8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

April 23, 2021

Date of Report (Date of earliest event reported)

AZZ Inc.

(Exact name of Registrant as specified in its charter)

Texas	1-12777	75-0948250
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Museum Place, Suite 500

3100 West 7th Street

Fort Worth, Texas 76107

(Address of principal executive offices) (Zip Code)

(817) 810-0095

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock	AZZ	New York Stock Exchange

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 23, 2021, AZZ Inc. ("AZZ") issued a press release reporting AZZ’s fourth quarter financial results for the period ended February 28, 2021. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 (including Exhibit 99.1) is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. Nor shall the information in this Current Report be incorporated by reference in any other filing with the U.S. Securities and Exchange Commission made by AZZ, whether made before or after the date hereof, unless specifically identified therein as being incorporated therein by reference in such filing.

Item 7.01 Regulation FD Disclosure.

On April 23, 2021, AZZ also posted an investor presentation to its website at https://www.azz.com/investor-relations. A copy of the investor presentation is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in this Item 7.01 (including Exhibit 99.2) is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. Nor shall the information in this Current Report be incorporated by reference in any other filing with the U.S. Securities and Exchange Commission made by AZZ, whether made before or after the date hereof, unless specifically identified there as being incorporated therein by reference in such filing.

Item 9.01 Financial Statements and Exhibits.

The following exhibits are filed as part of this report.

Exhibit	Description
99.1	Press release, dated April 23, 2021, reporting AZZ's fourth quarter and full fiscal year 2021 financial results.
99.2	Investor Presentation, dated April 23, 2021.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AZZ Inc.
Date: April 23, 2021	By: /s/ Philip A. Schlom
	Philip A. Schlom Chief Financial Officer

EX-99.1

AZZ Inc. Reports Financial Results for Fiscal Year 2021; Generates Adjusted EPS of $2.11; Reported EPS of $1.52

April 23, 2021 - FORT WORTH, TX - AZZ Inc. (NYSE: AZZ), a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services today issued its audited consolidated financial statements contained in the Company's Fiscal Year 2021 Annual Report on Form 10-K for the year ended February 28, 2021.

Fiscal Year 2021 Overview and Recent Highlights:

•Achieved 34th consecutive year of profitability

•Reported earnings per share of $1.52 and reported net income of $39.6 million

•Full Year adjusted earnings per share of $2.11 and adjusted net income of $55.0 million

•Sales of $838.9 million, decreased by 21.0% compared to prior year

◦Metal Coatings segment full year results versus prior year:

▪Sales of $457.8 million, down 8.3%, with galvanizing sales down 6.5%

▪Adjusted operating income of $106.7 million, down 1.1%

▪Adjusted operating margin of 23.3%, versus 21.6%, or 170 bps improvement

◦Infrastructure Solutions segment full year results versus prior year:

▪Sales of $381.1 million, down 32.3%

▪Adjusted operating income of $15.7 million, down 62.6%

▪Adjusted operating margin of 4.1% versus 7.5%, or 340 bps decline

•Cash provided from operating activities of $92.0 million decreased 35.3% versus prior year

•Repurchased over 1.2 million shares, totaling $48.3 million, during the fiscal year

•Effective tax rate of 22.3%; 340 basis points improved over prior year

•Company reaffirms fiscal year 2022 guidance; Revenue of $835 - $935 million, and earnings per share of $2.45 - $2.95, excluding potential acquisitions or divestitures

Management Discussion

Tom Ferguson, President and Chief Executive Officer of AZZ, commented, “Throughout fiscal year 2021, the COVID-19 pandemic significantly impacted our operations and financial results. Despite the extraordinary circumstances, the safety and well-being of our employees and continued support of our customers remained top priorities. We were able to generate sales of $838.9 million and net income of $39.6 million, or $1.52 per diluted share, on a reported basis, and achieve our 34th consecutive year of profitability. Our consolidated bookings for the year decreased 19.3% to $785.3 million while our backlog decreased 23.7% to $186.1 million, primarily due to both the pandemic as well as the successful completion of multiple large multi-year international electrical projects for which revenue was recognized in fiscal year 2021. We continued our long history of strong cash flows by generating net cash provided by operating activities of $92.0 million, a decrease of 35.3% compared to prior year. Reported EPS of $1.52 includes pre-tax charges of $20.0 million for impairment and restructuring and the loss on the disposal of the Galvabar and SMS businesses during the year. Excluding these charges, adjusted net income was $55.0 million, down 22.8% compared to prior year adjusted net income of $71.2 million. Adjusted EPS was $2.11, down 22.1% compared to $2.71 as adjusted for the prior year, on a diluted basis.

During the year we returned capital to shareholders by repurchasing 1.2 million shares for $48.3 million dollars, and paid $17.6 million in dividends.”

“Our Metal Coatings segment again delivered solid operating results with sales of $457.8 million, and adjusted operating margins of 23.3%, an improvement of 170 basis points over the prior year. Results were driven primarily by a combination of lower volume, which was offset by lower zinc costs. Our Metal Coatings team continued to drive operational efficiencies aggressively, while maintaining an active merger and acquisition pipeline to support our strategic growth initiatives. Our ability to complete new deals slowed due to the COVID-19 pandemic and, as a result, we completed only one acquisition (Acme Galvanizing) during the fiscal year.”

Mr. Ferguson continued, “Sales for the Infrastructure Solutions segment decreased $181.7 million, or 32.3%, to $381.1 million for fiscal year 2021, compared to $562.8 million for fiscal year 2020. The decrease in sales for fiscal 2021 was attributable to the weak refining turnaround activity, as well as lower sales for some of our electrical products, as a result of COVID-19. Within our Electrical Platform, sales results were mixed across our end-markets of Power Generation, Transmission and Distribution. The team is focused on aggressively pursuing projects and building our backlog as we progress through our first quarter of fiscal year 2022. Our Industrial Solutions platform executed domestic and international turnaround projects, but at a significantly reduced level, due to limited refinery activity and pandemic related travel restrictions. As we have stated previously, we remain cautiously optimistic for an improvement in the refining market, and are positioning our operations for a solid fiscal year 2022.

Reaffirms Fiscal Year 2022 Guidance

Mr. Ferguson added, “We are reaffirming our fiscal year 2022 revenue and earnings per share guidance with earnings to be in the range of $2.45 and $2.95 per diluted share, and estimate sales to be in the range of $835 million to $935 million. Our fiscal year 2022 guidance is based upon the evaluation of information currently available to management and reflects our best estimates given current market conditions, current backlog expectations, and does not include any potential acquisitions or divestitures, nor any federal regulatory changes that may emerge. We continue to experience COVID-related travel restrictions within certain geographical areas served by our Infrastructure Solutions teams, particularly in some key international markets.”

“As we enter fiscal 2022,” concluded Mr. Ferguson, “our focus will be growing our Metal Coatings segment, and building the backlog for enclosures, switchgear and welding solutions in our Infrastructure Solutions segment. We have access to the capital necessary to sustain our operations, provide opportunities for organic growth and allow AZZ to aggressively seek opportunities that fit our strategic growth plan as well as the return of capital to shareholders. We continue to actively pursue initiatives to drive growth, enhance shareholder value and accelerate our strategy to become predominately a metal coatings company, including the ongoing review of our portfolio and capital allocation. I want to express my sincere gratitude to all our employees for their hard work and dedication throughout the pandemic. We expect to emerge from this year a much stronger company, well-positioned to excel in the post-COVID era. We are excited about the opportunities ahead.”

Fourth Quarter Results

Sales for the fourth quarter of fiscal year 2021 were $195.6 million, compared to $245.4 million for the prior year, a decrease of 20.3%. Net income for the quarter was $16.2 million, or $0.63 per share on a diluted basis, up $26.8 million from the prior year, same quarter, which was impacted by charges related

to the sale of our Nuclear Logistics business and impairment of Welding Solutions nuclear-related intangible assets. Incoming orders for the three-month period declined to $207.4 million, as compared to $214.7 million for the same quarter last year. The book-to-sales ratio increased slightly to 1.06, compared to 0.87 in last year’s comparable period. As anticipated, backlog at the end of the quarter was $186.1 million, a decrease of 23.7% as compared to the same quarter in the prior year, due to lower order volume in China, along with the effects on the business resulting from the pandemic.

Metal Coatings Segment

For the fourth quarter of fiscal year 2021, Metal Coatings segment sales decreased 13.6% to $106.1 million and operating income increased 17.6% to $26.6 million versus the comparable prior year quarter. Segment operating margin improved to 25.1% of sales, which was 670 basis points higher than the comparable prior year fourth quarter operating margin. Improvement in operating margin was a result of improved labor productivity and operational efficiency driven by our Digital Galvanizing System (“DGS”), as well as lower zinc costs.

Infrastructure Solutions Segment

For the fourth quarter of fiscal year 2021, Infrastructure Solutions segment sales decreased 27% or $33.1 million, as compared to $122.6 million in the same quarter of the prior year. Infrastructure Solutions reported operating income of $3.1 million was 325.3% higher than the comparable prior year quarter which was impacted by the loss on sale of Nuclear Logistics, Inc. Operating margin increased to 3.5% compared to prior year quarter operating margin of (1.1%). On an adjusted basis, operating income of $3.1 million was 60.3% lower than the comparable prior quarter-to-date period. Adjusted operating margin, as percent of sales, was 3.5% compared to 6.3%, as adjusted, in the prior year. During the fourth quarter of fiscal 2020, the Company recorded an impairment charge of $9.2 million related to the Company's exit from the nuclear certified portion of its Industrial Solutions business. The decrease in net sales and operating income was primarily attributable to COVID-related business disruption, particularly within our Welding Solutions business.

The following chart provides an overview of operating income for both our Metal Coatings and Infrastructure Solutions segments, as adjusted for the impairment charges recorded during the quarter:

AZZ Inc.
Segment Reporting
(dollars in thousands)
(unaudited)
	Three Months Ended						Year Ended
	February 28, 2021			February 29, 2020			February 28, 2021			February 29, 2020
Metal Coatings Segment
Sales	$	106,149		$	122,796		$	457,791		$	498,989
Segment operating income:
Metal Coatings, as reported	26,591			22,603			95,946			107,926
Impact of restructuring and impairment	(247)			—			10,796			—
Metal Coatings, as adjusted	$	26,344		$	22,603		$	106,742		$	107,926
Adjusted operating income as a % of sales	24.8		%	18.4		%	23.3		%	21.6		%
Infrastructure Solutions Segment
Sales	$	89,480		$	122,569		$	381,126		$	562,828
Segment operating income:
Infrastructure Solutions, as reported	3,123			(1,386)			6,487			32,845
Impact of restructuring and impairment	(23)			9,157			9,203			9,157
Infrastructure Solutions, as adjusted	$	3,100		$	7,771		$	15,690		$	42,002
Adjusted operating income as a % of sales	3.5		%	6.3		%	4.1		%	7.5		%

Conference Call Details

AZZ Inc. will conduct a conference call to discuss financial results for the fourth quarter and fiscal year 2021 today, Friday, April 23, 2021, at 11:00 A.M. ET. Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). A webcast of the call will be available on the Company’s Investor Relations page at http://www.azz.com/investor-relations.

A replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088 (international), confirmation #10153959, or for 30 days at http://www.azz.com/investor-relations.

There will be a slide presentation accompanying today’s call. The Company’s slide presentation for the call will be available on the Investor Relations page at http://www.azz.com/investor-relations.

About AZZ Inc.

AZZ Inc. is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world’s infrastructure. AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Infrastructure Solutions is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.

Safe Harbor Statement

Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our products and services, including demand by the metal coatings markets, power generation markets, electrical transmission and distribution markets and the industrial markets. In addition, within each of the markets we serve, our customers and our operations could potentially be adversely impacted by the ongoing COVID-19 pandemic. We could also experience fluctuations in prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition opportunities; currency exchange rates; adequacy of financing; availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility or changes in the political stability in the United States and other foreign markets in which we operate; acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 and other filings with the Securities and Exchange Commission (“SEC”), available for viewing on AZZ’s website at www.azz.com and on the SEC’s website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Company Contact:

David Nark, Senior Vice President of Marketing and Investor Relations

AZZ Inc.

(817) 810-0095

www.azz.com

Investor Contact:

Joe Dorame, Managing Partner

Lytham Partners

(602) 889-9700

www.lythampartners.com

---Financial tables on the following page---

AZZ Inc.
Condensed Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended				Year Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Sales	195,629		245,365		838,917		1,061,817
Cost of sales	149,859		194,261		650,170		824,589
Gross margin	45,770		51,104		188,747		237,228
Selling, general and administrative	27,268		39,738		107,134		139,253
Restructuring and impairment charges	(270)		18,632		19,999		18,632
Operating income	18,772		(7,266)		61,614		79,343
Interest expense	2,272		3,030		9,648		13,463
Other (income) expense, net	144		623		969		990
Income before income taxes	16,356		(10,919)		50,997		64,890
Income tax expense	196		(276)		11,383		16,656
Net income	16,160		(10,643)		$	39,614	$	48,234
Earnings per common share
Basic	$	0.64	$	(0.41)	$	1.53	$	1.84
Diluted	$	0.63	$	(0.41)	$	1.52	$	1.84
Diluted weighted average shares outstanding	25,648		26,209		26,045		26,281

AZZ Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
	February 28, 2021		February 29, 2020
Assets:
Current assets (including assets held for sale of $3,684)	$	303,492	$	354,562
Property, Plant and Equipment, Net	205,909		213,104
Other assets, net	487,041		506,165
Total assets	$	996,442	$	1,073,831
Liabilities and Shareholders’ Equity:
Current liabilities	$	113,850	$	280,613
Long-term debt due after one year, net	178,419		77,878
Other liabilities	80,881		80,974
Shareholders' equity	623,292		634,366
Total liabilities and shareholders' equity	$	996,442	$	1,073,831

AZZ Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
	Year Ended
	February 28, 2021		February 29, 2020
Net cash provided by operating activities	$	92,035	$	142,310
Net cash used in investing activities	(28,593)		(69,299)
Net cash provided by (used in) financing activities	(88,425)		(59,739)
Effect of exchange rates on cash	3,133		(590)
Net increase (decrease) in cash and cash equivalents	$	(21,850)	$	12,682
Cash and cash equivalents at beginning of period	36,687		24,005
Cash and cash equivalents at end of period	$	14,837	$	36,687

AZZ Inc.

Non-GAAP Disclosure

Adjusted Operating Income, Adjusted Earnings and Adjusted Earnings Per Share

In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), the Company has provided adjusted operating income, adjusted earnings and adjusted earnings per share (collectively, the “Adjusted Earnings Measures”), which are non-GAAP measures. Management believes that the presentation of these measures provides investors with a greater transparency comparison of operating results across a broad spectrum of companies, which provides a more complete understanding of the Company’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as adjusted operating income, adjusted earnings and adjusted earnings per share, to assess operating performance and that such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP.

The following tables provides a reconciliation for the three and twelve months ended February 28, 2021 between the various measures calculated in accordance with GAAP to the Adjusted Earnings Measures, which are shown net of tax (dollars in thousands, except per share data):

	Three Months ended February 28, 2021		Twelve Months ended February 28, 2021
Operating income	$	18,772	$	61,614
Restructuring and impairment charges	(270)		19,999
Adjusted operating income	$	18,502	$	81,613

	Three Months ended February 28, 2021				Year Ended February 28, 2021
	Amount		Per  Diluted Share(1)		Amount		Per  Diluted Share(1)
Net income and diluted earnings per share	$	16,160	$	0.63	$	39,614	$	1.52
Adjustments (net of tax):
Restructuring and impairment charges:
Metal Coatings	(247)		(0.01)		10,796		0.41
Infrastructure Solutions	(23)		—		9,203		0.35
Subtotal	(270)		(0.01)		19,999		0.77
Tax benefit related to restructuring and impairment charges	63		—		(4,584)		(0.18)
Total adjustments	(207)		(0.01)		15,415		0.59
Adjusted earnings and adjusted earnings per share	$	15,953	$	0.62	$	55,029	$	2.11

(1) Adjusted earnings per share amounts included in the table above may not sum due to rounding differences.

(2) The non-GAAP effective tax rates for both the three-and twelve-month periods was 22.9%.

EX-99.2

AZZ Inc. Q4 and Full Year FY2021 Earnings Presentation April 23, 2021

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Safe Harbor Statement 2 Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Certain factors could affect the outcome of the matters described herein. This presentation may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our products and services, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the metal coatings markets. In addition, within each of the markets we serve, our customers and our operations could potentially be adversely impacted by the ongoing COVID-19 pandemic. We could also experience fluctuations in prices and raw material cost, including zinc and natural gas, which are used in the hot dip galvanizing process; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition opportunities; currency exchange rates; adequacy of financing; availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility or changes in the political stability in the United States and other foreign markets in which we operate; acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 and other filings with the Securities and Exchange Commission (“SEC”), available for viewing on AZZ’s website at www.azz.com and on the SEC’s website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Performance Update Full Year FY2021 Sales: $838.9 million Segment Updates Metal Coatings Segment $457.8 Infrastructure Solutions Segment $381.1 • Overall segment sales down 8.3% compared to prior year • Acquired ACME Galvanizing in January 2021 • Completed new spin galvanizing plant in Houston, TX • Overall segment sales down due to the COVID-19 pandemic, particularly within Industrial platform • Completed Poland plant expansion • Previously announced strategic portfolio review is ongoing 3 -8.3% vs. FY2020 -32.3% vs. FY2020

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Sales Net Income Diluted EPS Fiscal Year 2021 Summary - Consolidated $1,061.8 $838.9 FY20 FY21 -21.0% • Lower sales volume primarily attributable to COVID pandemic • Divested entities impact of $54.1 million • Adjusted Net Income includes $20.0 million impairment and loss on sale of Galvabar and Southern Mechanical Services LLC (“SMS”) • Tax rate of 22.3%; 340 bps improvement • Repurchased 1.2 million shares in the fiscal year, for $48.3 million -17.8% reported; +14.1% adjusted -17.4% reported; +14.7% adjusted In $ millions, except per share amounts 4 $48.2 $39.6 $55.0 FY20 FY21 FY21(a) $1.84 $1.52 $2.11 FY20 FY21 FY21(a) (a)=adjusted

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Results – Metal Coatings • Lower sales volume primarily attributable to COVID-19 pandemic • Divested Galvabar business • Improved operating efficiencies and productivity • Completed acquisition of ACME Galvanizing in January 2021 In $ millions except percentages Sales $499.0 $457.8 FY20 FY21 -8.3% Operating Income -11.1% reported; -1.1% adjusted Key Statistics FY2020 Sales Organic Acquisitions/ Divestitures FY2021 Sales $499.0 $457.8 7.5 (48.7) Segment Summary: 5 $107.9 $95.9 $106.7 FY20 FY21 FY21(a) Operating Margin 21.6% 21.0% 23.3% FY20 FY21 FY21(a) -60 bps reported; +170 bps adjusted (a)=adjusted

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Results – Infrastructure Solutions • Lower sales volume was primarily attributable to pandemic-related business disruption in many of our end-markets • Charges of $9.2 million related to impairments and divestitures impacted FY2021 results • Comprehensive review of the business and associated assets is ongoing In $ millions except percentages Key Statistics FY2020 Book to Ship 0.92 to 1 Segment Summary: FY2021 Book to Ship 0.94 to 1 FY 2020 Sales $562.8 FY2021 Sales $381.1 6 Sales $562.8 $381.1 FY20 FY21 -32.3% Operating Income -80.2% actual; -52.1% adjusted Operating Margin -410 bps actual; -170 bps adjusted (a)=adjusted $32.8 $6.5 $15.7 FY20 FY21 FY21(a) 5.8% 1.7% 4.1% FY20 FY21 FY21(a)

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2022 Full Year Financial Guidance Key Drivers: Metal Coatings:  Continued operational execution  Increasing zinc costs Infrastructure Solutions:  Improving market conditions for refining turnaround projects  Electrical platform operational execution 7 Sales Earnings Per Share $835 - $935 $2.45 - $2.95 Range In millions, except for EPS FY2022

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 FY2021 Consolidated Results In millions, except for EPS and percentages Q4 FY 21 Reported Q4 FY 20 Reported % Change Sales $195.6 $245.4 -20.3% Gross Profit $45.8 $51.1 -10.4% Gross Margin percent 23.4% 20.8% 260 bps Operating Profit $18.8 $(7.3) 358.4% Operating Margin 9.6% (3.0)% 1,260 bps EBITDA $29.1 $5.1 469.9% Net Income (loss) $16.2 $(10.6) 252.8% Diluted EPS $0.63 $(0.41) 253.7% Diluted Shares Outstanding 25,648 26,209 -2.1% 8

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Consolidated Results In $ millions, except for EPS and percentages FY 2021 Reported FY 2021 Adjusted FY 2020 Reported FY 2020 Adjusted Sales $838.9 $838.9 $1,061.8 $1,061.8 Gross Profit $188.7 $188.7 $237.2 $239.2 Gross Margin 22.5% 22.5% 22.3% 22.5% Operating Profit $61.6 $81.6 $79.3 $107.1 Operating Margin 7.3% 9.7% 7.5% 10.1% EBITDA $105.2 $125.2 $128.5 $156.3 Net Income $39.6 $55.0 $48.2 $71.2 Diluted EPS $1.52 $2.11 $1.84 $2.71 Diluted Shares Outstanding 26,045 26,045 26,281 26,281 9

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Cash Flow Highlights In $ millions, except for percentages Full Year FY 2021 Full Year FY 2020 Cash flows used in operating activities $92.0 $142.3 Less: Capital Expenditures $(37.1) $(32.6) Free Cash Flow $54.9 $109.7 Net Income $39.6 $48.2 Free Cash Flow as percent of Net Income 138.6% 227.6% Acquisition of Subsidiaries, net of cash acquired $4.4 $60.6 Dividends $17.6 $17.8 Share Repurchases $48.3 $5.8 10

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Capital Allocation Focused on Growth $37.1 $4.4 $48.3 $17.6 Capital Expenditures Acquisitions Share Repurchases Dividends Capital Expenditures Acquisitions Share Repurchases Dividends Full Year 2021 Capital DeploymentIn $ millions • Safety, Health and Environmental • Facility expansion & spin plant • Product/technology growth initiatives • One Metal Coatings acquisition during year - ACME Galvanizing • Continue to pursue active pipeline of opportunities • Spent $48.3 million repurchasing over 1.2 million shares • Opportunistically will continue share repurchases • Historically have declared and paid dividends G ro w th S ha re ho ld er R et ur n 11

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION 12 Metal Coatings Segment • Cost of zinc in our kettles, which will begin to increase as we enter FY2022, due to higher zinc LME levels • Emphasis on operating efficiency and productivity, supported by Digital Galvanizing System (“DGS”) investment • Continued focus and expansion of spin galvanizing in several market areas Infrastructure Solutions Segment • Industrial platform o Improved Spring and Fall turnaround outlook versus prior year • Electrical platform o T&D/Utility and Renewable market growth expected to continue, driving demand for electrical enclosures and switchgear o Continued robust data center market providing additional demand for electrical enclosures Corporate • Complete recently announced strategic evaluation of Infrastructure Solutions segment • Continue to effectively manage cash flow, replace existing credit facility, and manage debt and share repurchases Key Indicators and Initiatives

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION • Long term strategy to continue to grow the Metal Coatings segment organically and with a robust acquisition program, while maintaining 21 to 23% Operating Margins o Focus on operating excellence and providing outstanding customer service o Continued inorganic growth in Galvanizing and Surface Technologies • Infrastructure Solutions segment continues to focus on operational improvements and profitable growth in business units while conducting strategic business review o Industrial will grow by expanding into new markets beyond refining and power generation, continued international expansion, and offering market leading weld overlay solutions o Electrical businesses will continue to focus on improving profitability through process alignment, and focus domestic market growth in core businesses, while effectively managing non-core businesses Strategic Direction 13

Q&A

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Performance Update Total Q4 FY2021 Sales: $195.6 million Market Drivers Metal Coatings Segment $106.1 Infrastructure Solutions Segment $89.5 • Galvanizing sales down 7.2% versus prior year’s quarter, weather impacted operations in several states • Benefitted from lower zinc prices • Maintained price/value realization • China shipments completed; installation ongoing • Switchgear and enclosure demand improving • Industrial Solutions seasonally down and continued to experience weak demand from refining sector 15 -13.6% vs. prior year -27.0% vs. prior year

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Sales Net Income Diluted EPS Q4 Fiscal Year 2021 Summary - Consolidated $245.4 $195.6 FY20 FY21 -20.3% • Pandemic-related lower segment sales • Contribution from acquisition (Acme) • Price realization in galvanizing • Lower zinc costs • Improved operational efficiencies • Fiscal 2020 included $23.0 million in adjustments due to loss on sale of Nuclear Logistics Inc., impairment of intangible assets and tax adjustments. +252.8% Reported; +250.9% Adjusted +253.7% Reported / +251.2% Adjusted In $millions, except per share amounts 16 (a)=adjusted -$10.6 $16.2 $16.0 FY20 FY21 FY21(a) -$0.41 $0.63 $0.62 FY20 FY21 FY21(a)

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Results – Metal Coatings • Quarterly sales decline reflects COVID-19 impact on several end markets as well as weather-related impacts, partially offset by the contribution from the ACME Galvanizing acquisition completed in the quarter • Operating Margins of 25.1%, compared to 18.4% for the same quarter last year a result of improved labor productivity and operational efficiency driven by DGS as well as lower zinc costs and stable selling prices In millions $ except percentages Sales $122.8 $106.1 FY20 FY21 -13.6% Operating Income +17.7%Key Statistics FY2020 Sales Organic Acquisitions FY2021 Sales $122.8 $106.1 $1.3 -$18.0 Segment Summary: 17 $22.6 $26.6 FY20 FY21 Operating Margin 18.4% 25.1% FY20 FY21 +670 bps

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Results – Infrastructure Solutions • Majority of shipments completed for projects in China; installation ongoing • Backlog reduced from prior year due to large China shipments, lower sales and activity in electrical and lower business due to pandemic in our industrial solutions business • Orders of enclosures and switchgear improving • Seasonally light activity within Industrial Solutions compounded by pandemic In millions $ except percentages Key Statistics FY20 Book to Ship 0.87 to 1 Segment Summary: FY21 Book to Ship 1.06 to 1 FY20 Revenue $122.6 FY21 Revenue $89.5 18 Revenue $122.6 $89.5 FY20 FY21 -27.0% Operating Income 321.4% Reported and Adjusted Operating Margin +460 bps Reported and Adjusted (a)=adjusted -$1.4 $3.1 $3.1 FY20 FY21 FY21(a) -1.1% 3.5% 3.5% FY20 FY21 FY21(a)

Appendix and Additional Information

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA and Adjusted EBITDA, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with a greater transparency comparison of operating results across a broad spectrum of companies, which provides a more complete understanding of AZZ’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, to assess operating performance and that such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. Non-GAAP Disclosure of EBITDA 20

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA 21 In millions Consolidated Q4 FY 21 Consolidated Q4 FY 20 GAAP Net Income $16.2 $(10.6) Adjustments to reconcile GAAP to non- GAAP Financial Measures Interest Expense $2.3 $3.0 Income Tax (Benefit) / Expense $0.2 $(0.3) Depreciation and Amortization Expense $10.4 $13.0 Total Adjustments $12.9 $15.7 Non-GAAP EBITDA $29.1 $5.1 Current Year vs. Prior Year As Reported to As Adjusted Q4 Consolidated $(millions) except EPS As Reported (a) Adjustment As Adjusted Revenue 195.6$ 195.6$ Gross Profit 45.8 45.8 Gross Margin 23.4% 23.4% SG&A 27.3 27.3 Impairment and Restructuring Cost 0.3 (0.3) (1) - Loss on Disposal (0.0) (0.0) Operating Profit 18.8 18.5 Operating Margin 9.6% 9.5% Other (exp) / income net (0.1) (0.1) Interest 2.3 2.3 Tax 0.2 0.2 Net Income 16.2$ 16.0$ Shares 25.468 25.468 Diluted EPS 0.63$ 0.62$ Depreciation and Amortization 10.4$ 10.4$ EBITDA 29.1$ 28.8$

Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Full Year Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA 22 In millions Consolidated FY 21 Consolidated FY 20 GAAP Net Income $39.6 $48.2 Adjustments to reconcile GAAP to non- GAAP Financial Measures Interest Expense $9.6 $13.5 Income Tax Expense $11.4 $16.7 Depreciation and Amortization Expense $44.6 $50.1 Total Adjustments $65.6 $80.3 Non-GAAP EBITDA $105.2 $128.5 Current Year vs. Prior Year As Reported to As Adjusted Full Year Consolidated $(millions) except EPS As Reported (a) Adjustment As Adjusted Revenue 838.9$ 838.9$ Gross Profit 188.7 188.7 Gross Margin 22.5% 22.5% SG&A 107.1 107.1 Impairment and Restructuring Cost (16.9) 16.9 (1) 0.0 Loss on Sale (3.1) 3.1 (2) 0.0 Operating Profit 61.6 81.6 Operating Margin 7.3% 9.7% Other (exp) / income net (1.0) (1.0) Interest 9.6 9.6 Tax 11.4 (4.6) (3) 16.0 Net Income 39.6$ 55.0$ Shares 26.045 26.045 Diluted EPS 1.52$ 2.11$ Depreciation and Amortization 44.6$ 44.6$ EBITDA 105.2$ 125.2$

XML

Document and Entity Information Document and Entity Information	Apr. 23, 2021	Jul. 09, 2020
Document & Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Apr. 23, 2021
Entity Registrant Name	AZZ Inc.
Entity Incorporation, State or Country Code	TX
Entity File Number	1-12777
Entity Tax Identification Number	75-0948250
Entity Address, Address Line One	One Museum Place, Suite 500
Entity Address, Address Line Two	3100 West 7th Street
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76107
City Area Code	817
Local Phone Number	810-0095
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	AZZ
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key		0000008947
Amendment Flag		false