SAN FRANCISCO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Investors in Trex Company, Inc. (NYSE: TREX) saw the price of their shares crater as much as $14.88 (-31%) during intraday trading on November 5, 2025, after the building products company reported disappointing Q3 2025 financial results and dramatically reduced expected 2025 sales growth.
The developments and severe market reaction has prompted national shareholders rights firm Hagens Berman to investigate whether Trex may have misled investors about adverse trends impacting its business and whether Trex sold more products to its customers than they needed.
The firm urges investors in Trex who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Visit: www.hbsslaw.com/investor-fraud/trex
Contact the Firm Now: TREX@hbsslaw.com
844-916-0895
Trex Company, Inc. (TREX) Investigation:
The investigation is focused on the propriety of Trex’s disclosures about its sales practices and growth prospects.
In August 2025, Trex assured investors that “our revised inventory strategy reduces the volatility typically associated with channel stocking and de-stocking[]” and “[b]y level-loading our production, we can better manage inventory cycles, enhance operational efficiencies, and reduce volatility in our quarterly results[.]” The company also called for FY 2025 sales growth of 5% to 7%.
But after the markets closed on November 4, 2025, Trex surprised investors when it reported disappointing Q3 2025 financial results with net sales of $285 million coming in 5% below the mid-point of its guidance (significantly missing analysts’ consensus estimates), a sequential decline of about 26%. The company also reported a 12% decline in net income per share for the nine months ended September 30, 2025, compared to the prior year periods.
In addition, Trex said it expects a “muted” fourth quarter, explaining in part “we expect our pro channel partners to lower their inventories through the rest of the year” and revised its 2025 sales growth guidance down to roughly 0% compared to 2024.
The news sent the price of Trex shares tumbling on November 5, 2025.
“We’re focused on investors’ losses and whether Trex may have misled investors about its inventory management,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Trex and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Trex investigation, read more »
Whistleblowers: Persons with non-public information regarding Trex should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TREX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
