AZZ Inc. Resumes Stock Buyback Program to Enhance Shareholder Value

AZZ Inc. Resumes Stock Buyback Program

AZZ Inc. (NYSE: AZZ), a prominent independent supplier of hot-dip galvanizing and coil coating services, has made a significant announcement regarding its stock repurchase strategy. The company has recommenced its stock buyback activities under the existing $100 million Share Repurchase Program. This renewal includes the initiation of a 10b5-1 plan with a third-party broker, intended to optimize the timing and execution of repurchases.

As of this announcement, AZZ has successfully repurchased approximately $46.8 million worth of its shares, leaving a remainder balance of $53.2 million available for future buybacks under this program. The introduction of the Rule 10b5-1 plan is a critical development, allowing AZZ to repurchase its shares during times when typical restrictions may be applied under insider trading regulations. This structured approach is designed to facilitate a disciplined capital allocation while ensuring compliance with regulatory requirements, enhancing the overall operational flexibility of the company.

Management Insights

Tom Ferguson, President and CEO of AZZ Inc., expressed confidence in the company’s long-term strategy and emphasized the importance of the repurchase program in creating shareholder value. “Implementing this 10b5-1 plan underscores our commitment to returning value to our shareholders while ensuring we stay compliant with the necessary rules,” stated Ferguson. He conveyed optimism about the company's strategic direction and the ability to execute opportunistic share repurchases. This initiative aligns with AZZ's broader objectives to invest in growth opportunities and strategically deploy capital.

The 10b5-1 plan involves a third-party broker who will execute share repurchases based on predetermined guidelines concerning price, volume, and timing. This structured methodology is set to ensure that the share repurchase process remains transparent and consistent with AZZ’s previously announced buyback authorizations.

Potential Adjustments

AZZ retains the authority to modify, suspend, or terminate the 10b5-1 plan at any time, adhering to regulatory stipulations. The company is obligated to disclose all repurchases in its periodic reports submitted to the Securities and Exchange Commission (SEC), ensuring transparency and accountability in its financial practices.

About AZZ Inc.

As a leading independent provider of metal coating solutions, AZZ Inc. specializes in hot-dip galvanizing and coil coating services aimed at extending the lifespan and aesthetic quality of various structures and products essential for everyday use. This announcement marks a pivotal moment in AZZ’s ongoing mission to enhance shareholder returns through prudent financial strategies and sustained growth. For additional information, interested parties can visit the official website at www.azz.com.

Conclusion

The resumption of AZZ's stock repurchase program highlights the company's ongoing commitment to enhancing shareholder value while navigating the complexities of current market conditions. By leveraging the newly implemented 10b5-1 plan, AZZ aims to not only bolster investor confidence but also position itself strategically for future growth opportunities. As market dynamics continue to evolve, the effectiveness of these initiatives will be a key indicator of AZZ Inc.’s financial health and operational efficacy going forward.