AZZ Shares Decline After Q2 Revenue Slightly Misses Estimates

NEW YORK – AZZ Inc. (NYSE: AZZ) reported mixed results for its second quarter and provided an uncertain outlook for fiscal 2025, resulting in a 3.74% decline in shares during after-hours trading on Wednesday.

The company, which specializes in metal coatings and precoat metals, announced adjusted earnings per share of $1.37 for the second quarter, surpassing analyst expectations of $1.32. However, its revenue totaled $409 million, falling slightly short of the anticipated $409.5 million.

Sales for AZZ saw a year-over-year increase of 2.6%, primarily due to a 3.8% growth in its Precoat Metals segment and a 1% rise in Metal Coatings. The adjusted EBITDA margin improved to 22.5%, up from 22.1% the previous year.

For fiscal 2025, AZZ revised its earnings guidance upward to a range of $4.70 to $5.10 per share, compared to the consensus forecast of $4.94. Conversely, its revenue forecast of $1.525 to $1.625 billion was mixed against analyst predictions of $1.61 billion.

“Focused execution and seasonal strength contributed to second quarter sales of $409.0 million, up 2.6% over the prior year, and adjusted EPS of $1.37,” stated CEO Tom Ferguson.

Additionally, the company has reduced its debt by $45 million in the first half of fiscal 2025 and now anticipates cutting its total debt by at least $100 million for the year, surpassing its earlier target range.