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Feb 28, 2021
Azz Q4 2021 Earnings Report
AZZ's financial performance declined due to COVID-19, but Metal Coatings segment showed improved operating margins
Key Takeaways
AZZ Inc. reported a decrease in sales and net income for both the fourth quarter and the full fiscal year 2021, impacted by the COVID-19 pandemic. However, the Metal Coatings segment demonstrated improved operating margins. The company reaffirms fiscal year 2022 revenue and earnings per share guidance.
Fourth quarter sales decreased by 20.3% to $195.6 million compared to the prior year.
Net income for the quarter was $16.2 million, or $0.63 per share.
Metal Coatings segment sales decreased by 13.6%, but operating income increased by 17.6%.
Infrastructure Solutions segment sales decreased by 27%, with operating income increasing significantly due to prior year charges.
Revenue by Segment
Forward Guidance
AZZ Inc. reaffirms its fiscal year 2022 revenue and earnings per share guidance, with revenue expected to be between $835 million and $935 million, and earnings per share between $2.45 and $2.95.
Positive Outlook
- Focus on growing the Metal Coatings segment.
- Building backlog for enclosures, switchgear and welding solutions in the Infrastructure Solutions segment.
- Access to capital to sustain operations.
- Opportunities for organic growth.
- Actively seeking strategic growth opportunities and returning capital to shareholders.
Challenges Ahead
- COVID-related travel restrictions within certain geographical areas served by the Infrastructure Solutions teams.
- Potential federal regulatory changes.
- Ongoing COVID-19 pandemic could adversely impact customers and operations.
- Fluctuations in prices and raw material costs, including zinc and natural gas.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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