AZZ Inc (AZZ) Q3 2025 Earnings Report

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AZZ Inc

AZZ

$105.15 -1.53%

Exchange: NYSE | Sector: Industrials | Industry: Manufacturing Metal Fabrication

Q3 2025

Published: Jan 7, 2025

Earnings Highlights

Revenue of $403.65M up 5.8% year-over-year
EPS of $1.12 increased by 20.4% from previous year
Gross margin of 24.2%
Net income of 33.60M
""We expect to reduce our debt by over $100 million for the fiscal year ending in February."" - Tom Ferguson

AZZ

AZZ Inc

Period Q3 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 7, 2025

Executive Summary

In Q3 2025, AZZ Inc reported solid performance, achieving $403.7 million in revenue, marking a 5.8% increase year-over-year, driven by robust demand in construction and steep increases in infrastructure spending. Both segments—Metal Coatings and Precoat Metals—demonstrated strong performance with respective sales growth of 3.3% and 7.6%. Operating income rose to $58.5 million, or 14.5% of sales, while net income surged by 24.96% to $33.6 million, reflecting improved efficiency and cost management. AZZ's leadership credits successful execution of operational strategies amidst a favorable market backdrop, declaring a sustained focus on organic growth while exploring strategic acquisitions.

Key Performance Indicators

Revenue

Increasing

403.65M

QoQ: -1.31% | YoY: 5.78%

Gross Profit

Increasing

97.78M

24.22% margin

QoQ: -5.54% | YoY: 10.92%

Operating Income

Increasing

58.54M

QoQ: -13.47% | YoY: 10.81%

Net Income

Increasing

33.60M

QoQ: -5.13% | YoY: 24.96%

EPS

Increasing

1.12

QoQ: -5.88% | YoY: 20.43%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue: $403.7 million, increased by 5.8% YoY, decreased by 1.31% QoQ.

Gross Profit: $97.8 million, representing a gross profit margin of 24.2%, up from 23.1% YoY.

Operating Income: $58.5 million (14.5% margin), up from $52.8 million (13.8% margin) YoY.

Net Income: $33.6 million (EPS $1.12), up from $26.9 million the previous year.

EBITDA: $90.7 million, or 22.5% of sales.

Cash Flow from Operations: $185.6 million, with free cash flow at $99.7 million year-to-date.

Debt Reduction: Debt repaid by $35 million in Q3, contributing to healthier leverage metrics (2.6x EBITDA).

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	403.65M	5.78%	-1.31%
Gross Profit	97.78M	10.92%	-5.54%
Operating Income	58.54M	10.81%	-13.47%
Net Income	33.60M	24.96%	-5.13%
EPS	1.12	20.43%	-5.88%

Key Financial Ratios

Gross Profit Margin

Fair

24.20%

Gross profit margin is moderate, room for improvement in cost management

Operating Profit Margin

Fair

14.50%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

8.32%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

1.50%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

3.26%

Return on equity suggests inefficient capital allocation

Current Ratio

Healthy

1.77

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

0.03

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Fair Value

20.70x

P/E ratio in line with market averages

Price to Book

Fair Value

2.70x

Price-to-book ratio reasonable for profitable companies

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	421.96	5.66	+2.1%	View
Q4 2025	351.88	0.67	-4.0%	View
Q3 2025	403.65	1.12	+5.8%	View
Q2 2025	409.01	1.18	+2.6%	View
Q1 2025	413.21	-1.38	+5.7%	View

AZZ Inc (AZZ) Q3 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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