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Achieved 2% sales growth in 2025 despite a third consecutive year of decline in the broader repair and remodel sector.
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Attributed outperformance to robust growth in new products introduced over the last 36 months, which now represent 24% of total sales.
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Executed a multiyear railing strategy resulting in double-digit growth and significant stocking wins across both Pro and home center channels.
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Leveraged the Arkansas campus to begin on-site plastic pellet production, reducing reliance on expensive external sourcing and optimizing long-term costs.
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Strengthened distribution by expanding relationships with key partners like International Wood Products and Specialty Building Products to improve regional access.
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Maintained a unique competitive position as the only wood-alternative supplier with significant shelf presence in the two largest national home centers.
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Utilized digital transformation tools to drive double-digit increases in contractor lead generation and website engagement, which management correlates with future revenue.
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Guidance for 2026 assumes a slightly down to flat repair and remodel market, with Trex expecting low-to-mid single-digit revenue growth.
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Anticipates continued double-digit growth in railing as the company works toward a goal of doubling its market share by the end of 2028.
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Plans to maintain SG&A at approximately 18% of net sales to support branding and digital investments necessary for market share capture.
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Expects a 100 basis point headwind to gross margins in 2026 driven by higher depreciation from the Arkansas facility and a shift in product mix toward railing.
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Assumes net pricing will remain flat for the year as modest price increases are offset by higher market incentives to drive volume.
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Transitioned inventory accounting from LIFO to FIFO to improve industry comparability, resulting in a non-cash restatement of prior-year margins.
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Updated warranty reserve estimation methodology in Q4 2025, resulting in a $6 million expense.
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Announced a CEO transition with Adam Zambanini to succeed Bryan Fairbanks in late April 2026, ensuring continuity in existing growth strategies.
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Identified ignition-resistant PVC decking (Trex Refuge) as a critical entry point for fire-prone regions like California and Oregon.
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