Cash conversion is highly seasonal, swinging from -$234.1M FCF in 2025Q1 to $198.7M in 2025Q2, while cumulative operating cash flow of $608M exceeds net income of $540M, indicating strong underlying cash generation.
Trex Company, Inc. (TREX) cash flow statement — 29-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Cash from Operations | 313.85M | 358.11M | 143.93M | 389.42M | 216.22M | 258.06M | 187.29M | 156.35M | 138.12M | 101.86M | 85.29M | 62.63M | 58.64M | 45.21M | 60.44M | 33.85M | 18.99M | 35.06M | 33.04M | -1.16M | -4.04M | 11.86M | 45.29M | 5.63M | 52.96M | 7M | 15.41M | 21.4M | 12.2M | 6.5M |
| Operating CF Margin % | - | 30.5% | 12.5% | 35.57% | 19.55% | 21.56% | 21.26% | 20.98% | 20.19% | 18.02% | 17.78% | 14.21% | 14.97% | 13.2% | 19.67% | 12.69% | 5.98% | 12.88% | 10.04% | -0.35% | -1.2% | 4.03% | 17.86% | 2.95% | 31.7% | 5.99% | 13.1% | 28.8% | 26.07% | 19.06% |
| Operating CF Growth % | 859.25% | 148.81% | -63.04% | 80.1% | -16.21% | 37.79% | 19.79% | 13.2% | 35.59% | 19.43% | 36.18% | 6.81% | 29.72% | -25.21% | 78.58% | 78.2% | -45.83% | 6.12% | 2941.1% | 71.2% | -134.04% | -73.81% | 704.69% | -89.37% | 656.2% | -54.54% | -28% | 75.41% | 87.69% | - |
| Net Income | 178.07M | 190.41M | 238.45M | 204.12M | 184.63M | 208.74M | 175.63M | 144.74M | 134.57M | 95.13M | 67.85M | 48.1M | 41.52M | 34.6M | 2.72M | -11.59M | -10.07M | -16.45M | 13.55M | -75.91M | 2.34M | 2.5M | 27.16M | 20.99M | 16.78M | 9.05M | 19.3M | 12.7M | 8.5M | 5.6M |
| Depreciation & Amortization | 76.79M | 62.96M | 54.67M | 50.19M | 44.3M | 35.95M | 17.94M | 14.03M | 16.6M | 16.86M | 14.5M | 14.38M | 15.2M | 16.25M | 17.01M | 18.17M | 20.79M | 24.48M | 25.88M | 22.49M | 20.26M | 16.14M | 13.71M | 13.44M | 13.98M | 9.46M | 6.87M | 4.5M | 3.2M | 2.6M |
| Stock-Based Compensation | 10.75M | 9.12M | 12.63M | 10.16M | 5.33M | 8.44M | 7.13M | 6.93M | 6.34M | 5.19M | 4.79M | 4.86M | 4.81M | 3.81M | 3.47M | 3.15M | 3.63M | 3.53M | 2.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 62.13M | 17.11M | -12.23M | 3.87M | 24.26M | 21.01M | 13.13M | 7.71M | 1.04M | 194K | 5.43M | 1.02M | 3.57M | -12.7M | 618K | 165K | 200K | 997K | -155K | -11.39M | 466K | -1.58M | 1.65M | 3.12M | 1.79M | 1.07M | 2.13M | 3.2M | 0 | 0 |
| Other Non-Cash Items | 5.22M | 469K | 2.83M | 3.09M | 15.28M | 54.24M | -5K | 67K | -359K | 1.33M | -469K | -2.77M | -12.98M | -1.22M | 7.04M | 11.87M | 9.81M | 29.54M | 6.94M | 9.4M | 1.79M | 4.54M | 2.07M | 489K | 618K | 531K | 111K | 900K | 100K | -5.9M |
| Working Capital Changes | -19.11M | 78.04M | -152.42M | 117.99M | -57.57M | -70.31M | -26.53M | -17.12M | -20.07M | -16.84M | -6.8M | -2.96M | 6.52M | 4.46M | 29.58M | 12.08M | -5.37M | -7.04M | -9.44M | 54.26M | -28.9M | -9.73M | 699K | -32.41M | 19.79M | -12.98M | -13.01M | 300K | 400K | 4.2M |
| Change in Receivables | -58.92M | 40.27M | -47.22M | 56.92M | 42.51M | -44.35M | -28.29M | 12.7M | -24.28M | -10.49M | -653K | -10.99M | 867K | -10.84M | 2.66M | 23.93M | -21.91M | -17.41M | -6.97M | -5.78M | 9.6M | 9.6M | -16.14M | -4.99M | 1.67M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 18.03M | 18.29M | -116.42M | 35.88M | -64.45M | -15.52M | -12.13M | 1.7M | -23.28M | -3.63M | -5.44M | 643K | -1.32M | -4.91M | 11.38M | 125K | 1.08M | 23.91M | 23.17M | 18.86M | -54.5M | -12.37M | 1.59M | -23.52M | 10.74M | -10.15M | -14.35M | -2.7M | -1.5M | 0 |
| Change in Payables | 23.44M | 6.88M | -819K | 2.7M | -5.59M | -3.47M | 11.35M | -16.67M | 21.13M | -4.8M | -6.97M | -2.32M | 5.16M | 3.73M | -731K | -3.21M | -1.41M | 1.09M | -4.35M | 24.67M | -2.21M | -1.99M | 10.66M | -356K | 561K | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -120.31M | -233.22M | -236.53M | -166.09M | -168.88M | -158.04M | -170.66M | -67.24M | -33.73M | -86.79M | -10.2M | -23.33M | -12.87M | -12.7M | -7.48M | -9.37M | -9.77M | -6.64M | -8.59M | -24.04M | -27.74M | -29.43M | -56.37M | -17.75M | -6.19M | -31.97M | -60.11M | -29.4M | -17.1M | -3.3M |
| Capital Expenditures | -43.38M | -233.57M | -236.64M | -166.09M | -176.23M | -159.39M | -172.82M | -67.27M | -33.82M | -15.04M | -14.55M | -23.33M | -12.97M | -13.06M | -7.59M | -7.42M | -9.97M | -6.92M | -7.81M | -24.04M | -27.7M | -49.88M | -34.07M | -17.06M | -6.19M | -31.97M | -60.11M | -29.4M | -17.1M | -3.3M |
| CapEx % of Revenue | 3.38% | 19.89% | 20.55% | 15.17% | 15.93% | 13.32% | 19.62% | 9.02% | 4.94% | 2.66% | 3.03% | 5.29% | 3.31% | 3.81% | 2.47% | 2.78% | 3.14% | 2.54% | 2.37% | 7.31% | 8.22% | 16.96% | 13.43% | 8.93% | 3.71% | 27.36% | 51.13% | 39.57% | 36.54% | 9.68% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -71.8M | 0 | -31K | -44K | 0 | -11K | -2.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -76.94M | 358K | 106K | 0 | 7.34M | 1.35M | 2.17M | 21K | 83K | 55K | 4.35M | 35K | 145K | 363K | 120K | 127K | 193K | 281K | -780K | 0 | 0 | 20.5M | -22.25M | -691K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -201.62M | -122.38M | 91.94M | -233.7M | -176.06M | -80.67M | -43.77M | -45.97M | -29.2M | -3.23M | -62.42M | -42.85M | -40M | -30.9M | -55.33M | -47.22M | -1.47M | -32.1M | -1.32M | 24.59M | 31.06M | -4.43M | 26.86M | 5.38M | -31.88M | 24.97M | 44.71M | 6.8M | 4.1M | -5M |
| Debt Issued (Net) | 58.7M | -69.1M | 197.1M | -216.5M | 222M | 0 | 0 | 0 | 0 | 0 | -7M | 7M | 0 | -5M | -86.88M | -8.42M | -545K | -31.15M | -1.19M | 28.29M | 31.03M | -4.89M | 24.12M | -822K | -32.21M | 24.7M | 44.46M | -17.7M | 6.8M | 0 |
| Equity Issued (Net) | -257.88M | -53.29M | -104.66M | -18.45M | -398.38M | -82.47M | -44.85M | -46.55M | -30.09M | -3.62M | -55.22M | -53.31M | -53.19M | -31.28M | -5.52M | -3.09M | -1.09M | -572K | 155K | -77K | -24K | 459K | 3.29M | 6.2M | 329K | 273K | 245K | 41.2M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16.7M | -400K | 0 |
| Share Repurchases | -259.07M | -54.47M | -105.94M | -18.45M | -398.38M | -82.47M | -44.85M | -46.55M | -30.09M | -3.62M | -55.22M | -53.31M | -53.19M | -31.28M | -5.52M | -3.09M | -1.09M | -572K | -74K | -377K | -435K | -743K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.44M | 6K | -503K | 1.25M | 318K | 1.8M | 1.09M | 571K | 882K | 391K | -206K | 3.46M | 13.19M | 5.38M | 37.07M | -35.71M | 169K | -381K | -57K | -3.62M | 51K | 0 | -553K | 0 | 0 | 0 | 0 | 0 | -2.3M | -5M |
| Net Change in Cash | -8.09M | 2.52M | -667K | -10.37M | -128.73M | 19.35M | -27.13M | 43.13M | 75.19M | 11.85M | 12.67M | -3.55M | 5.77M | 1.61M | -2.37M | -22.74M | 7.76M | -3.67M | 23.12M | -606K | -723K | -21.99M | 15.77M | -6.74M | -31.88M | 0 | 0 | 6.8M | 4.1M | -1.7M |
| Free Cash Flow | 270.47M | 124.54M | -92.71M | 223.33M | 39.99M | 98.67M | 14.47M | 89.09M | 104.31M | 86.83M | 70.74M | 39.3M | 45.67M | 32.15M | 52.85M | 26.43M | 9.03M | 28.14M | 24.4M | -25.2M | -31.74M | -38.06M | 11.17M | -11.43M | 46.77M | -24.97M | -44.71M | -8M | -4.9M | 3.2M |
| FCF Margin % | 21.1% | 10.61% | -8.05% | 20.4% | 3.62% | 8.24% | 1.64% | 11.95% | 15.24% | 15.36% | 14.75% | 8.92% | 11.66% | 9.39% | 17.2% | 9.91% | 2.84% | 10.34% | 7.41% | -7.66% | -9.42% | -12.94% | 4.4% | -5.98% | 27.99% | -21.37% | -38.03% | -10.77% | -10.47% | 9.38% |
| FCF Growth % | 1727.01% | 234.33% | -141.51% | 458.44% | -59.47% | 581.85% | -83.76% | -14.59% | 20.13% | 22.73% | 80% | -13.94% | 42.06% | -39.17% | 99.98% | 192.73% | -67.92% | 15.33% | 196.84% | 20.61% | 16.61% | -440.83% | 197.71% | -124.44% | 287.33% | 44.15% | -458.84% | -63.27% | -253.13% | - |
| FCF per Share | 2.66 | 1.16 | -0.86 | 2.05 | 0.36 | 0.85 | 0.12 | 0.76 | 0.88 | 0.73 | 0.60 | 0.31 | 0.35 | 0.23 | 0.39 | 0.21 | 0.07 | 0.23 | 0.20 | -0.21 | -0.27 | -0.32 | 0.09 | -0.10 | 0.40 | -0.22 | -0.39 | -0.08 | -0.06 | 0.08 |
| FCF Conversion (FCF/Net Income) | 1.52x | 1.88x | 0.64x | 1.90x | 1.17x | 1.24x | 1.07x | 1.08x | 1.03x | 1.07x | 1.26x | 1.30x | 1.41x | 1.31x | 22.22x | -2.92x | -1.89x | -2.13x | 2.44x | 0.02x | -1.72x | 4.75x | 1.67x | 0.27x | 3.16x | 0.77x | 0.80x | 1.84x | 1.44x | 1.16x |
| Interest Paid | 0 | 0 | 0 | 51K | 0 | 0 | 0 | 0 | 662K | 418K | 852K | 625K | 520K | 348K | 5.79M | 6.35M | 6.53M | 7M | 7.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.37M | 50.06M | 85.17M | 52.34M | 59.93M | 38.61M | 50.74M | 39.61M | 48.24M | 44.8M | 28.63M | 26.33M | 11.92M | 672K | 590K | 658K | 7.55M | 2.3M | 93K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TREX stock.
Trex Company, Inc. (TREX) generated $358.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Trex Company, Inc. (TREX) generated $124.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Trex Company, Inc. (TREX) spent $233.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Trex Company, Inc. (TREX) spent $54.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Demand cyclicality and margin compression
Metrics are mathematically derived from official filings.
Cash Conversion Swings with Seasonality
TREX's operating cash flow to net income ratio swung from -1.93 in 2026Q1 to 3.46 in 2026Q2, reflecting extreme working capital seasonality. According to the latest quarterly data, cash conversion is highly volatile.
The OCF/NI ratio of 3.46 in 2026Q2 indicates that operating cash flow far exceeded net income, driven by a $125.7M working capital inflow. However, in 2026Q1, the ratio was -1.93, with a $200.9M working capital outflow, highlighting the pronounced seasonal pattern. This suggests that earnings quality is heavily influenced by timing of inventory builds and customer payments, not just operational performance.
FCF Volatility Masks Underlying Stability
Free cash flow ranged from -$234.1M in 2025Q1 to $198.7M in 2025Q2, with FCF margins swinging from -68.9% to 51.2%. Based on reported figures, the trailing twelve-month FCF appears positive but lumpy.
The extreme quarterly swings in FCF are primarily due to working capital seasonality, as capex remained relatively stable. The 2025Q1 FCF of -$234.1M was driven by a $231.1M working capital outflow, while 2025Q2 saw a $154.9M inflow. This pattern suggests that TREX's cash generation is inherently seasonal, and investors should focus on annual trends rather than quarterly figures.
Capital Intensity Rises with Expansion
CapEx as a percentage of revenue peaked at 50.8% in 2024Q4, up from 9.4% in 2024Q1, indicating significant investment. According to the cash flow data, capital spending has been elevated recently.
The sharp increase in capex intensity, particularly in 2024Q4 and 2025Q3, suggests TREX is investing heavily in capacity expansion or maintenance. While this may support future growth, it also pressures near-term FCF. The elevated capex in 2025Q3 (20.1% of revenue) and 2025Q4 (28.0%) indicates a deliberate investment phase, which could strain cash flows if demand softens.
Working Capital Drives Cash Flow Swings
Working capital changes swung from -$277.5M in 2024Q1 to +$154.9M in 2025Q2, reflecting significant inventory and receivables seasonality. As per the cash flow statement, these swings dominate quarterly cash flow.
The large working capital outflows in Q1 of each year (e.g., -$200.9M in 2026Q1) and inflows in Q2 and Q3 suggest a build-up of inventory ahead of peak selling season, followed by liquidation. This pattern is typical for a manufacturer with seasonal demand, but the magnitude of swings (over $200M) indicates a high degree of working capital intensity. Efficient management of these swings is critical to maintaining liquidity.
Buybacks Absorb Excess Cash
TREX repurchased $50.7M in 2026Q2 and $102.8M in 2026Q1, while paying no dividends. According to the cash flow data, buybacks are the primary capital return method.
Despite volatile operating cash flow, TREX has consistently returned capital via share repurchases, with notable buybacks in 2026Q1 and 2026Q2. This suggests management confidence in long-term cash generation, but it also reduces cash reserves during periods of negative FCF. The absence of dividends indicates a preference for buybacks, which may be more flexible but also signals a focus on EPS accretion.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $608M exceeds cumulative net income of $540M, indicating strong cash conversion. Based on reported figures, TREX has generated more cash than accounting earnings.
The cumulative OCF of $608M versus net income of $540M suggests that non-cash charges like D&A and working capital management have boosted cash flow. However, this divergence is not uniform; it is driven by large working capital inflows in certain quarters. This may indicate that TREX's earnings quality is solid, but investors should be cautious about the sustainability of such working capital benefits.
What Could Invalidate the Base Case
The cash flow statement obscures the impact of stock-based compensation and potential off-balance-sheet items, which may understate true cash generation. According to the data, SBC averages $2.7M per quarter, a modest but recurring expense.
While SBC is relatively small, it is a non-cash expense that inflates operating cash flow relative to net income. Additionally, the heavy reliance on working capital swings for cash generation could reverse if demand weakens, leading to inventory write-downs or slower collections. Investors should monitor whether the seasonal working capital pattern persists, as any disruption could expose the underlying volatility in cash flows.