AZZ Inc. Reports $1.577 Billion Revenue and $128.8 Million Net Income for Fiscal Year Ending February 2025

AZZ Inc. reported a solid financial performance for the fiscal year ending February 28, 2025, with total revenues reaching $1.577 billion, a 2.6% increase from $1.538 billion in the previous fiscal year. The company's net income from continuing operations was $128.8 million, compared to $101.6 million in fiscal 2024, reflecting a net income margin of 8.2%, up from 6.6% the prior year. This growth was primarily driven by increased demand for its metal coating solutions, particularly in the construction sector, which contributed significantly to the overall revenue increase.

The company experienced notable changes in its operational segments. The AZZ Metal Coatings segment generated $665.1 million in sales, a slight increase of 1.4% from the previous year, while the AZZ Precoat Metals segment saw a more substantial growth of 3.5%, with sales rising to $912.6 million. The operating income for the Metal Coatings segment increased by 8.3% to $178.5 million, attributed to lower costs of sales and reduced selling, general, and administrative expenses. Conversely, the Infrastructure Solutions segment reported an operating loss of $6.7 million, which was impacted by litigation costs and a write-off of a disputed receivable.

Strategically, AZZ completed a secondary public offering in April 2024, raising $308.7 million, which was used to redeem its Series A Convertible Preferred Stock. This move was part of a broader strategy to streamline its capital structure and enhance shareholder value. Additionally, the company is expanding its capabilities with the construction of a new aluminum coil coating facility in Washington, Missouri, expected to be operational in fiscal 2026, supported by a take-or-pay contract for 75% of its output.

As of February 28, 2025, AZZ employed approximately 3,684 people, with a significant portion of its workforce being hourly employees. The company reported a diverse employee demographic, with 53% of its U.S. workforce identifying as diverse. The company continues to focus on enhancing its operational efficiency and employee engagement, which it views as critical to its long-term success. Looking ahead, AZZ anticipates stable sales prices in its Metal Coatings and Precoat Metals segments, with demand expected to follow typical seasonal patterns, although it remains cautious about potential economic fluctuations and their impact on future operations.