Trex Company, Inc. (TREX)

In the past six months, Trex Co., Inc. stock has experienced significant volatility, trading near its recent lows as of November 26, 2025. A major event impacting the stock was the company's third-quarter 2025 earnings report, which led to a significant stock plunge due to disappointing financial performance and a cautious outlook. Despite the negative stock performance, CFO Prithvi Gandhi purchased 15,000 shares of common stock on November 14, 2025.

Demand for Trex Co., Inc. products exhibits seasonality, with the second and third quarters typically being the significant volume quarters and the fourth quarter being the seasonally lightest period. The company anticipates a return to more normal seasonality patterns compared to the post-pandemic years. Consumer demand can ease after July, contributing to seasonally slow demand in the latter half of the year.

Trex Co., Inc. is a leading manufacturer of wood-alternative composite decking and railing in the outdoor living products sector. The company operates within the industrials sector, specifically in the building products industry, and is recognized as the world's largest manufacturer of wood-alternative decking products, utilizing up to 95% recycled materials. Its major products include composite decking, residential railing, and a broad range of outdoor living accessories.

Trex Company, Inc. is headquartered in Winchester, Virginia, and operates manufacturing facilities in Winchester, Virginia, and Fernley, Nevada. In 2021, Trex announced plans for a production site in Little Rock, Arkansas, with recycling and pellet processing beginning in March 2025, and decking production expected to start in 2027. The company's products are available in more than 40 countries across six continents. Trex serves its customers through a wholesale distribution network, including partnerships with Specialty Building Products and Weekes Forest Products.

Trex Company has maintained a strong brand reputation over the past year, particularly in sustainability and consumer trust. Trex has been named "America's Most Trusted® Outdoor Decking" for five consecutive years and received top honors in Builder Magazine's annual Brand Use Study. Trex was included on Barron's list of the 100 Most Sustainable U.S. Companies and recognized by Newsweek and Investor's Business Daily for its sustainability efforts. Trex composite decking earned the title of "The Coolest Thing Made in Virginia" in the Rubber and Plastics Products category of the 2025 Virginia Manufacturing Cup.

Trex Co., Inc. has a diverse ownership structure, with institutional investors holding a significant majority. Institutional ownership accounts for approximately 92.07% of the company, while individuals hold about 0.71%. Anthony J. Cavanna is noted as the largest individual shareholder, owning 1.24 million shares, representing 1.15% of the company.