AZZ shares slip 5% on revenue miss, outlook

Published 21/04/2025, 21:34
AZZ shares slip 5% on revenue miss, outlook

NEW YORK - AZZ Inc . (NYSE:AZZ) shares fell 5.8% in after-hours trading on Monday after the metal coatings and precoat metals company reported fourth-quarter revenue that missed analyst expectations and provided full-year guidance that was largely in line with estimates.

The Fort Worth, Texas-based company posted adjusted earnings per share of $0.98 for the quarter ended February 28, matching the consensus forecast. However, revenue came in at $351.9 million, falling short of the $375.63 million analysts were expecting.

AZZ attributed the revenue miss primarily to inclement weather during the quarter, which impacted both its Metal Coatings and Precoat Metals segments. Sales in Metal Coatings declined 3.9% to $148.4 million, while Precoat Metals revenue dropped 4.1% to $203.5 million compared to the prior-year period.

For fiscal 2026, AZZ projects adjusted earnings of $5.50 to $6.10 per share on revenue between $1.63 billion and $1.73 billion. The midpoint of both ranges aligns closely with Wall Street’s estimates of $5.84 in EPS and $1.68 billion in revenue.

"Fiscal year 2025 was a successful year for AZZ. We delivered record full year results and made significant progress on our growth initiatives throughout the year," said Tom Ferguson, President and CEO of AZZ.

Despite the revenue shortfall, AZZ reported a 41.7% increase in net income to $20.2 million for the fourth quarter. The company also noted it reduced debt by $110 million during fiscal 2025, bringing its net leverage ratio below 2.5 times trailing twelve-month EBITDA.

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