(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
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)) | |||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
| Exhibit | Description | ||||
| 99.1 | |||||
| AZZ Inc. | ||||||||||||||
| Date: | July 9, 2025 | By: | /s/ Jason Crawford | |||||||||||
| Jason Crawford Senior Vice President, Chief Financial Officer and Principal Accounting Officer | ||||||||||||||
FY2026 Guidance(1) | ||||||||
| Sales | $1.625 - $1.725 billion | |||||||
| Adjusted EBITDA | $360 - $400 million | |||||||
| Adjusted Diluted EPS | $5.75 - $6.25 | |||||||
| AZZ Inc. | ||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended May 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Sales | $ | 421,962 | $ | 413,208 | ||||||||||
| Cost of sales | 317,832 | 310,538 | ||||||||||||
| Gross margin | 104,130 | 102,670 | ||||||||||||
| Selling, general and administrative | 34,581 | 32,921 | ||||||||||||
| Operating income | 69,549 | 69,749 | ||||||||||||
| Interest expense, net | (18,563) | (22,774) | ||||||||||||
| Equity in earnings of unconsolidated subsidiaries | 173,523 | 3,824 | ||||||||||||
| Other income, net | 1,327 | 204 | ||||||||||||
| Income before income taxes | 225,836 | 51,003 | ||||||||||||
| Income tax expense | 54,928 | 11,401 | ||||||||||||
| Net income | 170,908 | 39,602 | ||||||||||||
| Series A Preferred Stock Dividends | — | (1,200) | ||||||||||||
| Redemption premium on Series A Preferred Stock | — | (75,198) | ||||||||||||
| Net income (loss) available to common shareholders | $ | 170,908 | $ | (36,796) | ||||||||||
| Basic earnings (loss) per common share | $ | 5.71 | $ | (1.38) | ||||||||||
| Diluted earnings (loss) per common share | $ | 5.66 | $ | (1.38) | ||||||||||
| Weighted average shares outstanding - Basic | 29,941 | 26,751 | ||||||||||||
| Weighted average shares outstanding - Diluted | 30,217 | 26,751 | ||||||||||||
| Cash dividends declared per common share | $ | 0.17 | $ | 0.17 | ||||||||||
| AZZ Inc. | |||||||||||
| Segment Reporting | |||||||||||
| (dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended May 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Sales: | |||||||||||
| Metal Coatings | $ | 187,215 | $ | 176,651 | |||||||
Precoat Metals | 234,747 | 236,557 | |||||||||
| Total Sales | $ | 421,962 | $ | 413,208 | |||||||
| Adjusted EBITDA | |||||||||||
| Metal Coatings | $ | 61,516 | $ | 54,645 | |||||||
Precoat Metals | 48,477 | 47,687 | |||||||||
| Infrastructure Solutions | 7,617 | 3,795 | |||||||||
Total Segment Adjusted EBITDA(1) | $ | 117,610 | $ | 106,127 | |||||||
(1) See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with GAAP to the non-GAAP financial measures. | |||||||||||
| AZZ Inc. | ||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| As of | ||||||||||||||
| May 31, 2025 | February 28, 2025 | |||||||||||||
| Assets: | ||||||||||||||
| Current assets | $ | 407,945 | $ | 375,444 | ||||||||||
| Property, plant and equipment, net | 597,892 | 592,941 | ||||||||||||
| Other non-current assets, net | 1,153,348 | 1,258,716 | ||||||||||||
| Total Assets | $ | 2,159,185 | $ | 2,227,101 | ||||||||||
| Liabilities and Shareholders’ equity: | ||||||||||||||
| Current liabilities | $ | 270,097 | $ | 220,992 | ||||||||||
| Long-term debt, net | 569,807 | 852,365 | ||||||||||||
| Other non-current liabilities | 104,983 | 108,249 | ||||||||||||
| Shareholders' Equity | 1,214,298 | 1,045,495 | ||||||||||||
| Total Liabilities and Shareholders' equity | $ | 2,159,185 | $ | 2,227,101 | ||||||||||
| AZZ Inc. | ||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended May 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Net cash provided by operating activities | $ | 314,782 | $ | 71,944 | ||||||||||
| Net cash used in investing activities | (17,122) | (27,379) | ||||||||||||
| Net cash used in financing activities | (295,512) | (38,542) | ||||||||||||
| Effect of exchange rate changes on cash | (593) | 174 | ||||||||||||
| Net increase in cash and cash equivalents | 1,555 | 6,197 | ||||||||||||
| Cash and cash equivalents at beginning of period | 1,488 | 4,349 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 3,043 | $ | 10,546 | ||||||||||
| Three Months Ended May 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Amount | Per Diluted Share(1) | Amount | Per Diluted Share(1) | ||||||||||||||||||||
| Net income | $ | 170,908 | $ | 39,602 | |||||||||||||||||||
| Less: Series A Preferred Stock dividends | — | (1,200) | |||||||||||||||||||||
| Less: Redemption premium on Series A Preferred Stock | — | (75,198) | |||||||||||||||||||||
Net income (loss) available to common shareholders(2) | 170,908 | (36,796) | |||||||||||||||||||||
Impact of Series A Preferred Stock dividends(2) | — | 1,200 | |||||||||||||||||||||
Net income (loss) and diluted earnings (loss) per share for Adjusted net income calculation(2) | 170,908 | $ | 5.66 | (35,596) | $ | (1.18) | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Amortization of intangible assets | 5,734 | 0.19 | 5,793 | 0.20 | |||||||||||||||||||
Restructuring charges(3) | 3,827 | 0.13 | — | — | |||||||||||||||||||
Redemption premium on Series A Preferred Stock(4) | — | — | 75,198 | 2.49 | |||||||||||||||||||
Executive retiree long-term incentive program(5) | 2,185 | 0.07 | — | — | |||||||||||||||||||
AVAIL JV excess distribution(6) | (165,826) | (5.49) | — | — | |||||||||||||||||||
| Subtotal | (154,080) | (5.10) | 80,991 | 2.69 | |||||||||||||||||||
Tax impact(7) | 36,979 | 1.22 | (1,390) | (0.05) | |||||||||||||||||||
| Total adjustments | (117,101) | (3.88) | 79,601 | 2.64 | |||||||||||||||||||
| Adjusted net income and adjusted earnings per share (non-GAAP) | $ | 53,807 | $ | 1.78 | $ | 44,005 | $ | 1.46 | |||||||||||||||
Weighted average shares outstanding - Diluted for Adjusted earnings per share(2) | 30,217 | 30,194 | |||||||||||||||||||||
| Three Months Ended May 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net income | $ | 170,908 | $ | 39,602 | |||||||
| Interest expense | 18,563 | 22,774 | |||||||||
| Income tax expense | 54,928 | 11,401 | |||||||||
| Depreciation and amortization | 21,827 | 20,323 | |||||||||
| Adjustments: | |||||||||||
Restructuring charges(3) | 3,827 | — | |||||||||
Executive retiree long-term incentive program(5) | 2,185 | — | |||||||||
AVAIL JV excess distribution(6) | (165,826) | — | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 106,412 | $ | 94,100 | |||||||
| Three Months Ended May 31, 2025 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 50,671 | $ | 39,354 | $ | 173,443 | $ | (92,560) | $ | 170,908 | |||||||||||||||||||
| Interest expense | — | — | — | 18,563 | 18,563 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 54,928 | 54,928 | ||||||||||||||||||||||||
| Depreciation and amortization | 6,660 | 9,123 | — | 6,044 | 21,827 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Restructuring charges(3) | 3,827 | — | — | — | 3,827 | ||||||||||||||||||||||||
Executive retiree long-term incentive program(5) | 358 | — | — | 1,827 | 2,185 | ||||||||||||||||||||||||
AVAIL JV excess distribution(6) | — | — | (165,826) | — | (165,826) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 61,516 | $ | 48,477 | $ | 7,617 | $ | (11,198) | $ | 106,412 | |||||||||||||||||||
| Three Months Ended May 31, 2024 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 47,988 | $ | 40,094 | $ | 3,795 | $ | (52,275) | $ | 39,602 | |||||||||||||||||||
| Interest expense | — | — | — | 22,774 | 22,774 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 11,401 | 11,401 | ||||||||||||||||||||||||
| Depreciation and amortization | 6,657 | 7,593 | — | 6,073 | 20,323 | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 54,645 | $ | 47,687 | $ | 3,795 | $ | (12,027) | $ | 94,100 | |||||||||||||||||||
| Trailing Twelve Months Ended | |||||||||||
| May 31, 2025 | February 28, 2025 | ||||||||||
| Gross debt | $ | 614,875 | $ | 900,250 | |||||||
| Less: Cash per bank statement | (17,928) | (12,670) | |||||||||
| Add: Finance lease liability | 10,160 | 6,647 | |||||||||
| Consolidated indebtedness | $ | 607,107 | $ | 894,227 | |||||||
| Net income | $ | 260,139 | $ | 128,833 | |||||||
| Depreciation and amortization | 83,710 | 82,205 | |||||||||
| Interest expense | 77,071 | 81,282 | |||||||||
| Income tax expense | 85,376 | 41,850 | |||||||||
| EBITDA | 506,296 | 334,170 | |||||||||
Cash items(8) | 20,035 | 15,325 | |||||||||
Non-cash items(9) | 14,818 | 12,161 | |||||||||
| Equity in earnings, net of distributions | (173,835) | (3,598) | |||||||||
| Adjusted EBITDA per Credit Agreement | $ | 367,314 | $ | 358,058 | |||||||
| Net leverage ratio | 1.7x | 2.5x | |||||||||
(1) | Earnings per share amounts included in the "Adjusted Net Income and Adjusted Earnings Per Share" table above may not sum due to rounding differences. | |||||||
(2) | For the three months ended May 31, 2024, diluted earnings per share is based on weighted average shares outstanding of 26,751, as the Series A Preferred Stock that was redeemed May 9, 2024, is anti-dilutive for this calculation. The calculation of adjusted diluted earnings per share is based on weighted average shares outstanding of 30,194, as the Series A Preferred Stock is dilutive to adjusted diluted earnings per share. Adjusted net income for adjusted earnings per share also includes the addback of Series A Preferred Stock dividends for the period noted above. For further information regarding the calculation of earnings per share, see "Item 1. Financial Statements—Note 3" in the Company's Form 10-Q for the first quarter of fiscal year 2026. | |||||||
(3) | Includes restructuring charges related to the closure of two surface technology facilities in our Metal Coatings segment. | |||||||
(4) | On May 9, 2024, we redeemed AZZ's Series A Preferred Stock. The redemption premium represents the difference between the redemption amount paid and the book value of the Series A Preferred Stock. | |||||||
(5) | During the three months ended May 31, 2025, we recognized additional stock-based compensation expense of $2.2 million upon the adoption of the Executive Retiree Long-term Incentive Program. For further information regarding the adoption of the ERP, see "Item 1. Financial Statements—Note 15" in the Company's Form 10-Q for the first quarter of fiscal year 2026. | |||||||
(6) | During the three months ended May 31, 2025, AVAIL completed the sale of the Electrical Products Group business to nVent Electric plc. Following the completion of the sale, we received a distribution of $273.2 million, which exceeded our investment in the AVAIL JV of $107.4 million as of May 31, 2025. Since we are not liable for the obligations of the AVAIL JV nor otherwise committed to provide financial support after writing off our investment in the AVAIL JV, we recognized $165.8 million as a gain for the three months ended May 31, 2025. We recorded $173.5 million in equity in earnings, which consists of 1) $7.7 million of equity in earnings from the AVAIL JV's operations for the three months ended May 31, 2025, and 2) $165.8 million of a gain from distribution received in excess of our investment in the AVAIL JV. For further information, see "Item 1. Financial Statements—Note 7" in the Company's Form 10-Q for the first quarter of fiscal year 2026. | |||||||
(7) | The non-GAAP effective tax rate for each of the periods presented is estimated at 24.0%. | |||||||
(8) | Cash items include certain legal settlements, accruals, and retirement and other severance expenses, and restructuring charges associated with the Metal Coatings segment. | |||||||
(9) | Non-cash items include stock-based compensation expense. | |||||||
Document and Entity Information Document and Entity Information |
Jul. 09, 2025 |
|---|---|
| Document & Entity Information [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Jul. 09, 2025 |
| Entity Registrant Name | AZZ Inc. |
| 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 |
| Entity Incorporation, State or Country Code | TX |
| Document Information [Line Items] | |
| Document Period End Date | Jul. 09, 2025 |
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