I assign a Buy rating on The AZEK Company stock due to expected higher revenue growth driven by R&R market recovery, pricing strategy, and M&A opportunities. AZEK's focus on alternative materials and wood conversion positions it well for future growth, with significant potential in the Residential segment. Despite recent margin turbulence, I anticipate AZEK will achieve its margin expansion targets by FY 2026, supported by recycling efforts and new product ramp-ups.
The AZEK Company (AZEK) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Here is how The AZEK Company (AZEK) and Masco (MAS) have performed compared to their sector so far this year.
The AZEK Company Inc. (NYSE:AZEK ) Q1 2025 Earnings Conference Call February 4, 2025 5:00 PM ET Company Participants Eric Robinson - Investor Relations Jesse Singh - President and Chief Executive Officer Ryan Lada - Chief Financial Officer and Treasurer Conference Call Participants Susan Maklari - Goldman Sachs Michael Rehaut - JPMorgan Keith Hughes - Truist Phil Ng - Jefferies Matthew Bouley - Barclays Ryan Merkel - William Blair Mike Dahl - RBC Capital Markets John Lovallo - UBS Trey Grooms - Stephens Ketan Mamtora - BMO Capital Markets Trevor Allinson - Wolfe Research Operator Welcome to The AZEK Company's First Quarter Fiscal 2025 Earnings Call. At this time, all participants are in a listen-only mode.
The headline numbers for The AZEK Company (AZEK) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
The AZEK Company (AZEK) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.10 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for The AZEK Company (AZEK), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Azek President and CEO Jesse Singh joins 'Mad Money' host Jim Cramer to talk its residential consumer brands, growth in the market, green initiatives and more.
AZEK Company's fourth quarter sales declined 10% YoY, driven by residential softness and Vycom divestiture, though adjusted margins were stable due to cost controls and productivity efforts. Repair and remodel demand benefits from millennial homeownership and aging housing stock, supporting steady long-term growth despite near-term headwinds. Outdoor living remains a key growth driver, bolstered by new product launches and industry recognition, enhancing AZEK's brand visibility.
AZEK is expected to benefit from growth in the Residential segment, with volume leverage, enhanced recycling, and productivity initiatives driving margin expansion. AZEK's Residential segment achieved 12% Y-o-Y growth, driven by strong performance in Deck, Rail, and Accessories. The company reported a net profit margin of 10.6% and an adjusted EBITDA margin of 26.3%, driven by productivity and cost-reduction initiatives.
AZEK's fourth-quarter fiscal 2024 results reflect tepid performance from both the reportable segments. However, incremental 2025 guidance boosts confidence.
The AZEK Company Inc. (NYSE:AZEK ) Q4 2024 Earnings Conference Call November 19, 2024 5:00 PM ET Company Participants Eric Robinson - Investor Relations Jesse Singh - Chief Executive Officer Peter Clifford - Chief Operations Officer and Chief Financial Officer Conference Call Participants Anika Dholakia - Barclays Susan Maklari - Goldman Sachs Andrew Azzi - J.P. Morgan Tim Wojs - Baird Phil Ng - Jefferies Keith Hughes - Truist John Lovallo - UBS Mike Dahl - RBC Capital Markets Adam Baumgarten - Zelman & Associates Ketan Mamtora - BMO Capital Markets Kurt Yinger - D.A.