Feb 29, 2024

Azz Q4 2024 Earnings Report

Reported record full-year sales, profitability, and cash flow, with strong performance in both Metal Coatings and Precoat Metals segments.

Key Takeaways

AZZ Inc. reported an 8.9% increase in total sales to $366.5 million and a significant rise in diluted EPS to $0.56, up 273.3% compared to the prior year. The company's net income also saw a substantial increase of 140.5% to $17.9 million. Fiscal year 2024 was a pivotal year for AZZ, reflecting continued success in Metal Coatings and the first full fiscal year of results in Precoat Metals.

Total sales increased by 8.9% to $366.5 million.

Diluted EPS increased by 273.3% to $0.56.

Net income increased by 140.5% to $17.9 million.

Adjusted EBITDA was $73.9 million, representing 20.2% of sales.

Total Revenue
$367M
Previous year: $337M
+8.9%
EPS
$0.93
Previous year: $0.3
+210.0%
Gross Profit
$81M
Previous year: $61.3M
+32.3%
Cash and Equivalents
$4.35M
Previous year: $2.82M
+54.2%
Free Cash Flow
$35.3M
Total Assets
$2.2B
Previous year: $2.22B
-1.2%

Azz

Azz

Azz Revenue by Segment

Forward Guidance

The company reiterated its FY25 guidance, expecting sales between $1.525 and $1.625 billion, adjusted EBITDA between $310 and $360 million, and adjusted diluted EPS between $4.50 and $5.00.

Positive Outlook

  • Sales are expected to be between $1.525 and $1.625 billion.
  • Adjusted EBITDA is projected to be between $310 and $360 million.
  • Adjusted Diluted EPS is anticipated to be between $4.50 and $5.00.
  • Guidance excludes the impact of any future acquisitions.
  • Guidance includes approximately $15 - $18 million of equity income from AZZ’s minority interest in its unconsolidated subsidiary.

Challenges Ahead

  • Guidance excludes the impact of any future acquisitions.
  • Includes approximately $15 - $18 million of equity income from AZZ’s minority interest in its unconsolidated subsidiary.
  • Adjusted Diluted EPS guidance includes the addback of amortization related to the Company’s intangible assets.
  • Potential changes in customer demand for manufactured solutions.
  • Possible increases in labor costs, components, and raw materials.