TREX - Takeaways From Truist Securities Industrials & Services Conference

Research evidence excerpt

TREX - Takeaways From Truist Securities Industrials & Services Conference

Truist Securities

Equity Research Report June 22, 2026

INDUSTRIALS: Resi/Commercial Trex Company, Inc. (TREX)

Durable Goods Manufacturers

TREX - Takeaways From Truist Securities Industrials & Services

Keith Hughes Conference

404-926-5032

Keith.Hughes@truist.com

TREX has seen revenue growth during this downturn but, in our view, no earnings growth and

Julian Nirmal better numbers from James Hardie (JHX, Buy) has driven a substantial multiple contraction.

404-836-4749 Management is focused on enhancing revenue growth with a refocus on customers,

Julian.Nirmal@truist.com marketing spending and some limited price actions (or lack of increases) with less of a margin

focus. Longer term, we expect significant product market introductions. A combination of

better growth coupled with more consistent quarters could result in a multiple revaluation.

We are raising our PT to $55 from $50 representing 17x our 2027E EBITDA. Remain Buy.

Stock Rating BUY

Unchanged

We recently hosted meetings with numerous management teams at our Truist Securities

Price Target $55.00 Industrial & Services Conference. Below are comments regarding TREX.

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from Stock Has Seen Significant Multiple Contraction. TREX's valuation multiple has

$50.00 contracted meaningfully since its pandemic highs, going from as high as 35x to 13x currently.

We believe a combination of volatile quarterly earnings, underperformance relative to AZEK,

and more recent loss of confidence by investors have contributed to this decline.

TR to Target 16.7%

Price (Jun. 18, 2026) $47.13

52-Wk Range $68.49-$30.13

Market Cap ($M) $5,043

ADTV 1,332,297

Shares Out (M) 107

Short Interest Ratio/% Of Float 10.3%

Enterprise Value ($M) $5,421

Cash & Equivalents ($M) $5