The chart below shows how AZZ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AZZ sees a +1.31% change in stock price 10 days leading up to the earnings, and a +2.22% change 10 days following the report. On the earnings day itself, the stock moves by -1.33%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Sales Increase: Consolidated third quarter sales of $404 million increased by 5.8% versus the prior year's quarter, driven mainly by construction projects related to highways, new bridge construction, and infrastructure renovations throughout the U.S.
Segment Sales Growth: The Metal Coatings segment increased overall sales by 3.3%, with galvanizing growing at 5.2% when compared to the prior year's third quarter, while the Precoat Metals segment grew sales by 7.6%.
EBITDA Margin Achievement: Strong EBITDA margin of 31.5% was achieved, exceeding the targeted range of 25% to 30%, primarily due to higher volume and improved zinc productivity.
Net Income Increase: Reported net income from the third quarter was $33.6 million compared to $26.9 million for the prior year quarter, reflecting a significant year-over-year increase.
Free Cash Flow and Debt Repayment: Year-to-date free cash flow was $99.7 million, allowing for substantial debt repayments of over $100 million for the full year.
Negative
Gross Profit Increase: The third quarter's gross profit was $67.8 million or 24.2% of sales, an increase of 110 basis points from 23.1% of sales in the prior year quarter.
SG&A Expense Analysis: Selling, general and administrative expenses were $39.2 million or 9.7% of sales compared to $35.3 million or 9.3% of sales in the prior year quarter.
SG&A Cost Increases: The SG&A increase in the quarter was due to one-off employee retirement costs, severance expenses, and legal accruals for cases that were settled during the third quarter.
Net Income Increase: Reported net income from the third quarter was $33.6 million compared to $26.9 million for the prior year quarter.
Unconsolidated Subsidiaries Earnings: The equity and earnings of unconsolidated subsidiaries for the third quarter was $7.2 million compared to $8.7 million for the same quarter last year.
AZZ Inc. (AZZ) Q3 2025 Earnings Call Transcript
AZZ.N
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