AZZ (AZZ) Q3 2025 earnings summary

Executive summary

• Third quarter sales reached $403.7 million, up 5.8% year-over-year, with net income of $33.6 million, up 25.0%, and adjusted net income of $41.9 million, up 20.5%, driven by strong demand in construction, utilities, and industrial markets.

• Consolidated sales for the nine months rose 4.7% year-over-year to $1.23 billion, with both Metal Coatings and Precoat Metals segments contributing to growth.

• The company maintained leading market positions, continued to invest in technology and capacity expansion, and advanced its new aluminum coil coating facility in Missouri.

• Operating cash flow for the first nine months was $185.6 million, supporting capital investments and debt reduction.

• Full redemption of Series A Preferred Stock was completed in May 2024 using proceeds from a $308.7 million secondary public offering.

Financial highlights

• Q3 sales reached $403.7 million, up 5.8% year-over-year, with gross profit of $97.8 million (24.2% margin) and operating income of $58.5 million (14.5% of sales).

• Adjusted net income for Q3 was $41.9 million, up 20.5% year-over-year; adjusted diluted EPS was $1.39, up 16.8%.

• Adjusted EBITDA for Q3 was $90.7 million (22.5% margin); for the nine months, adjusted EBITDA was $276.7 million, up from $259.8 million.

• Cash flow from operations for the first nine months was $185.6 million, with free cash flow at $99.7 million after $85.9 million in capex.

• Interest expense declined to $63.9 million for the nine months, and the net leverage ratio improved to 2.6x from 3.4x year-over-year.

Outlook and guidance

• FY25 sales guidance narrowed to $1.55–$1.6 billion; adjusted EBITDA guidance raised to $340–$360 million and adjusted EPS to $5.00–$5.30.

• Capex for FY25 expected at $100–$120 million, including the new Missouri plant.

• Debt paydowns for FY25 expected to exceed $100 million.

• Guidance assumes no future acquisitions and includes $15–$18 million equity income from minority interest.

• FY26 guidance to be provided in a few weeks.