"We expect to reduce our debt by over $100 million for the fiscal year ending in February."
— Tom Ferguson
03Detailed Report
AZZ
AZZ Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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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
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