Breaking Records: AZZ Inc. Shines in Second Quarter of Fiscal Year 2025
Sales and Margin Expansion Drives Quarterly Results; Narrowing and Raising Fiscal Year 2025 Financial Guidance
FORT WORTH, Texas , Oct. 9, 2024 /PRNewswire/ — AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the second quarter ended August 31, 2024.
Fiscal Year 2025 Second Quarter Overview (as compared to prior year(1)):
- Total Sales $409.0 million, up 2.6%
- Metal Coatings sales of $171.5 million, up 1.0%
- Precoat Metals sales of $237.5 million, up 3.8%
- Net Income of $35.4 million, up 25.0%
- Adjusted net income of $41.3 million, up 11.0%
- GAAP EPS of $1.18 per diluted share, up 21.6%, and Adjusted diluted EPS of $1.37, up 7.9%
- Adjusted EBITDA of $91.9 million or 22.5% of sales, versus prior year of $88.0 million, or 22.1% of sales
- Segment Adjusted EBITDA margin of 31.7% for Metal Coatings and 21.1% for Precoat Metals
- Debt reduction of $20.0 million in the quarter; fiscal year-to-date debt reduction of $45 million, net leverage ratio 2.7x
- Cash dividend of $0.17 per share to common shareholders
With the remarkable performance in the second quarter of fiscal year 2025, AZZ Inc. has broken records and surpassed expectations. The increase in total sales, metal coatings sales, and precoat metals sales demonstrates the company’s strong position in the market. The rise in net income and adjusted net income reflects efficient management and strategic growth initiatives. The improvements in GAAP EPS and adjusted diluted EPS indicate enhanced profitability and investor confidence.
Furthermore, the adjusted EBITDA margin for both Metal Coatings and Precoat Metals highlights operational excellence and cost management. The significant debt reduction and cash dividend distribution exhibit financial discipline and shareholder value creation. Overall, AZZ Inc.’s performance in the second quarter showcases a solid foundation for sustained growth and value creation.
Impact on Individuals:
As a shareholder or potential investor, the positive financial results of AZZ Inc. in the second quarter of fiscal year 2025 are likely to have a direct impact on your investment portfolio. The rise in net income, adjusted earnings per share, and EBITDA margin signify strong financial health and growth potential, which could lead to an increase in stock value and potential returns for investors.
Impact on the World:
From a broader perspective, AZZ Inc.’s outstanding performance in the second quarter of fiscal year 2025 reflects a thriving company in the industrial sector. As a leading provider of hot-dip galvanizing and coil coating solutions, AZZ Inc.’s success contributes to the overall strength and stability of the industry. The company’s focus on debt reduction, profitability, and shareholder value sets a positive example for similar companies in the market.
Conclusion:
In conclusion, AZZ Inc.’s exceptional performance in the second quarter of fiscal year 2025 showcases strong growth, profitability, and strategic management. The company’s records and results reflect a promising future and value creation for both investors and the industry as a whole. With a solid foundation and a commitment to excellence, AZZ Inc. is poised for continued success in the coming quarters and fiscal years.
