AZZ Inc. (AZZ – Free Report) reported third-quarter fiscal 2025 (ended Nov. 30, 2024) earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.29. The bottom line increased 16.8% year over year.
Total revenues of $403.7 million outperformed the consensus estimate of $400 million. The top line rose 5.8% year over year, driven by market share growth and improvements from mix shifts in end markets, including construction, HVAC and transportation.
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AZZ’s Segmental Results
The company has two reportable segments: Metal Coatings and Precoat Metals.
Revenues from the Metal Coatings segment (representing 41.8% of the quarter’s net revenues) totaled $168.6 million, up 3.3% year over year. The consensus estimate for Metal Coatings’ revenues was pegged at $169 million.
Revenues from the Precoat Metals segment (representing 58.2% of the quarter’s net revenues) totaled $235.1 million, up 7.6% year over year. The consensus estimate was pegged at $235 million.
AZZ Inc. Price, Consensus and EPS Surprise
AZZ Inc. price-consensus-eps-surprise-chart | AZZ Inc. Quote
AZZ’s Margin Profile
AZZ’s cost of sales increased 4.2% year over year to $305.9 million. The gross profit was up 10.9% year over year to $97.8 million. The adjusted gross margin was 24.2% compared with 23.1% in the year-ago period.
Selling, general and administrative expenses increased 11.1% year over year to $35.3 million. Adjusted EBITDA increased 5% year over year to $90.7 million.
AZZ’s Balance Sheet and Cash Flow
Exiting the fiscal third quarter, AZZ had a cash balance of $1.5 million compared with $4.3 million at the end of fiscal 2024. Long-term debt was $879.5 million at the end of the fiscal quarter.
In the first nine months of fiscal 2025, the company generated net cash of $185.6 million from operating activities compared with $180.9 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $85.9 million, up 28.5% on a year-over-year basis.
AZZ’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
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