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Investing.com -- AZZ Inc . (NYSE:AZZ), a leading provider of hot-dip galvanizing and coil coating solutions, reported first-quarter earnings that exceeded analyst expectations, while revenue fell slightly short of estimates.
The company posted adjusted earnings per share of $1.78 for the first quarter ended May 31, 2025, surpassing analyst estimates of $1.56 by 14%. Revenue came in at $422 million, up 2.1% YoY but below the consensus estimate of $433.45 million. AZZ’s stock remained mostly flat following the earnings release.
Metal Coatings, one of the company’s two main segments, saw sales increase 6% to $187.2 million, driven by higher volumes from infrastructure-related project spending. Meanwhile, Precoat Metals sales decreased slightly by 0.8% to $234.7 million due to lower volumes in construction, HVAC, and appliance markets.
"We are off to a great start in the fiscal year," said Tom Ferguson, President and CEO of AZZ. "Consolidated Adjusted EBITDA grew to $106.4 million, or 25.2% of sales, primarily driven by higher volume for hot-dip galvanized steel and operational productivity over the prior year."
The company significantly strengthened its balance sheet during the quarter, receiving $273.2 million from its minority interest in AVAIL related to the sale of the Electrical Products Group. This helped AZZ reduce its debt by $285 million, resulting in a net leverage ratio of 1.7x.
For fiscal year 2026, AZZ provided guidance of $5.75-$6.25 for adjusted EPS, compared to the analyst consensus of $5.88. The company expects revenue between $1.63-1.73 billion, in line with the consensus estimate of $1.68 billion.
The company also increased its quarterly cash dividend from $0.17 to $0.20 per share and completed a bolt-on acquisition in its Metal Coatings segment after the quarter ended.
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