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May 31, 2023
Azz Q1 2024 Earnings Report
AZZ's first quarter of fiscal year 2024 experienced strong sales and Adjusted EBITDA.
Key Takeaways
AZZ Inc. reported strong first-quarter results with significant sales growth and improved profitability, driven by the Metal Coatings and Precoat Metals segments. The company reaffirmed its fiscal year 2024 guidance, expecting continued growth and debt reduction.
Sales increased by 88.7% year-over-year to $390.9 million, and 16.2% sequentially.
Diluted EPS rose by 58.1% year-over-year to $0.98, and Adjusted EPS increased by 3.6% year-over-year to $1.14.
Net income increased by 85.8% year-over-year to $28.5 million.
Adjusted EBITDA was $85.4 million, representing 21.8% of sales, up 62.6% versus prior year.
Azz
Azz
Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.comPrecoat Metals Revenue
CapyFin.com Forward Guidance
Management reaffirms fiscal year 2024 guidance.
Positive Outlook
- Sales of $1.40 billion to $1.55 billion.
- Adjusted EBITDA of $300-$325 million.
- Adjusted earnings per diluted share of $3.85-$4.35.
- Benefiting from continued secular tailwinds supported by infrastructure and renewables spending.
- New plant construction in Washington, Missouri is proceeding ahead of schedule and tracking to budget.
Challenges Ahead
- Higher interest expense.
- Dividends on Series A Preferred Stock.
- Impact of an annualized effective tax rate of approximately 24%.
- Softness in certain end markets.
- Guidance excludes equity in earnings on the investment in the AIS joint venture.
Revenue & Expenses
Visualization of income flow from segment revenue to net income