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AZEK
🇺🇸 NYSE:AZEK
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Dec 31, 2023

AZEK Q1 2024 Earnings Report

AZEK reported strong first quarter fiscal 2024 results, driven by residential segment demand and margin expansion initiatives, and raised full-year net sales and adjusted EBITDA outlook.

Key Takeaways

AZEK's first quarter fiscal 2024 showed strong performance with an 11% increase in consolidated net sales to $240.4 million and a significant 269% increase in Adjusted EBITDA to $55.7 million. The residential segment was a key driver, with a 24% increase in net sales. The company also raised its full-year fiscal 2024 net sales and Adjusted EBITDA outlook.

Consolidated Net Sales increased 11% year-over-year to $240.4 million.

Residential Segment Net Sales increased 24% year-over-year to $223.0 million.

Adjusted EBITDA increased 269% year-over-year to $55.7 million.

EPS of $0.17 per share increased $0.34 year-over-year inclusive of the Vycom gain on sale; Adjusted Diluted EPS, which excludes the Vycom gain on sale, increased $0.19 year-over-year to $0.10 per share

Total Revenue
$240M
Previous year: $216M
+11.2%
EPS
$0.1
Previous year: -$0.09
-211.1%
Adjusted EBITDA
$55.7M
Previous year: $15.1M
+268.9%
Adjusted EBITDA Margin
23.2%
Previous year: 7%
+231.4%
Gross Profit
$91.4M
Previous year: $47.6M
+92.2%
Cash and Equivalents
$275M
Previous year: $86.9M
+216.3%
Free Cash Flow
-$34M
Previous year: -$23.9M
+42.0%
Total Assets
$2.29B
Previous year: $2.33B
-1.9%

AZEK

AZEK

AZEK Revenue by Segment

Forward Guidance

AZEK raised its full-year fiscal 2024 outlook, expecting consolidated net sales between $1.385 to $1.425 billion and Adjusted EBITDA between $353 to $372 million. For the second quarter of fiscal 2024, AZEK expects consolidated net sales in the range of $407 to $413 million and Adjusted EBITDA in the range of $108 to $112 million.

Positive Outlook

  • Positive Residential sell-through growth
  • Positive demand indicators from customer surveys and digital metrics
  • Customer sentiment is higher than this time last year.
  • Customers appear to be more optimistic for a normal building season in 2024.
  • Channel inventories continue to be conservatively positioned through our fiscal first quarter.

Challenges Ahead

  • Remain cautiously optimistic ahead of the traditional building season, which kicks off late spring.
  • Fiscal year 2024 planning assumptions now assume a flattish repair & remodel market.
  • Uncertainty regarding reconciling items such as the costs of acquisitions
  • Reconciling items that impact Adjusted EBITDA and Adjusted EBITDA Margin have not occurred, are outside of our control or cannot be reasonably predicted.
  • Material changes to these reconciling items could have a significant effect on our Adjusted EBITDA and Adjusted EBITDA Margin guidance and future GAAP results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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