Azek Co Inc Stock Price, News & Analysis

AZEK Company (NYSE: AZEK), a manufacturer of outdoor living products, has completed the divestiture of its Scranton Products division to private equity firm Sky Island Capital. Scranton Products, established in 1978, specializes in HDPE plastic solutions for bathroom partitions and lockers in the commercial sector.

The current Vice President and General Manager, Rob Donlon, who has over 20 years of experience with Scranton Products, will maintain his leadership role during the transition. William Blair & Company served as financial advisor, while Latham & Watkins LLP acted as legal advisor for the transaction.

AZEK Company (NYSE: AZEK) celebrates 25 years of innovation in exterior building products, marking its pioneering introduction of PVC trim in 1999. As the #1 choice among professionals, AZEK Trim offers superior durability, rot resistance, and sustainability with up to 40% recycled PVC content. The product features Class A Flame Spread rating and PaintPro Technology for better paint adhesion. To commemorate this milestone, AZEK launched a nationwide photo contest running until July 31, 2025, where contractors, architects, builders, remodelers, and homeowners can submit before-and-after transformation photos using AZEK products. Three winners will receive $10,000 in AZEK product credits and a professional photoshoot. The company continues to focus on high-performance, low-maintenance solutions across its product portfolio, including TimberTech Decking, Railing, AZEK Trim, Versatex Trim, and StruXure pergolas.

AZEK Company has released a new comparison video demonstrating the superior fire resistance of its TimberTech Advanced PVC Decking. The controlled test showcases the TimberTech Vintage Collection, which holds a Class A Flame Spread Rating, outperforming competitors with Class B and Class C ratings in resistance to ignition and flame spread. The video highlights the product's effectiveness in protecting outdoor spaces from accidental ignition sources like grills and firepits. AZEK has also launched a new digital platform at spec.azek.com/fire, providing architects and designers with resources for fire-resistant building materials, including technical documentation and CEU courses. This initiative supports both rebuilding efforts in fire-affected regions and proactive design of safer, more resilient communities.

AZEK reported strong Q2 FY2025 results with consolidated net sales increasing 8% YoY to $452.2M. The company's Residential segment saw a 9% growth to $437.0M, driven by mid-single-digit sell-through growth and new product launches. Net income rose 9% to $54.3M ($0.37 per share), while Adjusted EBITDA grew 10% to $124.4M with margin expansion of 40 basis points to 27.5%. AZEK reaffirmed its FY2025 outlook, expecting consolidated net sales of $1.52-1.55B (5-8% growth) and Adjusted EBITDA of $403-418M (6-10% growth). The company highlighted its pending merger with James Hardie, expected to close in H2 2025, and received recognition for sustainability leadership, including placement on Barron's 100 Most Sustainable U.S. Companies list.

AZEK Company (NYSE: AZEK), a leading manufacturer of outdoor living products including TimberTech® Decking and Railing, Versatex® and AZEK® Trim, and StruXure® pergolas, has scheduled its fiscal second quarter 2025 earnings release for May 6, 2025, after market close.

The company will host a conference call at 4:00 p.m. (CT) on the same day to discuss the results. Investors can access the call through pre-registration via the provided link or listen to the live webcast through AZEK's Investor Relations website. A replay will be available for approximately one week until May 13, 2025, through the company website or by dialing the provided numbers.

James Hardie (JHX) and AZEK have announced a definitive agreement to combine in a transaction valued at $8.75 billion, including AZEK's net debt of $386 million. Under the agreement, AZEK shareholders will receive $26.45 in cash and 1.0340 JHX ordinary shares for each AZEK share, representing a total value of $56.88 per share and a 26% premium.

The merger creates a leading exterior and outdoor living building products platform, uniting complementary products across siding, exterior trim, decking, railing, and pergolas. Post-transaction, JHX and AZEK shareholders will own approximately 74% and 26% of the combined company, respectively.

Key financial highlights include:

• Expected generation of at least $350 million in additional annual adjusted EBITDA from synergies
• Combined net sales of $5.9 billion and adjusted EBITDA of $1.8 billion
• Cost synergies of $125 million and commercial synergies of $500 million
• Projected annual free cash flow exceeding $1 billion once synergies are realized

The transaction is expected to close in the second half of 2025, subject to regulatory approvals and AZEK shareholder approval.

The AZEK Company (NYSE: AZEK) has acquired Northwest Polymers, a leading post-industrial and post-commercial plastic recycling company based in Molalla and Aurora, Oregon. This strategic acquisition strengthens AZEK's recycled materials sourcing and processing capabilities to support long-term growth and margin expansion goals.

The acquisition, located near AZEK's Boise manufacturing facility, will enhance the company's material supply chain in the western United States, improve cost efficiencies, and support the expansion of AZEK's FULL-CIRCLE PVC Recycling® program. As the largest vertically integrated PVC recycler in the United States, this move, combined with their recently announced advanced recycling acquisition in Indiana, positions AZEK for the next phase of their recycling journey.

AZEK reported strong Q1 FY2025 results with consolidated net sales increasing 19% year-over-year to $285.4 million. The Residential segment saw a 22% increase to $272.0 million, while net income decreased 28% to $18.1 million due to prior year's Vycom divestiture gain.

Key metrics include gross profit margin of 36.3%, Adjusted EBITDA growth of 20% to $65.9 million, and Adjusted Net Income increase of 67% to $25.1 million. The company raised its FY2025 outlook, now expecting consolidated net sales between $1.52 to $1.55 billion (5-8% growth) and Adjusted EBITDA of $403 to $418 million (6-10% growth).

The strong performance was driven by double-digit residential sell-through growth and expanded market presence across Deck, Rail & Accessories and Exteriors product categories. The company maintains a strong balance sheet with $148.1 million in cash and $372.7 million available for future borrowings.