B of A Securities upgrades Trex Co to Buy from Underperform, raises price target to $65 from $46

Trex (TREX) reported Q3 adjusted gross margin of 36.9%, down year-over-year, citing higher freight and startup costs. Full-year adjusted gross margin is expected between 37.5% and 38%. The company aims to reach $2 billion in annual revenue by 2030, expanding in PVC decking and outdoor living products. Q3 adjusted EBITDA rose 10% to $100 million. Trex also addressed operational issues at its Little Rock facility and completed inventory placements with new distribution partners.

Analysts at BMO Capital and Oppenheimer maintained Buy ratings on Trex (TREX) and Timken (TKR) with price targets of $69 and $150, respectively. Both stocks have Strong Buy consensus ratings, with Trex at $57.15 and Timken at $106.63 as of last close. Analysts cite potential upside of 16.2% for Trex and 26.1% for Timken.

Trex Co Inc (TREX) reported Q3 2026 record revenue but lower adjusted gross margin (36.9%) due to labor inefficiencies, higher freight costs, and startup issues at the Little Rock facility. The company raised its outlook, citing strong underlying demand growth. CEO Adam Zambanini and CFO Prithvi Gandhi discussed margin pressures, facility ramp-up, and strategic pricing actions. Trex expects margin improvement in 2027 as the Little Rock facility reaches full efficiency.

BofA upgraded Trex (TREX) to Buy, raising its price target to $65. The company beat Q3 earnings estimates, reporting $100M adjusted EBITDA on $360M revenue. Trex also raised its 2026 guidance. BofA cited growth opportunities in the housing sector and higher free cash flow. The stock trades near its 52-week high.

Trex Company (TREX) reported Q3 2026 revenue of $360M, up 26% YoY, driven by volume and distribution load-in. Gross margin was 36%, down YoY due to labor inefficiencies and freight costs. The company raised its full-year outlook, expecting double-digit growth, and is expanding manufacturing capacity to support future growth.

Trex Company reported record Q3 2026 revenue, driven by volume growth and a successful distribution transition. The company raised full-year guidance, started production at its Little Rock facility early, and plans strategic pricing in 2027. Margins were pressured by freight costs and startup issues, but management sees long-term benefits. They also highlighted market share gains and growth opportunities in PVC decking and attachment products.