AZZ Inc. AZZ reported third-quarter fiscal 2025 (ended Nov. 30, 2024) earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.29. The bottom line increased 16.8% year over year.

Total revenues of $403.7 million outperformed the consensus estimate of $400 million. The top line rose 5.8% year over year, driven by market share growth and improvements from mix shifts in end markets, including construction, HVAC and transportation.

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AZZ’s Segmental Results

The company has two reportable segments: Metal Coatings and Precoat Metals.

Revenues from the Metal Coatings segment (representing 41.8% of the quarter’s net revenues) totaled $168.6 million, up 3.3% year over year. The consensus estimate for Metal Coatings’ revenues was pegged at $169 million.

Revenues from the Precoat Metals segment (representing 58.2% of the quarter’s net revenues) totaled $235.1 million, up 7.6% year over year. The consensus estimate was pegged at $235 million.

AZZ’s Margin Profile

AZZ’s cost of sales increased 4.2% year over year to $305.9 million. The gross profit was up 10.9% year over year to $97.8 million. The adjusted gross margin was 24.2% compared with 23.1% in the year-ago period.

Selling, general and administrative expenses increased 11.1% year over year to $35.3 million. Adjusted EBITDA increased 5% year over year to $90.7 million.

AZZ’s Balance Sheet and Cash Flow

Exiting the fiscal third quarter, AZZ had a cash balance of $1.5 million compared with $4.3 million at the end of fiscal 2024. Long-term debt was $879.5 million at the end of the fiscal quarter.

In the first nine months of fiscal 2025, the company generated net cash of $185.6 million from operating activities compared with $180.9 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $85.9 million, up 28.5% on a year-over-year basis.

AZZ’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked companies are discussed below.

Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.

Gates Industrial Corporation plc GTES currently carries a Zacks Rank #2 (Buy). GTES delivered a trailing four-quarter average earnings surprise of 11.8%.

In the past 60 days, the Zacks Consensus Estimate for Gates Industrial’s 2024 earnings has remained unchanged.

Generac Holdings Inc. GNRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.8%.

The Zacks Consensus Estimate for GNRC’s 2024 earnings has increased 0.6% in the past 60 days.

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AZZ Inc. (AZZ) : Free Stock Analysis Report

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