AI Earnings Predictions for Trex Company Inc. (TREX)

EX-99.2

2 trex-ex99_2.htm

EX-99.2

EX-99.2

Exhibit 99.2

Trex Company

Second Quarter 2026 Earnings Conference Call

Tuesday, August 04, 2026, 08:00 AM ET

CORPORATE PARTICIPANTS

Adam Zambanini--President and Chief Executive Officer

Prithvi Gandhi--Senior Vice President and Chief Financial Officer

Lee Coker-- Vice President, Corporate Development and Investor Relations

PRESENTATION

Operator

Good day, and welcome to the Trex Company Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Lee Coker, Vice President, Corporate Development and Investor Relations. Please go ahead.

Lee Coker

Good morning, everyone, and thank you for joining us today to discuss our second quarter results and outlook. With us on the call are Adam Zambanini, President and Chief Executive Officer; and Prith Gandhi, Senior Vice President and Chief Financial Officer.

The company issued a press release earlier this morning containing financial results for the second quarter 2026, a copy of which is available on the company's website. This conference call is also being webcast and will be available on the Investor Relations page of the company's website for 30 days.

Before we begin, let me remind everyone that statements on this call regarding the company's expected future performance and conditions constitute forward-looking statements within the meaning of federal securities laws. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

For a discussion of such risks and uncertainties, please see our most recent Form 10-K and Form 10-Q as well as our other filings with the SEC. Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the comparable GAAP financial measure can be found in our earnings press release at trex.com. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

I will now turn the call over to Adam. Adam?

Adam Zambanini

Thank you, Lee, and good morning, everyone. As Lee mentioned, we pre-released our second quarter net sales and adjusted EBITDA results earlier this month, so I won't spend much time recapping the numbers. The key takeaway is straightforward. We delivered an excellent quarter with net sales well above expectations, driven by strong execution and strengthening of end market demand. Importantly, that growth was broad-based across our product portfolio, channels and price points.

We are particularly encouraged by the momentum we saw as the quarter progressed. Demand accelerated through May and June, supported by strong sell-through activity across the portfolio, and those trends have continued into the third quarter. That performance, combined with our strong execution and improved visibility gave us the confidence to raise our full year guidance and increase our planned share repurchases for the remainder of the year.

We also generated strong free cash flow during the quarter, allowing us to reduce debt and return capital to shareholders through share repurchases. Reflecting our confidence in both the

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business and our long-term outlook, we plan to repurchase up to an additional $150 million of shares during the balance of the year.

While our sales performance was exceptionally strong, profitability reflected the pace at which demand accelerated during the quarter, along with several strategic choices that supported our long-term growth objectives. First, growth was particularly strong in railing and our entry-level decking products.

We view this as a positive development, underscoring the growing consumer engagement across the product portfolio and successful execution of our wood conversion strategy. Although the mix moderated consolidated gross margin, it meaningfully accelerated revenue growth and enhances the scale of our long-term value creation opportunity.

Second, we continued investing in branding, talent and organizational capabilities consistent with our strategy and our expectation to spend approximately 18% of sales on SG&A this year. These investments are intended to strengthen our competitive position and support sustained growth over time.

Finally, demand strengthened significantly as the quarter progressed. To support that growth and ensure excellent customer service, we increased production levels throughout the quarter. That created some short-term manufacturing inefficiencies, but utilization improved steadily and production performance returned to expected levels by the end of June.

Taken together, we are very encouraged by these dynamics and what they tell us about our business. Stronger demand, continued gains in key growth categories and disciplined investment in ou

EX-99.2

2 trex-ex99_2.htm

EX-99.2

EX-99.2

Exhibit 99.2

Trex Company

Trex Company Distribution Update Call

Tuesday, July 13, 2026, 05:00 PM ET

CORPORATE PARTICIPANTS

Lee Coker--Vice President, Corporate Development & Investor Relations

Adam Zambanini--President and Chief Executive Officer

Prithvi Gandhi--Senior Vice President and Chief Financial Officer

PRESENTATION

Operator

Good evening, and welcome to the Trex Company Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Lee Coker, Vice President, Corporate Development, and Investor Relations. Please go ahead.

Lee Coker

Good evening, everyone, and thank you for joining us on short notice to discuss today's exciting announcement. A press release concerning this news was issued earlier today and is available on the company's website.

With me on the call are Adam Zambanini, President and Chief Executive Officer, and Prith Gandhi, Senior Vice President, and Chief Financial Officer. This conference call is being webcast and will be available on the Investor Relations page of the company's website for 30 days.

Before we begin, let me remind everyone that statements on this call regarding the company's expected future performance and conditions constitute forward-looking statements within the meaning of federal securities laws. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

For a discussion of such risks and uncertainties, please see our most recent Form 10-K and Form 10-Q as well as other filings with the SEC. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Additionally, non-GAAP financial measures will be referenced in this call.

A reconciliation of these measures to the comparable GAAP financial measure can be found at the end of today's press release, which can be found at trex.com. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Finally, the purpose of today's call is to discuss the strategic changes to our distribution network. We are also sharing preliminary second quarter results and updated guidance to provide context around the announcement. We look forward to discussing our second quarter performance and full year outlook in detail on our August 4 earnings call. In the interest of keeping today's discussion focused, we respectfully ask that the questions during Q&A relate to the announced distribution network changes.

I will now turn the call over to Adam.

Adam Zambanini

Thank you, and good evening, everyone. Thank you for joining today's call to discuss our decision to upgrade our distribution network. Given the timing of this announcement, we are also providing a preliminary look at unaudited second quarter results.

Prith will provide more details, but I am pleased to report that sales came in well above our guidance range given strong execution and end market demand. We're also raising our full year revenue guidance given our strong start to the year and our confidence in our ability to execute our distribution upgrade, which I will discuss in more detail.

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Today, we announced several important actions that will enhance our distribution network, including the appointment of our long-standing distribution partner, Specialty Building Products, SBP, as our sole national distributor as of year-end. As part of this upgrade, we will be expanding our network of regional distributors to include Coastal Forest Products, BlueLinx, and broadening our existing footprint with WS Building Materials.

These actions reflect our ongoing commitment to take decisive steps to keep Trex at the forefront of the market, strengthen execution across our world-class value chain and position Trex to deliver sustainable growth and long-term value for our stakeholders. I'd like to take a few minutes to discuss these actions in more detail and provide you with some insight into the strategic thinking behind it.

Before discussing the strategic rationale, let me be clear on three points. First, we do not expect any material disruption to customer service. Second, we do not expect any material impact on margins or profitability. Third, the increase in our guidance primarily reflects stronger underlying demand and execution, not temporary channel inventory movements associated with this transition.

At Trex, our vision is to shape the future of outdoor living through purposeful innovation that enriches people's lives. That vision extends beyond the products that we design to how we go to market, how we serve our customers, and how we deliver the full Trex experience.

On our Q1 earnings call, I laid out a strategic framework to drive Trex's g

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