In This Article:
-
Residential Segment Net Sales Growth: 9% year-over-year in Q2 2025.
-
Deck, Rail & Accessories Net Sales Growth: 11% year-over-year.
-
Exteriors Net Sales Growth: 2% year-over-year.
-
Adjusted EBITDA Margin: Expanded by 40 basis points year-over-year to 27.5%.
-
Residential Segment Adjusted EBITDA Growth: 11% year-over-year.
-
Residential Segment Adjusted EBITDA Margin: Expanded by 60 basis points year-over-year to 28%.
-
Consolidated Net Sales: $452 million, an increase of 8% year-over-year.
-
Gross Profit: $168 million, an increase of $11 million year-over-year.
-
Gross Margin: 37.1%.
-
Adjusted Gross Profit: $171 million, an increase of $10 million year-over-year.
-
Adjusted Gross Profit Margin: 37.8%.
-
Adjusted EBITDA: $124 million, an increase of 10% year-over-year.
-
Net Income: Increased by $5 million to $54 million or $0.37 per share.
-
Adjusted Net Income: Increased by $7 million to $66 million.
-
Adjusted Diluted EPS: Increased $0.06 year-over-year to $0.45 per share.
-
Commercial Segment Net Sales: $15 million, down 4% year-over-year.
-
Commercial Segment Adjusted EBITDA: $1.9 million, a decrease of $1 million year-over-year.
-
Cash and Cash Equivalents: $147 million at the end of the quarter.
-
Net Debt: $392 million, with a net leverage ratio of 1x.
-
Net Cash from Operating Activities: $47 million, an increase of $62 million year-over-year.
-
Free Cash Flow: $1 million, an increase of $35 million year-over-year.
-
Full Year 2025 Guidance - Consolidated Net Sales: $1.52 billion to $1.55 billion, representing 5% to 8% year-over-year growth.
-
Full Year 2025 Guidance - Consolidated Adjusted EBITDA: $403 million to $418 million, representing an increase of 6% to 10% year-over-year.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
The AZEK Co Inc (NYSE:AZEK) achieved 9% year-over-year growth in its residential segment, driven by mid-single-digit residential sell-through growth and channel expansion.
-
Deck, Rail & Accessories net sales grew 11% year-over-year, with each product line experiencing high single-digit to double-digit growth.
-
The company expanded its adjusted EBITDA margin by 40 basis points year-over-year to 27.5%, while continuing to invest in long-term growth initiatives.
-
The proposed merger with James Hardie is expected to unlock $125 million in cost synergies and $500 million in incremental sales synergies.
-
The AZEK Co Inc (NYSE:AZEK) was named to Barron's 100 Most Sustainable US Companies list for the first time, highlighting its commitment to sustainability.