NYSE$AZZ

Azz Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported second quarter results, building on profitability and strong cash generation.

AZZ Inc. reported second quarter results in line with expectations. Metal Coatings benefited from infrastructure spending, posting a record quarter for sales and operating income. Precoat Metals faced softer market conditions but exceeded 20% EBITDA margin. The company reduced debt by $40.0 million in the quarter and reaffirms fiscal year 2024 guidance.

  • Total sales were $398.5 million, down 2.0% year-over-year.
  • Diluted EPS was $0.97, up 4.3% versus prior year, with Adjusted EPS of $1.27, up 5.0%.
  • Net income was $28.3 million, up 12.8% year-over-year.
  • Debt was reduced by $40.0 million in the quarter.

Headline financials

Total Revenue

$399M

Previous: $407M-2.0%
EPS (adj)

$1.27

Previous: $1.24+2.4%
Adjusted EBITDA

$88M

Previous: $100M-12.4%
Capital Expenditures

-$42.7M

Previous: -$18.7M-128.5%
Free Cash Flow

-$14.4M

Previous: -$76.3M+81.1%
Net Income

$28.3M

Previous: -$57.6M+149.2%
Operating Income

$61M

Previous: $64.1M-4.9%
Gross Profit

$97.2M

Previous: $102M-4.2%
Cash & Equivalents

$2.11M

Previous: $11.3M-81.4%
Total Assets

$2.21B

Previous: $2.58B-14.3%
Stock-Based Comp

$2.12M

Previous: $2.77M-23.7%

Revenue & EPS history

Azz · Revenue · Quarterly

$399M

Q2 2024-2%vs Q2 2023
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Azz · $399M total across 2 segments · Q2 2024

  • Precoat Metals
    $229M-5.0%
  • Metal Coatings
    $170M+2.4%

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
  • Expect a stronger second half this year as compared to last year.
  • Expect to continue to pay quarterly cash dividends.

Headwinds

  • Fiscal year 2024 guidance reflects higher interest expense
  • Dividends on our Series A Preferred Stock
  • The impact of an annualized effective tax rate of approximately 24%
  • Seasonally slower second half of the year
  • Excluding any federal regulatory changes that may emerge

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 Q2 2024

Historical avgQ2 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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