Azek — The AZEK Company — Q1 2025 Earnings Presentation
17 slides from Azek's earnings presentation, Feb 4, 2025
Slide 1: 1st Quarter FY 2025 Earnings Presentation
1st Quarter FY 2025 Earnings Presentation February 4, 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: 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 4: 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 5: Track Record of Delivering Strong Net Sales and Adj. EBITDA Growth
Track Record of Delivering Strong Net Sales and Adj. EBITDA Growth Net Sales Adjusted EBITDA ¹ +15.4% CAGR +16.2% CAGR Residential Segment $390 $1,486 $69 $1,418 $633 $131 $131 $502 2017 2018 2019 2020 2021 2022 2023 2024 LTM 2017 2018 2019 2020 2021 2022 2023 2024 LTM 1Q'25 1Q'25 Residential Segmen
Slide 6: The AZEK Company – Quarter Highlights
The AZEK Company – Quarter Highlights Fiscal First Quarter 2025 Financial Highlights; Raising Fiscal Year 2025 Outlook ─Solid Net Sales and Adjusted EBITDA performance above the high end of our guidance ─Strong growth driven by double-digit y-o-y Residential sell-through growth and expanded market p
Slide 7: Q1 2025 Financial Performance Highlights
Q1 2025 Financial Performance Highlights ($, millions except per share data) Net Sales Adjusted EBITDA & Adjusted Diluted Margin ⁽¹⁾ EPS ⁽¹⁾ $285.4 $240.4 $65.9 $54.9 $0.17 23.1% $0.10 22.8% 1Q'24 1Q'25 1Q'24* 1Q'25 1Q'24* 1Q'25 +18.7% y/y +20.0% y/y +70.0% y/y Adj. Net Sales Excluding +30bps y/y Vy
Slide 8: Q1 2025 Financial Results
Q1 2025 Financial Results ($, millions except per share data) GAAP Non-GAAP +14.2% y/y +12.9% y/y (140)bps y/y (190)bps y/y $106.7 $103.6 $94.5 $90.7 +20.0% y/y +30bps y/y $65.9 +142.9% y/y $0.17 per $0.12 per $0.10 per $0.17 per +480bps y/y Share Share 39.3% $54.9 Share Share (27.9)% y/y 37.4% +67.
Slide 9: Q1 2025 Segment Results
Q1 2025 Segment Results ($, millions) Residential Segment Commercial Segment Variance Variance 1Q'24 1Q'25 y/y 1Q'24 1Q'25 y/y Net Sales $223.0 $272.0 22.0 % Net Sales $17.4 $13.4 (23.0)% Segment Adj. EBITDA $52.0 $64.4 23.9 % Segment Adj. EBITDA $2.9 $1.5 (48.8)% Segment Adj. EBITDA % 23.3 % 23.7 %
Slide 10: Q1 2025 Balance Sheet and Cash Flow Highlights
Q1 2025 Balance Sheet and Cash Flow Highlights ($, millions) AZEK Cash, Net Debt, and Leverage 12/31/2024 Cash & Cash Equivalents $148.1 Cash, Undrawn Undrawn Revolver Capacity $372.7 Revolver Capacity & Working Capital Total Available Capacity $520.8 Working Capital (1) $242.7 Gross Debt (2) $534.2
Slide 11: Fiscal Year 2025 Planning Assumptions
Fiscal Year 2025 Planning Assumptions ($, millions) Current Year-over- Previous Commentary Metric Range Year Range ─ Assuming an approximately flat Net Sales $1,520 - $1,550 +5 - 8% $1,510 - $1,540 Residential repair & remodel market in 2025; AZEK expects to Residential Segment Net Sales $1,452 - $1
Slide 12: Q2 2025 Guidance
Q2 2025 Guidance ($, millions) Commentary Metric Range Year-over-Year ─ Assuming mid-single-digit Net Sales $437 - $448 +4 - 7% Residential sell-through growth Residential Segment Net Sales $422 - $432 +5 - 7% ─ Expecting traditional seasonal Early Buy patterns by channel partners Adjusted EBITDA (1
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN RECONCILIATIONS Fiscal year ending September 30 2017 2025 Notes: Three Months Ended ($ in millions) FY LTM Q1 1. Asset impairment costs reflect tangible and intangible asset December 31, impairment costs of $48.8 million. The tangib
Slide 15: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED GROSS PROFIT AND ADJUSTED ADJUSTED SG&A RECONCILIATIONS GROSS PROFIT MARGIN RECONCILIATIONS Three Months Ended December 31, Three Months Ended December 31, ($ in millions) 2023 2024 2023 2024 ($ in millions) Gross Profit $90.7 $103.6 Amortization 3.9 3.1 SG&A $77.2
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED NET INCOME RECONCILIATIONS ADJUSTED DILUTED EPS RECONCILIATIONS NET LEVERAGE RECONCILIATION Three Months Ended Three Months Ended Twelve Months December 31, December 31, Ended December 31, 2023 2024 2023 2024 2024 ($ in millions) ($ in millions) Net Income $25.1 $18
Slide 17: Investor Relations Contact
Investor Relations Contact: Eric Robinson 312-809-1093 ir@azekco.com NYSE: AZEK