AZZ(US:AZZ)2026-01-07 21:15Financial Performance - Total sales reached $425.7 million, an increase of 5.5% compared to the prior year[4] - Adjusted EBITDA was $91.2 million, representing 21.4% of sales, compared to 22.5% in the prior year[6] - Adjusted diluted EPS increased to $1.52, up 9.4% year-over-year[6] - Net income rose to $41.1 million, a 22.2% increase from the previous year[6] - Net cash provided by operating activities for the nine months ended November 30, 2025, was $452.9 million, significantly higher than $185.6 million in 2024[27] - Adjusted net income for the nine months ended November 30, 2025, was $301.3 million, compared to $108.6 million in 2024[34] - Net income for the three months ended November 30, 2024, was $33,603, compared to a net loss of $57,105 in the previous period[37] - For the nine months ended November 30, 2025, net income reached $301,329, a substantial increase from a net loss of $196,213 in the prior year[38] Sales and Revenue - Metal Coatings sales grew by 15.7% to $195.0 million, driven by infrastructure-related project spending[7] - Precoat Metals sales decreased by 1.8% to $230.7 million due to weaker demand in certain end markets[8] - Total sales for the three months ended November 30, 2025, reached $425.7 million, a 5.4% increase from $403.7 million in the same period of 2024[23] Cash Flow and Assets - Cash provided by operating activities was $79.7 million, up 20% from last year[6] - Current assets increased to $400.8 million as of November 30, 2025, compared to $375.4 million as of February 28, 2025[25] - Cash and cash equivalents at the end of the period were $623,000, down from $1.5 million at the beginning of the period[27] Debt and Leverage - The company reduced debt by $35 million, achieving a net leverage ratio of 1.6x[5] - Long-term debt decreased to $534.7 million as of November 30, 2025, from $852.4 million as of February 28, 2025[25] - The company reported a gross debt of $574,875 as of November 30, 2025, with a net leverage ratio of 1.6x, indicating improved financial stability[40] Guidance and Future Plans - Fiscal Year 2026 guidance for sales is narrowed to a range of $1.625 - $1.7 billion[12] - Capital expenditures for the fiscal year are expected to be approximately $60 - $80 million[9] - The company plans to continue focusing on restructuring efforts and operational efficiencies to enhance future performance[40] Operational Performance - The company recorded a total segment adjusted EBITDA of $323.6 million for the nine months ended November 30, 2025, compared to $317.4 million in 2024[23] - Adjusted EBITDA for the three months ended November 30, 2025, was $91.2 million, slightly up from $90.7 million in the prior year[35] - Adjusted EBITDA for the nine months ended November 30, 2025, was $286,304, reflecting strong operational performance despite restructuring charges[38] - Depreciation and amortization expenses for the nine months ended November 30, 2025, totaled $66,976, up from $61,383 in the previous year[38] - Interest expense for the nine months ended November 30, 2025, was $44,434, compared to $63,906 in the prior year, showing a reduction in financing costs[38] Adjustments and Other Expenses - The company recognized a significant adjustment of $(226,843) related to equity in earnings from the AVAIL joint venture, impacting overall profitability[38] - Legal settlements and accruals accounted for $3,483 in expenses during the three months ended November 30, 2024[37]