AZZ Inc. Achieves Record Financial Results for Fiscal Year
AZZ Inc. Achieves Record Financial Results for Fiscal Year
AZZ Inc. (NYSE: AZZ), a leading independent provider of hot-dip galvanizing and coil coating solutions, celebrated a historic fiscal year highlighting record sales and profitability. With impressive earnings, the company indicated a substantial adjusted earnings per share of $5.20 and a GAAP earnings per share of $1.79.
Fiscal Year 2025 Overview
During fiscal year 2025 compared to the prior year, AZZ reported:
- Total sales reached $1,577.7 million, reflecting a growth of 2.6%,
- Net income of $128.8 million, featuring an increase of 26.8%. Adjusted net income stood at $156.8 million, marking an 18.1% increase.
- GAAP diluted earnings per share of $1.79, down 48.3%, primarily due to the full redemption of Series A Preferred Stock, while adjusted diluted earnings per share was $5.20, up 14.8%.
- Adjusted EBITDA hit $347.9 million, which represents 22.0% of sales, exhibiting a rise of 4.3% from $333.6 million the previous year.
- Debt reductions amounted to $110.0 million, leading to a net leverage ratio of below 2.5x.
Fourth Quarter Highlights
In the fourth quarter of fiscal year 2025, AZZ reported the following:
- Total quarterly sales were $351.9 million, down 4.0% compared to the prior year, primarily due to unfavorable weather conditions impacting operations.
- Net income for the quarter amounted to $20.2 million, up 41.7% with adjusted net income of $29.6 million, representing a 7.9% increase.
- GAAP diluted EPS for this quarter reached $0.67, a rise of 19.6%, while adjusted diluted EPS registered at $0.98, reflecting a 5.4% uptick.
- Adjusted EBITDA was reported at $71.2 million, equating to 20.2% of sales, consistent with previous quarter results.
- Segment adjusted EBITDA margins came in at 29.2% for Metal Coatings and 17.8% for Precoat Metals.
Commentary from Leadership
Tom Ferguson, President and Chief Executive Officer of AZZ, expressed satisfaction at the company’s financial achievements during fiscal year 2025. He noted, "We are thrilled to report record results, showcasing a solid sales growth of 2.6% despite facing weather challenges that impacted our fourth quarter performance." He highlighted that the Metal Coatings segment generated sales of $665.1 million and maintained a commendable EBITDA margin of 30.9%. Meanwhile, Precoat Metals delivered $912.6 million in sales with a margin of 19.6%.
In light of cash flows exceeding $250 million, AZZ progressed significantly on its greenfield project, while advancing its financial health through stock offerings and redemption of Series A Preferred Stock. Plans included further strengthening the balance sheet with anticipated proceeds from the upcoming AVAIL transaction anticipated to close shortly.
Financial Outlook
AZZ Inc. reaffirmed its financial guidance for fiscal year 2026. This reflects confidence in the company's operational resilience and strategic direction amidst evolving market conditions. Projected sales for the upcoming fiscal year are expected to be in the range of $1.625 - $1.725 billion, with adjusted EBITDA estimates between $360 - $400 million and adjusted diluted EPS of approximately $5.50 - $6.10.
Frequently Asked Questions
What were AZZ's total sales for fiscal year 2025?
The total sales for AZZ in fiscal year 2025 were reported at $1,577.7 million.
What is the adjusted EPS for AZZ in fiscal 2025?
AZZ reported an adjusted EPS of $5.20 for the fiscal year 2025.
What impacted AZZ's fourth quarter performance?
Weather conditions had a significant impact on AZZ's performance during the fourth quarter, contributing to a 4.0% decrease in total sales.
How did AZZ's net income change in the fourth quarter?
AZZ's net income increased by 41.7% in the fourth quarter, reaching $20.2 million.
What is the expected financial outlook for AZZ in 2026?
AZZ anticipates sales between $1.625 - $1.725 billion and adjusted EBITDA of $360 - $400 million for fiscal year 2026.
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