AZZ (AZZ) investor relations material

Strategic transformation and business overview

• Transitioned to a pure-play metal coatings company through asset divestitures and the acquisition of Precoat Metals, focusing on two core segments: metal coatings and coil coatings.

• Holds leading market share in both segments, with 46 metal coating locations and 14 coil coating facilities, primarily serving North America.

• Achieved $1.65 billion in sales and $368 million in adjusted EBITDA, with a 22.3% margin; targeting $2 billion in sales by FY 2028.

• Maintains a strong balance sheet with leverage at 1.4x EBITDA and ongoing debt reduction.

• Capital allocation prioritizes high-ROIC investments, disciplined M&A, dividend growth, and share repurchases.

Market drivers and growth opportunities

• Secular growth trends in infrastructure, reshoring, and clean energy are fueling demand, especially in galvanizing and coil coating.

• End markets include construction, industrial, electrical, and transportation, with infrastructure investment as a key driver.

• Technology advancements in pre-painted steel and conversion from plastics to aluminum in beverage packaging are expanding opportunities.

• Greenfield expansion and bolt-on M&A are being pursued, with a focus on adjacent solutions and geographic growth.

• No plans for international expansion in the next 3–5 years, focusing on North American opportunities.

Operational excellence and innovation

• Proprietary technologies like Digital Galvanizing System and CoilZone enhance operational efficiency and customer integration.

• Investments in AI and IT infrastructure are improving automation, decision-making, and process efficiency.

• R&D partnership with Texas A&M has led to improved galvanizing chemistry and efficiency.

• Sustainability initiatives include tracking and reducing Scope 1 and 2 emissions, with industry-leading ESG scores.

• Diverse workforce and strong corporate values underpin organizational culture and leadership stability.