Sep 30, 2024

AZEK Q4 2024 Earnings Report

Delivered record fiscal year residential net sales, net income and adjusted EBITDA.

Key Takeaways

The AZEK Company reported a decrease in net sales for the quarter, primarily due to a shift in product purchases by channel partners and the sale of the Vycom business. However, the company highlighted strong financial results driven by strategic growth initiatives, with high-single-digit Residential sell-through growth.

Consolidated Net Sales decreased to $348.2 million.

Residential Segment Net Sales reached $327.3 million.

Net Income was reported at $28.4 million, with an EPS of $0.19 per share.

Adjusted EBITDA stood at $91.8 million, with an Adjusted Diluted EPS of $0.29 per share.

Total Revenue
$348M
Previous year: $389M
-10.4%
EPS
$0.29
Previous year: $0.36
-19.4%
Adjusted EBITDA
$91.8M
Adjusted EBITDA Margin
26.3%
Previous year: 27.4%
-4.0%
Gross Profit
$130M
Previous year: $150M
-13.3%
Cash and Equivalents
$164M
Previous year: $278M
-41.1%
Free Cash Flow
$37.8M
Previous year: $92.2M
-59.0%
Total Assets
$2.17B
Previous year: $2.37B
-8.4%

AZEK

AZEK

AZEK Revenue by Segment

Forward Guidance

AZEK anticipates continued growth in fiscal year 2025, driven by AZEK-specific initiatives, assuming a flat repair & remodel market.

Positive Outlook

  • Expecting consolidated net sales between $1.51 to $1.54 billion, representing approximately 5% to 7% year-over-year growth.
  • Adjusted EBITDA is expected to be in the range of $400 to $415 million, representing an increase of 5% to 9% year over year.
  • Residential segment net sales in the range of $1.439 to $1.466 billion, representing approximately 5% to 7% year-over-year growth.
  • Residential segment Adjusted EBITDA in the range of $388 to $401 million, representing approximately 6% to 10% year-over-year growth.
  • Commercial segment’s Scranton Products business to deliver net sales in the range of $71 to $74 million and Segment Adjusted EBITDA in the range of $12 to $14 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income