AZZ TodayAZZAZZ$81.20 +4.69 (+6.13%) 52-Week Range$42.55▼$86.94Dividend Yield0.84%P/E Ratio23.67Price Target$93.75Add to WatchlistTrend-following is one of the most basic and widely used technical trading strategies because it works. AZZ Inc. NYSE: AZZ sends a signal to trend-following investors: a solid, sizeable green candle confirming support at a critical level that coincides with a long-term moving average. The signal on AZZ’s chart is compounded by increased volume and coincident signals in the MACD a ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $413 million, a 5.7% increase from $390.9 million in the prior year quarter [6][13] - Gross profit for the first quarter was $102.7 million, maintaining a gross margin of 24.8% compared to the prior year [13] - Adjusted net income increased by 31.9% to $44 million, with adjusted diluted EPS of $1.46 compared to $1.14 in the prior year [16][17] - First quarter adjusted EBITDA was $94.1 million, representing a 100 basis point improvement in adjusted EBITDA margin to 22.8% [17] Business Line Data and Key Metrics Changes - Metal Coatings sales increased by 4.7%, while Precoat Metals sales rose by 6.5% [13] - Metal Coatings EBITDA margin grew to 30.9%, exceeding the prior year and slightly above the target range of 25% to 30% [8] - Precoat Metals EBITDA margin was 20.2%, with expectations to maintain margins above 20% as volumes increase [8][54] Market Data and Key Metrics Changes - The company experienced strength in end markets such as construction, bridge and highway, transmission and distribution, and renewables [7][21] - Public sector construction spending is tracking higher than pre-pandemic levels, indicating ongoing strength in public work projects [7][21] - The Precoat Metals segment outperformed the market with mid- to high single-digit volume increases [21] Company Strategy and Development Direction - The company aims to improve its return profile and derisk its business by transforming into a pure-play metal coatings company [9] - A new aluminum coil coating facility is under construction, expected to be operational by early 2025, with long-term customer commitments covering 75% of its capacity [11][18] - The company is focused on operational excellence, margin enhancements, and working capital improvements to generate free cash flow [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about business prospects, particularly during the peak summer construction months, while acknowledging potential impacts from macroeconomic events [24] - The company reiterated its fiscal 2025 sales guidance of $1.525 billion to $1.625 billion and adjusted EBITDA guidance of $310 million to $360 million [25] - Management remains cautious about the economic outlook but is confident in the company's ability to capture market share and drive volumes [31][32] Other Important Information - The company reduced debt by $25 million in the first quarter and plans to pay down a total of $60 million to $90 million for the full fiscal year [19] - A secondary public offering raised $322 million, which was used to redeem Series A preferred stock, significantly improving the company's capital structure [19][20] Q&A Session Summary Question: On EBITDA guidance and conservatism - Management acknowledged a conservative approach to guidance, with plans to update it after the second quarter [28][29] Question: On Metal Coatings EBITDA margin exceeding targets - Management clarified that the higher margin was due to operational execution and volume increases, not significantly impacted by zinc costs [32][34] Question: Concerns about end market choppiness - Management reported growth across all stated end markets, with no significant concerns noted [37][39] Question: Outlook for pricing and product mix - Management indicated that pricing is expected to hold steady, supported by rising zinc costs and inflationary pressures [45][47] Question: Data center opportunities for Precoat - Management highlighted the growing data center market and ongoing initiatives to supply prepainted steel for insulated wall panels [58] Question: Trends in pre-coated steel - Management noted that trends are tracking as expected, with opportunities for conversion from post-paint to pre-paint continuing to grow [61][62]

AZZ Inc. (AZZ) reported first-quarter fiscal 2025 (ended May 31, 2024) adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.31. The bottom line increased 28.1% year over year.On a reported basis, the company’s loss was $1.38 per share. Notably, it incurred expenses of $75.2 million related to the redemption premium payment on series A preferred stock.AZZ’s total sales of $413.2 million beat the consensus estimate of $401 million. Also, the top line increased 5.7% year ove ...

AZZ (AZZ) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.45%. A quarter ago, it was expected that this electrical equipment maker would post earnings of $0.70 per share when it actually produced earnings of $0.93, delivering a surprise of 32.86%.Over the last four quarters, the co ...

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the specified interim period [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents AZZ Inc.'s unaudited condensed consolidated financial statements for the quarter ended May 31, 2024, including balance sheets, statements of operations, comprehensive income (loss), cash flows, and changes in shareholders' equity, along with detailed notes explaining accounting policies, segment information, debt, equity, and commitments [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates | Item | May 31, 2024 (in thousands) | February 29, 2024 (in thousands) | | :---------------------------------------------------------------------------------------------------------------------------------------------- | :-------------------------- | :------------------------------- | | **Assets** | | | | Cash and cash equivalents | $10,546 | $4,349 | | Trade accounts receivable, net | $144,391 | $142,246 | | Other receivables | $17,403 | $15,599 | | Inventories | $113,988 | $117,656 | | Contract assets | $93,262 | $79,335 | | Prepaid expenses and other | $16,752 | $7,814 | | Total current assets | $396,342 | $366,999 | | Property, plant and equipment, net | $555,355 | $541,652 | | Right-of-use assets | $22,592 | $23,739 | | Goodwill | $705,204 | $705,468 | | Deferred tax assets | $5,594 | $5,606 | | Intangible assets, net | $439,558 | $445,435 | | Investment in joint venture | $101,639 | $98,169 | | Other assets | $9,495 | $8,437 | | Total assets | $2,235,779 | $2,195,505 | | **Liabilities, Mezzanine Equity and Shareholders' Equity** | | | | Accounts payable | $116,829 | $88,001 | | Income tax payable | $3,414 | $172 | | Accrued salaries and wages | $18,806 | $30,823 | | Other accrued liabilities | $78,258 | $68,651 | | Lease liability, short-term | $6,558 | $6,659 | | Total current liabilities | $223,865 | $194,306 | | Long-term debt, net | $929,800 | $952,742 | | Lease liability, long-term | $16,801 | $17,827 | | Deferred tax liabilities | $42,033 | $38,567 | | Other long-term liabilities | $56,048 | $57,572 | | Total liabilities | $1,268,547 | $1,261,014 | | Mezzanine equity: Series A Convertible Preferred Stock | — | $233,722 | | Common stock | $29,814 | $25,102 | | Capital in excess of par value | $405,309 | $103,330 | | Retained earnings | $535,168 | $576,231 | | Accumulated other comprehensive loss | $(3,059) | $(3,894) | | Total shareholders' equity | $967,232 | $700,769 | | Total liabilities, mezzanine equity and shareholders' equity | $2,235,779 | $2,195,505 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table outlines the company's revenues, expenses, and net income for the reported interim periods | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Sales | $413,208 | $390,873 | | Cost of sales | $310,538 | $293,854 | | Gross margin | $102,670 | $97,019 | | Selling, general and administrative | $32,921 | $31,523 | | Operating income | $69,749 | $65,496 | | Interest expense, net | $(22,774) | $(28,706) | | Equity in earnings of unconsolidated subsidiaries | $3,824 | $1,420 | | Other income (expense), net | $204 | $(38) | | Income before income taxes | $51,003 | $38,172 | | Income tax expense | $11,401 | $9,650 | | Net income | $39,602 | $28,522 | | Dividends on Series A Preferred Stock | $(1,200) | $(3,600) | | Redemption premium on Series A Preferred Stock | $(75,198) | — | | Net income (loss) available to common shareholders | $(36,796) | $24,922 | | Basic earnings (loss) per common share | $(1.38) | $1.00 | | Diluted earnings (loss) per common share | $(1.38) | $0.98 | | Weighted average shares outstanding - Basic | 26,751 | 24,940 | | Weighted average shares outstanding - Diluted | 26,751 | 29,150 | | Cash dividends declared per common share | $0.17 | $0.17 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This table presents net income alongside other comprehensive income or loss components for the interim periods | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :----------------------------------------------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income (loss) available to common shareholders | $(36,796) | $24,922 | | Other comprehensive income (loss): | | | | Unrealized translation gain (loss) | $(425) | $19 | | Unrealized translation gain for unconsolidated subsidiary | — | $1,112 | | Unrealized gain (loss) on derivatives qualified for hedge accounting: | | | | Unrealized gain (loss) on interest rate swap, net of tax | $2,219 | $(3,384) | | Amounts reclassified from accumulated other comprehensive income to earnings, net of tax | $(1,100) | $(549) | | Unrealized gain (loss) on interest rate swap, net of tax for unconsolidated subsidiary | $141 | $(165) | | Other comprehensive income (loss) | $835 | $(2,967) | | Comprehensive income (loss) | $(35,961) | $21,955 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table summarizes the cash inflows and outflows from operating, investing, and financing activities for the interim periods | Cash Flow Category | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :---------------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income (loss) available to common shareholders | $(36,796) | $24,922 | | Plus: Dividends on Series A Preferred Stock | $1,200 | $3,600 | | Plus: Redemption premium on Series A Preferred Stock | $75,198 | — | | Net income | $39,602 | $28,522 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Bad debt expense | $330 | $18 | | Depreciation and amortization | $20,323 | $18,524 | | Deferred income taxes | $3,164 | $(2,022) | | Equity in earnings of unconsolidated entities | $(3,824) | $(1,420) | | Distribution on investment in AVAIL joint venture | $539 | — | | Net loss (gain) on sale of property, plant and equipment | $(16) | $(2) | | Amortization of debt financing costs | $3,109 | $3,029 | | Share-based compensation expense | $2,535 | $1,904 | | Changes in current assets and current liabilities | $7,610 | $(1,002) | | Changes in other long-term assets and long-term liabilities | $(1,428) | $(658) | | Net cash provided by operating activities | $71,944 | $46,893 | | Cash flows from investing activities | | | | Purchase of property, plant and equipment | $(27,396) | $(17,036) | | Other investing activities | $17 | $9 | | Net cash used in investing activities | $(27,379) | $(17,027) | | Cash flows from financing activities | | | | Proceeds from secondary public offering and issuance of additional common stock | $308,723 | — | | Redemption of Series A Preferred Stock | $(308,920) | — | | Payments for taxes related to net share settlement of equity awards | $(4,567) | $(1,710) | | Proceeds from revolving loan | $75,000 | $92,000 | | Payments on revolving loan | $(70,000) | $(112,000) | | Payments of debt financing costs | $(715) | — | | Payments on long term debt and finance lease liabilities | $(30,196) | — | | Payments of dividends | $(7,867) | $(7,835) | | Net cash used in financing activities | $(38,542) | $(29,545) | | Effect of exchange rate changes on cash | $174 | $737 | | Net increase in cash and cash equivalents | $6,197 | $1,058 | | Cash and cash equivalents at beginning of period | $4,349 | $2,820 | | Cash and cash equivalents at end of period | $10,546 | $3,878 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This table details the changes in common stock, capital in excess of par value, retained earnings, and accumulated other comprehensive loss | Item | Common Shares (in thousands) | Common Stock Amount (in thousands) | Capital in Excess of Par Value (in thousands) | Retained Earnings (in thousands) | Accumulated Other Comprehensive Loss (in thousands) | Total (in thousands) | | :------------------------------------------------------------------- | :--------------------------- | :--------------------------------- | :-------------------------------------------- | :------------------------------- | :------------------------------------------ | :------------------- | | **Three Months Ended May 31, 2024** | | | | | | | | Balance at February 29, 2024 | 25,102 | $25,102 | $103,330 | $576,231 | $(3,894) | $700,769 | | Share-based compensation | — | — | $2,535 | — | — | $2,535 | | Common stock issued under stock-based plans and related tax expense | 112 | $112 | $(4,679) | — | — | $(4,567) | | Secondary public offering and issuance of additional common stock | 4,600 | $4,600 | $304,123 | — | — | $308,723 | | Dividends on Series A Preferred Stock | — | — | — | $(1,200) | — | $(1,200) | | Cash dividends paid on common stock | — | — | — | $(4,267) | — | $(4,267) | | Redemption premium on Series A Preferred Stock | — | — | — | $(75,198) | — | $(75,198) | | Net income | — | — | — | $39,602 | — | $39,602 | | Other comprehensive income | — | — | — | — | $835 | $835 | | Balance at May 31, 2024 | 29,814 | $29,814 | $405,309 | $535,168 | $(3,059) | $967,232 | | **Three Months Ended May 31, 2023** | | | | | | | | Balance at February 28, 2023 | 24,912 | $24,912 | $93,357 | $506,042 | $(4,573) | $619,738 | | Share-based compensation | — | — | $1,904 | — | — | $1,904 | | Common stock issued under stock-based plans and related tax expense | 101 | $101 | $(1,812) | — | — | $(1,711) | | Dividends on Series A Preferred Stock | — | — | — | $(3,600) | — | $(3,600) | | Cash dividends paid on common stock | — | — | — | $(4,235) | — | $(4,235) | | Net income | — | — | — | $28,522 | — | $28,522 | | Other comprehensive loss | — | — | — | — | $(2,967) | $(2,967) | | Balance at May 31, 2023 | 25,013 | $25,013 | $93,449 | $526,729 | $(7,540) | $637,651 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. The Company and Basis of Presentation](index=8&type=section&id=1.%20The%20Company%20and%20Basis%20of%20Presentation) This note describes **AZZ Inc.**'s business segments and the basis for preparing the unaudited interim financial statements - **AZZ Inc.** is a provider of **hot-dip galvanizing** and **coil coating solutions** to a broad range of end-markets in North America, operating through three distinct segments: **AZZ Metal Coatings**, **AZZ Precoat Metals**, and **AZZ Infrastructure Solutions** (a **40%** non-controlling interest in the **AVAIL JV**)[25](index=25&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and include all necessary normal recurring adjustments, with interim results not necessarily indicative of a full year[26](index=26&type=chunk)[27](index=27&type=chunk) - The company expects to adopt new accounting standards ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes) in fiscal 2025 and 2026, respectively, which will result in additional disclosures but are not expected to affect **financial position, results of operations, or cash flows**[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2. Inventories](index=9&type=section&id=2.%20Inventories) This note provides a breakdown of inventory components and changes in the **inventory reserve** | Category | May 31, 2024 (in thousands) | February 29, 2024 (in thousands) | | :---------------- | :-------------------------- | :------------------------------- | | Raw material | $109,590 | $111,674 | | Work in process | $625 | $898 | | Finished goods | $3,773 | $5,084 | | Total inventories | $113,988 | $117,656 | - The **inventory reserve** decreased from **$4.5 million** as of February 29, 2024, to **$3.6 million** as of May 31, 2024[32](index=32&type=chunk) [Note 3. Earnings Per Share](index=10&type=section&id=3.%20Earnings%20Per%20Share) This note details the calculation of basic and diluted **earnings per common share**, including the impact of preferred stock - On April 30, 2024, **AZZ** completed a **secondary offering** of **4.6 million common shares**, increasing the **total outstanding common shares** to **29.8 million**[35](index=35&type=chunk) | Metric | Three Months Ended May 31, 2024 | Three Months Ended May 31, 2023 | | :----------------------------------------- | :------------------------------ | :------------------------------ | | Net income | $39,602 | $28,522 | | Dividends on Series A Preferred Stock | $(1,200) | $(3,600) | | Redemption premium on Series A Preferred Stock | $(75,198) | — | | Numerator for basic earnings per share | $(36,796) | $24,922 | | Numerator for diluted earnings per share | $(36,796) | $28,522 | | Weighted average shares outstanding - Basic | 26,751 | 24,940 | | Weighted average shares outstanding - Diluted | 26,751 | 29,150 | | Basic earnings (loss) per common share | $(1.38) | $1.00 | | Diluted earnings (loss) per common share | $(1.38) | $0.98 | - For the three months ended May 31, 2024, all **3.1 million weighted average shares** related to the **Series A Convertible Preferred Stock** were excluded from the **diluted earnings per share** computation as their effect would have been anti-dilutive[36](index=36&type=chunk) [Note 4. Disaggregated Sales](index=11&type=section&id=4.%20Disaggregated%20Sales) This note presents the company's **sales** disaggregated by industry and discusses changes in **contract assets** | Industry | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :------------- | :--------------------------------------------- | :--------------------------------------------- | | Construction | $228,512 | $207,162 | | Industrial | $40,076 | $39,087 | | Transportation | $38,362 | $35,179 | | Consumer | $35,385 | $35,179 | | Utilities | $28,615 | $27,361 | | Other | $42,258 | $46,905 | | Total Sales | $413,208 | $390,873 | - **Contract assets** increased from **$79.3 million** as of February 29, 2024, to **$93.3 million** as of May 31, 2024, primarily related to the **AZZ Precoat Metals** segment[42](index=42&type=chunk) [Note 5. Supplemental Cash Flow Information](index=12&type=section&id=5.%20Supplemental%20Cash%20Flow%20Information) This note provides additional details on changes in current assets and liabilities affecting **cash flows**, and cash paid for **interest** and **income taxes** | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :---------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Accounts receivable, net | $(2,519) | $11,872 | | Other receivables | $(1,823) | $1,064 | | Inventories | $3,620 | $(1,198) | | Contract assets | $(13,928) | $(1,949) | | Prepaid expenses and other | $(8,940) | $(2,494) | | Accounts payable | $25,941 | $(2,665) | | Income taxes payable | $3,242 | $(94) | | Accrued expenses | $2,017 | $(5,538) | | Changes in current assets and liabilities | $7,610 | $(1,002) | | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :--------------------- | :--------------------------------------------- | :--------------------------------------------- | | Cash paid for interest | $21,059 | $25,866 | | Cash paid for income taxes | $934 | $895 | | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :--------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Accrued dividends on Series A Preferred Stock | — | $2,400 | | Accruals for capital expenditures | $8,517 | $2,409 | [Note 6. Operating Segments](index=12&type=section&id=6.%20Operating%20Segments) This note provides financial information for **AZZ**'s **Metal Coatings**, **Precoat Metals**, and **Infrastructure Solutions** segments, including **sales**, **operating income**, and **assets** - **AZZ** operates three segments: **AZZ Metal Coatings** (**hot-dip galvanizing**, spin galvanizing, powder coating, anodizing, plating), **AZZ Precoat Metals** (protective and decorative coatings for steel and aluminum coil), and **AZZ Infrastructure Solutions** (**40%** non-controlling interest in **AVAIL JV**, providing equipment and services to power generation, transmission, distribution, oil and gas, and industrial markets)[48](index=48&type=chunk)[49](index=49&type=chunk) | Segment | Sales (May 31, 2024) | Operating Income (May 31, 2024) | Sales (May 31, 2023) | Operating Income (May 31, 2023) | | :-------------------------- | :------------------- | :------------------------------ | :------------------- | :------------------------------ | | Metal Coatings | $176,651 | $47,932 | $168,794 | $45,470 | | Precoat Metals | $236,557 | $40,094 | $222,079 | $37,691 | | Infrastructure Solutions | — | $(29) | — | $(22) | | Corporate | — | $(18,248) | — | $(17,643) | | Total | $413,208 | $69,749 | $390,873 | $65,496 | | Segment | May 31, 2024 (in thousands) | February 29, 2024 (in thousands) | | :----------------------------------------- | :-------------------------- | :------------------------------- | | Metal Coatings | $550,741 | $553,505 | | Precoat Metals | $1,534,214 | $1,500,122 | | Infrastructure Solutions - Investment in Joint Venture | $101,639 | $98,169 | | Corporate | $49,185 | $43,709 | | Total assets | $2,235,779 | $2,195,505 | | Region | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :-------------- | :--------------------------------------------- | :--------------------------------------------- | | United States | $403,051 | $381,322 | | Canada | $10,157 | $9,551 | | Total | $413,208 | $390,873 | [Note 7. Investments in Unconsolidated Entity](index=14&type=section&id=7.%20Investments%20in%20Unconsolidated%20Entity) This note details **AZZ**'s equity method investment in the **AVAIL joint venture**, including its summarized financial information - **AZZ** accounts for its **40%** interest in the **AVAIL JV** under the equity method, reporting **$3.8 million** in equity in earnings for the three months ended May 31, 2024[58](index=58&type=chunk) - The investment in the **AVAIL JV** was **$101.6 million** as of May 31, 2024, which includes an excess of **$10.2 million** over the underlying value of net assets, accounted for as equity method goodwill[58](index=58&type=chunk) | Summarized Balance Sheet (May 31, 2024) | Amount (in thousands) | | :-------------------------------------- | :-------------------- | | Current assets | $279,806 | | Long-term assets | $171,533 | | Total assets | $451,339 | | Current liabilities | $113,512 | | Long-term liabilities | $126,625 | | Total liabilities | $240,137 | | Total partners' capital | $211,202 | | Total liabilities and partners' capital | $451,339 | | Summarized Operating Data (Three Months Ended May 31, 2024) | Amount (in thousands) | | :-------------------------------------------------------- | :-------------------- | | Sales | $129,107 | | Gross profit | $31,526 | | Net income | $8,160 | [Note 8. Derivative Instruments](index=15&type=section&id=8.%20Derivative%20Instruments) This note describes the company's use of **interest rate swap agreements** to manage **interest rate risk** on its floating-rate debt - **AZZ** uses **interest rate swap agreements** to manage exposure to fluctuations in **interest rates** on its floating-rate debt, converting a portion to a fixed rate[64](index=64&type=chunk) - The 2022 Swap, designated as a cash flow hedge, converts the **SOFR** portion of the **Term Loan B** to **4.277%**, resulting in a total fixed rate of **7.527%** after repricing, with a notional amount of **$540.4 million** as of May 31, 2024[64](index=64&type=chunk) - During the three months ended May 31, 2024, **$1.1 million** (net of tax) was reclassified from other comprehensive income to earnings, representing the effective portion of the 2022 Swap[65](index=65&type=chunk) [Note 9. Debt](index=16&type=section&id=9.%20Debt) This note provides details on the company's **Revolving Credit Facility** and **Term Loan B**, including **interest rates** and compliance with covenants | Debt Type | May 31, 2024 (in thousands) | February 29, 2024 (in thousands) | | :---------------------------- | :-------------------------- | :------------------------------- | | Revolving Credit Facility | $35,000 | $30,000 | | Term Loan B | $950,250 | $980,250 | | Total debt, gross | $985,250 | $1,010,250 | | Unamortized debt issuance costs | $(55,450) | $(57,508) | | Long-term debt, net | $929,800 | $952,742 | - The **Term Loan B** was repriced on March 20, 2024, adjusting the **SOFR spread** from **3.75%** to **3.25%**[69](index=69&type=chunk) - The **weighted average interest rate for outstanding debt** decreased from **9.07%** as of May 31, 2023, to **8.09%** as of May 31, 2024[70](index=70&type=chunk) - **AZZ** was in compliance with all covenants of the **2022 Credit Agreement** as of May 31, 2024, with **$350.7 million** of additional credit available[71](index=71&type=chunk)[72](index=72&type=chunk) | Item | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Gross Interest expense | $24,207 | $28,962 | | Less: Capitalized interest | $(1,433) | $(256) | | Interest expense, net | $22,774 | $28,706 | [Note 10. Fair Value Measurements](index=17&type=section&id=10.%20Fair%20Value%20Measurements) This note explains the classification and measurement of financial instruments at **fair value**, including **interest rate swaps** and **long-term debt** - **AZZ** classifies **fair value measurements** into Level 1 (quoted market prices), Level 2 (observable market-based inputs), and Level 3 (unobservable inputs)[74](index=74&type=chunk) | Item | Carrying Value (May 31, 2024) | Fair Value Level 2 (May 31, 2024) | Carrying Value (Feb 29, 2024) | Fair Value Level 2 (Feb 29, 2024) | | :------------------------- | :---------------------------- | :-------------------------------- | :---------------------------- | :-------------------------------- | | Interest Rate Swap Agreement | $4,806 | $4,806 | $3,410 | $3,410 | | Pension Liability | $30,257 | — | $31,148 | — | - The **fair value** of the investment in the unconsolidated **AVAIL JV** is a Level 3 non-recurring measurement, while **long-term debt fair values** are Level 2 non-recurring measurements[80](index=80&type=chunk)[81](index=81&type=chunk) - The estimated **fair value of outstanding debt** was **$992.6 million** at May 31, 2024, compared to a principal amount of **$985.3 million**[81](index=81&type=chunk) [Note 11. Leases](index=18&type=section&id=11.%20Leases) This note details the company's operating and finance lease assets and liabilities, including lease terms and future payments - As of May 31, 2024, **AZZ** was the lessee for **149 operating leases** and **46 finance leases** with terms of **12 months** or more[82](index=82&type=chunk) | Item | May 31, 2024 (in thousands) | February 29, 2024 (in thousands) | | :--------------------------------- | :-------------------------- | :------------------------------- | | Operating right-of-use assets | $18,474 | $19,808 | | Finance right-of-use assets | $4,118 | $3,931 | | Operating lease liabilities ― short-term | $5,729 | $5,893 | | Operating lease liabilities ― long-term | $13,429 | $14,606 | | Finance lease liabilities ― short-term | $829 | $766 | | Finance lease liabilities ― long-term | $3,372 | $3,221 | | Metric | May 31, 2024 | February 29, 2024 | | :--------------------------------------------- | :----------- | :---------------- | | Weighted-average remaining lease term - operating leases | **3.97 years** | **4.12 years** | | Weighted-average discount rate - operating leases | **4.55%** | **4.49%** | | Weighted-average remaining lease term - finance leases | **5.08 years** | **5.21 years** | | Weighted-average discount rate - finance leases | **6.86%** | **6.70%** | | Lease Expense Category | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :--------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total operating lease expense | $3,492 | $3,525 | | Total financing lease expense | $291 | $92 | | Total lease expense | $3,783 | $3,617 | | Fiscal Year | Operating Leases (in thousands) | Finance Leases (in thousands) | Total (in thousands) | | :---------- | :------------------------------ | :---------------------------- | :------------------- | | 2025 | $4,940 | $816 | $5,756 | | 2026 | $5,740 | $1,015 | $6,755 | | 2027 | $4,552 | $976 | $5,528 | | 2028 | $2,529 | $889 | $3,418 | | 2029 | $1,917 | $672 | $2,589 | | 2030 | $462 | $447 | $909 | | Thereafter | $796 | $170 | $966 | | Total lease payments | $20,936 | $4,985 | $25,921 | | Less imputed interest | $(1,778) | $(784) | $(2,562) | | Total | $19,158 | $4,201 | $23,359 | [Note 12. Income Taxes](index=21&type=section&id=12.%20Income%20Taxes) This note discusses the **effective income tax rate** and its primary drivers for the reported interim period - The **effective tax rate** decreased to **22.4%** for the three months ended May 31, 2024, from **25.3%** in the prior year, primarily due to higher discrete items driven by tax deductions for stock compensation[93](index=93&type=chunk) [Note 13. Mezzanine Equity](index=21&type=section&id=13.%20Mezzanine%20Equity) This note describes the redemption of **Series A Convertible Preferred Stock** and its impact on **net income available to common shareholders** - On May 9, 2024, **AZZ** fully redeemed its **240,000 shares** of **6.0% Series A Convertible Preferred Stock** for **$308.9 million**, using proceeds from the April 2024 **Secondary Offering**[94](index=94&type=chunk) - A **redemption premium** of **$75.2 million** was recorded as a deemed dividend, reducing **net income available to common shareholders**[94](index=94&type=chunk) - The **Series A Preferred Stock**, previously classified as 'Mezzanine equity,' had a **liquidation preference** of approximately **$312.5 million** as of February 29, 2024[96](index=96&type=chunk) - **Dividends declared and paid** for the three months ended May 31, 2024, and May 31, 2023, were **$3.6 million**, paid in cash[97](index=97&type=chunk) [Note 14. Equity](index=24&type=section&id=14.%20Equity) This note details changes in **shareholders' equity**, including **common stock offerings** and components of **accumulated other comprehensive income (loss)** - On April 30, 2024, **AZZ** completed a **secondary public offering**, selling **4.6 million common shares** at **$70.00 per share**, generating **net proceeds** of **$308.7 million**, which were used to redeem the **Series A Preferred Stock**[105](index=105&type=chunk) | AOCI Component | Balance Feb 29, 2024 | Net Change (3M May 31, 2024) | Balance May 31, 2024 | Balance Feb 28, 2023 | Net Change (3M May 31, 2023) | Balance May 31, 2023 | | :-------------------------------------------------------- | :------------------- | :--------------------------- | :------------------- | :------------------- | :--------------------------- | :------------------- | | Foreign Currency Translation Gain (Loss) | $(7,628) | $(425) | $(8,053) | $(7,571) | $19 | $(7,552) | | Foreign Currency Translation Gain (Loss) for Unconsolidated Subsidiary, Net of Tax | $1,418 | — | $1,418 | — | $1,112 | $1,112 | | Net Actuarial Gain (Loss), Net of Tax | $(184) | — | $(184) | $119 | — | $119 | | Interest Rate Swap, Net of Tax | $2,533 | $1,119 | $3,652 | $2,879 | $(3,933) | $(1,054) | | Interest Rate Swap, Net of Tax for Unconsolidated Subsidiary | $(33) | $141 | $108 | — | $(165) | $(165) | | Total | $(3,894) | $835 | $(3,059) | $(4,573) | $(2,967) | $(7,540) | [Note 15. Defined Benefit Pension Plan](index=25&type=section&id=15.%20Defined%20Benefit%20Pension%20Plan) This note provides information on the company's underfunded **defined benefit pension plan** and expected contributions - The **Precoat Metals** segment has an underfunded **defined benefit pension plan** with a **liability** of **$30.3 million** as of May 31, 2024[110](index=110&type=chunk) - **AZZ** recognized **$0.2 million** of **net benefit cost** for the three months ended May 31, 2024, and expects to pay **$6.7 million** in **contributions** to the Plan during the remainder of fiscal 2025[111](index=111&type=chunk) [Note 16. Commitments and Contingencies](index=25&type=section&id=16.%20Commitments%20and%20Contingencies) This note outlines the company's **legal accruals**, **environmental liabilities**, **capital commitments**, and **forward purchase contracts** - **AZZ** has recorded a **legal accrual** of **$5.5 million** as of May 31, 2024, related to a breach of contract lawsuit where a jury rendered a verdict against AZZ Beaumont, with the company planning to pursue appellate options[113](index=113&type=chunk) - A **receivable** of **$5.2 million** is due from a previous customer of an AIS business affiliate, with a trial scheduled for fiscal 2026[114](index=114&type=chunk) - **AZZ** agreed to settle an **environmental indemnification lawsuit** with Nucor Coatings Corporation for **$5.25 million**, which is included in 'Other accrued liabilities' as of May 31, 2024, with payment expected in Q2 fiscal 2025[115](index=115&type=chunk)[117](index=117&type=chunk) - The **reserve balance for environmental remediation liabilities** was **$20.9 million** as of May 31, 2024, with **$2.9 million** classified as current[118](index=118&type=chunk) - **AZZ** is constructing a new **$124.0 million aluminum coil coating facility** in Washington, Missouri, expected to be operational in calendar year 2025 (fiscal year 2026), with **$47.0 million** remaining to be spent prior to the end of fiscal 2025[120](index=120&type=chunk) - As of May 31, 2024, **AZZ** had **non-cancelable forward contracts** to purchase approximately **$37.9 million** of **zinc** and **$9.2 million** of **natural gas**, all expiring by the first quarter of fiscal 2026[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on **AZZ Inc.**'s financial performance and condition for the three months ended May 31, 2024, highlighting **sales** growth driven by **demand** in construction, industrial, and transportation sectors, alongside strategic financial activities like the redemption of preferred stock and debt reduction. It also outlines the company's outlook, segment-specific results, and **liquidity management** [Business Operations Update](index=29&type=section&id=Business%20Operations%20Update) This section summarizes key financial results, **cash flow generation**, and strategic financing activities for the quarter - Results for the three months ended May 31, 2024, were favorably impacted by growth in **demand** for manufactured solutions in the construction, industrial, and transportation industries, coupled with a value-driven pricing strategy[127](index=127&type=chunk) - **Net income** was **$39.6 million**, but **net income attributable to common shareholders** was a loss of **$36.8 million** after deducting preferred dividends and the **redemption premium on Series A Preferred Stock**[127](index=127&type=chunk) - **Operations generated $71.9 million of cash**, including **$7.6 million** from **working capital reduction**, used for **$27.4 million** in **capital investments** and **$7.9 million** in **dividend payments**[127](index=127&type=chunk) - **Financing activities** included a **$308.7 million common stock offering** used to fund the **$308.9 million redemption of Series A Preferred Stock**, and a **$25.0 million net reduction in outstanding debt**[127](index=127&type=chunk) - **Cash and cash equivalents** increased to **$10.5 million** as of May 31, 2024, with **$350.7 million** available under the **Revolving Credit Facility**[127](index=127&type=chunk) [Outlook](index=30&type=section&id=Outlook) This section provides management's expectations for future **sales prices**, seasonal **demand** patterns, and **customer inventory levels** - **Sales prices** in both **AZZ Metal Coatings** and **AZZ Precoat Metals** segments are expected to remain consistent with current levels, though product mix and competitive pressures may cause fluctuations[129](index=129&type=chunk) - **Demand** in both **Metal Coatings** and **Precoat Metals** segments is expected to follow typical seasonal patterns[129](index=129&type=chunk) - **Customer inventories** for both segments remain consistent or at historical levels, supporting continued **demand** for **metal coatings** and **coil coating solutions**[129](index=129&type=chunk) [RESULTS OF OPERATIONS](index=30&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of the company's financial performance for the reported interim period [Overview](index=30&type=section&id=Overview) This section introduces **AZZ**'s business segments and the primary metrics used for evaluating their performance - **AZZ** provides **hot-dip galvanizing** and **coil coating solutions** primarily in North America, operating through three segments: **AZZ Metal Coatings**, **AZZ Precoat Metals**, and **AZZ Infrastructure Solutions**[130](index=130&type=chunk) - **Segment sales and operating income** are the primary measures for evaluating **Metal Coatings** and **Precoat Metals**, while **net income** is used for **Infrastructure Solutions**[130](index=130&type=chunk) [QUARTER ENDED MAY 31, 2024 COMPARED TO THE QUARTER ENDED MAY 31, 2023](index=31&type=section&id=QUARTER%20ENDED%20MAY%2031,%202024%20COMPARED%20TO%20THE%20QUARTER%20ENDED%20MAY%2031,%202023) This section compares the company's financial results for the three months ended May 31, 2024, against the same period in the prior year [Segment Sales and Operating Income](index=31&type=section&id=Segment%20Sales%20and%20Operating%20Income) This table presents a comparative breakdown of **sales** and **operating income** across **AZZ**'s business segments | Segment | Sales (May 31, 2024) | Operating Income (May 31, 2024) | Sales (May 31, 2023) | Operating Income (May 31, 2023) | | :-------------------------- | :------------------- | :------------------------------ | :------------------- | :------------------------------ | | Metal Coatings | $176,651 | $47,932 | $168,794 | $45,470 | | Precoat Metals | $236,557 | $40,094 | $222,079 | $37,691 | | Infrastructure Solutions | — | $(29) | — | $(22) | | Corporate | — | $(18,248) | — | $(17,643) | | Total | $413,208 | $69,749 | $390,873 | $65,496 | [Sales](index=31&type=section&id=Sales) This section analyzes the drivers behind the consolidated and segment-specific **sales** growth for the quarter - **Consolidated sales** increased by **$22.3 million**, or **5.7%**, to **$413.2 million** for the current quarter compared to the prior year quarter[136](index=136&type=chunk) - **AZZ Metal Coatings segment sales** increased by **$7.9 million** (**4.7%**) due to a higher volume of **steel processed** (**$11.7 million**), partially offset by a lower **average selling price** from product mix (**$3.0 million**)[136](index=136&type=chunk)[137](index=137&type=chunk) - **AZZ Precoat Metals segment sales** increased by **$14.4 million** (**6.5%**) due to a higher volume of **coil coated**, while the **average price** remained flat[137](index=137&type=chunk) [Operating Income](index=32&type=section&id=Operating%20Income) This section analyzes the factors influencing the consolidated and segment-specific **operating income** changes for the quarter - **Consolidated operating income** increased by **$4.3 million**, or **6.5%**, for the current quarter compared to the prior year quarter[137](index=137&type=chunk) - **AZZ Metal Coatings segment operating income** increased by **$2.5 million** (**5.4%**) due to increased **sales**, partially offset by higher **cost of sales** (increased **labor and overhead costs**, offset by lower **zinc costs**)[137](index=137&type=chunk) - **AZZ Precoat Metals segment operating income** increased by **$2.4 million** (**6.4%**) due to increased **sales**, offset by higher **cost of sales** (**variable costs** from increased volume and **depreciation expense**)[138](index=138&type=chunk) [Corporate Expenses](index=32&type=section&id=Corporate%20Expenses) This section discusses the changes in **corporate selling, general, and administrative expenses** for the reported period - **Corporate selling, general, and administrative expenses** increased by **$0.6 million**, or **3.4%**, for the current quarter compared to the prior year quarter[138](index=138&type=chunk) [Interest Expense](index=32&type=section&id=Interest%20Expense) This section explains the decrease in **net interest expense**, primarily due to reduced debt and lower **interest rates** - **Interest expense** decreased by **$5.9 million** to **$22.8 million**, primarily due to a **$120.0 million** decrease in **weighted average debt outstanding** and a **0.98%** decrease in the **weighted average interest rate**, coupled with higher **capitalized interest** of **$1.2 million**[138](index=138&type=chunk) [Equity in Earnings of Unconsolidated Entities](index=32&type=section&id=Equity%20in%20Earnings%20of%20Unconsolidated%20Entities) This section details the increase in **equity earnings** from the **AVAIL joint venture**, driven by strong business performance - **Equity in earnings of unconsolidated subsidiaries** increased by **$2.4 million** to **$3.8 million**, primarily due to higher earnings from the **AVAIL JV**, driven by its enclosure, high-voltage, and medium-voltage bus businesses[139](index=139&type=chunk) [Income Taxes](index=32&type=section&id=Income%20Taxes) This section discusses the change in the **effective tax rate**, primarily influenced by discrete tax items - The **effective tax rate** decreased to **22.4%** for the three months ended May 31, 2024, from **25.3%** in the prior year, primarily due to higher discrete items driven by tax deductions for stock compensation[139](index=139&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=33&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash position, debt structure, and capital management strategies [Cash Flows](index=33&type=section&id=Cash%20Flows) This section summarizes the company's cash generation and utilization across operating, investing, and financing activities - As of May 31, 2024, **total liquidity** was **$361.2 million**, consisting of **$350.7 million** available on the **Revolving Credit Facility** and **$10.5 million** in **cash and cash equivalents**[141](index=141&type=chunk) | Cash Flow Category | Three Months Ended May 31, 2024 (in thousands) | Three Months Ended May 31, 2023 (in thousands) | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by operating activities | $71,944 | $46,893 | | Net cash used in investing activities | $(27,379) | $(17,027) | | Net cash used in financing activities | $(38,542) | $(29,545) | - **Net cash provided by operating activities** for the current three-month period was **$71.9 million**, driven by **net income** (**$39.6 million**), **non-cash charges** (**$22.5 million**), and a **$7.6 million reduction in working capital**[142](index=142&type=chunk) - **Operating cash flows** were used to fund **$27.4 million of capital expenditures**, make **$25.2 million** in **net payments on long-term debt and finance leases**, pay **$7.9 million** in dividends, and make **$4.6 million** in **payments for taxes related to net share settlement of equity awards**[142](index=142&type=chunk) - **Financing activities** included a **$308.7 million common stock offering** used to redeem **$308.9 million of Series A Preferred Stock**[142](index=142&type=chunk) [Financing and Capital](index=33&type=section&id=Financing%20and%20Capital) This section details the company's debt facilities, recent equity offering, and capital expenditure plans - The **2022 Credit Agreement** includes a **$1.3 billion Term Loan B** (outstanding balance of **$950.3 million** as of May 31, 2024) and a **$400.0 million Revolving Credit Facility**[144](index=144&type=chunk) - The **Term Loan B** was repriced on March 20, 2024, adjusting the **SOFR spread** from **3.75%** to **3.25%**[146](index=146&type=chunk) - The **weighted average interest rate for outstanding debt** was **8.09%** as of May 31, 2024, down from **9.07%** as of May 31, 2023[147](index=147&type=chunk) - **AZZ** completed a **secondary public offering** on April 30, 2024, generating **$308.7 million** in **net proceeds**, which were used to redeem the **Series A Preferred Stock** for **$308.9 million** on May 9, 2024[150](index=150&type=chunk)[151](index=151&type=chunk) - **AZZ** is constructing a new **$124.0 million aluminum coil coating facility**, with **$47.0 million** remaining to be spent prior to the end of fiscal 2025, expected to be funded through **cash flows from operations**[153](index=153&type=chunk) - As of May 31, 2024, **$53.2 million** remained available under the **2020 Share Authorization** for future **common stock repurchases**[154](index=154&type=chunk) [Other Exposures](index=35&type=section&id=Other%20Exposures) This section discusses the company's exposure to **commodity price increases** and its mitigation strategies - **AZZ** has exposure to **commodity price increases**, primarily **zinc and natural gas** in the **AZZ Metal Coatings** segment, and **natural gas**, steel, and aluminum in the **AZZ Precoat Metals** segment[155](index=155&type=chunk) - The company mitigates **commodity price risks** through **fixed premium agreements** with **zinc** suppliers, **fixed purchase cost agreements** with **natural gas** suppliers, **manufacturing process improvements**, **supply chain management**, and **price increases**[155](index=155&type=chunk) - As of May 31, 2024, **AZZ** had **non-cancelable forward contracts** to purchase approximately **$37.9 million** of **zinc** and **$9.2 million** of **natural gas**, all expiring by the first quarter of fiscal 2026[156](index=156&type=chunk) [Off Balance Sheet Arrangements and Contractual Obligations](index=35&type=section&id=Off%20Balance%20Sheet%20Arrangements%20and%20Contractual%20Obligations) This section confirms the absence of **off-balance sheet arrangements** and outlines contractual obligations - As of May 31, 2024, **AZZ** did not have any **off-balance sheet arrangements** as defined under SEC rules[157](index=157&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no significant changes to the company's **critical accounting policies and estimates** - There were no significant changes to **AZZ**'s **critical accounting policies and estimates** compared to those disclosed in the Annual Report on Form 10-K for the fiscal year ended February 29, 2024[159](index=159&type=chunk) [Recent Accounting Pronouncements](index=36&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to the notes for details on recently adopted and pending accounting pronouncements - Refer to Note 1 to the condensed consolidated financial statements for a full description of recent accounting pronouncements, including adoption dates and estimated effects[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's **market risk disclosures** during the three months ended May 31, 2024, and refers to the Annual Report on Form 10-K for a comprehensive discussion - There have been no material changes to **AZZ**'s **market risk disclosures** during the three months ended May 31, 2024[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures** were effective as of May 31, 2024, ensuring timely and accurate reporting. No significant changes in **internal control over financial reporting** were reported - The Chief Executive Officer and Chief Financial Officer concluded that **AZZ**'s **disclosure controls and procedures** were effective as of May 31, 2024, to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[162](index=162&type=chunk) - There have been no significant changes in the company's **internal controls over financial reporting** during the period covered by this report[163](index=163&type=chunk) PART II. OTHER INFORMATION This section provides additional non-financial disclosures, including legal proceedings, risk factors, and equity matters [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) **AZZ Inc.** is involved in various **routine lawsuits**, including labor, environmental, and commercial disputes. Management believes it has strong defenses and does not expect these proceedings to materially affect the company's **financial position, results of operations, or cash flows** - **AZZ** and its subsidiaries are named defendants and plaintiffs in various **routine lawsuits** incidental to its business, including labor and employment claims, worker's compensation, environmental matters, and commercial disputes[164](index=164&type=chunk) - Management, after consultation with legal counsel, believes it has strong defenses to all these matters and does not expect liabilities, if any, to have a material effect on the Company's **financial position, results of operations, or cash flows**[164](index=164&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the **risk factors** previously disclosed in the company's most recent Annual Report on Form 10-K - There have been no material changes from **risk factors** previously disclosed in the Company's most recent Annual Report on Form 10-K for the fiscal year ended February 29, 2024[166](index=166&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) **AZZ** did not repurchase any **common stock** under its **$100 million 2020 Share Authorization** during the three months ended May 31, 2024, leaving **$53.2 million** available for future repurchases - **AZZ** did not purchase any shares of **common stock** under the **2020 Share Authorization** during the three months ended May 31, 2024[167](index=167&type=chunk) - As of May 31, 2024, **$53.2 million** remained available under the **2020 Share Authorization** for future **common stock repurchases**[167](index=167&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated a **Rule 10b5-1** or **non-Rule 10b5-1 trading arrangement** during the three months ended May 31, 2024 - During the three months ended May 31, 2024, none of **AZZ**'s directors or executive officers adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** or a **non-Rule 10b5-1 trading arrangement**[168](index=168&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including **certifications** and **Inline XBRL documents** - Exhibits include **certifications** of the **Chief Executive Officer** and **Chief Financial Officer** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, along with **Inline XBRL documents**[170](index=170&type=chunk)[171](index=171&type=chunk) [SIGNATURES](index=39&type=section&id=SIGNATURES) The report is duly signed on behalf of **AZZ Inc.** by **Tiffany Moseley, Chief Accounting Officer and Principal Accounting Officer**, on **July 10, 2024** - The report was signed on behalf of **AZZ Inc.** by **Tiffany Moseley, Chief Accounting Officer and Principal Accounting Officer**, on **July 10, 2024**[173](index=173&type=chunk)

AZZ Inc. Reports Fiscal Year 2025 First Quarter Results Record Quarterly Sales and Margin Expansion on Organic Growth Generated Significant Cash Flow July 10, 2024 - FORT WORTH, TX - AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the first quarter ended May 31, 2024. Fiscal Year 2025 First Quarter Overview (as compared to prior year ): (1) ◦ Total Sales $413.2 million, up 5.7% ▪ Metal Coatings sales of $176.7 mi ...

Record Quarterly Sales and Margin Expansion on Organic Growth Generated Significant Cash FlowFORT WORTH, Texas, July 10, 2024 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the first quarter ended May 31, 2024. Fiscal Year 2025 First Quarter Overview (as compared to prior year(1)):Total Sales $413.2 million, up 5.7%Metal Coatings sales of $176.7 million, up 4.7%Precoat Metals sales of $236.5 mill ...

FORT WORTH, Texas, June 27, 2024 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced its Board of Directors has authorized a first quarter cash dividend in the amount of $0.17 per share on the Company's outstanding shares of common stock. The dividend is payable on July 31, 2024, to shareholders of record as of the close of business on July 10, 2024.While AZZ currently intends to pay regular quarterly cash dividends for th ...

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has AZZ (AZZ) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.AZZ is a member of the Industrial Products sector. This group includes 222 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the ave ...

Core Viewpoint - AZZ has experienced a decline of -7.6% in share price over the past month, contrasting with the S&P 500's increase of +2.7% and the Zacks Manufacturing - Electronics industry's loss of -4.7% [1] Earnings Estimates Revisions - AZZ is projected to report earnings of $1.31 per share for the current quarter, reflecting a year-over-year increase of +14.9%, with a recent estimate change of +0.5% [2] - The consensus earnings estimate for the current fiscal year stands at $4.96, indicating a year-over-year change of +9.5%, with a +2.3% change over the last 30 days [3] - For the next fiscal year, the earnings estimate is $5.76, representing a +16.1% change from the previous year, although it has decreased by -0.7% recently [3] - AZZ holds a Zacks Rank 1 (Strong Buy), indicating strong potential for near-term price performance based on earnings estimate revisions [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $398.9 million, showing a year-over-year increase of +2.1% [4] - For the current fiscal year, the revenue estimate is $1.6 billion, reflecting a +4% change, while the next fiscal year's estimate is $1.69 billion, indicating a +5.9% change [4] Last Reported Results and Surprise History - In the last reported quarter, AZZ achieved revenues of $366.5 million, a year-over-year increase of +8.9%, and an EPS of $0.93 compared to $0.30 a year ago [5] - The reported revenues exceeded the Zacks Consensus Estimate of $354.14 million by +3.49%, and the EPS surpassed estimates by +32.86% [5] - Over the last four quarters, AZZ has exceeded consensus EPS estimates three times and has also surpassed revenue estimates three times [6] Valuation - Valuation analysis is crucial for determining if AZZ's stock price reflects its intrinsic value and growth prospects [7] - AZZ is graded B in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [8] Bottom Line - The information presented suggests that AZZ may outperform the broader market in the near term, supported by its strong Zacks Rank [9]