Trex : Investor Presentation - Q1 2026

Published: 2026-05-07 06:51:14 ET TREX

Published on 05/07/2026 at 06:51 am EDT

May 2026

Introduction

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SAFE HARBOR / NON-GAAP MEASURES

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding: full-year and quarterly 2026 financial guidance; expectations regarding gross margin expansion over the next three years; anticipated timing and magnitude of innovation-driven revenue, including expectations that such impact will materialize meaningfully in 2028-2030; projections regarding total addressable market size, including the outdoor living and railing markets; long-term adjusted EBITDA margin expansion targets and net leverage targets; expectations regarding manufacturing capacity sufficient to support over $2 billion in revenue and maintenance capital expenditure levels over the next five or more years; planned capital allocation and share repurchase activity; and the Company's strategic framework for potential mergers and acquisitions. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting the Company's business, please refer to our most recent annual and quarterly reports filed with the U.S. Securities and Exchange Commission. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation refers to certain financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP), including adjusted gross margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), free cash flow, and net debt. We believe that the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. The non-GAAP measures included in this presentation are not meant to be considered superior to or a substitute for our GAAP results. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are available in the appendix to this presentation.

Key Messages

Leveraging our established brand to capture a large, underpenetrated wood-to-composite conversion opportunity

Delivering differentiated material-science innovation and an enhanced go-to-market model to deliver above-market growth

Capitalizing on our recent, multi-year investment cycle to unlock margin / expand FCF and support disciplined capital allocation priorities

Executing a clear long-term strategy to accelerate profitable growth and

deliver shareholder value creation

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Grounded in Our New Mission,

Vision and Values

MISSION

Trex delivers trusted, high-performance outdoor living solutions through engineering excellence, sustainability, and customer-first innovation

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VISION

To shape the future of outdoor living through purposeful innovation that enriches people's lives

VALUES

Innovate with

Purpose

Obsess Over

the Customer

Own the

Outcome

Operate with

Excellence & Efficiency

Win

Together

Trex Snapshot (NYSE: TREX)

Key Stats Best-in-Class Production

Geographically Well-positioned Sites

Distributor Location

Production Site

Fernley, NV

Winchester, VA

Little Rock, AR

1996

Winchester, VA

1,800+

s 100+

6,700+

~$1.2B

$336M

28.5%

Founded Headquarters Employees

Distributor Location

Home Center Locati

Adj. EBITDA1

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Adj. EBITDA Margin

30+ Years of Category-defining Innovation Powering a Premier Brand

| INVESTOR PRESENTATION | 6 Note: All stats and f inancial f igures as of year end 2025 . 1 See Appendix for Non - GAAP to GAAP reconciliation table.

Market-leading Product Portfolio Engineered to Maximize Value

DECKING

RAILING FASTENERS LIGHTING

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OUTDOOR LIFESTYLE

Delivering Durable, Low-maintenance Products Across Every Style, Color, and Price Point

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Operating in a Resilient Category with a

Compelling Long-term Growth Opportunity

$600

$500

($B)

$400

$300

$200

$100

Deferred R&R

Demand Backdrop…

R&R Annual Growth1

Historically, Deferred Periods Have Been Followed by Significant Growth

…Combined with Rising Composite Decking Adoption…

~3x Growth

Composite vs. Wood (2014 - 2024)2

Expect Wood-alternatives to Continue Gaining Share

25%

17%

…Creates Visible, Multi-year Growth Runway for Trex

Historical Long- term Volume Growth Based on

+3% R&R Assumption | 2015 - 2025 CAGR3

4% 9%

1996 2001 2006 2011 2016 2021 2026

2015 2025 Future

R& R Market Growth

Incremental Decking Growth

W ood

Conversion

W ood- Alt Decking Growth

Well-positioned to Capture Above-Market Growth as the R&R Cycle Recovers

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1 Source: LIRA. 2 Source: Principia. 3 2015 - 2025 long- term CAGR; source: LIRA, Principia, and Company estimates.

Decades of Category Leadership Built on

Materials Science and Brand

Key Strategic Evolution Over Past Decade

Strong Foundation Today

Single-product decking company Multi-category outdoor living brand

Wood-alternative product Performance-driven premium segment leader

Broad-based R&D Focused, high impact $100M+ target innovation programs driving differentiation

Fragmented go-to-market strategy Disciplined contractor-focused,

conversion-driven marketing strategy

Positioned to Deliver Sustainable Category Outperformance

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Sustainable Competitive Advantages

Drive Market Leadership

Product and Technology Backbone

Unique Go-to-Market Model

Deep materials know-how

Relationship with installers and distributors

Proven innovation and

product launch capabilities

Brand leadership

and reputation

Footprint and Industrial Capabilities

Vertically Integrated

recycling

Scalable nationwide coverage

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Proprietary Raw Materials Sourcing: A Structural Cost Advantage

Trex Composite Decking

Reclaimed Wood

Recycled Plastic Film

Sources

Post-consumer materials Post-commercial waste Post-retail streams

Sources

Sawmills

Wood processing facilities

Agriculture waste

Benefits

High performance

Sustainable inputs

Structurally lower cost

Trex Sustainably Creates Durable, Low-maintenance, Affordable Decking

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Reinvigorated, Execution-focused

Leadership Team

Adam Zambanini President and Chief Executive Officer*

Joined: 2005

Prith Gandhi

SVP, Chief Financial Officer

2025

Zach Lauer

SVP, Chief Operations Officer*

2016

Amy Fernandez

SVP, Chief Legal Officer, Secretary, and Chief

Sustainability Officer

2021

Jay Rudolph

SVP, Chief Human Resources Officer 2023

TBA - Executive Search Underway SVP and Chief

Commercial Officer

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| INVESTOR PRESENTATION | 12 * New in Role as of April 2026

Clear Long-term Strategy

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Strategic Priorities to Accelerate Profitable Growth

Create an Unbreakable Bond with End-Users

Launch High-performance Innovation

Optimize Channels for Growth

Lower the Cost of Railing

Fuel Priorities through Growth Enablement

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>20%

Increase in Direct Leads

to TrexPro® Builders

Create an Unbreakable Bond with End Users

Early Proof Point of Success

Unlocking Full Potential of Our Market-leading Brand

⯈ Active Marketing Campaigns

Aligning campaigns to innovation investments

⯈ Contractor-focused Marketing

Shifting from consumer-only brand building to

driving contractor preference and pull-through

⯈ Digital and AI Investment

Enhancing consumer journey on Trex.com, including AI-driven product selection tools

Investing in Sales & Marketing Capabilities to Further Enhance Brand Advantage and Drive Greater Material Conversion

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Shifting Innovation Approach to Focus on

R&D Spend Focus Areas

New Product

Performance

20%+

Target Vitality Index1

Lower Cost

of Goods

Materials Science is a Key Enabler of

Our Innovation and Margin Expansion

Fewer, Higher-impact Programs

INVEST IN MULTIPLE INITIATIVES WITH

$100M+ in Revenue Potential

Materials Applications Offerings

Heat Mitigation

Fire Resistance

Marine (Submersibles, Docking, etc.)

Fencing

PVC-type Solution

Innovation Impact Expected to Materialize Meaningfully in 2028 - 2030

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1 Percent of Sales f rom new products introduced within the last 3 years.

Optimize Channels for Growth with Refined Go-to-Market Initiatives

Expand

Stocking Positions

Drive Portfolio-

level Pricing Strategy

Grow

Railing Attachment

Strengthen

Channel Partnerships

Enhance

Go-to-Market Approach

Drive contractor

demand creation

Increase rate of lead conversion

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Launch My Trex platform

Invest in channel

visibility

Leverage two-step distribution

Steadily increase railing stocking dealer locations

Deploy new, internal

pricing group

Continue to gain share within home centers and lumberyards

A Unified Commercial Strategy Connecting Every Point in the Purchase Journey

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Lower the Cost of Railing

Railing Presents a

Major Market Opportunity

Strengthening Our Position and Improving Railing Economics

Expanding internal manufacturing capabilities,

2025 Railing TAM1

including vertical integration

Streamlining metal and composite railing production to reduce costs and improve margins

Railing

Trex 2025 Market Share in

Bringing in-house both materials and processes that are currently outsourced

Deepening channel integration to extend our

distribution advantage

Consistently Outperformed the Market

Increase Gross Margin Profile by 500bps Over the Next 3 Years 2

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1 Source: Principia, company estimates. 2 By End of 2028 .

Growth Enablement: Foundational to Executing Our Strategy

EARLY STAGES - ESTABLISHING KEY OBJECTIVES

Culture & Engagement

Drive intentional culture

and maximize employee engagement

Workplace of the Future

Capabilities in place

to execute against innovation, commercial, and operational goals

Digital Transformation

Experience that connects consumers, pros, and channel partners

on a singular, unified platform

Growth Enablement

Capital Allocation

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Disciplined approach focused on organic reinvestment, share repurchases, and M&A

Deliver Systems, People, Organizational Structure, and Infrastructure to Support Profitable Growth

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Expanding the Outdoor Living Platform

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Disclaimer

Trex Company Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 10:50 UTC.