AZZ raises quarterly dividend by 17.6% to $0.20 per share

Published 26/06/2025, 21:38
AZZ raises quarterly dividend by 17.6% to $0.20 per share

FORT WORTH, Texas - AZZ Inc. (NYSE:AZZ), a $2.77 billion market cap provider of hot-dip galvanizing and coil coating solutions, announced Thursday that its Board of Directors has authorized a quarterly cash dividend increase of 17.6% to $0.20 per share, up from the previous $0.17 per share.

The dividend will be payable on July 31, 2025, to shareholders of record as of the close of business on July 10, 2025, according to a company press release. This marks the company’s 16th consecutive year of maintaining dividend payments, with a current yield of 0.75%.

While AZZ stated it intends to continue paying regular quarterly dividends, the company noted that future payments will be reviewed individually and declared at the Board’s discretion based on operating results, financial condition, and business outlook. According to InvestingPro, AZZ maintains strong financial health with liquid assets exceeding short-term obligations and a healthy current ratio of 1.7.

AZZ describes itself as the leading independent provider of hot-dip galvanizing and coil coating solutions serving a broad range of markets. The company’s metal coating solutions are designed to enhance the longevity and appearance of buildings, products, and infrastructure.

The dividend announcement comes as part of AZZ’s fiscal year 2026 first quarter financial activities. The company’s stock is traded on the New York Stock Exchange under the ticker symbol AZZ.

In other recent news, AZZ Incorporated reported its fourth-quarter earnings for 2025, showing earnings per share (EPS) of $0.98, which met expectations, although revenue missed forecasts, coming in at $351.9 million against a projected $375.63 million. Despite the revenue shortfall, the company experienced a 2.6% increase in full-year sales, reaching $1.578 billion, and a 26.8% rise in net income to $128.8 million. Fitch Ratings revised AZZ’s outlook from Stable to Positive, affirming its Long-Term Issuer Default Rating at ’BB’, which reflects AZZ’s market position and debt reduction efforts. The company aims to use proceeds from the sale of its joint venture, Avail Infrastructure Solutions, to nVent Electric plc, to further reduce debt.

Jefferies analyst Laurence Alexander adjusted AZZ’s stock price target to $99, down from $110, while maintaining a Buy rating, noting that demand for the Metal Coatings segment is expected to grow. AZZ’s strategic investments include a new aluminum coil coating facility that began shipping products and is expected to generate $60 million in annual sales by 2027. The company has resumed its $100 million share repurchase program, with $53 million remaining, and plans further bolt-on acquisitions to strengthen its market position.

The company projects fiscal 2026 sales between $1.625 billion and $1.725 billion, with an EPS guidance of $5.50 to $6.10. AZZ’s management remains optimistic about growth in construction and infrastructure markets, despite challenges such as weather disruptions and inflationary pressures.

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