Loading...
•
Mar 31, 2021
AZEK Q2 2021 Earnings Report
AZEK reported strong sales growth and margin execution, expanded capacity investment, and launched its inaugural ESG report. The company also raised its full-year fiscal 2021 outlook.
Key Takeaways
The AZEK Company announced strong second-quarter results with a 19.4% increase in consolidated net sales to $293.1 million and a net income increase of $18.6 million to $22.7 million. The company is raising its full-year fiscal 2021 outlook, expecting consolidated net sales growth of 23% to 26% year-over-year.
Consolidated net sales increased 19.4% year-over-year to $293.1 million.
Residential segment net sales increased 24.7% year-over-year to $262.2 million.
Net income increased $18.6 million year-over-year to $22.7 million; Net Margin expanded 600 basis points to 7.7%.
Adjusted EBITDA increased $15.7 million year-over-year to $71.5 million; Adjusted EBITDA Margin expanded 170 basis points to 24.4%.
AZEK
AZEK
AZEK Revenue by Segment
Revenue by Segment
Residential Segment Revenue
CapyFin.comCommercial Segment Revenue
CapyFin.com Forward Guidance
AZEK is raising its outlook for the full year fiscal 2021. The outlook includes increased sales, recent pricing and productivity actions, strategic investments and inflation. AZEK now expects consolidated net sales growth of 23% to 26% year-over-year and Adjusted EBITDA growth in the 25% to 29% range year-over-year.
Positive Outlook
- Expecting consolidated net sales growth of 23% to 26% year-over-year.
- Expecting Adjusted EBITDA growth in the 25% to 29% range year-over-year.
- Residential segment net sales growth of around 30% year-over-year.
- Expecting consolidated net sales growth in the 29% to 32% range year-over-year for Q3 2021.
- Expecting Adjusted EBITDA growth in the 15% to 18% range year-over-year for Q3 2021.
Challenges Ahead
- Partially offset by a mid-single digit decline in Commercial segment net sales for full year 2021.
- Partially offset by expected flat net sales in the Commercial segment for Q3 2021.
- Seeing significant raw material and other inflation.
- Expect pricing and productivity initiatives to offset inflationary headwinds by the end of the fiscal year.
- Uncertainty regarding reconciling items such as the variability in the provision for income taxes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income