Trex (TREX) 10-Q 28 Oct 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Oct. 14, 2024
Cover [Abstract]
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001069878
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity Registrant Name	Trex Company, Inc.
Document Period End Date	Sep. 30, 2024
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Trading Symbol	TREX
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		107,143,783
Entity File Number	001-14649
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	54-1910453
Entity Address, Address Line One	2500 Trex Way
Entity Address, City or Town	Winchester
Entity Address, Postal Zip Code	22601
Entity Address, State or Province	VA
City Area Code	540
Local Phone Number	542-6300
Title of 12(b) Security	Common stock
Security Exchange Name	NYSE
Document Quarterly Report	true

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 233,717	$ 303,836	$ 983,822	$ 899,092
Cost of sales	140,512	172,941	552,896	517,321
Gross profit	93,205	130,895	430,926	381,771
Selling, general and administrative expenses	38,901	44,532	140,708	133,694
Income from operations	54,304	86,363	290,218	248,077
Interest income (expense), net	(5)	(734)	(11)	2,555
Income before income taxes	54,309	87,097	290,229	245,522
Provision for income taxes	13,756	21,831	73,609	62,089
Net income	$ 40,553	$ 65,266	$ 216,620	$ 183,433
Basic earnings per common share	$ 0.37	$ 0.6	$ 2	$ 1.69
Basic weighted average shares outstanding	108,258,401	108,583,009	108,529,825	108,707,699
Diluted earnings per common share	$ 0.37	$ 0.6	$ 1.99	$ 1.69
Diluted weighted average common shares outstanding	108,379,416	108,702,495	108,659,118	108,829,374
Comprehensive income	$ 40,553	$ 65,266	$ 216,620	$ 183,433

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 12,838	$ 1,959
Accounts receivable, net	140,060	41,136
Inventories	187,935	107,089
Prepaid expenses and other assets	11,885	22,070
Total current assets	352,718	172,254
Property, plant and equipment, net	852,912	709,402
Operating lease assets	36,110	26,233
Goodwill and other intangible assets, net	19,386	18,163
Other assets	6,094	6,833
Total assets	1,267,220	932,885
Current liabilities
Accounts payable	61,480	23,963
Accrued expenses and other liabilities	113,634	56,734
Accrued warranty	6,104	4,865
Line of credit	70,000	5,500
Total current liabilities	251,218	91,062
Deferred income taxes	67,226	72,439
Operating lease liabilities	26,782	18,840
Non-current accrued warranty	17,530	17,313
Other long-term liabilities	16,560	16,560
Total liabilities	379,316	216,214
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value, 360,000,000 shares authorized; 141,087,688 and 140,974,843 shares issued and 107,901,982 and 108,611,537 shares outstanding, at September 30, 2024 and December 31, 2023, respectively	1,411	1,410
Additional paid-in capital	145,198	140,157
Retained earnings	1,552,679	1,336,058
Treasury stock, at cost, 33,185,706 and 32,363,306 shares at September 30, 2024 and December 31, 2023	(811,384)	(760,954)
Total stockholders' equity	887,904	716,671
Total liabilities and stockholders' equity	$ 1,267,220	$ 932,885

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	360,000,000	360,000,000
Common stock, shares issued	141,087,688	140,974,843
Common stock, shares outstanding	107,901,982	108,611,537
Treasury stock, shares	33,185,706	32,363,306

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2022	$ 518,349	$ 1,408	$ 131,539	$ 1,130,674	$ (745,272)
Beginning Balance, Shares at Dec. 31, 2022		108,743,423			32,098,410
Net Income (Loss)	41,131			41,131
Employee stock plans	316		316
Employee stock plans, Shares		8,504
Shares withheld for taxes on awards	(1,592)		(1,592)
Shares withheld for taxes on awards, Shares		(28,773)
Stock-based compensation	1,973	$ 1	1,972
Stock-based compensation, Shares		80,362
Ending Balance at Mar. 31, 2023	560,177	$ 1,409	132,235	1,171,805	$ (745,272)
Ending Balance, Shares at Mar. 31, 2023		108,803,516			32,098,410
Beginning Balance at Dec. 31, 2022	518,349	$ 1,408	131,539	1,130,674	$ (745,272)
Beginning Balance, Shares at Dec. 31, 2022		108,743,423			32,098,410
Net Income (Loss)	183,433
Ending Balance at Sep. 30, 2023	691,651	$ 1,410	137,088	1,314,107	$ (760,954)
Ending Balance, Shares at Sep. 30, 2023		108,595,105			32,363,306
Beginning Balance at Mar. 31, 2023	560,177	$ 1,409	132,235	1,171,805	$ (745,272)
Beginning Balance, Shares at Mar. 31, 2023		108,803,516			32,098,410
Net Income (Loss)	77,036			77,036
Employee stock plans	323		323
Employee stock plans, Shares		7,971
Shares withheld for taxes on awards	(855)		(855)
Shares withheld for taxes on awards, Shares		(15,663)
Stock-based compensation	2,590		2,590
Stock-based compensation, Shares		36,888
Repurchases of common stock	(15,746)				$ (15,746)
Repurchases of common stock, Shares		(264,896)			264,896
Ending Balance at Jun. 30, 2023	623,525	$ 1,409	134,293	1,248,841	$ (761,018)
Ending Balance, Shares at Jun. 30, 2023		108,567,816			32,363,306
Net Income (Loss)	65,266			65,266
Employee stock plans	286		286
Employee stock plans, Shares		5,448
Shares withheld for taxes on awards	(312)		(312)
Shares withheld for taxes on awards, Shares		(4,140)
Stock-based compensation	2,822	$ 1	2,821
Stock-based compensation, Shares		25,981
Repurchases of common stock	(64)				$ (64)
Ending Balance at Sep. 30, 2023	691,651	$ 1,410	137,088	1,314,107	$ (760,954)
Ending Balance, Shares at Sep. 30, 2023		108,595,105			32,363,306
Beginning Balance at Dec. 31, 2023	716,671	$ 1,410	140,157	1,336,058	$ (760,954)
Beginning Balance, Shares at Dec. 31, 2023		108,611,537			32,363,306
Net Income (Loss)	89,070			89,070
Employee stock plans	397		397
Employee stock plans, Shares		5,640
Shares withheld for taxes on awards	(5,146)		(5,146)
Shares withheld for taxes on awards, Shares		(55,103)
Stock-based compensation	3,154	$ 1	3,153
Stock-based compensation, Shares		130,683
Ending Balance at Mar. 31, 2024	804,146	$ 1,411	138,561	1,425,128	$ (760,954)
Ending Balance, Shares at Mar. 31, 2024		108,692,757			32,363,306
Beginning Balance at Dec. 31, 2023	716,671	$ 1,410	140,157	1,336,058	$ (760,954)
Beginning Balance, Shares at Dec. 31, 2023		108,611,537			32,363,306
Net Income (Loss)	216,620
Ending Balance at Sep. 30, 2024	887,904	$ 1,411	145,198	1,552,679	$ (811,384)
Ending Balance, Shares at Sep. 30, 2024		107,901,982			33,185,706
Beginning Balance at Mar. 31, 2024	804,146	$ 1,411	138,561	1,425,128	$ (760,954)
Beginning Balance, Shares at Mar. 31, 2024		108,692,757			32,363,306
Net Income (Loss)	86,998			86,998
Employee stock plans	341		341
Employee stock plans, Shares		5,408
Shares withheld for taxes on awards	(424)		(424)
Shares withheld for taxes on awards, Shares		(5,020)
Stock-based compensation	3,839		3,839
Stock-based compensation, Shares		12,623
Ending Balance at Jun. 30, 2024	894,900	$ 1,411	142,317	1,512,126	$ (760,954)
Ending Balance, Shares at Jun. 30, 2024		108,705,768			32,363,306
Net Income (Loss)	40,553			40,553
Employee stock plans	269		269
Employee stock plans, Shares		4,764
Shares withheld for taxes on awards	(59)		(59)
Shares withheld for taxes on awards, Shares		(739)
Stock-based compensation	2,671		2,671
Stock-based compensation, Shares		14,589
Repurchases of common stock	(50,430)				$ (50,430)
Repurchases of common stock, Shares		(822,400)			822,400
Ending Balance at Sep. 30, 2024	$ 887,904	$ 1,411	$ 145,198	$ 1,552,679	$ (811,384)
Ending Balance, Shares at Sep. 30, 2024		107,901,982			33,185,706

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net income	$ 216,620	$ 183,433
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	41,218	37,194
Deferred Income Taxes	(5,212)	0
Stock-based compensation	9,663	7,384
Loss on disposal of property, plant and equipment	2,262	1,081
Other non-cash adjustments	46	(169)
Changes in operating assets and liabilities:
Accounts receivable	(98,924)	(102,852)
Inventories	(80,847)	80,971
Prepaid expenses and other assets	1,266	4,376
Accounts payable	681	10,678
Accrued expenses and other liabilities	52,125	39,039
Income taxes receivable/payable	13,504	27,090
Net cash provided by operating activities	152,402	288,225
INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(151,481)	(112,920)
Proceeds from sales of property, plant and equipment	106	0
Net cash used in investing activities	(151,375)	(112,920)
FINANCING ACTIVITIES
Borrowings under line of credit	608,300	509,500
Principal payments under line of credit	(543,800)	(675,000)
Repurchases of common stock	(55,655)	(18,441)
Proceeds from employee stock purchase and option plans	1,007	925
Financing costs	0	30
Net cash provided by (used in) financing activities	9,852	(182,986)
Net increase (decrease) in cash and cash equivalents	10,879	(7,681)
Cash and cash equivalents, beginning of period	1,959	12,325
Cash and cash equivalents, end of period	12,838	4,644
Supplemental Disclosure:
Cash paid for interest, net of capitalized interest	0	4,165
Cash paid for income taxes, net	65,318	35,106
Supplemental non-cash investing and financing disclosure:
Capital expenditures in accounts payable and accrued expenses	35,300	1,183
Excise tax on repurchases of common stock	$ 402	$ 0

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 40,553	$ 86,998	$ 89,070	$ 65,266	$ 77,036	$ 41,131	$ 216,620	$ 183,433

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	1. BUSINESS AND ORGANIZATION Trex Company, Inc. (Trex or Company), is the world’s largest manufacturer of high-performance, low-maintenance wood-alternative decking and residential railing and outdoor living products and accessories, marketed under the brand name Trex ® , with more than 30 years of product experience. A majority of its products are manufactured in a proprietary process that combines reclaimed wood fibers and scrap polyethylene. The Company is incorporated in Delaware. The principal executive offices are located at 2500 Trex Way, Winchester, Virginia 22601, and the telephone number at that address is (540) 542-6300. The Company operates in a single reportable segment.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and U.S. Securities and Exchange Commission instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments, except as otherwise described herein) considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. Certain reclassifications have been made to prior period balances to conform to current year presentation. The unaudited condensed consolidated financial statements include the accounts of the Company for all periods presented. The unaudited consolidated results of operations for the three and nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. The Company’s results of operations are affected by a number of factors, including, but not limited to, the cost to manufacture and distribute products, cost of raw materials, inflation, consumer spending and preferences, interest rates, the impact of any supply chain disruptions, economic conditions, and/or any adverse effects from global health pandemics and geopolitical conflicts. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report of Trex Company, Inc. on Form 10-K for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission.

Recently Adopted Accounting Sta

Recently Adopted Accounting Standards	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Recently Adopted Accounting Standards	3. RECENTLY ADOPTED ACCOUNTING STANDARDS In December 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The amendments in this update defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU No. 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The FASB included a sunset provision within Topic 848 based on the expectations of when the LIBOR would cease being published intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024 and can be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The amendments did not have a material effect on the Company’s consolidated financial statements.

New Accounting Standards Not Ye

New Accounting Standards Not Yet Adopted	9 Months Ended
	Sep. 30, 2024
New Accounting Standards Not Yet Adopted [Abstract]
New Accounting Standards Not Yet Adopted	4. NEW ACCOUNTING STANDARDS NOT YET ADOPTED In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The guidance requires disclosure of significant segment expenses which are regularly provided to the chief operating decision maker (CODM), the composition of and amount of other segment items, the CODM’s title and position within the organization, and how the CODM uses the reported measure(s) of segment profit or loss to assess the performance of the segment. In addition, on an interim basis, all segment profit or loss and asset disclosures currently required on an annual basis must be reported, as well as those required by Topic 280. The guidance allows for multiple measures of segment profit or loss to be reported. Entities which have a single reportable segment must apply Topic 280 in its entirety. The guidance is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. Entities are required to apply the amendments of this update retrospectively for all prior periods presented in the financial statements. The Company did not early adopt the standard and does not expect adoption of this guidance to have a material effect on its consolidated results of operations and financial position. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The guidance requires public entities to disclose additional categories of information related to federal, state, and foreign income taxes and additional details related to reconciling items should they meet a quantitative threshold. The guidance requires disclosure of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and to disaggregate the information by jurisdiction based on quantitative thresholds. The guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance should be applied on a prospective basis; however, retrospective application is permitted. The Company does not intend to early adopt the standard and does not expect adoption of the guidance to have a material effect on its financial statement disclosures.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Inventories	5. INVENTORIES Inventories valued at LIFO (last-in, first-out), consist of the following (in thousands): September 30, December 31, Finished goods $ 149,312 $ 88,840 Raw materials 72,062 51,688 Total FIFO (first-in, first-out) inventories 221,374 140,528 Reserve to adjust inventories to LIFO value ( 33,439 ) ( 33,439 ) Total LIFO inventories $ 187,935 $ 107,089 The Company utilizes the LIFO method of accounting, which generally provides for the matching of current costs with current revenues. However, under the LIFO method, reductions in annual inventory balances may cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs (LIFO liquidation). Reductions in interim inventory balances expected to be replenished by year-end do not result in a LIFO liquidation. Accordingly, interim LIFO calculations are based, in part, on management’s estimates of expected year-end inventory levels and costs and may differ from actual results. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation. There were no LIFO inventory liquidations or related impact on the cost of sales in the nine months ended September 30, 2024.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	9 Months Ended
	Sep. 30, 2024
Text Block [Abstract]
Prepaid Expenses and Other Assets	6. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consist of the following (in thousands): September 30, December 31, Prepaid expenses $ 11,256 $ 11,830 Income tax receivable — 9,611 Other 629 629 Total prepaid expenses and other assets $ 11,885 $ 22,070

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets, Net	7. GOODWILL AND OTHER INTANGIBLE ASSETS, NET The carrying amount of goodwill at September 30, 2024, and December 31, 2023, was $ 14.2 million. The Company’s intangible assets, purchased in 2018 and 2024, consist of domain names and internal use software. At September 30, 2024, and December 31, 2023, intangible assets were $ 7.9 million and $ 6.3 million and accumulated amortization was $ 2.7 million and $ 2.4 million, respectively. Intangible asset amounts were determined based on the estimated economics of the asset and are amortized over the estimated useful lives on a straight-line basis over 15 years, which approximates the pattern in which the economic benefits are expected to be received. The Company evaluates the recoverability of intangible assets periodically and considers events or circumstances that may warrant revised estimates of useful lives or that may indicate an impairment. Intangible asset amortization expense for the nine months ended September 30, 2024, and September 30, 2023, was $ 0.3 million and $ 0.3 million, respectively.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities	8. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): September 30, December 31, Sales and marketing $ 51,988 $ 15,496 Compensation and benefits 21,455 25,859 Capital Projects 16,383 — Operating lease liabilities 9,555 7,663 Manufacturing costs 4,021 3,382 Income Taxes 3,893 — Other 6,339 4,334 Total accrued expenses and other liabilities $ 113,634 $ 56,734

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	9. DEBT Revolving Credit Facility Indebtedness prior to October 10, 2024. On May 18, 2022, the Company entered into a Credit Agreement (Credit Agreement) with certain lending parties thereto (Lenders) to amend and restate the Fourth Amended and Restated Credit Agreement dated as of November 5, 2019. Under the Credit Agreement, the Lenders agreed to provide the Company with one or more Revolving Loans in a collective maximum principal amount of $ 400,000,000 (Loan Limit) throughout the term, which ends May 18, 2027 (Term). Included within the Loan Limit are sublimits for a Letter of Credit facility in an amount not to exceed $ 60,000,000 ; and Swing Line Loans in an aggregate principal amount at any time outstanding not to exceed $ 20,000,000 . The Revolving Loans, the Letter of Credit facility and the Swing Line Loans are for the purpose of raising working capital and supporting general business operations. On December 22, 2022, the Company entered into a First Amendment to the Credit Agreement (First Amendment). As a part of the First Amendment, the Credit Agreement was amended and restated to provide for an additional Revolving B Loan (as hereinafter defined). Under the First Amendment, the Lenders agreed to provide the Company with a Revolving B Loan consisting of one or more revolving loans in a collective maximum principal amount of $ 150,000,000 (Revolving B Loan Limit) throughout the term, which ends December 22, 2024 (Revolving B Loan Term). Previously, under the Credit Agreement, there was no Revolving B Loan. The First Amendment also provided that TD Bank, N.A. would serve as Syndication Agent. In conjunction with the First Amendment, on December 22, 2022, the Credit Agreement was amended and restated to refer to this loan as the Revolving A Loan. The amended and restated Credit Agreement was made an Exhibit A to the First Amendment. All of the terms of the Credit Agreement apply to the Revolving B Loan. The Notes provide the Company, in the aggregate, the ability to borrow an amount up to the Revolving A Loan Limit during the Revolving A Loan Term and Revolving B Loan Limit during the Revolving B Loan Term. The Company is not obligated to borrow any amount under the revolving loans. Within the respective loan limit, the Company may borrow, repay and reborrow at any time or from time to time while the Notes are in effect. Base Rate Loans (as defined in the Credit Agreement) under the Revolving A Loan and the Swing Line Loans accrue interest at the Base Rate plus the Applicable Rate (as defined in the Credit Agreement) and Term SOFR Loans for the Revolving Loans accrue interest at the rate per annum equal to the sum of Term SOFR for such interest period plus the Applicable Rate (as defined in the Credit Agreement). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50 % , (b) the rate of interest in effect for such day as publicly announced from time to time by BOA as its prime rate, and (c) the Term SOFR plus 1.0 % subject to certain interest rate floors. Repayment of all then outstanding principal, interest, fees and costs is due at the end of the Term. With respect to Revolving B Loans (as defined in the First Amendment), for any day, the rate per annum is a tiered pricing based upon the Consolidated Debt to Consolidated EBITDA Ratio. The applicable rate for Revolving B Loans that are Base Rate Loans range between 1.20 % and 2.15 % and the applicable rate for Revolving B Loans that are Term SOFR/Term SOFR Daily Floating Rate range between 0.20 % and 1.15 %. Under the terms of the Security and Pledge Agreement, the Company, subject to certain permitted encumbrances, as collateral security for the above-stated loans and all other present and future indebtedness of the Company owing to the Lenders grants a continuing security interest in certain collateral described and defined in the Security and Pledge Agreement but excluding the Excluded Property (as defined in the Security and Pledge Agreement). Indebtedness on and after October 10, 2024. On October 10, 2024, the Company, entered into a Second Amendment to the Credit Agreement (Second Amendment) with certain lending parties thereto (Lenders) to amend that Credit Agreement dated as of May 18, 2022, as amended by that certain First Amendment dated as of December 22, 2022. The Second Amendment provides the Company with Revolving A Loans in the maximum principal amount of $ 400,000,000 (Revolving A Loans), Revolving B Loans in the maximum principal amount of $ 150,000,000 (Revolving B Loans), and Letters of Credit and Swing Line Loans (as defined in the Credit Agreement). The Second Amendment extends the maturity date of the Revolving B Loans from December 22, 2024 to December 22, 2026 . Base Rate Loans (as defined in the Credit Agreement) under the Revolving A Loan and the Swing Line Loans accrue interest at the Base Rate plus the Applicable Rate (as defined in the Credit Agreement) and Term SOFR Loans for the Revolving Loans accrue interest at the rate per annum equal to the sum of Term SOFR for such interest period plus the Applicable Rate (as defined in the Credit Agreement). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50 %, (b) the rate of interest in effect for such day as publicly announced from time to time by BOA as its prime rate, and (c) the Term SOFR plus 1.0 % subject to certain interest rate floors. Repayment of all then outstanding principal, interest, fees and costs is due at the end of the Term (as defined in the Credit Agreement). With respect to Revolving B Loans (as defined in the Credit Agreement), for any day, the rate per annum is a tiered pricing based upon the Consolidated Debt to Consolidated EBITDA Ratio. The applicable rate for Revolving B Loans that are Base Rate Loans range between 0.20 % and 1.15 %. and the applicable rate for Revolving B Loans that are Term SOFR/Term SOFR Daily Floating Rate range between 1.20 % and 2.15 %. The Company had $ 70 million in borrowings outstanding under its revolving credit facility and available borrowing capacity of $ 480 million at September 30, 2024. The weighted average interest rate on the revolving credit facility was 5.75 % as of September 30, 2024. Compliance with Debt Covenants and Restrictions Pursuant to the terms of the Credit Agreement, the Company is subject to certain loan compliance covenants. The Company was in compliance with all covenants as of September 30, 2024. Failure to comply with the financial covenants could be considered a default of repayment obligations and, among other remedies, could accelerate payment of any amounts outstanding.

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Leases	10. LEASES The Company leases manufacturing and training facilities, storage warehouses, office space, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of up to 9 years . Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For the nine months ended September 30, 2024 and September 30, 2023, total operating lease expense was $ 7.3 million and $ 6.1 million, respectively. The weighted average remaining lease term at September 30, 2024 and December 31, 2023 was 4.4 years. The weighted average discount rate at September 30, 2024 and December 31, 2023 was 3.89 % and 2.32 %, respectively. The following table includes supplemental cash flow information for the nine months ended September 30, 2024 and September 30, 2023, and supplemental balance sheet information at September 30, 2024 and December 31, 2023 related to operating leases (in thousands): Nine Months Ended Supplemental cash flow information 2024 2023 Cash paid for amounts included in the measurement of $ 7,346 $ 6,236 Operating ROU assets obtained in exchange for lease $ 16,379 $ 1,882 Supplemental balance sheet information September 30, December 31, Operating lease ROU assets $ 36,110 $ 26,233 Operating lease liabilities: Accrued expenses and other current liabilities $ 9,555 $ 7,663 Operating lease liabilities 26,782 18,840 Total operating lease liabilities $ 36,337 $ 26,503 The following table summarizes maturities of operating lease liabilities at September 30, 2024 (in thousands): Maturities of operating lease liabilities 2024 $ 2,655 2025 9,305 2026 8,631 2027 8,124 2028 7,175 Thereafter 4,076 Total lease payments 39,966 Less imputed interest ( 3,629 ) Total operating lease liabilities $ 36,337

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2024
Investments, All Other Investments [Abstract]
Financial Instruments	11. FINANCIAL INSTRUMENTS The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, other current liabilities, and debt to approximate the fair value of the respective assets and liabilities on the Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Stockholders' Equity	12. STOCKHOLDERS’ EQUITY Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Numerator: Net income available to common shareholders $ 40,553 $ 65,266 $ 216,620 $ 183,433 Denominator: Basic weighted average shares outstanding 108,258,401 108,583,009 108,529,825 108,707,699 Effect of dilutive securities: Stock appreciation rights and options 38,602 80,256 54,679 72,580 Restricted stock 82,413 39,230 74,614 49,095 Diluted weighted average shares outstanding 108,379,416 108,702,495 108,659,118 108,829,374 Basic earnings per share $ 0.37 $ 0.60 $ 2.00 $ 1.69 Diluted earnings per share $ 0.37 $ 0.60 $ 1.99 $ 1.69 Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per share computation plus the dilutive effect of common stock equivalents using the treasury stock method. The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Stock appreciation rights 70,979 86,250 66,387 95,467 Restricted stock 51,001 — 33,199 69,764 Stock Repurchase Program On February 16, 2018, the Board of Directors adopted the 2018 Stock Repurchase Program of up to 11.6 million shares of the Company’s outstanding common stock (Stock Repurchase Program). On May 4, 2023, the Trex Board of Directors adopted a new stock repurchase program (2023 Stock Repurchase Program) of up to 10.8 million shares of its outstanding common stock, and terminated the existing Stock Repurchase Program. The 2023 Stock Repurchase Program has no set expiration date. During the nine months ended September 30, 2024, Trex repurchased 822,400 shares of its outstanding common stock under the 2023 Stock Repurchase Program.

Revenue From Contracts With Cus

Revenue From Contracts With Customers	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue From Contracts With Customers	13. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company principally generates revenue from the manufacture and sale of its high-performance, low-maintenance, eco-friendly wood-alternative composite decking and railing products and accessories. Substantially all of its revenues are from contracts with customers, which are purchase orders of short-term duration of less than one year. Its customers, in turn, sell primarily to the residential market, which includes replacement, remodeling and new construction related to outdoor living products. The Company satisfies its performance obligations at a point in time. The shipment of each product is a separate performance obligation as the customer is able to derive benefit from each product shipped and no performance obligation remains after shipment. Upon shipment of the product, the customer obtains control over the distinct product and Trex satisfies its performance obligation. Any performance obligation that remains unsatisfied at the end of a reporting period is part of a contract that has an original expected duration of one year or less. Any variable consideration related to the unsatisfied performance obligation is allocated wholly to the unsatisfied performance obligation, is recognized when the product ships and the performance obligation is satisfied and is included in “Accrued expenses and other liabilities, Sales and marketing” in Note 8 to the Condensed Consolidated Financial Statements. For the three months ended September 30, 2024 and September 30, 2023, the Company’s net sales were $ 233,717 and $ 303,836 , respectively. For the nine months ended September 30, 2024 and September 30, 2023 , the Company's net sales were $ 983,822 and $ 899,092 , respectively. During these periods, revenues were recognized at a point in time upon transfer of its outdoor living products under variable consideration contracts into the building products market.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	14. STOCK-BASED COMPENSATION At the annual meeting of stockholders of the Company held on May 4, 2023, the Company’s stockholders approved the Trex Company, Inc. 2023 Stock Incentive Plan (Plan). The Company’s board of directors unanimously approved the Plan on April 10, 2023, subject to stockholder approval. The Plan amends and restates in its entirety the Trex Company, Inc. 2014 Stock Incentive Plan (2014 Plan), which was last approved by the Company’s stockholders at the annual meeting held on April 30, 2014. The Plan, which will be administered by the compensation committee of the board of directors, provides for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights and unrestricted stock, which are referred to collectively as “awards.” Awards may be granted under the Plan to officers, directors (including non-employee directors) and other employees of the Company or any subsidiary thereof, to any adviser, consultant, or other provider of services to the Company (and any employee thereof), and to any other individuals who are approved by the board of directors as eligible to participate in the Plan. Only employees of the Company or any subsidiary thereof are eligible to receive incentive stock options. Subject to certain adjustments as provided in the Plan, the total number of shares of common stock available for future grants under the Plan is 3,831,314 shares. The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2024: Stock Awards Weighted- Time-based restricted stock units 62,104 $ 87.57 Performance-based restricted stock units (a) 80,371 $ 81.01 Stock appreciation rights 33,277 $ 90.86 (a) Includes 55,834 of target performance-based restricted stock unit awards granted during the nine months ended September 30, 2024, and adjustments of 25,315 , and ( 778 ) to grants due to the actual performance level achieved for restricted stock and restricted stock units award ed in 2023 and 2021, r espectively. The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the nine months ended September 30, 2024 and September 30, 2023, the data and assumptions shown in the following table were used: Nine Months Ended Nine Months Ended Weighted-average fair value of grants $ 44.83 $ 27.19 Dividend yield 0 % 0 % Average risk-free interest rate 4.3 % 4.0 % Expected term (years) 5 5 Expected volatility 51.2 % 49.5 % The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock and performance-based restricted stock units, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. For the employee stock purchase plan, compensation expense is recognized related to the discount on purchases. Stock-based compensation expense is included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Comprehensive Income. The following table summarizes the Company’s stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Stock appreciation rights $ 307 $ 248 $ 987 $ 660 Time-based restricted stock and restricted stock units 1,206 1,098 3,731 2,904 Performance-based restricted stock and restricted stock units 1,110 1,425 4,671 3,470 Employee stock purchase plan 48 50 274 350 Total stock-based compensation $ 2,671 $ 2,821 $ 9,663 $ 7,384 Total unrecognized compensation cost related to unvested awards as of September 30, 2024 was $ 13.9 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	15. INCOME TAXES The Company’s effective tax rate for the nine months ended September 30, 2024 and September 30, 2023, was 25.4 % and 25.3 %, which resulted in income tax expense of $ 73.6 million and $ 62.1 million, respectively. During the nine months ended September 30, 2024 and September 30, 2023, the Company realized $ 0.7 million and $ 0.4 million, respectively, of excess tax benefits from stock-based awards and recorded a corresponding benefit to income tax expense. The Company analyzes its deferred tax assets each reporting period, considering all available positive and negative evidence in determining the expected realization of those deferred tax assets. As of September 30, 2024, the Company maintains a valuation allowance of $ 3.3 million against deferred tax assets primarily related to state tax credits it estimates will expire before they are realized. The Company operates in multiple tax jurisdictions, and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company accrues a liability when it believes that it is more likely than not that benefits of tax positions will not be realized. The Company believes that adequate provisions have been made for all tax returns subject to examination. As of September 30, 2024, for certain tax jurisdictions tax years 2020 through 2023 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdiction as the Company does not have a taxable presence in any foreign jurisdiction.

Seasonality

Seasonality	9 Months Ended
	Sep. 30, 2024
Text Block [Abstract]
Seasonality	16. SEASONALITY The operating results for Trex have historically varied from quarter to quarter. Seasonal, erratic or prolonged adverse weather conditions in certain geographic regions reduce the level of home improvement and construction activity and can shift demand for its products to a later period. As part of its normal business practice and consistent with industry practice, Trex has historically offered incentive programs to its distributors and dealers to build inventory levels before the start of the prime deck-building season in order to ensure adequate availability of its product to meet anticipated seasonal consumer demand. The seasonal effects are often offset by the positive effect of the incentive programs.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	17. COMMITMENTS AND CONTINGENCIES Product Warranty The Company warrants that for the applicable warranty period its products, when properly installed, used and maintained, will be free from material defects in workmanship and materials and its decking, cladding, fascia and railing products will not split, splinter, rot or suffer structural damage from termites or fungal decay. Products sold on or after January 1, 2023: The warranty period for residential use is 50 years for Transcend ® decking, 35 years for Select ® decking and Universal Fascia, and 25 years for Enhance ® decking and Transcend, Select, Enhance and Signature ® railing. The warranty period for commercial use is 10 years, excluding Signature railing and Transcend cladding, which each have a warranty period of 25 years. The Company further warrants that Trex Transcend, Trex Enhance and Trex Select decking and cladding and Universal Fascia products will not fade in color from light and weathering exposure more than a certain amount and will be resistant to permanent staining from food and beverage substances or mold and mildew, provided the stain is cleaned within seven days of appearance, for the warranty period referred to above. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. Products sold prior to January 1, 2023: The warranty period is 25 years for residential use and 10 years for commercial use. With respect to Trex Signature railing, the warranty period is 25 years for both residential and commercial use. The Company further warrants that Trex Transcend, Trex Enhance, Trex Select and Universal Fascia products will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold, provided the stain is cleaned within seven days of appearance, for the warranty period referred to above. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. The Company maintains a warranty reserve for the settlement of its product warranty claims. The Company accrues for the estimated cost of product warranty claims at the time revenue is recognized based on such factors as historical claims experience and estimated future claims. Management reviews and adjusts these estimates, if necessary, based on the differences between actual experience and historical estimates. Additionally, the Company accrues for warranty costs associated with occasional or unanticipated product quality issues if a loss is probable and can be reasonably estimated, as necessary. The Company continues to receive and settle claims for decking products manufactured at its Nevada facility prior to 2007 that exhibit surface flaking and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim. To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to determine a reasonable possible range of claims to be received and the percentage of those claims that will ultimately require payment (collectively, elements). Estimates for these elements are quantified using a range of assumptions derived from claim count history and the identification of factors influencing the claim counts to determine its best estimate of future claims for which to record a related liability. The cost per claim varies due to a number of factors, including the size of affected decks, the availability and type of replacement material used, the cost of production of replacement material and the method of claim settlement. The Company monitors surface flaking claims activity each quarter for indications that its estimates require revision. Typically, a majority of surface flaking claims received in a year are received during the summer outdoor season, which spans the second and third quarters. It has been the Company’s practice to utilize the actuarial techniques discussed above during the third quarter, after a significant portion of all claims has been received for the fiscal year and variances to annual claims expectations are more meaningful. The number of incoming claims received in the nine months ended September 30, 2024, was lower than the number of claims received in the nine months ended September 30, 2023, but higher than the Company’s expectations for 2024. Average cost per claim experienced in the nine months ended September 30, 2024, was lower than that experienced in the nine months ended September 30, 2023 and significantly lower than the Company’s expectations for 2024. After evaluating trends in incoming claims and closures in its actuarial analysis and combining these factors with future cost estimates, the Company recorded a reduction of $ 1.1 million to its warranty reserve for the future settlement of Surface Flaking claims. The Company believes the reserve at September 30, 2024 is sufficient to cover future surface flaking obligations. The Company’s analysis is based on currently known facts and a number of assumptions, as discussed above, and current expectations. Projecting future events such as the number of claims to be received, the number of claims that will require payment and the average cost of claims could cause the actual warranty liabilities to be higher or lower than those projected, which could materially affect the Company’s financial condition, results of operations or cash flows. The Company estimates that the annual number of claims received will continue to decline over time and that the average cost per claim will increase slightly, primarily due to inflation. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases or decreases to the warranty reserve and a decrease or increase in earnings and cash flows in future periods. The Company estimates that a 10 % change in the expected number of remaining claims to be settled with payment or the expected cost to settle claims may result in approximately a $ 0.7 million change in the surface flaking warranty reserve. The following is a reconciliation of the Company’s product warranty reserve (in thousands): Nine Months Ended September 30, 2024 Product Warranty Surface Flaking Total Beginning balance, January 1 $ 12,066 $ 10,112 $ 22,178 Provisions and changes in estimates 8,375 ( 1,077 ) 7,298 Settlements made during the period ( 4,717 ) ( 1,125 ) ( 5,842 ) Ending balance, September 30 $ 15,724 $ 7,910 $ 23,634 Nine Months Ended September 30, 2023 Product Warranty Surface Flaking Total Beginning balance, January 1 $ 9,694 $ 15,905 $ 25,599 Provisions and changes in estimates 6,528 ( 3,800 ) 2,728 Settlements made during the period ( 3,839 ) ( 1,522 ) ( 5,361 ) Ending balance, September 30 $ 12,383 $ 10,583 $ 22,966 Legal Matters The Company has lawsuits, as well as other claims, pending against it which are ordinary routine litigation and claims incidental to the business. Management has evaluated the merits of these lawsuits and claims and believes that their ultimate resolution will not have a material effect on the Company’s consolidated financial condition, results of operations, liquidity or competitive position. Arkansas Facility In October 2021, the Company announced plans to add a third U.S.-based Trex manufacturing facility located in Little Rock, Arkansas, that will sit on approximately 300 acres of land. The development approach for the new campus will be modular and calibrated to demand trends for Trex outdoor living products. Construction began on the new facility in 2022. The Company anticipates spending approximately $ 550 million on the facility, of which approximately $ 340 million has already been disbursed. Construction for the new facility will be funded primarily through the Company’s ongoing cash generation or its line of credit.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories valued at LIFO (last-in, first-out), consist of the following (in thousands): September 30, December 31, Finished goods $ 149,312 $ 88,840 Raw materials 72,062 51,688 Total FIFO (first-in, first-out) inventories 221,374 140,528 Reserve to adjust inventories to LIFO value ( 33,439 ) ( 33,439 ) Total LIFO inventories $ 187,935 $ 107,089

Prepaid Expenses and Other As_2

Prepaid Expenses and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Text Block [Abstract]
Summary of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consist of the following (in thousands): September 30, December 31, Prepaid expenses $ 11,256 $ 11,830 Income tax receivable — 9,611 Other 629 629 Total prepaid expenses and other assets $ 11,885 $ 22,070

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consist of the following (in thousands): September 30, December 31, Sales and marketing $ 51,988 $ 15,496 Compensation and benefits 21,455 25,859 Capital Projects 16,383 — Operating lease liabilities 9,555 7,663 Manufacturing costs 4,021 3,382 Income Taxes 3,893 — Other 6,339 4,334 Total accrued expenses and other liabilities $ 113,634 $ 56,734

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Supplemental Cash Flow information and Supplemental balance sheet information related to operating leases to operating leases	The following table includes supplemental cash flow information for the nine months ended September 30, 2024 and September 30, 2023, and supplemental balance sheet information at September 30, 2024 and December 31, 2023 related to operating leases (in thousands): Nine Months Ended Supplemental cash flow information 2024 2023 Cash paid for amounts included in the measurement of $ 7,346 $ 6,236 Operating ROU assets obtained in exchange for lease $ 16,379 $ 1,882 Supplemental balance sheet information September 30, December 31, Operating lease ROU assets $ 36,110 $ 26,233 Operating lease liabilities: Accrued expenses and other current liabilities $ 9,555 $ 7,663 Operating lease liabilities 26,782 18,840 Total operating lease liabilities $ 36,337 $ 26,503
Maturities of operating lease liabilities	The following table summarizes maturities of operating lease liabilities at September 30, 2024 (in thousands): Maturities of operating lease liabilities 2024 $ 2,655 2025 9,305 2026 8,631 2027 8,124 2028 7,175 Thereafter 4,076 Total lease payments 39,966 Less imputed interest ( 3,629 ) Total operating lease liabilities $ 36,337

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Numerator: Net income available to common shareholders $ 40,553 $ 65,266 $ 216,620 $ 183,433 Denominator: Basic weighted average shares outstanding 108,258,401 108,583,009 108,529,825 108,707,699 Effect of dilutive securities: Stock appreciation rights and options 38,602 80,256 54,679 72,580 Restricted stock 82,413 39,230 74,614 49,095 Diluted weighted average shares outstanding 108,379,416 108,702,495 108,659,118 108,829,374 Basic earnings per share $ 0.37 $ 0.60 $ 2.00 $ 1.69 Diluted earnings per share $ 0.37 $ 0.60 $ 1.99 $ 1.69
Antidilutive Securities Excluded from Computation of Earnings Per Share	The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Stock appreciation rights 70,979 86,250 66,387 95,467 Restricted stock 51,001 — 33,199 69,764

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Expense	The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2024: Stock Awards Weighted- Time-based restricted stock units 62,104 $ 87.57 Performance-based restricted stock units (a) 80,371 $ 81.01 Stock appreciation rights 33,277 $ 90.86 (a) Includes 55,834 of target performance-based restricted stock unit awards granted during the nine months ended September 30, 2024, and adjustments of 25,315 , and ( 778 ) to grants due to the actual performance level achieved for restricted stock and restricted stock units award ed in 2023 and 2021, r espectively.
Summary of Assumptions Used to Estimate Fair Value of Each SAR	The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the nine months ended September 30, 2024 and September 30, 2023, the data and assumptions shown in the following table were used: Nine Months Ended Nine Months Ended Weighted-average fair value of grants $ 44.83 $ 27.19 Dividend yield 0 % 0 % Average risk-free interest rate 4.3 % 4.0 % Expected term (years) 5 5 Expected volatility 51.2 % 49.5 %
Summary of Stock-Based Compensation Grants	The following table summarizes the Company’s stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Stock appreciation rights $ 307 $ 248 $ 987 $ 660 Time-based restricted stock and restricted stock units 1,206 1,098 3,731 2,904 Performance-based restricted stock and restricted stock units 1,110 1,425 4,671 3,470 Employee stock purchase plan 48 50 274 350 Total stock-based compensation $ 2,671 $ 2,821 $ 9,663 $ 7,384

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Summary of Reconciliation of Company's Residential Product Warranty Reserve	The following is a reconciliation of the Company’s product warranty reserve (in thousands): Nine Months Ended September 30, 2024 Product Warranty Surface Flaking Total Beginning balance, January 1 $ 12,066 $ 10,112 $ 22,178 Provisions and changes in estimates 8,375 ( 1,077 ) 7,298 Settlements made during the period ( 4,717 ) ( 1,125 ) ( 5,842 ) Ending balance, September 30 $ 15,724 $ 7,910 $ 23,634 Nine Months Ended September 30, 2023 Product Warranty Surface Flaking Total Beginning balance, January 1 $ 9,694 $ 15,905 $ 25,599 Provisions and changes in estimates 6,528 ( 3,800 ) 2,728 Settlements made during the period ( 3,839 ) ( 1,522 ) ( 5,361 ) Ending balance, September 30 $ 12,383 $ 10,583 $ 22,966

Business and Organization - Add

Business and Organization - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2024 Segment
Accounting Policies [Abstract]
Number of reportable segments	1

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 149,312	$ 88,840
Raw materials	72,062	51,688
Total FIFO (first-in, first-out) inventories	221,374	140,528
Reserve to adjust inventories to LIFO value	(33,439)	(33,439)
Total LIFO inventories	$ 187,935	$ 107,089

Prepaid Expenses and Other As_3

Prepaid Expenses and Other Assets - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expense and Other Assets [Abstract]
Prepaid expenses	$ 11,256	$ 11,830
Income tax receivable	0	9,611
Other	629	629
Total prepaid expenses and other assets	$ 11,885	$ 22,070

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill [Line Items]
Amortization of intangible asset	$ 0.3	$ 0.3
Intangible Assets	7.9		$ 6.3
Accumulated Amortization	2.7		2.4
Residential [Member]
Goodwill [Line Items]
Goodwill	$ 14.2		$ 14.2
Domain Names and Internal Use Software [Member]
Goodwill [Line Items]
Amortization period	15 years

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Sales and marketing	$ 51,988	$ 15,496
Compensation and benefits	21,455	25,859
Capital Projects	16,383	0
Operating lease liabilities	9,555	7,663
Manufacturing costs	4,021	3,382
Income Taxes	3,893	0
Other	6,339	4,334
Total accrued expenses and other liabilities	$ 113,634	$ 56,734
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued expenses and other liabilities	Total accrued expenses and other liabilities

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)		9 Months Ended
	Oct. 10, 2024	Sep. 30, 2024	Dec. 31, 2023	May 18, 2022
Line of Credit Facility [Line Items]
Remaining available borrowing capacity		$ 480,000,000
Outstanding borrowing capacity		$ 70,000,000	$ 5,500,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt, Weighted Average Interest Rate		5.75%
Revolving Credit Facility [Member] | Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount				$ 400,000,000
Termination date of the Credit Agreement		May 18, 2027
Revolving Credit Facility [Member] | Fifth Amendment And Restated Agreement [Member] | Letter of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount				60,000,000
Revolving Credit Facility [Member] | Fifth Amendment And Restated Agreement [Member] | Swingline Letter Of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount				$ 20,000,000
Revolving Credit Facility [Member] | Base Rate [Member] | Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Interest rate		0.50%
Debt instrument, description of variable rate basis		the Federal Funds Rate plus 0.50%
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Interest rate		1%
Debt instrument, description of variable rate basis		the Term SOFR plus 1.0%
Revolving Credit Facility [Member] | Subsequent Event [Member] | Base Rate [Member] | Credit Agreement Second Amendment [Member]
Line of Credit Facility [Line Items]
Interest rate	0.50%
Debt instrument, description of variable rate basis	the Federal Funds Rate plus 0.50
Revolving Credit Facility [Member] | Subsequent Event [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Credit Agreement Second Amendment [Member]
Line of Credit Facility [Line Items]
Interest rate	1%
Debt instrument, description of variable rate basis	the Term SOFR plus 1.0%
Revolving A Loans [Member] | Subsequent Event [Member] | Credit Agreement Second Amendment [Member]
Line of Credit Facility [Line Items]
Long-Term Line of Credit	$ 400,000,000
Revolving B Loan [Member]
Line of Credit Facility [Line Items]
Long-Term Line of Credit		$ 150,000,000
Revolving B Loan [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage		2.15%
Revolving B Loan [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage		1.20%
Revolving B Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Interest rate		1.15%
Revolving B Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Interest rate		0.20%
Revolving B Loan [Member] | Subsequent Event [Member] | Credit Agreement Second Amendment [Member]
Line of Credit Facility [Line Items]
Matutiry date of credit agreement	Dec. 22, 2026
Long-Term Line of Credit	$ 150,000,000
Revolving B Loan [Member] | Subsequent Event [Member] | Credit Agreement Second Amendment [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage	1.15%
Revolving B Loan [Member] | Subsequent Event [Member] | Credit Agreement Second Amendment [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage	0.20%
Revolving B Loan [Member] | Subsequent Event [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Credit Agreement Second Amendment [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Interest rate	2.15%
Revolving B Loan [Member] | Subsequent Event [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Credit Agreement Second Amendment [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Interest rate	1.20%

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Weighted average discount rate	3.89%		2.32%
Operating lease cost	$ 7.3	$ 6.1
Weighted average remaining lease term	4 years 4 months 24 days		4 years 4 months 24 days
Maximum [Member]
Operating Lease terms	9 years

Leases - Supplemental Cash flow

Leases - Supplemental Cash flow Information to operating leases (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Supplemental cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities	$ 7,346	$ 6,236
Operating ROU assets obtained in exchange for lease liabilities	16,379	$ 1,882
Supplemental balance sheet information
Operating lease ROU assets	36,110		$ 26,233
Operating lease liabilities:
Accrued expenses and other current liabilities	9,555		7,663
Operating lease liabilities	26,782		18,840
Total operating lease liabilities	$ 36,337		$ 26,503

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating Lease Liabilities, Payments Due [Abstract]
2024	$ 2,655
2025	9,305
2026	8,631
2027	8,124
2028	7,175
Thereafter	4,076
Total lease payments	39,966
Less imputed interest	(3,629)
Total operating lease liabilities	$ 36,337	$ 26,503

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - shares		9 Months Ended
	May 04, 2023	Sep. 30, 2024	Feb. 16, 2018
2018 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized shares			11,600,000
2023 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased by the Company	10,800,000
Stock repurchased during period, shares		822,400

Stockholders' Equity - Computat

Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income available to common shareholders	$ 40,553	$ 86,998	$ 89,070	$ 65,266	$ 77,036	$ 41,131	$ 216,620	$ 183,433
Denominator:
Basic weighted average shares outstanding	108,258,401			108,583,009			108,529,825	108,707,699
Effect of dilutive securities:
Diluted weighted average shares outstanding	108,379,416			108,702,495			108,659,118	108,829,374
Basic earnings per share	$ 0.37			$ 0.6			$ 2	$ 1.69
Diluted earnings per share	$ 0.37			$ 0.6			$ 1.99	$ 1.69
Stock appreciation rights [Member]
Effect of dilutive securities:
Dilutive securities	38,602			80,256			54,679	72,580
Restricted stock [Member]
Effect of dilutive securities:
Dilutive securities	82,413			39,230			74,614	49,095

Stockholders' Equity - Antidilu

Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock appreciation rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted earnings per share	70,979	86,250	66,387	95,467
Restricted stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted earnings per share	51,001	0	33,199	69,764

Revenue From Contracts With C_2

Revenue From Contracts With Customers - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Net sales	$ 233,717	$ 303,836	$ 983,822	$ 899,092

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested awards | $	$ 13.9
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total aggregate number of shares of common stock that may be issued | shares	3,831,314
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Payment Arrangement, Valuation Technique [Extensible Enumeration]	us-gaap:BlackScholesMertonModelMember

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Time Based Restricted Stock Units [Member]
Stock Awards Granted | shares	62,104
Weighted-Average Grant Price Per Share | $ / shares	$ 87.57
Performance Based Restricted Stock Units [Member]
Stock Awards Granted | shares	80,371
Weighted-Average Grant Price Per Share | $ / shares	$ 81.01
Stock appreciation rights [Member]
Stock Awards Granted | shares	33,277
Weighted-Average Grant Price Per Share | $ / shares	$ 90.86

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Parenthetical) (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2021
Performance Based Restricted Stock And Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares or rights issued	55,834
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares or rights issued	33,277
Performance Based Restricted Stock Adjustment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares or rights issued		25,315	(778)

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) - Stock appreciation rights [Member] - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items]
Weighted-average fair value of grants	$ 44.83	$ 27.19
Dividend yield	0%	0%
Average risk-free interest rate	4.30%	4%
Expected term (years)	5 years	5 years
Expected volatility	51.20%	49.50%

Stock-Based Compensation - Su_4

Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,671	$ 2,821	$ 9,663	$ 7,384
Stock appreciation rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	307	248	987	660
Time-Based Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,206	1,098	3,731	2,904
Performance-Based Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,110	1,425	4,671	3,470
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 48	$ 50	$ 274	$ 350

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Contingency [Line Items]
Valuation allowance	$ 3,300		$ 3,300
Income tax expense (benefit)	$ 13,756	$ 21,831	$ 73,609	$ 62,089
Effective tax rate			25.40%	25.30%
Excess tax benefits from stock based awards			$ 700	$ 400
Federal Tax Jurisdiction [Member]
Income Tax Contingency [Line Items]
Tax years subject to examination			2020 2021 2022 2023

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)	Oct. 26, 2021 USD ($) a
Schedule Of Commitments And Contingencies [Line Items]
Change in warranty reserve for disclosure purposes only	$ 0.7
Area of Land | a		300
Warranty reserve increase (decrease)	1.1
Land and Land Improvements		$ 550
Cost of land and land improvements incurred	$ 340
Surface Flaking Warranty Reserve [Member]
Schedule Of Commitments And Contingencies [Line Items]
Percentage change in warranty claims used as a threshold for disclosure	10%
Residential Use [Member] | Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Commercial Use [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	10 years
Commercial Use [Member] | Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	10 years
Signature Railing And Transcend Cladding [Member] | Commercial Use [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Transcend Decking [Member] | Residential Use [Member] | Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	50 years
Select Decking And Universal Fascia [Member] | Residential Use [Member] | Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	35 years
Enhance Decking And Transcend, Select, Enhance And Signature Railing [Member] | Residential Use [Member] | Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Signature Railing [Member] | Residential and Commercial Use [Member] | Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Reconciliation of Company's Residential Product Warranty Reserve (Detail) - Surface Flaking Warranty Reserve [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Product Warranty Liability [Line Items]
Beginning balance	$ 22,178	$ 25,599
Provisions and changes in estimates	7,298	2,728
Settlements made during the period	(5,842)	(5,361)
Ending balance	23,634	22,966
Product Warranty [Member]
Product Warranty Liability [Line Items]
Beginning balance	12,066	9,694
Provisions and changes in estimates	8,375	6,528
Settlements made during the period	(4,717)	(3,839)
Ending balance	15,724	12,383
Surface Flaking [Member]
Product Warranty Liability [Line Items]
Beginning balance	10,112	15,905
Provisions and changes in estimates	(1,077)	(3,800)
Settlements made during the period	(1,125)	(1,522)
Ending balance	$ 7,910	$ 10,583