AZZ (AZZ) investor relations material

Business overview and performance

• Holds leading market share in North American metal coatings and coil coating, with 47 metal coatings and 14 coil coating plants, and 39 consecutive years of profitability.

• Fiscal year sales reached $1.65 billion and market cap $4.6 billion, both record highs; Metal Coatings segment grew 14% year-over-year, while Precoat Metals declined 2.3%.

• Adjusted EBITDA margins are strong: 31% for Metal Coatings and 21-22% for Precoat Metals; leverage reduced from 3.6x to 1.4x, enabling reinvestment and shareholder returns.

• Raised fiscal year guidance to $1.8–$1.85 billion in sales, $375–$415 million adjusted EBITDA, and $6.75–$7.15 adjusted diluted EPS.

• Maintains a toll coating model, insulating from metal price volatility, and focuses exclusively on North American operations.

Growth drivers and strategic initiatives

• Targets growth at two times GDP or higher, driven by strong end-market demand and new plant ramp-ups.

• Generational infrastructure projects, data center build-outs, reshoring of manufacturing, and a shift from plastics to aluminum in containers are key demand drivers.

• Washington, Missouri plant, a $125 million investment, is operational with a seven-year take-or-pay contract covering 75% of capacity, expected to be accretive in FY 2027.

• Recent acquisition of Seattle Galvanizing expands presence in the Pacific Northwest, with plans for further bolt-on acquisitions in strategic regions.

• Ongoing investments in technology, IT infrastructure, and AI to enhance operational efficiency and future readiness.

Financial discipline and capital allocation

• Aggressive debt reduction has unlocked value for reinvestment, dividend growth, and share repurchases.

• Dividend increased by 20% recently; $130 million share repurchase authorization remains.

• Focuses on high ROIC organic growth and disciplined M&A, avoiding deals with significant environmental liabilities.

• No current plans for overseas acquisitions, maintaining focus on North American opportunities.