Pressures from tariffs and consumer spending slowdowns have contributed to lower revenues year over year at Trex, Mohawk and Indorama, according to their recent first-quarter reports.
Trex also noted that the first quarter is historically slower for it, as demand for decking products is lower in winter months.
Trex reported first quarter 2025 net sales of $340 million, down 9% from $374 million during the same period last year.
Bryan Fairbanks, president and CEO, said in a press release that “after a slow start to the first quarter, we saw a notable pick-up in March orders, which has continued through April.”
In addition, Trex’s recycled plastic processing operation at its Arkansas location began production late in the first quarter as scheduled, he said.
“This production is already helping to offset external pellet purchases at our Virginia and Nevada facilities,” Fairbanks said. “Once complete, our Arkansas facility will become our most efficient production hub.”
And while tariffs are having an impact, Fairbanks added that less than 5% of the company’s cost of sales is projected to be impacted by tariffs, mostly related to purchases of aluminum and steel for railing and fastening products.
“We have mitigated — and will further mitigate — some of the impact on our cost of sales through strategic actions, such as building higher levels of pre-tariff inventory and negotiating with suppliers,” he added. In a May 8 investor call, Fairbanks said Trex also plans to add new suppliers that are unaffected or less affected by the tariffs.
Georgia-based Mohawk reported a decrease in sales year over year for the first quarter, falling 5.7% to $2.5 billion in Q1 2025. The flooring company hasn’t yet released its 2024 impact report, but the previous year’s report noted that the company recovered 44.9 million pounds of end-of-life products through recycling and repurposing in 2023.
In a May 2 investor call, CEO Jeff Lorberbaum pointed to tariffs: “In addition to the direct impact, the tariffs are likely to influence consumer and new construction and business spending in both the U.S. and abroad, though the extent is unpredictable at this time.”
Indorama categorizes its various businesses into four segments, and the “Combined PET” segment has three more subcategories, including integrated PET, which covers both chemical precursors to PET and the company’s recycling operations.
That section reported adjusted earnings before interest, taxes, depreciation and amortisation of $121 million in Q1 2025, down 3% year over year.
“The first quarter of 2025 unfolded against a backdrop of persistent global macroeconomic headwinds,” the company noted.
