"We are optimistic that Fed actions to lower interest rates may spur greater capital spending into calendar year 2025."
— Tom Ferguson
03Detailed Report
AZZ
AZZ Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
AZZ Inc reported a solid performance for Q2 2025, with revenue increasing 2.6% year-over-year, totaling $409 million. The company's EBITDA also saw an expansion, leading to improved cash flow generation, primarily attributed to growth in both Metal Coatings and Precoat segments. Management highlighted strong cash flow from operations of $119 million for the first half of FY2025, reflecting robust operational efficiencies and market share gains. Overall, while the company is optimistic about continued growth, they caution about potential seasonal slowdowns and macroeconomic factors impacting private sector spending moving forward.
Key Performance Indicators
Revenue
Increasing
409.01M
QoQ: -1.02% | YoY: 2.63%
Gross Profit
Increasing
103.51M
25.31% margin
QoQ: 0.82% | YoY: 6.45%
Operating Income
Increasing
67.65M
QoQ: -3.02% | YoY: 10.88%
Net Income
Increasing
35.42M
QoQ: -10.56% | YoY: 25.01%
EPS
Increasing
1.19
QoQ: 186.23% | YoY: 20.20%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and Profitability: Revenue for Q2 2025 stands at $409 million, up 2.6% YoY. Gross profit reached $103.5 million, with a gross profit margin of 25.3%, marking a 90 basis point increase from 24.4% YoY. Operating income improved to $67.6 million, boosting the operating income ratio to 16.5% compared to 15.3% prior, indicating enhanced profitability due to higher operational efficiencies and improved cost management.
Cash Flow and Debt Management: AZZ generated $119.4 million in cash flow from operations in the first half of FY2025, slightly outpacing the prior year of $118.3 million. The company continues its strategy of debt reduction, having paid down $20 million during Q2, signaling a reduction in interest expense from $27.8 million in the previous year to $21.9 million this quarter.
EPS Performance: Diluted EPS for the quarter was $1.18, a significant increase of 20.20% YoY.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
409.01M
2.63%
-1.02%
Gross Profit
103.51M
6.45%
0.82%
Operating Income
67.65M
10.88%
-3.02%
Net Income
35.42M
25.01%
-10.56%
EPS
1.19
20.20%
186.23%
Key Financial Ratios
Gross Profit Margin
Fair
25.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
16.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Fair
8.66%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.58%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.54%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.85
Current ratio shows adequate liquidity to meet short-term obligations