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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.
Revenue by Segment
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.
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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