- Record full-year sales of $1.58 billion, up 2.6% year-over-year.
- Net income surged by 26.8% to $128.8 million.
- Adjusted EBITDA reached $347.9 million, marking a 22% margin.
AZZ Inc. (AZZ, Financial) reported strong performance for fiscal year 2025, achieving record total sales of $1.58 billion, a 2.6% increase compared to the previous year. The company's Metal Coatings segment recognized sales of $665.1 million, up 1.4%, while the Precoat Metals segment posted sales of $912.6 million, up 3.5%.
The company's net income rose significantly by 26.8% to $128.8 million. Adjusted earnings per share (EPS) stood at $5.20, with GAAP EPS at $1.79. The adjusted EBITDA grew to $347.9 million, representing 22% of total sales, reflecting a 4.3% improvement over fiscal 2024.
Despite a challenging fourth quarter, due to adverse weather conditions that led to a 4.0% decline in sales to $351.9 million, the company's profitability improved with fourth quarter net income rising 41.7% to $20.2 million.
AZZ successfully reduced its debt by $110 million throughout the year, bringing its net leverage below 2.5x. Operating cash flow for FY2025 was solid at $249.9 million, with capital expenditures amounting to $115.9 million, significantly invested in the Washington, Missouri greenfield facility.
Looking forward to FY2026, AZZ projects sales to range between $1.625 billion and $1.725 billion, with adjusted EBITDA expected to be within $360 million to $400 million. The company anticipates receiving proceeds exceeding $200 million from the AVAIL joint venture transaction in the first quarter of FY2026, which should further support its capital allocation strategy.
