FORT
WORTH, Texas, April 8,
2024 /PRNewswire/ -- AZZ Inc. (NYSE:
AZZ), the leading independent provider of hot-dip
galvanizing and coil coating solutions, today announced upwardly
revised financial guidance for the fiscal year 2025, which refers
to the 12-month period beginning March 1,
2024 and ending on February
28, 2025.
|
Previously
Issued FY 2025
Guidance
|
Revised FY 2025 Guidance(1)
|
Sales
|
$1.5 - $1.6
billion
|
$1.525 - $1.625
billion
|
Adjusted
EBITDA
|
$300 - $350
million
|
$310 - $360
million
|
Adjusted Diluted
EPS
|
$4.25 -
$4.75
|
$4.50 -
$5.00
|
- FY2025 Revised Guidance Assumptions:
-
- Excludes the impact of any future acquisitions.
- Includes approximately $15-$18 million of
equity income from AZZ's minority interest in its unconsolidated
subsidiary, which resulted from the divesture of 60% of AIS in
2022
- Adjusted Diluted EPS guidance includes the add back of
amortization related to the Company's intangible
assets.
Tom Ferguson, President, and
Chief Executive Officer of AZZ, 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 - $120
million, which includes $50 -
$60 million 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 - $90
million.
"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,"
Ferguson concluded.
About AZZ Inc.
AZZ Inc. is the leading
independent provider of hot-dip galvanizing and coil coating
solutions to a broad range of end-markets. Collectively, our
business segments provide sustainable, unmatched metal coating
solutions that enhance the longevity and appearance of buildings,
products and infrastructure that are essential to everyday
life.
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," "could," "should," "expects," "plans,"
"will," "might," "would," "projects," "currently," "intends,"
"outlook," "forecasts," "targets," "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. Forward-looking statements speak
only as of the date they are made and are subject to risks that
could cause them to differ materially from actual results. 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 construction
markets, the industrial markets, and the metal coatings markets. We
could also experience additional increases in labor costs,
components and raw materials including zinc and natural gas, which
are used in our hot-dip galvanizing process; supply-chain vendor
delays; customer requested delays of our products or services;
delays in additional acquisition opportunities; an increase in our
debt leverage and/or interest rates on our debt, of which a
significant portion is tied to variable interest rates;
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, including a
prolonged economic downturn or macroeconomic conditions such as
inflation 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, including
in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form
10-K for the fiscal year ended February 28,
2023, and other filings with the 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 when 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.
Non-GAAP Financial
Measures
Information reconciling
forward-looking Adjusted EBITDA from continuing operations and
Adjusted Diluted Earnings from continuing operations to their
respective most directly comparable GAAP financial measures, net
income from continuing operations and diluted EPS, is unavailable
to AZZ without unreasonable effort because management cannot
predict with reasonable certainty all of the necessary components
of GAAP net income from continuing operations (such as income
taxes, interest expense, unusual or significant gains and losses,
acquisition related expenses, net gains or losses on investments in
equity securities and potential future asset impairments). These
items are uncertain, depend on various factors, and could have a
material impact on net income from continuing operations and
diluted EPS from continuing operations for the relevant periods.
We, therefore, do not present a guidance range for, or a
reconciliation to, the nearest GAAP financial measures of net
income from continuing operations or diluted EPS from continuing
operations.
Company Contact:
David Nark, Senior Vice President of
Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy
Martin, Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
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SOURCE AZZ, Inc.