Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1 ...

Group 1 - The AZEK Company reported revenue of $452.23 million for the quarter ended March 2025, reflecting an 8.1% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.45, up from $0.39 in the same quarter last year, with a surprise of +2.27% compared to the consensus estimate of $0.44 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $443.6 million, resulting in a surprise of +1.95% [1] Group 2 - Net Sales in the Commercial segment were $15.19 million, slightly above the three-analyst average estimate of $15.07 million, but represented a year-over-year decline of -4.3% [4] - Net Sales in the Residential segment reached $437.04 million, surpassing the three-analyst average estimate of $431.37 million, with a year-over-year increase of +8.6% [4] - Adjusted EBITDA for the Commercial segment was $1.90 million, exceeding the average estimate of $1.78 million, while the Residential segment's Adjusted EBITDA was $122.47 million, also above the estimated $119.21 million [4] Group 3 - The AZEK Company's stock has returned +11.3% over the past month, compared to the Zacks S&P 500 composite's +11.5% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q2 of fiscal 2025, consolidated net sales reached $452 million, an increase of 8% year over year [26] - Adjusted EBITDA for Q2 increased by $11 million or 10% year over year to $124 million, with an adjusted EBITDA margin of 27.5%, a 40 basis point improvement year over year [28][25] - Net income for Q2 increased by $5 million year over year to $54 million, or $0.37 per share [28] Business Line Data and Key Metrics Changes - Residential segment net sales for Q2 were $437 million, up 9% year over year, driven by sell-through growth and new products [29] - Residential segment adjusted EBITDA for Q2 was $122 million, up 11% year over year, with an adjusted EBITDA margin of 28% [29] - Commercial segment net sales for Q2 were $15 million, down 4% year over year, primarily due to weaker demand [29] Market Data and Key Metrics Changes - The residential segment achieved 9% year-over-year growth in Q2, with mid-single-digit sell-through growth [7] - The company noted a stable contractor backlog of approximately seven weeks, indicating steady demand [19][103] - Channel inventory levels are below historical averages, reflecting a conservative inventory strategy [20][76] Company Strategy and Development Direction - The proposed merger with James Hardie aims to enhance material conversion and create significant synergies, targeting $125 million in cost synergies and $500 million in incremental sales synergies [11][13] - The company is focused on product innovation, channel expansion, and sustainability, aiming for double-digit long-term growth [10][9] - Investments in new product launches and a vertically integrated recycling network are central to the company's growth strategy [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties while maintaining strong growth momentum [20][21] - The company anticipates steady demand across its outdoor living portfolio, with positive sell-through trends continuing into April [19] - Despite acknowledging potential economic challenges, management believes the company is well-positioned to outperform the market [21][22] Other Important Information - The company has been recognized on Barron's list of the 100 Most Sustainable U.S. Companies for the first time [18] - The acquisition of Northwest Polymers enhances the company's recycling capabilities, supporting long-term growth and margin expansion [17] Q&A Session Summary Question: Guidance on decking and railing versus exteriors in the second half - Management did not provide specific guidance but noted that deck, rail, and accessories have been outgrowing exteriors [40] Question: Near-term cost structure and PVC pricing - Management indicated that costs have been steady, with some modest inflation offset through pricing actions [41] Question: Sales synergies from the merger - Management highlighted significant sales synergies and emphasized stability in the sales organization during the integration process [46] Question: Recycling asset acquisitions and cost reductions - Management mentioned ongoing investments in recycling to achieve incremental cost savings, with a focus on long-term benefits [49] Question: Demand across retail and pro channels - Growth is observed in both channels, with slightly higher growth in the pro channel compared to retail [55] Question: Impact of tariffs on supply chain - The annualized tariff exposure is estimated between $12 million and $15 million, with pricing actions taken to mitigate impacts [57] Question: Customer reactions to the merger - Positive feedback has been received from contractors and channel partners regarding the merger, indicating excitement about strategic benefits [66] Question: Concerns about affordability due to price increases in components - Management acknowledged tariff impacts on certain products but noted efforts to remain competitive [106]

Financial Data and Key Metrics Changes - In Q2 of fiscal 2025, consolidated net sales reached $452 million, an increase of 8% year over year [25] - Adjusted EBITDA for Q2 increased by $11 million or 10% year over year to $124 million, with an adjusted EBITDA margin of 27.5%, a 40 basis point improvement year over year [27][22] - Net income for Q2 increased by $5 million year over year to $54 million, or $0.37 per share [27] Business Line Data and Key Metrics Changes - Residential segment net sales for Q2 were $437 million, up 9% year over year, driven by sell-through growth and channel expansion [28] - Commercial segment net sales for the quarter were $15 million, down 4% year over year, primarily due to weaker demand in the spring products business [28] - Residential segment adjusted EBITDA for Q2 was $122 million, up 11% year over year, with an adjusted EBITDA margin of 28% [28] Market Data and Key Metrics Changes - The residential segment achieved 9% year-over-year growth in Q2, with high single-digit sell-through growth contributing to this performance [6] - The overall market for repair and remodel has been challenging, but the company has consistently outperformed this market [6][20] - Contractor backlogs remain stable at approximately seven weeks, indicating steady demand [18][101] Company Strategy and Development Direction - The company is focused on material conversion, product innovation, and channel expansion, targeting double-digit long-term growth and sustained margin expansion [10][11] - The proposed merger with James Hardie is expected to enhance growth opportunities and create significant synergies, with an estimated $125 million in cost synergies and $500 million in incremental sales synergies [11][13] - Investments in new product launches and a vertically integrated recycling network are key components of the company's growth strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in the broader economy but remains confident in the company's ability to outperform the market [19][20] - The company expects residential sell-through growth scenarios in the low single-digit to mid-single-digit range for the second half of the fiscal year [31] - Despite macroeconomic challenges, the company believes it can sustain margins while investing in growth initiatives [19][21] Other Important Information - The company has been recognized for its sustainability efforts, being named to Barron's list of the 100 Most Sustainable U.S. Companies for the first time [17] - The acquisition of Northwest Polymers enhances the company's recycling capabilities and supports long-term growth objectives [16] Q&A Session Summary Question: Guidance for the second half regarding decking and railing versus exteriors - Management did not provide specific guidance but noted that deck, rail, and accessories have been outgrowing exteriors [39] Question: Near-term cost structure and PVC pricing - Management indicated that costs have been steady, with some modest inflation offset through pricing actions [40][42] Question: Sales synergies from the merger with James Hardie - Management expressed confidence in significant sales synergies but noted it is early to discuss specifics [46][48] Question: Focus on acquiring additional recycling assets - Management highlighted ongoing investments in recycling to achieve cost savings, with a focus on regional supply [49] Question: Demand across retail and pro channels - Growth is seen in both channels, with slightly higher growth in the pro channel, and some regional weakness noted in the Northeast due to weather [53][55] Question: Impact of tariffs on pricing - The annualized tariff exposure is estimated between $12 million and $15 million, with pricing actions taken to offset these costs [56] Question: Customer reactions to the merger - Positive feedback has been received from contractors and channel partners regarding the merger, indicating excitement about the strategic benefits [61][65] Question: Sell-through assumptions for the back half of the year - Management clarified that the guidance reflects a conservative approach, not indicating a decline in sell-through [66][84] Question: Inventory positioning in the channel - The company is maintaining conservative inventory levels, ensuring they are below historical averages [71][76] Question: Mix pressures and contractor backlogs - No significant shifts in product mix were noted, and contractor backlogs remain steady at seven weeks [100][101]

Financial Performance - Q2 2025 net sales increased by 8.1% year-over-year[46] - Adjusted EBITDA Margin increased by 40 bps year-over-year to 27.5%[44, 46] - The company reaffirms FY 2025 net sales outlook between $1.52 billion and $1.55 billion, representing 5% to 8% year-over-year growth[44] - The company reaffirms Adjusted EBITDA outlook between $403 million and $418 million, representing 6% to 10% year-over-year growth[44] - Residential segment growth was at 9% year-over-year[44] Strategic Initiatives and Market Position - The company is the industry leader in outdoor living[17, 36] - The company is benefiting from long-term material conversion trends[16] - The company is targeting double-digit annual net sales growth[17] - The company is expanding Adj EBITDA margin to a target of approximately 27.5%[17] - The company estimates that wood alternative decking could reach approximately 50% of decking opportunities share over the next 10-15 years and up to 75% over time[33]

Exhibit 99.1 May 6, 2025 The AZEK Company Announces Second Quarter Fiscal 2025 Results; Reaffirms Fiscal Year 2025 Net Sales and Adjusted EBITDA Outlook Strong Second Quarter Performance Driven by Deck, Rail & Accessories Demand and Continued Margin Expansion Second Quarter Residential Sell-Through Growth Mid Single-Digits Year Over Year SECOND QUARTER FISCAL 2025 FINANCIAL HIGHLIGHTS REAFFIRMING FISCAL YEAR 2025 OUTLOOK AZEK provides certain of its outlook on a non-GAAP basis, as the Company cannot predict ...

The upcoming report from The AZEK Company (AZEK) is expected to reveal quarterly earnings of $0.44 per share, indicating an increase of 12.8% compared to the year-ago period. Analysts forecast revenues of $443.6 million, representing an increase of 6% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a c ...

Core Viewpoint - The AZEK Company is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.44, reflecting a 12.8% increase, and revenues projected at $443.6 million, up 6% from the previous year [1][3]. Earnings Report Expectations - The earnings report is anticipated to be released on May 6, 2025, and could influence the stock price positively if results exceed expectations, while a miss could lead to a decline [2]. Estimate Revisions Trend - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Whisper and ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being lower than the consensus for The AZEK Company, resulting in an Earnings ESP of -2.72%, suggesting a bearish outlook [5][10]. Historical Performance - The AZEK Company has beaten consensus EPS estimates three out of the last four quarters, with a notable surprise of +21.43% in the last reported quarter [12][13]. Bottom Line - The AZEK Company does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, indicating that investors should consider additional factors before making investment decisions [16].

Core Viewpoint - James Hardie Industries' shares fell by 15.8% following the announcement of its agreement to combine with Azek, raising questions about the justification for the decline [1] Group 1: Deal Overview - James Hardie is acquiring Azek for a total transaction value of $8.75 billion, combining shares and cash, with James Hardie shareholders owning 74% and Azek shareholders 26% of the combined company [2] - Azek's 2025 guidance projects sales of $1.535 billion and adjusted EBITDA of $411 million, indicating high valuations for the $8.75 billion deal [2] Group 2: Strategic Rationale - Management anticipates generating $350 million in EBITDA synergies from the merger, representing 5.9% of combined sales, which is considered a strong target [3] - The acquisition enhances James Hardie's revenue share from the less cyclical repair and remodel market and increases its North American housing exposure from 74% to 81% [3][4] Group 3: Market Context - The deal occurs amid high interest rates, which have not decreased as expected, leading to negative sentiment regarding the acquisition in a challenged industry [5] - Historical trends suggest that interest rates may eventually decline, potentially making the acquisition a strategic opportunity in the long run [5]

Investors might want to bet on The AZEK Company (AZEK) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changin ...