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AZEK Q2 2025 Earnings Report
The AZEK Company announced strong second quarter fiscal 2025 results, driven by demand in Deck, Rail & Accessories and continued margin expansion.
Key Takeaways
The AZEK Company reported strong second quarter fiscal 2025 results with consolidated net sales increasing 8% year-over-year to $452.2 million and net income increasing 9% year-over-year to $54.3 million. Adjusted EBITDA increased 10% year-over-year to $124.4 million, and the company reaffirmed its fiscal year 2025 outlook.
Consolidated Net Sales increased 8% year-over-year to $452.2 million.
Net Income increased 9% year-over-year to $54.3 million, with EPS at $0.37 per share.
Adjusted EBITDA increased 10% year-over-year to $124.4 million.
Residential Segment Net Sales increased 9% year-over-year to $437.0 million, driven by mid-single-digit sell-through growth.
AZEK
AZEK
AZEK Revenue by Segment
Revenue by Segment
Residential Segment Revenue
CapyFin.comCommercial Segment Revenue
CapyFin.com Forward Guidance
For the full-year fiscal 2025, AZEK expects consolidated net sales between $1.52 to $1.55 billion, representing approximately 5% to 8% year-over-year growth, and Adjusted EBITDA in the range of $403 to $418 million, representing an increase of 6% to 10% year-over-year.
Positive Outlook
- Consolidated net sales expected to grow approximately 5% to 8% year-over-year.
- Adjusted EBITDA expected to increase 6% to 10% year-over-year.
- Residential segment net sales expected to grow approximately 6% to 8% year-over-year.
- Residential segment Adjusted EBITDA expected to increase 7% to 11% year-over-year.
- Continued confidence in ability to deliver above-market performance through AZEK-specific initiatives.
Challenges Ahead
- Commercial segment Adjusted EBITDA Margin expected to be lower in the second half of fiscal year 2025 compared to the prior year.
- Scranton Products business experienced some material input cost pressure.
- Uncertainty in the broader economy acknowledged.
- Potential variability of reconciling items for non-GAAP measures.
- Material changes to reconciling items could significantly affect GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income