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Jun 30, 2023
AZEK Q3 2023 Earnings Report
AZEK's financial results exceeded expectations due to the execution of growth and productivity initiatives, operational performance, and double-digit Residential sell-through growth.
Key Takeaways
AZEK reported Q3 2023 results with net sales of $387.6 million. Net income increased 26.9% year-over-year to $34.9 million, and Adjusted EBITDA increased 12.1% year-over-year to $97.0 million. The company is raising its full-year fiscal 2023 outlook for net sales and Adjusted EBITDA.
Consolidated Net Sales of $387.6 million
Residential segment net sales increased 2.5% year-over-year to $351.6 million
Net Income increased 26.9% year-over-year to $34.9 million; Net profit margin expanded 200 basis points to 9.0%
Adjusted EBITDA increased 12.1% year-over-year to $97.0 million; Adjusted EBITDA Margin expanded 310 basis points to 25.0%
Revenue by Segment
Forward Guidance
AZEK is raising its outlook for full-year fiscal 2023. For full-year fiscal 2023, AZEK expects consolidated net sales in the range of $1,338 to $1,358 million and Adjusted EBITDA in the range of $275 to $280 million. For the fourth quarter of fiscal 2023, AZEK expects consolidated net sales in the range of $356 to $376 million and Adjusted EBITDA in the range of $90 to $95 million.
Positive Outlook
- Demand environment in the fiscal third quarter continued to improve, with Residential segment sell-through growth improving versus the prior quarter.
- Demand signals, including our digital marketing metrics and feedback from our contractor and dealer surveys, as well as our shelf space gains across professional and retail channels, provide a positive backdrop for the remainder of the building season and our fiscal year.
- Improved Residential segment visibility
- Cost-saving initiatives
- Expects year-over-year Adjusted EBITDA Margin expansion in the fourth quarter that is accretive versus the prior quarter and year-over-year.
Challenges Ahead
- Uncertainty regarding the costs of acquisitions
- Variability of reconciling items
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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