Trex Company, Inc. (TREX)

Over the last 12 months, Trex's stock price has decreased, but it has increased in the past month. The company lowered its fiscal year sales guidance, indicating a challenging demand outlook. Gross margins have been compressed, and fourth-quarter revenue forecasts were bleak, impacting the stock due to weakness in repair and remodel activity and reliance on discretionary consumer demand.

Demand for Trex Co., Inc. products is seasonal, with peak demand typically occurring in the second and third quarters of the year. The company anticipates a return to more normalized seasonality patterns, similar to pre-pandemic years. Demand is influenced by the home improvement market, and while Trex has implemented a new inventory strategy, the seasonality of the decking business still impacts performance.

Trex Company, Inc. is the world's largest manufacturer of high-performance, low-maintenance, and eco-friendly wood-alternative decking and railing products, operating within the Industrials sector, specifically in the Forest Products industry. The company's core business revolves around composite decking, made from up to 95% recycled materials, making Trex one of North America's largest plastic film recyclers. Major products include decking, residential railing systems, other outdoor living products, and commercial products.

Trex products are available in more than 6,700 retail locations worldwide, spanning over 40 countries across six continents. The company has manufacturing facilities in Winchester, Virginia, Fernley, Nevada, and Little Rock, Arkansas; the Arkansas facility is expected to begin decking production in 2027.

Trex has maintained a strong brand reputation, being named "America's Most Trusted® Outdoor Decking" for the fifth consecutive year by Lifestory Research. Trex was included in Barron's ranking of the Most Sustainable U.S. Companies and its composite decking was named "The Coolest Thing Made In Virginia" by the Virginia Manufacturing Association. The company also earned top honors in the Environment + Energy (E+E) Leader Awards and was named one of America's Most Responsible Companies by Newsweek.

Trex Co., Inc. has 849 institutional owners and shareholders holding a total of 134,442,546 shares, with institutional investors holding the largest blocks of shares. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc., Alliancebernstein L.p., Wasatch Advisors Inc., and State Street Corp. Individual ownership accounts for a small percentage.