AZZ is set to organize important meetings in Canada, with one taking place in Montreal on July 15 and another in Toronto on July 16. These events, hosted by B. Riley, aim to provide attendees with valuable insights to aid in making informed investment decisions regarding AZZ.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for AZZ Inc (AZZ, Financial) is $106.59 with a high estimate of $120.00 and a low estimate of $90.00. The average target implies an
downside of 2.85%
from the current price of $109.72. More detailed estimate data can be found on the AZZ Inc (AZZ) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, AZZ Inc’s (AZZ, Financial) average brokerage recommendation is currently 2.3, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AZZ Inc (AZZ, Financial) in one year is $76.58, suggesting a
downside
of 30.2% from the current price of $109.72. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the AZZ Inc (AZZ) Summary page.
AZZ Key Business Developments
Release Date: April 22, 2025
- Total Sales: Increased by 16.2% to $1.54 billion for fiscal 2024.
- Metal Coatings Sales: $656 million, up 3% year-over-year.
- Pre-Coat Metals Sales: $881 million, up 28.4% year-over-year.
- Adjusted EBITDA: Increased to $334 million for the full year.
- Cash Provided by Operations: $245 million for the year.
- Adjusted Earnings Per Share (EPS): $4.53, up almost 35% from the previous year.
- Fourth Quarter Sales: $366 million, up 8.9% year-over-year.
- Fourth Quarter Adjusted EPS: Increased by 210% to $0.93.
- Fourth Quarter Adjusted EBITDA: $74 million, up 29% year-over-year.
- Adjusted EBITDA Margins: 28.6% for metal coatings and 17.8% for pre-coat metals.
- Debt Reduction: Reduced by $115 million over the last year.
- Capital Expenditures: $95.1 million for the year, including $47.7 million for a new facility.
- Net Income for Fourth Quarter: $17.9 million, compared to $7.4 million in the prior year.
- Gross Profit for Fourth Quarter: $81 million, or 22.1% of sales.
- SG&A Expenses for Fourth Quarter: $38.8 million, including $6.8 million in legal accruals.
- Interest Expense for Fourth Quarter: $24.7 million, down from $27.1 million in the prior year.
- Effective Tax Rate for Fourth Quarter: 18.7%.
- Free Cash Flow: $149.3 million for the year.
- Fiscal 2025 Guidance: Sales of $1.525 billion to $1.625 billion, adjusted EBITDA of $310 million to $360 million, and adjusted EPS of $4.50 to $5.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AZZ Inc (AZZ, Financial) achieved a record total sales increase of 16.2% to $1.54 billion for fiscal 2024.
- The company significantly reduced its debt by $115 million, surpassing its target of $75 million to $100 million.
- Adjusted earnings per share increased by almost 35% to $4.53 compared to the previous year.
- AZZ Inc (AZZ) improved its adjusted EBITDA by 24.8% to $333.6 million, reflecting strong operational efficiencies.
- The company maintained a strong liquidity position with no debt maturities until 2027 and successfully repriced its term loan and revolving credit facility to lower interest costs.
Negative Points
- Selling, General and Administrative expenses increased to $38.8 million in the fourth quarter, partly due to $6.8 million in legal accruals.
- The company faces increased labor and other variable costs, which could impact future profitability.
- Despite strong performance, the pre-coat metals segment continues to experience pressure in the container and transportation categories.
- The company is exposed to risks associated with macroeconomic impacts, which could affect demand and inventory management.
- AZZ Inc (AZZ) has not made any share repurchases during the year, focusing instead on debt reduction.
