Trex(US:TREX) Businesswire·2025-12-31 01:00Core Viewpoint - Trex Company, Inc. is under investigation for potential violations of federal securities laws following disappointing financial results and a significant drop in stock price [1][3]. Financial Performance - On November 4, 2025, Trex reported Q3 2025 net sales of $285 million, which was 5% below the mid-point of its guidance and a sequential decline of approximately 26% [3]. - The company experienced a 12% decline in net income per share for the nine months ending September 30, 2025, compared to the same period in the previous year [3]. - Trex revised its FY 2025 sales growth guidance down to roughly 0% compared to 2024, indicating a muted outlook for the fourth quarter [3]. Stock Market Reaction - Following the disappointing results, Trex's share price fell by $14.61, or about 31.07%, from $47.04 on November 4, 2025, to close at $32.43 on November 5, 2025 [3]. Company Strategy - Trex had previously assured investors that its revised inventory strategy would reduce volatility associated with channel stocking and de-stocking, and aimed for FY 2025 sales growth of 5% to 7% [2].