Azz Q4 2022 Earnings Report

AZZ's financial performance improved, driven by strong sales growth and increased incoming orders.

Key Takeaways

AZZ Inc. reported a strong fourth quarter with a 14.8% increase in sales, reaching $224.7 million. Net income rose to $21.6 million, or $0.87 per share. Incoming orders surged, leading to a significantly increased book-to-sales ratio and backlog.

Sales increased by 14.8% to $224.7 million compared to the prior year.

Net income was $21.6 million, or $0.87 per share, up from the prior year.

Incoming orders increased significantly to $311.6 million, resulting in a book-to-sales ratio of 1.39.

Backlog at the end of the quarter was $304.5 million, a 63.6% increase compared to the same quarter in the prior year.

Total Revenue

$225M

Previous year: $196M

+14.8%

EPS

$0.86

Previous year: $0.62

+38.7%

Backlog

$305M

Gross Profit

$55.2M

Previous year: $45.8M

+20.6%

Cash and Equivalents

$15.1M

Previous year: $14.8M

+1.7%

Free Cash Flow

$27.1M

Previous year: $23.4M

+15.4%

Total Assets

$1.13B

Previous year: $999M

+13.4%

Azz

Azz Revenue by Segment

Forward Guidance

Due to the recent announcement related to the acquisition of Precoat Metals, AZZ will not issue fiscal year 2023 guidance at this time. However, the company anticipates Metal Coatings will exceed $150 million in sales and exceed 30% EBITDA for the first quarter of fiscal year 2023. Infrastructure Solutions for the first quarter of fiscal 2023 will exceed their results in the first quarter of fiscal 2022.

Positive Outlook

Metal Coatings segment is expected to exceed $150 million in sales for the first quarter of fiscal year 2023.
Metal Coatings segment is expected to exceed 30% EBITDA for the first quarter of fiscal year 2023.
Infrastructure Solutions segment is anticipated to exceed their first quarter of fiscal year 2022 results in the first quarter of fiscal year 2023.
Focus on growing the Metal Coatings segment.
Completing the acquisition of Precoat Metals.

Challenges Ahead

No specific fiscal year 2023 guidance is being issued at this time due to the pending acquisition of Precoat Metals.
Guidance excludes the impact of the pending Precoat acquisition.
Guidance reflects best estimates given current market conditions and existing execution on current backlog.
Guidance does not include the impact of acquisitions or divestitures.
Guidance does not include related expenditures or any federal regulatory changes that may emerge.

Company Overview

Full financial data and analysis

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