AZZ (AZZ) investor relations material

Strategic positioning and business model

• Operates 47 Metal Coatings and 14 coil coating locations, making it the largest provider in North America with a 27% market share in galvanizing and 23% in coil coating.

• Maintains a toll coating model, limiting commodity exposure to zinc and paint, enhancing resilience to market fluctuations.

• Focuses on end markets such as construction (59% of revenue), infrastructure, industrial, transportation, HVAC, appliances, and rapidly growing container segments.

• Benefits from proximity to customers, offering 3–5 day turnaround and a transportation network for flexible service.

• Leverages a strong, experienced executive team with a track record of over 20 successful M&A deals.

Financial performance and guidance

• Achieved $1.65 billion in revenue and $368 million in adjusted EBITDA for FY ending February, with a 22% consolidated margin and 31% in Metal Coatings.

• Reduced leverage from 3.6x to 1.4x debt/EBITDA, with $385 million in debt reduction last year and interest expense down to $35–$45 million.

• Raised FY guidance to $1.8–$1.85 billion in sales and $375–$415 million in adjusted EBITDA, with EPS guidance of $6.75–$7.15.

• Consistent dividend growth (recent 20% increase), $20 million in share repurchases, and $130 million buyback authorization.

• Maintains high free cash flow, supporting investments, dividends, and share repurchases.

Growth drivers and investments

• Targets organic growth at 2x GDP, supported by infrastructure, data center, reshoring, and beverage can market trends.

• Completed a $125 million greenfield plant in Washington, Missouri, with a 75% take-or-pay contract, expected to be accretive in FY 2027.

• Added capacity in Texas and acquired Seattle Galvanizing, expanding geographic reach and serving high-growth markets.

• Invests $80–$100 million annually in CapEx, with 80% for maintenance and the remainder for growth.

• Deploys proprietary digital systems and AI to enhance operational efficiency and customer experience.