Trex Company, Inc. Jefferies Global Industrials Conference 2026

Yeah. Well, thank you for that question. Yeah. When you get back to it was back to basics. If 75% of the market is wood, and so 1% share away from wood is $80 million in revenue. What can we do to get back there? When I analyzed the data the last several years, I was not seeing us bring in that wood consumer. Why I believe that is really effective is it creates a halo for Trex. Bringing in that wood consumer, what they realize is once you move from wood to Trex, right? Your substructure costs are the same, your labor is the same, your fasteners are about the same. It is not that much to trade them up into other product lines at Trex. You get into railing, you get into fascia, you get into lighting, you get into higher ends of decking.

We are focusing on the marketing side of showing the consumer the differences in those costs. We are also leveraging AI, so there is more visualizers that are being built with AI, where you can take your wood deck, and you can scroll across and see what your deck looks like versus what a Trex composite deck is. We focus a lot on product invention and a lot of the things that have to do with an install. If you think about installing a deck or a rail, if you look at guidelines out in the marketplace, the handbook to install a deck or rail is about that thick. It is really intimidating for consumers. There is a lot more education out there on YouTube to show them how to install a deck. Also, all of our products have really been made DIY friendly.

We're number one in wood alternative railing. It's our fastest growing segment. When you look at the product lines and what we have, everything's more or less preassembled now on the railing side of the business. We have the posts that already have the brackets on there. You drop the panels in, four screws, and you're complete. We've tried to make that whole consumer journey seamless, so that from the time they visualize their deck to the time they go out there and acquire their deck, we make it easier. There's been a lot more. We raised SG&A the end of last year to upwards of 18%. That was a one-time adjustment for Trex, but a lot of it had to do with going out there and getting our message across to the consumer as to why they want to move away from wood.

I'm sorry, outside of what?

Yeah. We refocused also on my number 2 core value is obsess over the customer. The idea is to find a solution with that customer and how we can expand over time. There were some things that we had to do from a rebates and discounts perspective. That was a one-time one-up on there. If we did it again, would we take pricing? Sure, we would. This is one of those ones that we needed to do to remain competitive within the marketplace. We changed what the structure was there. We also offer a lot more marketing tools for that customer. We are going out there. We go and analyze no matter where you are at. You could be in Milwaukee, Wisconsin. We go into that dealer.

We basically give them a marketing package as to what they need to do to drive more consumers or more contractors within the door. We have also experienced a lot of change in our media plans. There is a lot more tied to sporting events, which you see a lot more contractors that watch the sporting events, but you also have a lot of consumers there. We have tried to pick more high, impactful places that Trex can be seen. We have signed an agreement with Martha Stewart. Martha Stewart has built two Trex decks here in New England, and we are using her as an influencer for Trex. We have gone out there in a bigger way. I just feel like my background has been sales and marketing.

We need to take a one-time step up in what we can do to create that exposure in, that big bang effect, and get people to move over from wood, but also create more awareness on the Trex side of the portfolio. We were great on the conversion side and the digital campaign, but we needed a lot more on the awareness side. If you are out there, you are seeing a lot of Trex advertisements this year.

Yeah. We have seen that momentum continue into August. As we go out to 2030, we want to be a $2 billion company. We have been hanging around $1.1 billion, about a compounded annual growth rate of 11%. Getting back to that wood growth, that helps in terms of the absorption that we need. We think over time, we drive more absorption. We can expand margin over time. We are on track to where we need to be. We have seen a solid order book through Q2, which was a record quarter. We saw it again in July. We are seeing it continue through the August timeframe. We feel that that has helped fuel the growth, getting that wood consumer. There is a lot of opportunity. We made some distribution changes in the July timeframe.

With those distribution changes, we are able to get some distributors to move away from tertiary brands, let us just say the number four, number five brand in decking and railing, and getting them to move over in Trex. We have talked about that as well. That is another $100 million opportunity for Trex to grow over the next two years on top of the wood conversion.