Trex Overhauls Distribution Network, Raises 2026 Outlook After Q2 Beat

Key Points

• Trex is overhauling its distribution network by naming Specialty Building Products (SBP) its sole national distributor by year-end while expanding regional partners, including Coastal Forest Products, BlueLinx and others. The company said the new structure replaces Boise Cascade’s national footprint with no loss of coverage.
• Second-quarter preliminary results beat guidance, with net sales of about $418 million versus the prior outlook of $388 million to $403 million and adjusted EBITDA of about $112 million. Trex said demand was strong across channels and products despite a tough macro backdrop.
• Management raised full-year 2026 guidance to revenue of $1.215 billion to $1.25 billion and adjusted EBITDA of $330 million to $345 million. Trex expects the distribution transition to have only limited, mostly timing-related effects and no material impact on margins or customer service.

Trex NYSE: TREX said it is overhauling its distribution network by appointing Specialty Building Products, or SBP, as its sole national distributor by year-end while expanding its roster of regional distribution partners.

On a conference call to discuss the announcement, President and CEO Adam Zambanini said the move is intended to simplify Trex’s go-to-market model, improve execution and align the company with distributors that view Trex as their primary brand. As part of the changes, Trex is exiting Boise Cascade as a national distributor for decking and railing.

“This isn’t about the past,” Zambanini said. “It’s about where the market is going and how we best position Trex for the future.”

SBP Named Sole National Distributor

Zambanini said SBP’s acquisition of OrePac gave the company “genuine national scale” and positioned it to serve both the U.S. and Canada for Trex. He said SBP has grown from a $500 million company in 2016 to $4.5 billion in 2025 and has been Trex’s top distributor for national accounts and its fastest-growing distributor for home centers.

Trex also said it is expanding its regional distribution network to include Coastal Forest Products and BlueLinx, while broadening its existing footprint with WS Building Materials. Zambanini also listed International Wood Products, Weyerhaeuser, Taiga, Nicholson and Cates, Stella-Jones and Manufacturers Reserve Supply among the company’s regional distribution partners.

The company said the new network fully replaces Boise Cascade’s footprint with no loss of coverage and maintains coast-to-coast availability.

Company Expects Limited Operational Disruption

Zambanini said Trex does not expect any material disruption to customer service, any material impact on margins or profitability, or any major restructuring or termination costs tied to the transition.

He said the transition is expected to be largely complete within 30 days, with new and expanded distribution partners receiving product, undergoing training and actively selling Trex by no later than mid-August. In some cases, he said, the process could be completed before the end of July.

“We have approached this transition with a high level of rigor to ensure a smooth and seamless execution,” Zambanini said.

During the question-and-answer portion of the call, Zambanini said Trex is moving back toward a dual-distribution model in many markets after previously having triple distribution in roughly half of its network. He said all distributors in the new lineup will be exclusive with Trex for decking and railing.

Preliminary Second-Quarter Results Top Guidance

Senior Vice President and CFO Prith Gandhi said Trex’s preliminary second-quarter net sales were approximately $418 million, above the company’s prior expected range of $388 million to $403 million. Preliminary adjusted EBITDA was approximately $112 million.

Gandhi said the performance was driven by strong customer demand in a challenging macroeconomic environment and was broad-based across distribution channels and product lines. He said the quarter did not benefit from load-in purchases by new or expanded distribution partners.

Trex plans to provide more detail on its second-quarter results on its August 4, 2026, earnings call.

Guidance Raised for 2026

Trex raised its full-year 2026 outlook, citing its strong start to the year and continued execution. The company now expects revenue of $1.215 billion to $1.25 billion. It also raised its adjusted EBITDA outlook to a range of $330 million to $345 million, up from a prior range of $315 million to $340 million.

Gandhi said the financial impact of the distribution transition is expected to be “limited, manageable, and primarily timing-related.” He said Trex may see modest shipment timing shifts in the near term but does not expect changes to underlying demand or margins.

The company said it will incur some selling, general and administrative expenses related to training, merchandising and distributor onboarding. Gandhi described those costs as small and largely one-time in nature, adding that they are already contemplated in the updated guidance.

On inventory, Gandhi said channel inventory remains at low levels and any short-term adjustments as Boise sells through inventory are expected to be temporary and minimal. Zambanini added that Trex does not expect to build inventory to support the transition.

Management Emphasizes Long-Term Growth Strategy

Zambanini framed the distribution changes as part of Trex’s broader strategy to optimize its channels for growth amid consolidation among distributors, larger national accounts and rising expectations for speed, service and product availability.

He said Trex wants to ensure it is the “preeminent brand” with each distributor and that its partners lead with Trex in their portfolios. He also said the new structure could give the company more flexibility as it seeks growth beyond decking and railing.

“Ultimately, this is about ensuring Trex is not just adapting to a changing channel, but leading that change,” Zambanini said.

About Trex NYSE: TREX

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company's core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex's product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.

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