•
Nov 30, 2021

Azz Q3 2022 Earnings Report

Reported strong year-over-year financial results with EPS of $0.85.

Key Takeaways

AZZ Inc. reported a 2.3% increase in sales, reaching $231.7 million, and a 7.0% increase in net income, amounting to $21.1 million, compared to the same quarter last year. Diluted earnings per share increased to $0.85, up from $0.76 in the prior year. Bookings also increased to $248.0 million, resulting in a book-to-sales ratio of 1.07.

Diluted earnings per share increased by 11.8% to $0.85.

Sales increased by 2.3% year-over-year to $231.7 million.

Net income increased by $1.4 million to $21.1 million.

Bookings for the quarter increased to $248.0 million, with a book-to-sales ratio of 1.07.

Total Revenue
$232M
Previous year: $227M
+2.3%
EPS
$0.85
Previous year: $0.8
+6.2%
Gross Profit
$57M
Previous year: $54.7M
+4.2%
Cash and Equivalents
$20.4M
Previous year: $19.2M
+6.0%
Free Cash Flow
$5.88M
Previous year: $18.6M
-68.4%
Total Assets
$1.04B
Previous year: $1.01B
+2.7%

Azz

Azz

Azz Revenue by Segment

Forward Guidance

The company reaffirms its sales guidance and narrows its earnings per share guidance for fiscal year 2022.

Positive Outlook

  • Anticipate annual sales to be in the range of $865 million to $925 million.
  • Earnings per share to be in the range of $3.00 to $3.20 per diluted share for fiscal year 2022.
  • Highly focused on growing the Metal Coatings segment.
  • Completing and integrating recently announced hot-dip galvanizing acquisitions.
  • Focusing the Infrastructure Solutions team on supply chain improvements and increasing its craft pool.

Challenges Ahead

  • Fiscal year 2022 guidance excludes the impact of any future divestitures or acquisitions.
  • Facing higher labor and material costs.
  • Several business units were affected by material delivery delays, including customer supplied components.
  • Several business units were affected by labor shortages.
  • Potential adverse impacts from the ongoing COVID-19 pandemic.