AZZ Inc. Shines Bright with Record-Breaking Sales and Profitability in Q4 2025
AZZ Inc., a leading provider of coatings and specialty metal solutions, has achieved remarkable success in the fourth quarter of fiscal year 2025. According to the company's recent conference call transcript, AZZ's Coatings segment delivered record sales and profitability for the fiscal year, driven by business momentum and disciplined execution of growth initiatives.
Tom Ferguson, President and Chief Executive Officer, highlighted the strong performance of Metal Coatings, which generated $665 million in sales for the full year. This was largely based on increased volume as the company processed higher tonnage in both fabricated steel and coil coating. The Precourt Metals segment also performed well, with sales reaching $912 million.
The growth in bridge and highway construction, including new projects and renovation projects across the U.S., played a significant role in AZZ's record-breaking performance. Additionally, the expansion in transmission and distribution, including solar projects, and general construction contributed to the company's success. Ferguson noted that the fourth quarter is typically the weakest season due to inclement weather conditions, but despite this, the company still achieved impressive results.
Jason Crawford, Chief Financial Officer, provided further insight into the company's financial performance, highlighting the strong EBITDA margin of 30.9% in Metal Coatings and 19.6% in Precoat Metals. These figures demonstrate the company's ability to maintain profitability even during challenging times. The robust cash generation allowed AZZ to pay down $110 million of debt and fund its new greenfield facility near St. Louis, Missouri.
As the company looks ahead to fiscal year 2026, it plans to continue paying down debt, strengthening its balance sheet, and prioritizing other capital allocation strategies. Tom Ferguson emphasized the importance of investing in AZZ's enterprise-wide technologies, including enhancing DGS, the digital galvanizing system, and coil zone in the coil coating facilities. These customer-centric technologies will further elevate service levels, enhance the company's unique value proposition, and provide effective business intelligence reporting for better decision-making.
The company's commitment to innovation and customer satisfaction is evident in its continued investment in technologies that improve operating productivity and efficiency. With its strong financial performance and strategic initiatives, AZZ Inc. remains well-positioned for future growth and success.
As the construction industry continues to evolve, AZZ Inc.'s expertise in coatings and specialty metal solutions will undoubtedly play a critical role in supporting infrastructure investments and community development. The company's record-breaking sales and profitability in Q4 2025 are a testament to its commitment to excellence and customer satisfaction.
