**Trex Company Reports 2025 Q3 Earnings Miss and Downgrades Forecasts**
On November 4, 2025, Trex Company (TREX) reported third-quarter earnings of $0.51 per share, missing the Zacks Consensus estimate of $0.56. This marked the company’s first earnings miss in three years, although revenues increased by 22.1% to $285 million, driven by strong railing sales. Despite this growth, the CEO, Bryan Fairbanks, noted that the overall remodeling market remains weak, predicting continued challenges in the upcoming fourth quarter.
Analysts have since downgraded Trex’s full-year earnings estimates for 2025 and 2026, with projections dropping from $2.21 to $1.83 for 2025, reflecting a 12.4% decline. For 2026, estimates fell from $2.51 to $1.66, indicating a 9% drop. The company’s stock suffered a significant decline following the reduced guidance, and it currently trades at a forward P/E ratio of 19.4, suggesting it is not undervalued, especially as no analysts have raised their earnings estimates in the last 60 days.
