AZZ Inc. raises 2025 adjusted EPS view $4.50-$5.00 from $4.25-$4.75

Consensus $4.69. Raises revenue view $1.525B-$1.625B from $1.5B-$1.6B, consensus $1.57B. Raises adjusted EBITDA view $310M-$360M from $300M-$350M. Tom Ferguson, President, and CEO 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 – $120M, which includes $50 – $60M 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 – $90M. 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.”