– Strong Demand for Trex Decking and Railing Continues –

– Product Mix in Line with Expectations –

– Consolidated and Residential Gross Margins Reflect New Product
Start-up Costs; Progressive Gross Margin Improvement Expected Throughout
2019 –

First Quarter Highlights

• Consolidated net sales increased 5% to $180 million
• New product start-up costs and related manufacturing inefficiencies of
  approximately $10 million in the quarter
• Consolidated gross margin of 38.6%, inclusive of new product start-up
  impact of approximately 560 bps
• Consolidated earnings per share of $0.54

WINCHESTER, Va.–(BUSINESS WIRE)–Trex Company, Inc. (NYSE: TREX), the world’s number-one brand of decking
and railing and leader in high-performance, low-maintenance outdoor
living products, and a leading national provider of custom-engineered
railing systems, today reported financial results for the first quarter
ended March 31, 2019.

First Quarter 2019 Results

Consolidated net sales for the first quarter of 2019 were $180 million,
reflecting a 5% year-over-year increase. Trex Residential Products net
sales increased 7% to $165 million. Trex Commercial Products contributed
an additional $14 million, compared to $16 million in the year
ago-quarter. Consolidated gross margin was 38.6%, representing gross
margins of 40.2% and 20.5%, respectively, from Trex Residential and Trex
Commercial. SG&A was $30 million, or 16.8% of sales.

Net income for the first quarter of 2019 was $32 million, or $0.54 per
diluted share, compared to $37 million, or $0.63 per diluted share
reported for last year’s first quarter.

“First quarter revenue growth was supported by strong demand for both
our legacy and new residential decking and railing products, resulting
in a product mix that was in line with our expectations. Startup costs
and related manufacturing inefficiencies associated with production of
our new Enhance Naturals and Basics decking unfavorably impacted
residential gross profit by approximately $10 million and significantly
reduced our throughput during the quarter. In March, we made a profile
change to our Trex Enhance decking board to increase throughput and
began to see substantially improved production rates at the end of the
quarter. Our capacity was also constrained by two equipment failures at
our Nevada facility during the first quarter which resulted in the loss
of two production lines for over thirty days each. We will experience
reduced throughput in Nevada during the second quarter as well, but we
expect the reduced throughput and related expenses to be behind us by
the end of June.

“Trex Commercial revenue was consistent with plan, and gross margin
showed year-over-year and sequential expansion of 280 and 210 basis
points, respectively, thanks to operational and organizational changes
that increased efficiencies, and the continued run-off of older
contracts,” noted James E. Cline, President and Chief Executive Officer.

Recent Recognitions

• For the 12th consecutive year, Trex was named number one in “brand
  familiarity,” “brand used most” and “brand used most in the past two
  years” for the composite/PVC decking category in the 2019 Builder
  magazine’s annual Brand Use Study.
• Trex Company was honored with Green Builder Media’s 2019 Readers’
  Choice Award for manufacturing “greenest” decking.
• According to the recent PRODUCTS Brand Use Survey, Trex^®
  has been named the most preferred decking product among trade
  professionals, outranking the traditional pressure-treated lumber.

Summary and Outlook

“Market conditions continue to be favorable, demand for Trex decking and
railing products remains very strong, and early data indicate that
interest in our new Enhance products is robust and broad-based. This
supports our expectation that the re-engineered and expanded line of
Trex Enhance composite decking has significantly increased the size of
our addressable market and will accelerate the conversion from wood. We
are focused on increasing production capabilities as we move through
2019, but as we have said previously, Trex Residential margin
performance for the first half of 2019 will continue to reflect start-up
costs associated with the new product production. We expect gross margin
to progressively increase throughout this year, although due to our
first quarter results and continued startup costs in the second quarter,
we are revising our incremental margin guidance to approximately 40% for
full year 2019. Second quarter consolidated gross margin is expected to
improve sequentially by approximately 300 basis points.

“Trex continued to execute on its long-term capital allocation
priorities in the first quarter and repurchased 125,000 shares for $8.7
million as part of the share buyback program approved by the Board of
Directors in February 2018.

“For the second quarter of 2019, we expect consolidated net sales in the
range of $195 million to $205 million, as we work toward meeting strong
market demand,” Mr. Cline concluded.

First Quarter 2019 Conference Call and Webcast Information

Trex will hold a conference call to discuss its first quarter 2019
results and other corporate matters on Monday, April 29, 2019 at 5:00
p.m. EDT. To participate on the day of the call, dial 1-877-270-2148, or
internationally 1-412-902-6510, approximately ten minutes before the
call and tell the operator you wish to join the Trex Company Conference
Call. A live webcast of the conference call will be available in the
Investor Relations section of the Trex Company website at 1Q19
Earnings Webcast. For those who cannot listen to the live broadcast,
an audio replay of the conference call will be available on the Trex
website for 30 days.

Forward-Looking Statements

The statements in this press release regarding the Company’s expected
future performance and condition constitute “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements are
subject to risks and uncertainties that could cause the Company’s actual
operating results to differ materially. Such risks and uncertainties
include, but are not limited to, the extent of market acceptance of the
Company’s products; the costs associated with the development and launch
of new products and the market acceptance of such new products; the
sensitivity of the Company’s business to general economic conditions;
the impact of seasonal and weather-related demand fluctuations on
inventory levels in the distribution channel and sales of the Company’s
products; the availability and cost of third-party transportation
services for the Company’s products; the Company’s ability to obtain raw
materials at acceptable prices; the Company’s ability to maintain
product quality and product performance at an acceptable cost; the level
of expenses associated with product replacement and consumer relations
expenses related to product quality; the highly competitive markets in
which the Company operates; cyber-attacks, security breaches, or other
security vulnerabilities; and the impact of upcoming data privacy laws
and the EU General Data Protection Regulation and the related actual or
potential costs and consequences. Documents filed with the Securities
and Exchange Commission by the Company, including in particular its
latest annual report on Form 10-K and quarterly reports on Form 10-Q,
discuss some of the important factors that could cause the Company’s
actual results to differ materially from those expressed or implied in
these forward-looking statements. The Company expressly disclaims any
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.

About Trex Company

Trex Company is the world’s largest manufacturer of high performance
wood-alternative decking and railing, with more than 25 years of product
experience. Stocked in more than 6,700 retail locations worldwide, Trex
outdoor living products offer a wide range of style options with fewer
ongoing maintenance requirements than wood, as well as a truly
environmentally responsible choice. Also, Trex is a leading national
provider of custom-engineered railing and staging systems for the
commercial and multi-family market, including performing arts venues and
sports stadiums. For more information, visit trex.com.

Contacts

Bryan Fairbanks
Exec. Vice President and CFO
540-542-6300

Lynn Morgen/Viktoriia Nakhla
ADVISIRY PARTNERS
212-750-5800