Housing supplier adapts to market shifts
Trex Co., a leading manufacturer of composite decking and outdoor living products, reported weaker-than-expected third-quarter results and lowered its outlook amid a broader slowdown in housing and remodeling activity. The company cited continued softness in the repair and remodeling sector, with CEO Bryan Fairbanks noting that the latter half of the year reflected ongoing market weakness. Trex expects this downward trend to persist through the slower fourth quarter, leading its shares to fall nearly 28% to multiyear lows.
The disappointing earnings reflect the broader challenges facing home improvement firms as higher interest rates and tighter consumer budgets curb spending on large-scale projects. Trex reported adjusted earnings per share of $0.51 on $285.3 million in revenue, both below analyst forecasts, and revised its full-year sales outlook to roughly $1.15–$1.16 billion, flat from 2024. The company also trimmed its 2025 profit margin forecast, signaling ongoing pressure on profitability as the housing market remains subdued.
