 to FY2025) with a 16.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +5.9% good |
|---|---|
| Operating margin | 22% good |
| Free cash flow margin | 11.5% good |
| Return on equity (FY2025) | 18.4% good |
| Return on assets (FY2025) | 13.1% good |
| Cash and investments | $6.5M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $880.8M | $175.6M | $14.5M |
| FY2021 | $1.20B | $208.7M | $98.7M |
| FY2022 | $1.11B | $184.6M | $40.0M |
| FY2023 | $1.09B | $204.1M | $223.3M |
| FY2024 | $1.15B | $238.4M | $-88.4M |
| FY2025 | $1.17B | $190.4M | $134.5M |
Valuation snapshot
| Market value | $5.05B |
|---|---|
| P/E ratio | 27.8 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Trex Company’s market value went from $1.89B at the end of 2016 to $5.05B on Oct 28, 2026, about 2.7 times as much; since the end of 2025 it is up 34%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.05B | +34.1% |
| 2025 | $3.76B | -49.1% |
| 2024 | $7.40B | -17.7% |
| 2023 | $8.99B | +93.5% |
| 2022 | $4.65B | -70.1% |
| 2021 | $15.54B | +60.4% |
| 2020 | $9.69B | +84.9% |
| 2019 | $5.24B | +50.3% |
| 2018 | $3.49B | +9.4% |
| 2017 | $3.19B | +68.5% |
| 2016 | $1.89B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TREX price data to Oct 28, 2026 | +41.2% | -1.6% | -3.0% | -14.0% | +14.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +41.2% |
| 2025 | -49.2% |
| 2024 | -16.6% |
| 2023 | +95.6% |
| 2022 | -68.7% |
| 2021 | +61.3% |
| 2020 | +86.3% |
| 2019 | +51.4% |
| 2018 | +9.5% |
| 2017 | +68.3% |
| 2016 | +69.3% |
| 2015 | -10.7% |
| 2014 | +7.1% |
| 2013 | +113.6% |
| 2012 | +62.5% |
| 2011 | -4.4% |
| 2010 | +22.2% |
| 2009 | +19.1% |
| 2008 | +93.4% |
| 2007 | -62.8% |
| 2006 | -18.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 49.2% over that stretch · deepest drop along the way 71.9%, back to its old high 12.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 34.1% over that stretch · deepest drop along the way 42.4%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 62.9% over that stretch · deepest drop along the way 67.8%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 3 open-market purchases ($504K) and 2 sales ($123K), 1 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 3, 2026 | B Andrew Rose Director | buy | $449K |
| Jun 25, 2026 | Jacob T. Rudolph SVP, CHRO | sell (plan) | $70K |
| Aug 7, 2026 | Amy M. Fernandez SVP, CLO and Secretary | sell | $53K |
| Mar 3, 2026 | B Andrew Rose Director | buy | $40K |
| Mar 2, 2026 | B Andrew Rose Director | buy | $15K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.8% | Mar 31, 2025 |
| Wellington Management Group LLP | 9.5% | Jun 30, 2026 |
| Millennium Management LLC | 5.5% | Jul 31, 2026 |
| Vanguard Capital Management | 5.36% | Mar 31, 2026 |
| WASATCH ADVISORS LP | 4.8% | Jun 30, 2025 |
| T. Rowe Price Associates, Inc. | 0.7% | Sep 30, 2025 |
| AllianceBernstein L.P. | 0.2% | Aug 31, 2026 |
ETFs with the most weight in TREX
| TMFM Motley Fool Mid-Cap Growth ETF | 2.01% |
| HOMZ Hoya Capital Housing ETF | 0.69% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 0.64% |
| IFRA iShares U.S. Infrastructure ETF | 0.55% |
| JHSC John Hancock Multifactor Small Cap ETF | 0.46% |
| MMSC First Trust Multi-Manager Small Cap Opportunities ETF | 0.42% |
| FLDZ RiverNorth Patriot ETF | 0.38% |
| MIDE Xtrackers S&P MidCap 400 Scored & Screened ETF | 0.37% |
What could go wrong
- Three customers drive most of its sales. Three customers made up about 73% of net sales in fiscal 2025, 81% in 2024 and 72% in 2023. Losing one could sharply reduce revenue and profits.
- Nearly all sales rely on one material. Substantially all revenue comes from Trex's proprietary wood and polyethylene composite. If that material ran into real or perceived quality problems, the company has few other products to fall back on.
- Wood remains the main competitor. Wood still makes up most decking and railing sales. Growth depends on winning over wood buyers, many of whom resist change or balk at composite's higher upfront cost. Other wood-alternative makers also compete.
- Distributor stocking swings can jolt quarterly results. Trex sells through a two-step channel: distributors, then dealers. It has limited visibility into their inventory, so when distributors suddenly stock up or cut back, its quarterly sales and production can swing.
- Must hold on to distributors and dealers. Growth depends on keeping and expanding its network of wholesale distributors and lumber dealers. Other suppliers compete for those same channels, and losing ground there could hurt profits and cash flow.
- Tied to home improvement spending. A new deck is an optional purchase families can delay. Demand moves with home equity values, interest rates, credit availability, consumer confidence and employment, so an economic slowdown can cut sales.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Executive or board change; Shareholder vote results; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Major agreement signed; Other company announcement
- Executive or board change; Other company announcement
- Quarterly results released
For income and retirement investors
Trex does not pay a dividend and paid none over fiscal 2021 through 2025, so there is no record of dividend increases to judge. An income investor would get returns only from share price changes and would need to sell shares to draw cash. Trex returns money through buybacks instead, spending about $660 million on its own stock over those five years. Its share count fell 11.7% between July 2021 and July 2026. That gives each remaining share a bigger slice of the company.
The stock has fallen hard in downturns. It lost 71.9% in the 2008 financial crisis and regained its prior peak by March 2010. It fell 42.4% in the 2020 COVID crash and recovered by May 2020. In the 2022 bear market it fell 67.8%, and it had not regained its early-2022 peak as of October 28, 2026. A single stock carries more risk than a diversified fund, which spreads money across many companies.
Questions investors ask
How does Trex make money?
Trex makes money by selling composite decking and railing, along with fencing, cladding, fasteners and deck lighting, under the Trex brand. Most sales go to wholesale distributors, which resell to retail lumber dealers serving contractors and remodelers. Home centers are another outlet. Net sales were $1.17 billion and net income was $190 million in fiscal 2025, which ended December 31, 2025. Trex also licenses its name to other makers for products such as outdoor furniture and pergolas.
What is Trex decking made of?
Trex decking is made from a blend that is 95% reclaimed wood fibers and recycled polyethylene plastic film. It has a protective polymer shell that resists fading, staining, mold and scratching. Trex says this makes it one of the largest recyclers of waste polyethylene film in North America. The boards need no sanding, staining or sealing. They cost more than wood upfront, which Trex argues is offset by lower upkeep and longer life.
Does Trex pay a dividend?
No. Trex does not pay a dividend and paid none over fiscal 2021 through 2025. It returns cash through share buybacks instead, spending about $660 million repurchasing its own stock over those five years. Shares outstanding fell 11.7%, from about 115.3 million in July 2021 to about 101.9 million in July 2026. Investors who rely on regular income would have to sell shares to raise cash from this stock.
How has Trex stock performed over the long run?
It depends heavily on the period. As of October 28, 2026, the stock had returned 14.2% a year over 10 years, or 277% in total. Over five years it lost 14% a year, a 53% total decline. Calendar years swing widely: down 68.7% in 2022, up 95.6% in 2023, down 16.6% in 2024 and down 49.2% in 2025. Year to date through October 28, 2026, it was up 41.2%. These figures are based on the share price.
Is Trex stock volatile?
Yes. For the year to October 28, 2026, its volatility, a measure of how widely the price swings, was 53.5% on an annualized basis. Its beta was 1.34, meaning it tended to move about a third more than the overall market. The stock fell as much as 40.2% within that year and 69.9% over three years. Its largest peak-to-trough decline across about 21 years of price history was 83.2%.