Azek — The AZEK Company — Q2 2025 Earnings Presentation
23 slides from Azek's earnings presentation, May 6, 2025
Slide 1: 2nd Quarter FY 2025 Earnings Presentation
2nd Quarter FY 2025 Earnings Presentation May 6, 2025
Slide 2: Disclaimer
DISCLAIMER Important Notice This presentation contains “forward-looking statements” within the meaning of federal securities laws, including the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts cont
Slide 3: Important Information and Where to Find It
Important Information and Where to Find It In connection with the proposed transaction between JHX and The AZEK Company Inc. (“AZEK”), JHX has filed with the SEC a registration statement on Form F-4 (SEC File No. 333-286977). The registration statement includes a preliminary proxy statement/prospect
Slide 4: Industry-Leading Outdoor Living Portfolio
INDUSTRY-LEADING OUTDOOR LIVING PORTFOLIO Deck, Rail & Accessories + Decking + Railing + Pergolas + Porch + Fasteners + Lighting Home Exteriors + Trim boards + Beadboard + Moulding + Column Wraps + Cladding + Board & Batten + Shingle Siding
Slide 5: Industry-Leading Presence Across the U.S. and Canada Benefiting from Long-Term Material Conversion Trends
Industry-Leading Presence Across the U.S. and Canada Benefiting from Long-Term Material Conversion Trends B U S I N E S S B U I LT O V E R 2 0 + Y E A R S $1,520M 70% FY24 Net Sales by 25% Exteriors LTM FY 2Q25 THE INDUSTRY Net Sales Deck, Rail & Product 5% + = LEADER IN Accessories Commercial #2 BR
Slide 6: AZEK Plays in Attractive and Growing Product Categories with Powerful Tailwinds
AZEK Plays in Attractive and Growing Product Categories with Powerful Tailwinds OUTDOOR LIVING POPULARITY + ANNUAL ADDRESSABLE WOOD CONVERSION TO AZEK R E PA I R & R E M O D E L E M P H A S I S MARKET SALES M AT E R I A L T Y P E S F U E L S G R O W T H ~$14B ~$10B Outdoor Living Spaces Ranked #1 in
Slide 7: Secular Tailwinds from Material Conversion Opportunities
Secular Tailwinds from Material Conversion Opportunities A Z E K M AT E R I A L TYPES VALUE PROPOSITION + Low-maintenance + High-performance Wood Railing + Highly durable + Long-term beauty + 25-to-50 year limited Fade & Stain warranty + Environmentally- Pressure Treated Wood Decking Wood Exterior T
Slide 8: Material Conversion to AZEK's Low-Maintenance Solutions Has Been Accelerating
Material Conversion to AZEK's Low-Maintenance Solutions Has Been Accelerating COMPOSITE DECKING IS GROWING Based on our research, we believes that (% of total linear feet sold annually to channel) wood alternative decking could reach ~50% of decking opportunities share over the next 10-15 years and
Slide 9: Long-Term Strategy Positions AZEK to Continue Delivering Above Market Growth and Margin Expansion
Long-Term Strategy Positions AZEK to Continue Delivering Above Market Growth and Margin Expansion THE INDUSTRY LEADER IN OUTDOOR LIVING Material Product Multi-Channel Consumer Strategic Conversion Innovation Expansion Journey M&A Converting wood and other Delivering the most Extending our reach Prov
Slide 10: Track Record of Delivering Strong Net Sales and Adj. EBITDA Growth
Track Record of Delivering Strong Net Sales and Adj. EBITDA Growth +15.2% CAGR +16.1% CAGR Residential Segment $1,520 $633 20.7% 26.4% Adj. EBITDA Margin 1 Adj. EBITDA Margin 1 +12% 10-year Net Sales CAGR Residential segment 2 +570 bps Adj. EBITDA Margin expansion 10 Source: Company Financial Statem
Slide 11: The AZEK Company – Quarter Highlights
The AZEK Company – Quarter Highlights Fiscal Second Quarter 2025 Financial Highlights ─ Strong Net Sales and Adjusted EBITDA performance above the high end of our guidance ─ Residential segment growth at 9% y-o-y driven by positive mid single-digit y-o-y Residential sell- through growth, expanded ch
Slide 12: Q2 2025 Financial Performance Highlights
Q2 2025 Financial Performance Highlights ($, millions except per share data) 27.5% 27.1% +8.1% y/y (1) +9.8% y/y +15.4% y/y +40bps y/y 12 Source: Company Unaudited Financial Statements. n/m refers to not material. (1) Non-GAAP. Refer to Appendix for reconciliations of Adjusted EBITDA, Adjusted EBITD
Slide 13: Q2 2025 Financial Results
Q2 2025 Financial Results ($, millions except per share data) GAAP Non-GAAP +6.8% y/y +6.3% y/y (40)bps y/y (60)bps y/y +9.8% y/y +40bps y/y +7.3% y/y $0.34 per $0.37 per $0.39 per $0.45 per (10)bps y/y Share Share 38.4% Share Share 37.5% +9.1% y/y 37.8% +12.5% y/y 37.1% +10bps y/y 27.5% 27.1% 17.7%
Slide 14: Q2 2025 Segment Results
Q2 2025 Segment Results ($, millions) Residential Segment Commercial Segment Residential Segment Commentary Commercial Segment Commentary ─ Net sales increased due to positive mid single-digit ─ Net sales decrease due to the softer end market demand in Residential sell-through growth, expanded chann
Slide 15: Q2 2025 Balance Sheet and Cash Flow Highlights
Q2 2025 Balance Sheet and Cash Flow Highlights ($, millions) AZEK Cash, Net Debt, and Leverage 3/31/2025 Cash & Cash Equivalents $146.7 Cash, Undrawn Undrawn Revolver Capacity $372.7 Revolver Capacity & Working Capital Total Available Capacity $519.4 Working Capital (1) $300.2 Gross Debt (2) $538.4
Slide 16: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance ($, millions) Year-over- Commentary Metric Range Year ─ AZEK expects to drive above-market Residential Net Sales $1,520 - $1,550 +5 - 8% segment growth of 6-8% y-o-y driven via initiatives Residential Segment Net Sales $1,452 - $1,479 +6 - 8% ─ Planning assumptions consider
Slide 17: 2H 2025 Guidance
2H 2025 Guidance ($, millions) Year-over- Commentary Metric Range Year ─ Residential sell-through growth planning Net Sales $782 - $812 +0 - 4% assumption scenarios in the low to mid-single- digits range y-o-y, while maintaining conservative Residential Segment Net Sales $743 - $780 +0 - 5% channel
Slide 18: A Unique, Long-Term Growth and Margin Expansion Story
A Unique, Long-Term Growth and Margin Expansion Story > LARGE, GROWING CATEGORIES BENEFITING FROM MATERIAL CONVERSION TAILWINDS > THE INNOVATION LEADER IN OUTDOOR LIVING > INTEGRATED APPROACH TO GROWTH & MARGIN EXPANSION > STRONG FREE CASH FLOW GENERATION & DISCIPLINED CAPITAL ALLOCATION > SUSTAINAB
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN RECONCILIATIONS Fiscal year ending September 30 2017 2025 Notes: Three Months Ended ($ in millions) FY LTM Q2 1. Asset impairment costs reflect tangible and intangible asset March 31, impairment costs of $48.8 million. The tangible
Slide 21: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED GROSS PROFIT AND ADJUSTED ADJUSTED SG&A RECONCILIATIONS GROSS PROFIT MARGIN RECONCILIATIONS Three Months Ended Three Months Ended March 31, March 31, ($ in millions) 2024 2025 2024 2025 ($ in millions) Gross Profit $157.1 $167.7 Amortization 3.8 3.1 SG&A $83.2 $88.3
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED NET INCOME RECONCILIATIONS ADJUSTED DILUTED EPS RECONCILIATIONS NET LEVERAGE RECONCILIATION Three Months Ended Three Months Ended Twelve Months Ended March 31, March 31, March 31, 2024 2025 2024 2025 2025 ($ in millions) ($ in millions) Net Income $49.8 $54.3 Net In
Slide 23: Investor Relations Contact
Investor Relations Contact: Eric Robinson 312-809-1093 ir@azekco.com NYSE: AZEK