Trex(US:TREX)2025-06-16 16:26Company Overview - Trex has recycled over 5 billion pounds of plastic film since its inception, positioning itself as one of the largest polyethylene film recyclers in North America[14] - The company's market capitalization is supported by its brand, distribution network, low-cost leadership, and product breadth, valued at $6.5 billion[15] - Trex holds a 13% market share in the $8 billion U S decking and railing category[36] Market Trends and Opportunities - There's a growing demand for multi-functional outdoor living spaces, with a 50% increase since 2020[39] - Sustainability is gaining industry influence, with 77% of designers prioritizing products made with responsibly sourced materials[41] - The railing market presents a $3.3 billion opportunity, where Trex aims to double its market share over the next five years[44,48] Financial Performance and Capital Allocation - Trex has allocated $699 million in capital expenditures since 2016, including $200 million for capacity expansion completed in FY2021[44] - The company's capital allocation strategy prioritizes high-return CapEx spending, high-impact acquisitions, and share buybacks[158] - Trex's adjusted sales for 2024 reached $1.151 billion, with an adjusted EBITDA of $360 million, representing a 31% margin[174] Sustainability and Environmental Impact - Trex upcycles 95% of materials in its decking from diverted wastes[150] - The company reclaims 13000 pounds of scrap Trex boards and cut-off ends through a pilot circularity program[150] - Trex recycles approximately 99% of process water annually with closed-loop cooling systems at its Virginia and Nevada manufacturing facilities[151]