NYSE$AZZ

Azz Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

AZZ's first quarter of fiscal year 2024 experienced strong sales and Adjusted EBITDA.

AZZ Inc. reported strong first-quarter results with significant sales growth and improved profitability, driven by the Metal Coatings and Precoat Metals segments. The company reaffirmed its fiscal year 2024 guidance, expecting continued growth and debt reduction.

  • Sales increased by 88.7% year-over-year to $390.9 million, and 16.2% sequentially.
  • Diluted EPS rose by 58.1% year-over-year to $0.98, and Adjusted EPS increased by 3.6% year-over-year to $1.14.
  • Net income increased by 85.8% year-over-year to $28.5 million.
  • Adjusted EBITDA was $85.4 million, representing 21.8% of sales, up 62.6% versus prior year.

Headline financials

Total Revenue

$391M

Previous: $314M+24.3%
EPS (adj)

$1.14

Previous: $1.40-18.6%
Capital Expenditures

-$17M

Previous: -$7.81M-118.2%
Free Cash Flow

$11.5M

Previous: $16.3M-29.4%
Net Income

$28.5M

Previous: $24.1M+18.5%
Operating Income

$65.5M

Previous: $39.9M+64.1%
Gross Profit

$97M

Previous: $84.5M+14.9%
Cash & Equivalents

$3.88M

Previous: $101M-96.2%
Total Assets

$2.21B

Previous: $2.78B-20.7%
Stock-Based Comp

$1.9M

Previous: $2M-4.7%

Revenue & EPS history

Azz · Revenue · Quarterly

$391M

Q1 2024+24.3%vs Q1 2023
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Azz · $391M total across 2 segments · Q1 2024

  • Precoat Metals
    $222M+408.3%
  • Metal Coatings
    $169M+4.9%

Forward guidance

Management reaffirms fiscal year 2024 guidance.

Tailwinds

  • Sales of $1.40 billion to $1.55 billion.
  • Adjusted EBITDA of $300-$325 million.
  • Adjusted earnings per diluted share of $3.85-$4.35.
  • Benefiting from continued secular tailwinds supported by infrastructure and renewables spending.
  • New plant construction in Washington, Missouri is proceeding ahead of schedule and tracking to budget.

Headwinds

  • Higher interest expense.
  • Dividends on Series A Preferred Stock.
  • Impact of an annualized effective tax rate of approximately 24%.
  • Softness in certain end markets.
  • Guidance excludes equity in earnings on the investment in the AIS joint venture.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.7%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.7%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+19.3%

Q1 2019

Best reaction

-14.4%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.3%+4.9%+1.6%
Q3 2026+6.5%+10.9%+18.4%
Q2 2026-5.3%-5.3%-5.6%
Q1 2026+3.2%+4.9%+6.0%
Q4 2025+3.1%+9.8%+15.4%
Q3 2025-2.3%-1.6%+12.3%
Q2 2025-4.2%+0.6%+4.9%
Q1 2025+8.2%+10.9%-1.4%
Q4 2024+10.9%-4.4%+12.3%
Q3 2024-0.4%+1.5%+17.8%
Q2 2024+6.7%+3.5%+1.0%
Q1 2024+2.7%+4.4%+9.1%
Q4 2023-7.2%-4.8%-10.9%
Q3 2023+6.9%+4.2%-2.3%
Q2 2023-0.4%-15.0%+1.8%
Q1 2023-2.3%-3.4%+4.8%
Q4 2022-2.2%-5.2%-9.5%
Q3 2022-5.8%-6.5%-11.4%
Q2 2022+2.4%-2.5%+2.9%
Q1 2022+6.8%+2.2%+2.6%
Q4 2021-1.5%-1.1%+0.2%
Q3 2021+1.4%-4.1%+0.5%
Q2 2021-4.7%-6.5%+0.6%
Q1 2021-11.6%-12.3%+1.8%
Q4 2020+4.6%-4.6%+5.5%
Q3 2020-2.2%-1.3%-6.3%
Q2 2020+18.4%+15.9%+17.9%
Q1 2020+2.1%+0.2%-6.1%
Q4 2019-0.7%-5.2%-3.9%
Q3 2019+7.2%+9.7%+8.9%
Q2 2019-9.1%-6.1%-1.7%
Q1 2019+19.3%+21.2%+24.0%
Q4 2018-8.4%-6.8%+0.8%
Q3 2018-8.4%-6.8%+0.8%
Q2 2018-5.4%-8.0%-5.9%
Q1 2018-14.0%-12.9%-9.8%
Q4 2017-3.5%+3.7%-7.7%
Q3 2017-11.3%-6.7%-8.3%
Q2 2017-10.4%-14.8%-19.1%
Q1 2017+0.1%+0.3%+4.6%
Q4 2016-0.0%
Q3 2016-0.7%
Q2 2016-1.7%
Q1 2016-1.1%
Q4 2015+3.5%
Q3 2015-7.7%
Q2 2015+3.5%
Q1 2015+9.6%
Q4 2014-2.3%
Q3 2014-14.1%
Q2 2014-0.4%
Q1 2014-14.4%
Q4 2013-2.4%
Q3 2013+4.2%
Q2 2013+9.3%
Q1 2012+2.2%
Q1 2013-1.5%
Q4 2012+1.6%
Q4 2010+1.6%
Q3 2011-0.2%
Q3 2012-0.2%
Q2 2011-6.0%
Q2 2012-6.0%
Q4 2011-6.0%
Q1 2011-3.6%

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