AZZ Inc. announced financial results for the third quarter ended November 30, 2025.
Total sales increased by 5.5% to $425.7 million.
Net income rose by 22.2% to $41.1 million, with adjusted EPS reaching $1.52.
AZZ Inc.'s third-quarter performance demonstrates significant growth in sales and profitability, accompanied by strategic debt reduction and improved cash flow generation.
Sales Growth
Total sales grew by 5.5% to $425.7 million, with Metal Coatings sales up by 15.7%. The robust sales growth highlights AZZ's ability to capitalize on infrastructure-related project spending.
Profit Increase
Net income surged by 22.2% to $41.1 million, and adjusted EPS reached $1.52. The substantial profit growth reflects operational efficiency and effective cost management strategies.
Debt Reduction
Debt was reduced by $35 million in the quarter, achieving a net debt leverage of 1.6x. The proactive debt reduction strategy enhances AZZ's financial flexibility and strengthens its balance sheet.
Cash Flow Growth
Cash provided by operating activities increased by 20% to $79.7 million in the quarter. The improved cash flow generation signifies enhanced operational performance and efficient working capital management.
Business Momentum
AZZ remains confident in its business momentum, narrowing its annual guidance range. The company's strategic initiatives and operational resilience support its positive outlook for future growth and profitability.
- Metal Coatings sales increased by 15.7% driven by infrastructure-related project spending, showcasing AZZ's market responsiveness and product demand.
- Precoat Metals sales decreased by 1.8% due to softness in certain end markets like building construction and HVAC, highlighting the challenges in specific industry segments.
AZZ Inc.'s strong performance in the third quarter showcases robust sales growth, significant profit increase, strategic debt reduction, and improved cash flow generation. The company's market-responsive strategies and operational effectiveness position it for sustained growth and enhanced financial performance in the future.