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Nov 30, 2023
Azz Q3 2024 Earnings Report
Delivered growth in sales, profits, and cash flow, supporting debt pay down
Key Takeaways
AZZ Inc. reported a 2.2% increase in total sales to $381.6 million and a 55.9% increase in diluted EPS to $0.92 for the third quarter of fiscal year 2024. Both segments performed well, with Metal Coatings sales up 3.1% and Precoat Metals sales up 1.6%. The company reduced debt by $25 million in the quarter and is narrowing its annual guidance upward.
Total sales increased by 2.2% to $381.6 million.
Diluted EPS increased by 55.9% to $0.92, while Adjusted EPS increased by 52.6% to $1.19.
Net income increased by 45.8% to $26.9 million.
Debt was reduced by $25 million in the quarter.
Azz
Azz
Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.comPrecoat Metals Revenue
CapyFin.com Forward Guidance
AZZ is narrowing and revising upward its fiscal year 2024 guidance to reflect nine-month actual results and fourth quarter projections. The guidance includes estimated interest expense benefits and the reduction of debt.
Positive Outlook
- Secular tailwinds exist for non-building construction on infrastructure and renewables projects.
- Reshoring of manufacturing is expected to continue.
- Continued migration to more environmentally friendly pre-painted steel and aluminum is anticipated.
- Expect meaningfully improved profitability over prior year same quarter.
- Actions have helped offset the impact of the higher interest rate environment.
Challenges Ahead
- The fourth quarter typically represents a seasonally slower period for AZZ.
- End-market softness related to the construction, HVAC and transportation markets.
- Potential changes in customer demand for products and services.
- Possible increases in labor costs, components and raw materials.
- Economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income