AZZ Inc. (NYSE:AZZ) reported an EPS of $1.39, surpassing the estimated $1.24 and reflecting significant growth.
The company’s revenue reached approximately $403.65 million, indicating a 5.8% increase year-over-year.
AZZ announced a debt reduction of $35 million for the quarter, contributing to a healthier balance sheet.
AZZ Inc. (NYSE:AZZ) is a prominent player in the metal coatings and coil coating industry, providing essential services like hot-dip galvanizing. The company competes with other industry leaders in delivering protective coatings for metal products. AZZ’s recent financial performance highlights its strong market position and operational efficiency.
On January 7, 2025, AZZ reported earnings per share (EPS) of $1.39, surpassing the estimated $1.24. This performance also exceeded the Zacks Consensus Estimate of $1.29, marking a significant improvement from the $1.19 EPS reported in the same quarter last year. The company’s revenue reached approximately $403.65 million, exceeding the estimated $396.64 million, and reflecting a 5.8% increase compared to the previous year.
AZZ’s Metal Coatings segment saw a 3.3% rise in sales to $168.6 million, while Precoat Metals sales increased by 7.6% to $235.1 million. The company’s net income for the quarter was $33.6 million, a 25% increase, with adjusted net income reaching $41.9 million, up 20.5%. The adjusted EBITDA was $90.7 million, representing 22.5% of sales, with segment margins of 31.5% for Metal Coatings and 19.1% for Precoat Metals.
The company also made a debt reduction of $35 million during the quarter, contributing to a fiscal year-to-date debt reduction of $80 million, resulting in a net leverage ratio of 2.6x. AZZ announced a cash dividend of $0.17 per share and successfully repriced its Term Loan B, reducing the future borrowing rate by 75 basis points to SOFR+2.50%.
AZZ’s financial metrics indicate a strong market valuation, with a price-to-earnings (P/E) ratio of approximately 20.60 and a price-to-sales ratio of about 1.59. The enterprise value to sales ratio is around 1.61, and the enterprise value to operating cash flow ratio is approximately 10.26. The company’s earnings yield is about 4.85%, and it maintains a low debt-to-equity ratio of 0.03, with a current ratio of approximately 1.77, indicating solid financial health.