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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
AZEK
AZEK
AZEK Revenue by Segment
Revenue by Segment
Residential Segment Revenue
CapyFin.comCommercial Segment Revenue
CapyFin.com 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