‘We are committed to pay down our debt while simultaneously pursuing strategic growth opportunities, including our new facility, which will exponentially increase our operational capacity.’
— Thomas Ferguson, CEO
03Detailed Report
AZZ
AZZ Inc
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
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Executive Summary
In the fourth quarter of fiscal 2025, AZZ Inc reported revenues of $351.9 million, a decrease of 4% compared to the same quarter last year, primarily due to adverse weather conditions causing significant disruption in construction activity. However, the company achieved a notable net income of $20.2 million, a year-over-year increase of 41.7%, indicating strong operational leverage and margin improvements despite the revenue decline. Management remains confident in the strategic direction, emphasizing robust demand in the construction sector driven by infrastructure investments and ongoing urbanization trends. Looking ahead, AZZ has reiterated its fiscal year 2026 guidance, anticipating sales between $1.625 billion and $1.725 billion, reflecting broader economic resilience and defined growth strategies.
Key Performance Indicators
Revenue
Decreasing
351.88M
QoQ: -12.83% | YoY: -4.01%
Gross Profit
Decreasing
78.72M
22.37% margin
QoQ: -19.49% | YoY: -2.87%
Operating Income
Decreasing
40.43M
QoQ: -30.92% | YoY: -4.35%
Net Income
Increasing
20.21M
QoQ: -39.86% | YoY: 41.69%
EPS
Increasing
0.68
QoQ: -39.29% | YoY: 19.30%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and Profitability
- Q4 2025 Revenue: $351.9 million (YoY: -4.0%, QoQ: -12.8%)
- Gross Profit: $78.7 million (Margin: 22.4%) (YoY: -2.9%, QoQ: -19.5%)
- Operating Income: $40.4 million (Margin: 11.5%) (YoY: -4.4%, QoQ: -30.9%)
- Net Income: $20.2 million (Margin: 5.7%) (YoY: +41.7%, QoQ: -39.9%)
- EPS: $0.68 (YoY: +19.3%, QoQ: -39.3%)
Overall, AZZ's gross margins improved due to operational efficiencies despite lower volume driven by weather, reflecting effective cost management strategies.
Debt Management
- Total Debt: $879.1 million, Debt to Adjusted EBITDA at 2.5x
- Debt Paydown: $110 million funded from strong cash generation of $250 million in operational cash flow for FY 2025, indicating a commitment to strengthening the balance sheet.
Cash Flow
- Free Cash Flow: $134 million, sustaining capital investments made towards growth initiatives like the new Washington facility, which showcased a strategic focus on expanding coil coating capabilities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
351.88M
-4.01%
-12.83%
Gross Profit
78.72M
-2.87%
-19.49%
Operating Income
40.43M
-4.35%
-30.92%
Net Income
20.21M
41.69%
-39.86%
EPS
0.68
19.30%
-39.29%
Key Financial Ratios
Gross Profit Margin
Fair
22.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
11.50%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.74%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.91%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.93%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.70
Current ratio shows adequate liquidity to meet short-term obligations