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May 31, 2024
Azz Q1 2025 Earnings Report
Reported record quarterly sales and margin expansion on organic growth, generating significant cash flow.
Key Takeaways
AZZ Inc. reported strong Q1 2025 results with a 5.7% increase in total sales to $413.2 million and adjusted EPS of $1.46. The company saw growth in both Metal Coatings and Precoat Metals segments, with improved EBITDA margins. They also strengthened their balance sheet by redeeming the Series A Preferred Stock and reducing debt.
Total sales increased by 5.7% to $413.2 million, driven by growth in both Metal Coatings and Precoat Metals segments.
Net income was $39.6 million, up 38.8%, while adjusted net income reached $44.0 million, a 31.9% increase.
EBITDA grew to $94.1 million, representing 22.8% of sales, up from 21.8% in the prior year.
The company generated $71.9 million in operating cash flow, enabling debt reduction of $25.0 million and a net leverage ratio of 2.8x.
Revenue by Segment
Forward Guidance
The company reiterated its FY25 guidance issued on April 8, 2024.
Positive Outlook
- Sales are expected to be between $1.525 billion and $1.625 billion.
- Adjusted EBITDA is projected to be in the range of $310 million to $360 million.
- Adjusted diluted EPS is anticipated to be between $4.50 and $5.00.
- Guidance excludes the impact of any future acquisitions.
- Guidance includes approximately $15 - $18 million of equity income from AZZ’s minority interest in its unconsolidated subsidiary.
Challenges Ahead
- Guidance excludes the impact of any future acquisitions.
- Includes approximately $15 - $18 million of equity income from AZZ’s minority interest in its unconsolidated subsidiary.
- Adjusted Diluted EPS guidance includes the addback of amortization related to the Company’s intangible assets.
- Changes in customer demand for manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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