Trex Company (TREX) Falls to 52-Week Low as Firm Withdraws Growth Guidance, Gets Probed

Core Viewpoint - Trex Company, Inc. has experienced significant stock declines after withdrawing its growth guidance for 2025, leading to a new 52-week low as investors reacted negatively to the news [1][3]. Financial Performance - Trex Company’s stock fell to a low of $32.14 during intra-day trading, ultimately closing down 31.06% at $32.43 [2]. - The company reported a year-to-date sales growth of 3%, primarily driven by railing sales, which are expected to achieve double-digit growth for the full year [2]. - For the fourth quarter, Trex anticipates sales between $140 million and $150 million, leading to a full-year sales guidance of $1.15 billion to $1.16 billion, which is approximately flat compared to 2024 [3]. Adjusted EBITDA Margin - The company revised its full-year adjusted EBITDA margin guidance to a range of 28.0% to 28.5% [4]. Legal Investigation - Following the announcement of the revised guidance, a shareholder law firm initiated an investigation into whether Trex misled investors regarding adverse business trends [5]. Year-over-Year Comparison - In the third quarter, Trex reported a net income increase of 28% to $51.77 million from $40.55 million year-over-year, with revenues rising by 21.9% to $285 million from $233.7 million [5].