10-K - AZEK Co Inc. (0001782754) (Filer)

Wed, Nov 20, 5:42 PM (56 days ago)

The AZEK Company Inc. (AZEK), a leader in sustainable outdoor living products, reported a fiscal year 2024 net sales increase of 5.2% to $1,441 million, primarily driven by a robust Residential segment, which saw an 11.9% rise to $1,369 million. This growth was partially offset by a 50.7% decline in the Commercial segment due to the divestiture of the Vycom business. Gross profit surged 25.9% to $542 million, with a gross margin improvement to 37.6%, attributed to lower raw material costs and higher production efficiency. Net income jumped 146% to $153 million, bolstered by a $37.7 million gain from the Vycom sale. However, selling, general, and administrative expenses rose 7.4% to $328 million. AZEK's earnings per share increased to $1.04. The company maintains a strong liquidity position with $164 million in cash and $372.8 million available under its revolving credit facility. However, risks include reliance on raw material pricing, economic conditions affecting consumer spending, and potential impacts from rising interest rates on its variable debt. AZEK continues to focus on innovation and sustainability to drive growth in the competitive outdoor living market.