FORT
WORTH, Texas, Feb. 1, 2024
/PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading
independent provider of hot-dip galvanizing and coil coating
solutions, today announced financial guidance for fiscal year 2025
and reaffirmed previously issued guidance for fiscal year 2024.
Fiscal year 2025 refers to the 12-month period beginning
March 1, 2024 and ending on
February 28, 2025.
|
Reaffirming
Previously
Issued
FY 2024
Guidance
|
New
FY 2025 Guidance
(1)
|
Sales
|
$1.45 - $1.55
billion
|
$1.5 - $1.6
billion
|
Adjusted
EBITDA
|
$315 - $335
million
|
$300 - $350
million
|
Adjusted Diluted
EPS
|
$4.15 -
$4.35
|
$4.25 -
$4.75
|
(1) FY2025 Guidance
Assumptions:
|
a.
|
Management's current
outlook is reflected at the mid-point of the ranges.
|
b.
|
Excludes the impact of
any future acquisitions.
|
c.
|
Includes approximately
$10-$12 million of equity income from AZZ's minority interest in
its unconsolidated subsidiary.
|
d.
|
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 as we conclude our fiscal
year 2024 and prepare to enter fiscal year 2025. Our focus next
fiscal year will be to drive sustainable, profitable growth and
continue to generate strong free cash flow. We intend to grow
market share and ensure that superior customer service, quality,
and operational excellence remain differentiators for AZZ. We
expect capital expenditures for fiscal year 2025 to be
approximately $100 - $120 million, which includes $40 - $50 million
for the greenfield plant construction in Washington, Missouri (completion expected in FY25) and the
balance to be allocated to maintenance, productivity enhancements,
and environmental, health and safety initiatives. We anticipate
exceeding our $100 million targeted
debt paydown in FY2024. In FY2025 we will continue to allocate our
strong cash flow generated from operations to further deleverage
the company by approximately $60 -
$100 million."
"Finally, we will continue to focus on working capital
improvements, as well as enhancing incremental operational
productivity across both segments, while further optimizing our
corporate structure. AZZ is the leading independent hot-dip
galvanizing and coil coating company across North America with irreplaceable footprints in
our served markets. 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.