Trex beats Q2 estimates, raises 2026 outlook with SBP as sole distributor

Trex reported preliminary Q2 revenue of $418 million, topping its guidance range, and raised its full-year 2026 outlook as it named Specialty Building Products its sole national distributor.

"SBP is now our only national distributor partner. We decided to expand our relationship based on their dynamic service capabilities and relentless drive for growth," Adam Zambanini, president and CEO of Trex, said.

Preliminary adjusted EBITDA reached $112 million. The company lifted its 2026 revenue forecast to $1.215 billion to $1.25 billion and adjusted EBITDA to $330 million to $345 million, up from a prior range of $315 million to $340 million. The beat was broad-based across channels and product lines, CFO Prith Gandhi said, and did not benefit from load-in purchases by new distribution partners.

The distribution overhaul replaces Boise Cascade with SBP, which has grown from $500 million in revenue in 2016 to $4.5 billion in 2025 and now reaches more than 15,000 dealers and retailers across all 50 states and Canada. Trex expects the transition to be largely complete within 30 days with no material impact on margins or customer service.

The moves align with SBP's ongoing integration of its acquired brands — Alexandria Moulding, Amerhart, Reeb, DW Distribution, Millwork Sales and U.S. Lumber — under a single national platform. OrePac Building Products will continue under its current name as the unification extends westward.

Trex is also expanding regional distribution with WS Building Materials, Coastal Forest Products in New England and BlueLinx in the South Central region. Zambanini said the company is moving toward a dual-distribution model in many markets after previously having triple distribution in roughly half its network. All distributors in the new lineup will be exclusive with Trex for decking and railing.

Gandhi said the financial impact of the transition will be "limited, manageable and primarily timing-related." The company may see modest shipment timing shifts in the near term but does not expect changes to underlying demand. Channel inventory remains at low levels, and any short-term adjustments as Boise sells through inventory are expected to be temporary and minimal.

The guidance raise shows management expects demand for composite decking to remain strong despite a challenging macroeconomic environment. Investors will watch the Q2 earnings call on Aug. 4 for updated segment margins and further detail on the distribution transition.

This article is for informational purposes only and does not constitute investment advice.