Trex reports stronger-than-expected first-quarter results, signaling expansion plans as shares gain in early trading.
Trex posted first-quarter earnings that exceeded analyst estimates, driven by higher demand for composite decking materials. The company reported adjusted earnings per share of 58 cents, surpassing the 52-cent consensus forecast, while revenue climbed 12% year-over-year to $320 million.
The results follow a 9% revenue increase in the same period last year, with margins improving amid cost controls. Analysts had anticipated modest growth due to seasonal factors, but Trex’s performance reflects stronger-than-expected residential construction activity.
Shares edged up 1.8% in premarket trading as investors reacted to the upbeat outlook and plans for capacity expansion to meet rising demand.