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Nov 30, 2022
Azz Q3 2023 Earnings Report
Reported solid demand and robust cash flow generation, reducing net leverage.
Key Takeaways
AZZ Inc. reported strong third-quarter sales, driven by growth in both Metal Coatings and Precoat Metals segments. The divestiture of the Infrastructure Solutions segment was completed, resulting in EPS growth from continuing operations. The company is raising its full-year adjusted EPS guidance.
Sales from continuing operations reached $373.3 million.
Metal Coatings sales increased by 17.2%, and Precoat Metals sales increased by 14.8%.
Consolidated Adjusted EPS was $0.88, while Reported Diluted EPS was $(0.97).
Net income from continuing operations was $18.4 million, compared to $13.1 million in the prior year.
Azz
Azz
Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.comPrecoat Metals Revenue
CapyFin.com Forward Guidance
The company reaffirms its annual sales guidance range of $1.27 billion to $1.32 billion and raises its guidance for adjusted earnings per diluted share for fiscal year 2023 to $4.05 – $4.25.
Positive Outlook
- Consistent operating performance in business segments.
- Strong performance within segments during the third quarter.
- Focus on growth strategy reinforced by market position.
- Strong underlying fundamentals of business.
- Secular growth drivers in place in key end-markets.
Challenges Ahead
- Seasonally lower fourth quarter.
- Additional interest expense.
- Dividends on Preferred Stock.
- Impact of a normalized forward-looking tax rate.
- Potential impact of equity in earnings on investment in the AIS JV.
Revenue & Expenses
Visualization of income flow from segment revenue to net income