AZEK Q2 2022 Earnings Report
Key Takeaways
AZEK Company reported strong second quarter fiscal 2022 results, with consolidated net sales increasing by 35.2% year over year to $396.3 million and net income increasing by 58.2% year over year to $35.8 million. The company is raising the midpoint of its fiscal 2022 net sales growth outlook and announced a $400 million share repurchase program.
Consolidated net sales increased 35.2% year over year to $396.3 million.
Residential segment net sales increased 33.6% year over year to $350.4 million.
Net income increased 58.2% year over year to $35.8 million.
Adjusted Diluted EPS increased 32.0% year over year to $0.33.
AZEK
AZEK
AZEK Revenue by Segment
Forward Guidance
AZEK expects consolidated net sales between $1.39 billion to $1.43 billion for full year fiscal 2022. For the third quarter fiscal 2022, AZEK expects consolidated net sales between $384 million to $390 million. Adjusted EBITDA is expected to deliver $316 million to $332 million for full year fiscal 2022 and $78 million to $82 million for the third quarter fiscal 2022.
Positive Outlook
- Healthy demand environment
- Added capacity coming online
- Incremental shelf space at dealers
- New products seeing strong growth
- Improving output of StruXure business
Challenges Ahead
- Price/commodity lag
- Startup costs
- Impact of StruXure acquisition
- Lapping 40% growth
- Approximately $60 million of dealer and distributor inventory replenishment
Revenue & Expenses
Visualization of income flow from segment revenue to net income