AZZ (AZZ) Q2 2025 earnings summary

Executive summary

• Second quarter sales rose 2.6% year-over-year to $409 million, with both Metal Coating and Precoat Metal segments contributing to growth and operational productivity.

• Net income for the six months ended August 31, 2024 was $75.0 million, with Q2 net income up 25% to $35.4 million; adjusted net income for Q2 was $41.3 million.

• EBITDA dollars and margins expanded compared to the prior year, driven by productivity improvements and operational execution.

• Cash flow from operations reached $119.4 million for the first half, supporting debt reduction and strategic investments.

• Construction-related markets, especially infrastructure, drove 57% of combined coating sales.

Financial highlights

• Gross profit for Q2 was $103.5 million (25.3% of sales), up 90 basis points year-over-year.

• Operating income for Q2 was $67.6 million (16.5% of sales), up from $61 million (15.3%) last year; six-month operating income was $137.4 million, up 8.6%.

• Net income for Q2 was $35.4 million, with basic EPS of $1.19, up from $0.99; adjusted EPS for Q2 was $1.37.

• Adjusted EBITDA for Q2 was $91.9 million (22.5% of sales), up from $88 million (22.1%).

• Free cash flow for the first six months was $59.9 million after $59.5 million in capex.

Outlook and guidance

• Fiscal year sales guidance is $1.525–$1.625 billion, with adjusted EBITDA expected at $320–$360 million and adjusted EPS at $4.70–$5.10.

• Capex for the year expected at $100–$120 million, including $63 million for the new plant.

• Debt paydown for the year now expected to exceed $100 million.

• Sales prices in both Metal Coatings and Precoat Metals segments are expected to remain stable, with demand following typical seasonal patterns.

• The new aluminum coil coating facility in Missouri is expected to be operational in fiscal 2026, with most capital spending completed by fiscal 2025.