#United States #Fort Worth, Texas #AZZ Inc. #Metal Coatings #Precoat Metals

AZZ Inc. Financial Performance Overview

On July 9, 2025, AZZ Inc. (NYSE: AZZ), a prominent independent provider of hot-dip galvanizing and coil coating solutions, published its financial results for the first quarter ending on May 31, 2025. The company reported remarkable growth figures that underscore their strong performance in the fiscal year 2026.

Sales and Revenue Highlights

AZZ Inc. achieved total sales of $422.0 million, reflecting an increase of 2.1% compared to the previous year's figures. This growth can be attributed mainly to the Metal Coatings sector, which saw sales rise to $187.2 million, up 6.0%, fueled by heightened infrastructure-related projects across various markets such as construction and electrical transmission.

Conversely, the Precoat Metals segment reported a slight decline in sales to $234.7 million, a dip of 0.8%, primarily due to reduced volumes in certain end markets, including construction and HVAC sectors.

Earnings Growth

AZZ's net income soared to $170.9 million, up an impressive 331.6% from last year. The Adjusted net income also saw a notable increase of 22.3%, bringing it to $53.8 million. GAAP diluted earnings per share reached a staggering $5.66, reflecting a 510.1% increase, while adjusted diluted EPS increased by 21.9%, amounting to $1.78. This growth can be credited to improved operational efficiency and higher demand for hot-dip galvanized steel products.

Operational Efficiency

The company demonstrated significant operational excellence, with consolidated adjusted EBITDA growing to $106.4 million, or 25.2% of sales. This increase was a result of higher production volumes and enhanced operational productivity compared to last year. The Metal Coatings segment specifically benefited from better zinc utilization, achieving an adjusted EBITDA margin of 32.9%. Meanwhile, Precoat Metals improved its EBITDA margin to 20.7%, thanks to favorable mix decisions and performance enhancements.

Cash Flow and Debt Management

AZZ Inc. reported robust cash flow with $314.8 million generated from operations, significantly aided by a distribution of $273.2 million from its minority interest in AVAIL, which sold its Electrical Products Group to nVent Electric plc. This influx allowed the company to reduce its debt by $285 million, ending the quarter with a net leverage ratio of 1.7x. The prudent financial management positioned AZZ to increase its quarterly dividend to $0.20 per share, up from $0.17.

Future Outlook

Looking ahead, AZZ Inc. is raising its financial guidance for the fiscal year 2026. The company estimates total sales to be between $1.625 billion and $1.725 billion, with an adjusted EBITDA projected to reach between $360 million and $400 million. The adjusted diluted EPS is also expected to be in the range of $5.75 to $6.25. This revised outlook reflects the management's confidence in their strategic execution amidst favorable market conditions.

Upcoming Conference Call

AZZ Inc. will host a conference call on July 10, 2025, at 11:00 A.M. ET to discuss these impressive results. Investors and analysts can join by dialing into the conference call to gain further insights into the company's performance and strategic direction.

In summary, AZZ Inc.'s first-quarter results reveal not only remarkable earnings growth and operational efficiency but also solid prospects for the future as the company continues to navigate the markets with confidence.