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Dec 31, 2024
AZEK Q1 2025 Earnings Report
AZEK reported strong first quarter results, driven by double-digit residential sell-through growth and raised full-year fiscal 2025 net sales and adjusted EBITDA outlook.
Key Takeaways
AZEK announced its fiscal first quarter 2025 results, with consolidated net sales increasing by 19% year-over-year to $285.4 million. The company's Residential segment saw a 22% increase in net sales. Net income decreased by 28% year-over-year to $18.1 million, while Adjusted EBITDA increased by 20% year-over-year to $65.9 million.
Consolidated Net Sales increased 19% year-over-year to $285.4 million.
Residential Segment Net Sales increased 22% year-over-year to $272.0 million.
Adjusted EBITDA increased 20% year-over-year to $65.9 million.
The company raised its full-year fiscal 2025 net sales and Adjusted EBITDA outlook.
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 2025 outlook, expecting consolidated net sales between $1.52 to $1.55 billion and Adjusted EBITDA in the range of $403 to $418 million.
Positive Outlook
- Expecting consolidated net sales between $1.52 to $1.55 billion, representing approximately 5% to 8% year-over-year growth.
- Adjusted EBITDA is expected to be in the range of $403 to $418 million, representing an increase of 6% to 10% year-over-year
- Residential segment net sales in the range of $1.452 to $1.479 billion, representing approximately 6% to 8% year-over-year growth.
- Segment Adjusted EBITDA in the range of $392 to $405 million, representing approximately 7% to 11% year-over-year growth.
- Capital expenditures for fiscal year 2025 are expected to be in the range of $85 to $95 million.
Challenges Ahead
- Planning assumptions continue to assume a relatively flat repair & remodel market.
- Mid-single digit Residential sell-through growth for the remainder of the year.
- Commercial segment’s Scranton Products business to deliver net sales in the range of $68 to $71 million, representing a 2% to 6% year-over-year decline.
- Segment Adjusted EBITDA in the range of $11 to $13 million, representing an approximately 8% to 22% year-over-year decline.
- The Scranton Products business has experienced some material input cost pressure that is expected to be offset in the second half of fiscal year 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income