AZZ Financial Analysis

Analysis Date: 1/27/2025

Business Model

AZZ operates through three segments: Metal Coatings, Precoat Metals, and Infrastructure Solutions

Revenue Sources

• Metal Coatings - Provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating services
• Precoat Metals - Provides coil coating application of protective and decorative coatings for steel and aluminum coils
• Infrastructure Solutions - 40% stake in AVAIL JV providing power transmission and distribution solutions

Income Statement Analysis

• Revenue increased 5.8% YoY driven by higher volumes in both Metal Coatings and Precoat Metals segments
• Gross margin improved to 24.2% from 23.1% due to operational efficiencies and favorable product mix

Balance Sheet Analysis

• Strong balance sheet with $2.2B in total assets
• Total debt reduced to $930.3M from $1.01B at FY24 end

Capital Allocation

Company focuses on debt reduction, organic growth investments including $124M aluminum coating facility project, and maintaining quarterly dividend of $0.17 per share

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution, debt reduction progress, and growth investments support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/27/2025, 2:06:38 PM