Trex Company, Inc. (Trex) manufactures composite decking and railing products marketed under the brand name Trex and produced in the United States.
Strategy
The company’s growth and margin expansion strategy includes initiatives, which are to accelerate material conversion from wood; expand its market by introducing new products that are innovative, eco-friendly, and durable; leverage brand leadership to drive customer demand; increase the number of stocking dealers and retailers by leveraging...
Trex Company, Inc. (Trex) manufactures composite decking and railing products marketed under the brand name Trex and produced in the United States.
Strategy
The company’s growth and margin expansion strategy includes initiatives, which are to accelerate material conversion from wood; expand its market by introducing new products that are innovative, eco-friendly, and durable; leverage brand leadership to drive customer demand; increase the number of stocking dealers and retailers by leveraging its channel relationships; and execute strategic acquisitions that expand its product offerings and/or enrich its manufacturing process.
Products
Operations and Products: The company operated in one reportable segment during the year ended December 31, 2024:
Trex Residential.
Trex Residential is a manufacturer of high-performance, low-maintenance, eco-friendly wood-alternative composite decking and railing and a leader in outdoor living products. Trex products are marketed under the brand name Trex and manufactured in the United States. Stocked in more than 6,700 retail locations worldwide, Trex Residential offers a comprehensive set of aesthetically appealing and durable, low-maintenance product offerings in the decking, railing, fencing, cladding, and outdoor lighting categories. A majority of the products are eco-friendly and leverage recycled and reclaimed materials to the extent possible. Trex Residential decking is made in a proprietary process that combines reclaimed wood fibers and recycled polyethylene film, making Trex Residential one of the recyclers of waste polyethylene plastic film in North America. The company’s composite deck boards do not rot, warp, or splinter, and the versatile colors feature a refined wood grain that adds depth and luxury to any backyard. Trex Residential products are sold to distributors and home centers for final resale primarily to the residential market.
Trex offers the following products through Trex Residential:
Decking and Accessories
The company’s principal decking products are Trex Signature, Trex Transcend Lineage, Trex Transcend, Trex Select, and Trex Enhance. The company’s high-performance, low-maintenance, eco-friendly composite decking products are consisted of a blend of 95 percent reclaimed wood fibers and recycled polyethylene film and feature a protective polymer shell for enhanced protection against fading, staining, mold, and scratching. Trex Signature decking offers realistic woodgrain aesthetics that raise the bar for beauty, performance, and sustainability and is available in two luxurious hues inspired by stunning natural settings. Trex Transcend Lineage is the next generation of design and performance in composite decking and is available in seven luxurious, on-trend hues inspired by some of the most picturesque locales in the United States. Trex Transcend decking provides elevated aesthetics paired with the highest level of performance and is available in six multi-tonal monochromatic classical earth tones and premium tropical colors. Trex Select decking offers the perfect pairing of price and minimal maintenance and is available in two nature-inspired earth tone colors. The company’s Trex Enhance boards pair the beauty of authentic wood-grain appearance with the durability of composite with minimal maintenance and the affordability of wood and are available in natural and basic colors.
The company also offers accessories to its decking products. The Trex Hideaway Fastener Collection offers solutions for every composite deck fastening and finishing need, featuring color-matched screws and plugs, specially engineered bits, depth setters, and clips, designed to make installation easier and more efficient while delivering a clean, cohesive aesthetic. Trex DeckLighting, an outdoor lighting system, is a line of energy-efficient LED dimmable deck lighting designed to use 75% less energy compared to incandescent lighting. The line includes a post cap light, deck rail light, riser light, a soffit light, and a recessed deck light.
Railing
The company’s railing products are Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, and Trex Enhance Railing. The company’s high-performance cable rail, frameless glass rail, composite, and aluminum-deck railing kits and systems are sustainably manufactured, easy to install, and durable. Trex railing systems are built with the same durability as Trex decking. Trex Signature X-Series, made from approximately 30 percent recycled materials, is available in Charcoal Black with stainless steel or glass infill. Trex Signature aluminum railing, made from a minimum of 40 percent recycled content, is available in three colors and designed for consumers who want a sleek, contemporary look. Trex Transcend Railing, made from approximately 40 percent recycled content, is available in four colors that complement the company’s Trex decking products. Trex Select Railing, made from approximately 40 percent recycled content, is offered in a white finish and is ideal for consumers who desire a simple clean finished look for their deck. Trex Select T-Rail, made from a minimum of 40 percent recycled materials, is available in square composite balusters in Classic White for a cohesive, coordinated look, or round aluminum balusters in Charcoal Black for a more modern contrast. Trex Enhance railing is available in four composite colors, and an Enhance Steel line was recently introduced in Charcoal Black, to expand the Trex addressable market.
Fencing
The company’s Trex Seclusions composite fencing product is offered through two specialty distributors. This product consists of structural posts, bottom rails, pickets, top rails, and decorative post caps. The top and bottom rails of Trex fencing are designed to provide a ‘picture frame’ element, and the deep rich colors have a matte surface to prevent harsh sunlight reflections.
Trex Residential products offer a number of significant aesthetic advantages over wood while eliminating many of wood’s major functional disadvantages, which include warping, splitting, and other damage from moisture. In addition to resisting fading and surface staining, Trex Residential products require no sanding, staining, or sealing, resist moisture damage, provide a splinter-free surface, and do not require chemical treatment against rot or insect infestation. Special characteristics (including resistance to splitting, the ability to bend, and ease and consistency of machining and finishing) facilitate installation, reduce contractor call-backs, and afford consumers a wide range of design options. Combined, these aspects yield significant aesthetic advantages and lower maintenance than wood decking and railing and ultimately render Trex Residential products less costly than wood over the life of the deck.
The company has received product building code listings from the major U.S. building code listing agencies for decking and railing and from the major Canadian building code listing agency for decking. The listings facilitate the acquisition of building permits by deck builders and promote consumer and industry acceptance of the company’s products as an alternative to wood decking.
The company is a licensor in a number of licensing agreements with third parties to manufacture and sell products under the Trex trademark. The company’s licensed products are:
Trex Outdoor Furniture
A line of outdoor furniture products manufactured and sold by PolyWood, Inc.
Trex RainEscape, Trex Protect, Trex RainEscape Soffit Light, and Trex Seal Ledger Flashing Tape.
An above joist deck drainage system manufactured and sold by IBP, LLC. Trex Protect Joist, Beam, and Rim tape is a self-adhesive butyl tape that protects wooden deck framing/substructure elements. Trex RainEscape Soffit Light is a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck. Trex Seal Ledger Flashing tape is butyl flashing tape with an aluminum liner.
Trex Pergola
Pergolas made from low-maintenance cellular PVC and all-aluminum product, manufactured by Home & Leisure, Inc. dba Structureworks Fabrication.
Trex Lattice
Outdoor lattice boards manufactured and sold by Structureworks Fabrication.
Trex Cornhole
Cornhole boards manufactured and sold by Johnson Enterprises, LLC, under a Trademark License Agreement with the company.
Trex Blade
A specialty saw blade for wood-alternative composite decking manufactured and sold by Freud America, Inc.
Trex Spiral Stairs
A staircase alternative for use with all deck substructures manufactured and sold by SS Industries dba Paragon Stairs.
Trex Outdoor Kitchens
Outdoor kitchen cabinetry manufactured and sold by Danver Outdoor Kitchens.
Customers and Distribution
The company is committed to conducting business activities with standards of business ethics and in accordance with all applicable laws and regulations. The company’s Vendor and Customer Code of Conduct and Ethics (Code), available at www.trex.com/our-company, applies to all parties providing goods and services to the company, and all channel partners who distribute, sell, and/or install the company’s products (collectively, Business Partners).
Trex Residential: Wholesale Distributors/Retail Lumber Dealers. The company generates most of its sales for its composite decking and railing products through its wholesale distribution network by selling Trex Residential products to wholesale distributors, who in turn, sell the company’s products to retail lumber outlets. These retail dealers market to both homeowners and contractors, but they emphasize sales to professional contractors, remodelers, and homebuilders. Contractor-installed decks generally are larger installations with professional craftsmanship. The company’s retail dealers generally provide sales personnel trained in Trex Residential products, contractor training, inventory commitment, and point-of-sale display support. The company’s distributors provide value-added service in marketing its products because they sell premium wood decking products and other innovative building materials that typically require product training and personal selling efforts. The company typically appoints two to three distributors within a specified area to sell only Trex Residential decking products on an exclusive basis.
Home Depot and Lowe’s: The company sells its products through Home Depot and Lowe’s stores. Home Depot and Lowe’s purchase products directly from the company for stocking on their shelves. They also purchase products through the company’s wholesale distributors for special orders placed by consumers. Home Depot and Lowe’s serve both the contractor market and the ‘do-it-yourself’ market.
For the year ended December 31, 2024, three customers of Trex Residential represented approximately 81% of the company’s total net sales.
Competition
The company’s principal competitors include The Azek Company Inc., and Fiberon (a division of Fortune Brands, Inc.).
Government Regulation
The company is subject to federal, state, and local environmental regulation. The emissions of particulates and other substances from the company’s manufacturing facilities must meet federal and state air quality standards implemented through air permits issued to the company by the Department of Environmental Quality of the Commonwealth of Virginia, the Division of Environmental Protection of Nevada’s Department of Conservation and Natural Resources, and the Division of Environmental Quality of Arkansas’ Department of Energy and Environment.
The company’s operations also are subject to workplace safety regulation by the U.S. Occupational Safety and Health Administration, the Commonwealth of Virginia, and the States of Nevada and Arkansas.
Intellectual Property
The U.S. Patent and Trademark Office has granted the company federal registrations for many of its trademarks. Federal registration of trademarks is effective for as long as the company continues to use the trademarks and renew their registrations.
The company has two U.S. Patents for decking technology. The company intends to maintain its existing patents in effect until they expire on January 15, 2038, and May 23, 2038, respectively, as well as to seek additional patents as it considers appropriate.
Environmental and Occupational Safety
In 2024, several changes to the health and safety (EHS) organization were made to better support the business and align resources. These changes include the addition of an EHS Specialist to the company’s distribution and transportation department, and a Corporate Health and Safety Manager to focus on advancing the company’s health and safety programs. This position is a counterpart to the company’s Corporate Environmental Manager role, which has been in place for several years. All EHS professionals are required to complete continuing education courses to build internal expertise and capacity.
In 2024, Trex launched numerous health and safety initiatives, such as FAST Response, Safety Steering Committee, Rules to Live By, and the inaugural Safety Pulse Survey.
Research and Development
For the year ended December 31, 2024, the company’s research and development costs were $3.5 million.
History
Trex Company, Inc. was founded in 1996. The company was incorporated as a Delaware corporation in 1998.