AZZ Inc. Reports $170.9 Million Net Income and $422.0 Million Sales for Quarter Ended May 31, 2025

AZZ Inc. reported a significant increase in financial performance for the three months ended May 31, 2025, with net income reaching $170.9 million, a substantial rise from $39.6 million in the same period last year. This increase was primarily driven by a notable gain from the distribution received from the AVAIL joint venture, which amounted to $273.2 million, exceeding the company's investment in the joint venture. Total sales for the quarter were $422.0 million, reflecting a 2.1% increase from $413.2 million in the prior year, with the AZZ Metal Coatings segment contributing $187.2 million and the AZZ Precoat Metals segment generating $234.7 million.

The company's operating income for the quarter was $69.5 million, slightly down from $69.7 million in the previous year. The decrease was attributed to increased costs, including a $7.6 million rise in cost of sales, driven by higher overhead, labor, and material costs. The AZZ Metal Coatings segment saw a 6.0% increase in sales, primarily due to higher volumes processed, while the AZZ Precoat Metals segment experienced a slight decline in sales of 0.8%, attributed to lower volumes of coil coated.

In terms of operational developments, AZZ Inc. has made strategic moves, including the completion of a new aluminum coil coating facility in Washington, Missouri, which became operational in the first quarter of fiscal 2026. The facility is expected to enhance the company's production capabilities and is supported by a take-or-pay contract for approximately 75% of its output. Additionally, the company initiated a restructuring plan within its Metal Coatings segment, resulting in $3.8 million in restructuring charges during the quarter.

As of May 31, 2025, AZZ Inc. reported total assets of $2.16 billion, a decrease from $2.23 billion at the end of the previous fiscal period. The company’s total liabilities also decreased significantly to $944.9 million from $1.18 billion, primarily due to a reduction in long-term debt. The company’s cash and cash equivalents increased to $3.0 million, up from $1.5 million at the end of February 2025. The total employee headcount remained stable, supporting ongoing operations across its segments.

Looking ahead, AZZ Inc. anticipates that sales prices in its Metal Coatings segment will remain stable, while prices in the Precoat Metals segment are expected to increase due to higher material costs. The company expects demand to follow typical seasonal patterns, with customer inventories remaining consistent, which should support continued demand for its products. However, management acknowledges the uncertainty surrounding future economic conditions and their potential impact on operations.