Coil Coaters
AZZ reports solid quarter on improving demand
Written by Laura Miller
April 22, 2024
AZZ Inc. said it is seeing improving demand for its coil coating services as it reported a solid quarterly performance.
The Fort Worth, Texas-based galvanizer and coil coater this week reported its earnings results for the fiscal quarter and year ended Feb. 29.
“Fiscal year 2024 was a pivotal year for AZZ that reflects continued success in metal coatings and our first full fiscal year of results in Precoat Metals,” said AZZ president and CEO Tom Ferguson.
AZZ purchased Precoat Metals, a steel and aluminum coil coating solutions company based in St. Louis, for $1.28 billion in 2022. Jeff Vellines was recently named president of AZZ – Precoat Metals.
Fourth quarter ended Feb. 29/28 | 2024 | 2023 | % change |
---|---|---|---|
Net sales | $366.5 | $336.5 | 9% |
Net earnings (loss) | $17.9 | $1.1 | 1,589% |
Per diluted share | $0.56 | ($0.10) | 660% |
Year ended Feb. 29/28 | |||
Net sales | $1,537.6 | $1,323.6 | 16% |
Net earnings (loss) | $101.6 | ($53.0) | 292% |
Per diluted share | $3.46 | ($2.45) | 241% |
For fiscal Q4’24, AZZ reported a 9% year-on-year increase in sales to $366.5 million. Accounting for 58% of that total, Precoat Metals’ sales were $212.1 million.
Net income for the quarter jumped from $1.1 million last year to $17.9 million this year.
AZZ’s sales for fiscal year 2024, at $1.54 billion, were 16% higher y/y. The company swung from a net loss of $53 million in fiscal 2023 to net income of $101.6 million in fiscal 2024.
While the Precoat Metals segment reported 6% lower volumes in fiscal 2024, sales were 28% higher at $881.4 million.
For the year, the metal coatings segment reported improving volumes for hot-dip galvanizing driven by strength in renewables, utility, and OEM construction markets, the company said.
Earlier this month, AZZ upped its financial guidance for fiscal year 2025, with Ferguson noting signs of strength in many of the company’s end markets. Executives on Monday’s earnings conference call were bullish on demand and the company’s future.
“We are seeing signs of a ramp-up in the cadence of federal funding, as evidenced by the uptick in award announcements by the Department of Energy, Commerce, and Transportation. We believe infrastructure monies are flowing in 2024 and that DOT budgets are available in all 50 states,” commented David Nark, SVP of marketing, communications, and IR, on the call.
“Going forward, we expect an elevated number of projects related to [transmission and distribution], bridge and highway, data centers, and chip plant work in our future quarters,” he added.
This fiscal year, AZZ is planning for $100-120 million in capital expenditures. This includes $50-60 million to complete a greenfield aluminum coil coating facility in Washington, Mo., in fiscal 2025.
Laura Miller
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