AZZ (NYSE:) Inc. (AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced upwardly revised financial guidance for the fiscal year 2025, which refers to the 12-month period beginning March 1, 2024 and ending on February 28, 2025.
| | Previously Issued
FY 2025 Guidance | Revised
FY 2025 Guidance(1) |
Sales | $1.5 - $1.6 billion | $1.525 - $1.625 billion |
Adjusted EBITDA | $300 - $350 million | $310 - $360 million |
Adjusted Diluted EPS | $4.25 - $4.75 | $4.50 - $5.00 |
- FY2025 Revised Guidance Assumptions:
- Excludes the impact of any future acquisitions.
- Includes approximately $15-$18 million of equity income from AZZ's minority interest in its unconsolidated subsidiary, which resulted from the divesture of 60% of AIS in 2022
- Adjusted Diluted EPS guidance includes the add back of amortization related to the Company's intangible assets.
Tom Ferguson, President, and Chief Executive Officer of AZZ, said, "We are confident about AZZ's operating performance for fiscal year 2025 as we are seeing signs of strength in many of our end-markets. We again successfully repriced our Term Loan B in March, reducing the interest rate margin by another 50 basis points. In addition, S&P Global recently upgraded the rating on our senior secured debt to 'BB-' from 'B' a solid two notch increase. We are gaining confidence in the outlook from our minority interest in the AVAIL joint venture and have increased our estimates of equity income. Our capital expenditures for fiscal year 2025 are expected to remain unchanged at approximately $100 - $120 million, which includes $50 - $60 million to complete the greenfield plant construction in Washington, Missouri in fiscal year 2025. The balance will be allocated to maintenance, productivity enhancements, and environmental, health and safety initiatives. In FY2025 we will continue to allocate our strong cash flow generated from operations to further deleverage the company by approximately $60 - $90 million.
"As we continue to progress through the fiscal year, our focus will be on organic growth within our Metal Coatings and Precoat Metals segments. We intend to grow market share and ensure that superior customer service, quality, and operational excellence remain differentiators for the company. We generate industry-leading margins, returns and free cash flow. We have access to the capital necessary to sustain our operations, while actively pursuing initiatives to drive future growth and enhance shareholder value. We are excited about the opportunities ahead," Ferguson concluded.
