AZZ Inc.AZZ has revised its guidance for FY25, citing robust performance across various end markets.
The company has raised its sales outlook to a range of $1.525 billion to $1.625 billion (previously $1.5 billion to $1.6 billion), exceeding consensus expectations, and adjusted EPS to a range of $4.50 to $5.00 (up from $4.25 to $4.75), compared to the estimated $4.69.
In addition, AZZ has increased its adjusted EBITDA forecast to $310 million to $360 million, up from $300 million to $350 million for FY25.
Reiterating its capital expenditures forecast at $100 million to $120 million, the company anticipates further deleveraging of approximately $60 million to $90 million throughout the year.
Tom Ferguson, President, and Chief Executive Officer of AZZ, highlighted recent achievements, stating, “We successfully repriced our Term Loan B in March, reducing the interest rate margin by 50 basis points. S&P Global upgraded the rating on our senior secured debt to ‘BB-‘ from ‘B,’ marking a significant improvement. With increased equity income estimates from the AVAIL joint venture, we are optimistic about our prospects.”
“Moving forward in this fiscal year, we are focusing on organic growth in our Metal Coatings and Precoat Metals segments. Our aim is to enhance market share, maintaining excellence in customer service, quality, and operations as our key differentiators,” added Ferguson.
The company is set to unveil its fourth-quarter results on April 22, 2024.
For exposure to AZZ shares, investors can look to the Ballast Small/Mid Cap ETF MGMT and the Gabelli Automation ETF GAST.
Price Action: AZZ shares are showing a 1.82% increase at $80.05 in premarket trading as of the most recent check on Monday.
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