The AZEK Company (AZEK) Barclays 42nd Annual Industrial Select Conference summary

Audience sentiment and market expectations

• Audience showed a positive bias toward the company, with expectations of above-peer EPS growth and a preference for share repurchases and internal investment as uses of excess cash.

• Core growth was identified as the most significant share price headwind.

Industry positioning and product penetration

• Decking conversion is in the 20% range, with significant opportunity remaining in rail and trim categories.

• Rail market is about 40% non-wood, and trim is about 60% converted from wood, indicating early-stage penetration.

• Accelerated conversion is more pronounced in premium, contractor-oriented segments.

Growth drivers and new product opportunities

• Growth in 2025 is expected to be driven by new products and pro-shelf expansion, with retail remaining neutral.

• New products like steel rail, vinyl rail, TrimLogic, and premium siding target markets worth hundreds of millions to $1 billion.

• Product launches typically see mid-single-digit million sales in year one, doubling in year two.