AZZ (NYSE:AZZ), a global leader in hot-dip galvanizing and coil coating solutions, today announced its financial results for the second quarter of the fiscal year, which ended on August 31, 2024.
The company reported a significant upturn in sales and net income, highlighting robust performance across its key business segments.
For the quarter, AZZ achieved total sales of $409 million, marking a 2.6% increase from the previous year.
This growth was driven by a 1% rise in Metal Coatings sales, which reached $171.5 million, and a 3.8% increase in Precoat Metals sales, which totaled $237.5 million.
Net income for the quarter stood at $35.4 million, representing a substantial 25% increase compared to the same period last year.
The adjusted net income also saw an impressive rise, up 11% to $41.3 million.
Earnings per share (EPS) followed suit, with GAAP EPS climbing 21.6% to $1.18 per diluted share and adjusted diluted EPS up by 7.9% to $1.37.
The company's adjusted EBITDA was $91.9 million, or 22.5% of sales, showing an improvement from $88 million, or 22.1% of sales, in the prior year.
Segment-wise, the Metal Coatings division boasted an adjusted EBITDA margin of 31.7%, while the Precoat Metals segment posted a margin of 21.1%.
AZZ also made significant strides in reducing its debt, cutting down $20 million in the quarter, with a total fiscal year-to-date reduction of $45 million.
While the company declared a cash dividend of $0.17 per share to its common shareholders, AZZ successfully repriced its Term Loan B on September 24, 2024, reducing the borrowing rate by 75 basis points to SOFR+2.50%.