What trends are visible in AZEK's revenue costs?
3/31/2025 12:11am
**AZEK's Revenue and Cost Trends Analysis**
1. **Revenue Growth**: AZEK has demonstrated a positive revenue trend, with a reported increase of 18.7% year-over-year in Q4 CY2024, reaching $285.4 million. This growth was primarily driven by the Residential segment, which saw a 22% rise in sales. The company's full-year revenue guidance was raised to $1.52 to $1.55 billion, indicating confidence in continued growth.
2. **Cost of Sales**: The Cost of Sales for AZEK has not been provided separately for each business segment. However, the overall cost of sales decreased by 4.3% to $899,655,000, attributed to lower raw material costs and higher utilization of manufacturing capacity.
3. **Gross Profit Margin**: AZEK's gross profit margin improved significantly, increasing from 31.4% in the previous year to 37.6%. This improvement was likely a result of the cost of sales decrease and the company's focus on efficiency and reduced raw material costs.
4. **Segment Performance**: AZEK's revenue is segmented into Residential and Commercial segments. The Residential segment generated the highest revenue at $1.37 billion, followed by the Commercial segment with $272 million and $72.64 million. The Commercial segment had the lowest revenue growth, while the Residential segment contributed the most to the overall revenue growth.
In conclusion, AZEK has shown a strong revenue growth trend, particularly in its Residential segment, with improvements in gross profit margin due to cost management. The company's strategic focus on product innovation and market expansion in the outdoor living products sector is likely to support continued revenue growth in the future.