AZZ Inc. has recently released its 10-K report, providing a detailed insight into the company's operations and financial performance for the fiscal year ended February 29, 2024. AZZ Inc. is a provider of hot-dip galvanizing and coil coating solutions in the United States, Canada, Brazil, China, the Netherlands, Poland, Singapore, and India. The company operates through three distinct business segments: AZZ Metal Coatings, AZZ Precoat Metals, and AZZ Infrastructure Solutions.
In the fiscal year ended February 29, 2024, AZZ Inc. recorded sales of $1.54 billion, marking an increase from the prior year's sales of $1.32 billion. The net income from continuing operations for fiscal 2024 was $101.6 million, compared to $66.3 million for fiscal 2023. The company's diluted earnings per common share from continuing operations also saw a significant increase of 48.5%, reaching $3.46 per share for fiscal 2024, compared to $2.33 per share for fiscal 2023.
The AZZ Metal Coatings segment reported sales of $656.2 million for fiscal 2024, representing a 3.0% increase from the prior year. The segment's operating income increased by 5.6% to $164.7 million. On the other hand, the AZZ Precoat Metals segment witnessed a substantial sales increase of 28.4%, reaching $881.4 million, with an operating income of $139.6 million, marking a 75.6% increase from the prior year.
The company's liquidity and capital resources remained robust, with operations generating $244.5 million of cash in fiscal 2024, including $54.0 million generated from reduction in working capital. AZZ Inc. also made $95.1 million of capital investments in its business and returned $31.4 million to its common and preferred shareholders through dividend payments. Additionally, the company reduced its outstanding debt through $115.0 million in net payments on its Term Loan B and revolving credit facility. As a result, the company's cash and cash equivalents were $4.3 million as of February 29, 2024, with $355.5 million available under the revolving credit facility.
Looking ahead, AZZ Inc. highlighted that while it is challenging to predict future North American economic activity and its impact on the demand for its galvanizing and coil coating solutions, the company expects sales prices in its AZZ Metal Coatings and AZZ Precoat Metals segments to remain consistent with current levels. The company also anticipates that demand in these segments will follow typical seasonal patterns, with customer inventories remaining at historical levels to support continued demand for its metal coatings and coil coating solutions.
The market has reacted to these announcements by moving the company's shares 4.1% to a price of $77.89. If you want to know more, read the company's complete 10-K report here.
