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Aug 31, 2023
Azz Q2 2024 Earnings Report
Reported second quarter results, building on profitability and strong cash generation.
Key Takeaways
AZZ Inc. reported second quarter results in line with expectations. Metal Coatings benefited from infrastructure spending, posting a record quarter for sales and operating income. Precoat Metals faced softer market conditions but exceeded 20% EBITDA margin. The company reduced debt by $40.0 million in the quarter and reaffirms fiscal year 2024 guidance.
Total sales were $398.5 million, down 2.0% year-over-year.
Diluted EPS was $0.97, up 4.3% versus prior year, with Adjusted EPS of $1.27, up 5.0%.
Net income was $28.3 million, up 12.8% year-over-year.
Debt was reduced by $40.0 million in the quarter.
Revenue by Segment
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
- Expect a stronger second half this year as compared to last year.
- Expect to continue to pay quarterly cash dividends.
Challenges Ahead
- Fiscal year 2024 guidance reflects higher interest expense
- Dividends on our Series A Preferred Stock
- The impact of an annualized effective tax rate of approximately 24%
- Seasonally slower second half of the year
- Excluding any federal regulatory changes that may emerge
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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