AZZ Inc. is a leading industrial company specializing in metal coatings and coil coating solutions for corrosion protection and aesthetic enhancement. The company serves diverse end-markets, including construction, appliances, HVAC, containers, and transportation, primarily in North America. AZZ also holds a minority interest in infrastructure solutions focused on power transmission and industrial applications.
- Precoat Metals - Applies protective and decorative coatings to steel and aluminum coils, serving industries such as construction, appliances, HVAC, containers, and transportation.
- Metal Coatings - Provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating services for corrosion protection, primarily catering to the North American steel fabrication industry.
- Infrastructure Solutions - Focuses on power transmission and automated weld overlay solutions for corrosion and erosion mitigation, with AZZ holding a 40% non-controlling interest in the AVAIL JV.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Thomas E. Ferguson ExecutiveBoard | President and CEO | None | CEO since 2013, previously interim CEO at FlexSteel Pipeline Technologies and held leadership roles at Flowserve Corporation. Recognized for driving growth and acquisitions. | |
Jason Crawford Executive | Senior Vice President and CFO | None | CFO since June 2024, previously VP of Finance at Precoat Metals. Extensive experience in mergers and acquisitions and financial leadership. | |
Jeff Vellines Executive | President and COO, Precoat Metals | None | President of Precoat Metals since March 2024, previously SVP of Commercial Operations at Precoat Metals. Expertise in sales and strategic planning. | |
Kurt Russell Executive | Senior Vice President and Chief Strategic Officer | None | Joined AZZ in 2022 as COO of Precoat Metals. Former President of Precoat Metals at Sequa Corporation. Focuses on strategic growth initiatives. | |
Carol R. Jackson Board | Director | Director at Sensient Technologies Corporation | Director since 2021. Former CEO of HarbisonWalker International. Expertise in global business operations, industrial manufacturing, and public board experience. | |
Clive A. Grannum Board | Director | Director at Boys and Girls Clubs of Greater Saint Louis; MediNova N.Y. | Director since 2021. Former President at Materion Corporation and held leadership roles at Dow Chemical and Olin Corporation. Expertise in manufacturing and strategic growth. | |
Daniel E. Berce Board | Director and Chair of Audit Committee | CEO of General Motors Financial; Director at FirstCash, Inc.; Chairman of Arlington Asset Investment Corp. | Director since 2000. Extensive experience in corporate governance, accounting, and financial expertise. Former CFO and CEO of AmeriCredit Corp.. | |
Daniel R. Feehan Board | Chairman of the Board | Director at Enova International Inc.; Chairman of FirstCash, Inc. | Chairman since 2019, director since 2000. Former CEO of Cash America International. Expertise in finance, accounting, and corporate governance. | |
Ed McGough Board | Director | Senior VP of Global Manufacturing and Technical Operations at Alcon, Inc. | Director since 2017. Extensive experience in global manufacturing and supply chain management. Senior VP at Alcon, overseeing pharmaceutical plants worldwide. | |
Steven R. Purvis Board | Director | Trustee for Fort Worth Employees Retirement Fund; Trustee to LKCM Funds | Director since 2015. Over 35 years of public market investment experience. Former Principal at Luther King Capital Management. |
- Given that some projects are being delayed due to tariff uncertainties and steel supply issues, potentially slowing revenue in the fourth quarter, how is AZZ preparing to mitigate these risks and ensure revenue stability in the upcoming fiscal year?
- With competitors like Valmont and Hill & Smith adding new galvanizing kettles, and companies like SDI introducing additional paint lines, what strategies are you implementing to maintain or grow your market share in the face of increasing industry capacity?
- While you've emphasized a disciplined capital allocation strategy focused on both debt reduction and evaluating potential acquisitions, how do you balance these priorities, and what criteria will determine your focus between further deleveraging versus pursuing M&A opportunities?
- In light of the choppy markets and potential for overcapacity in the Precoat Metals segment due to new entrants, what specific actions are you taking to sustain growth and profitability, and how are you addressing the challenges of increased competition?
- Considering the dependency on infrastructure and construction projects that may experience delays from regulatory changes or cost escalations, what steps are you taking to diversify your revenue streams or reduce the impact of such delays on your financial performance?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Precoat Metals | 2022 | **AZZ Inc. completed the acquisition of Precoat Metals on May 13, 2022 for approximately $1.3 billion, funded via a Term Loan B and Subordinated Convertible Notes. The deal strategically positions AZZ to enhance its metal coil coating services through Precoat’s 13 manufacturing facilities and expects immediate accretion to adjusted earnings, with recorded goodwill of about $534.6–$547.9 million. |
Steel Creek Galvanizing Company, LLC | 2021 | **The acquisition of Steel Creek Galvanizing was completed on December 31, 2021, for around $25.0 million, expanding AZZ’s Metal Coatings segment geographically into the Southeast. The deal integrates a privately held hot-dip galvanizing company with detailed asset allocations—including goodwill deductible for income tax purposes—to broaden AZZ’s operational footprint. |
Recent press releases and 8-K filings for AZZ.
- AZZ Inc. is the largest independent post-fabrication hot dip galvanizing and coil coating solutions company in North America, employing approximately 4,000 people.
- The company has focused on debt reduction and is now committed to deploying cash for profitable growth, including significant organic growth opportunities and bolt-on acquisitions. They have identified 68 potential M&A opportunities, with 13 currently under evaluation.
- AZZ is committed to driving the business to north of $2 billion in revenue and 25% EBITDA margins.
- For the latest financial report (Q1), the company updated its guidance to $1.6 billion to $1.7 billion in sales, adjusted EBITDA between $360 million and $400 million, and adjusted EPS between $5.75 and $6.25.
- The company benefits from significant market tailwinds, including infrastructure investment (with $454 billion allocated to over 60,000 projects from the AIIJA), reshoring, and the migration to more environmentally friendly coil coating processes.
- AZZ Inc. provided FY2026 guidance, projecting sales between $1.625 billion and $1.725 billion, Adjusted EBITDA between $360 million and $400 million, and Adjusted EPS in the range of $5.75 to $6.25.
- As of May 31, 2025, the company reported trailing twelve-month (TTM) sales of approximately $1.58 billion and TTM Adjusted EBITDA of $392 million.
- AZZ Inc. has transformed into a focused Metal Coatings Company, achieving a net leverage of 1.7x as of May 31, 2025, and increased its dividend by 17.6% to $0.20 per share on June 26, 2025.
- The new $125 million coil coating facility in Washington, Missouri, completed construction in Q4 FY2025 and is expected to be operational in the first half of FY2026 and accretive to earnings in the second half of FY2026.
- AZZ Inc. successfully repriced its Term Loan B, reducing the interest rate margin by 75 basis points to SOFR + 175 basis points.
- This repricing is expected to result in annual interest savings of approximately $3.3 million.
- This marks the fourth reprice for the Term Loan B since May 2022, achieving total interest rate margin savings of 250 basis points.
- The transaction was leverage-neutral, with no changes to leverage, covenants, or the May 13, 2029, maturity date of the Term Loan B.
- On July 10, 2025, AZZ Inc. and certain subsidiaries entered into a three-year $150 million accounts receivable securitization facility with Wells Fargo Bank, N.A..
- The facility allows AZZ SPE-1 LLC, an indirect wholly-owned special purpose subsidiary, to draw up to $150 million in revolving loans.
- The proceeds from this facility were used to pay down existing debt and are anticipated to result in reduced interest costs due to a lower interest rate.
- AZZ Inc. serves as the Performance Guarantor for this securitization facility, which is set to terminate on July 10, 2028.
- AZZ Inc. provided updated guidance for FY 2026, projecting sales between $1.625 billion and $1.725 billion, Adjusted EBITDA between $360 million and $400 million, and an EPS range of $5.75 to $6.25.
- The company reported trailing twelve-month (TTM) sales of approximately $1.58 billion and TTM Adjusted EBITDA of $392 million with a 24.7% margin as of May 31, 2025.
- AZZ Inc. achieved a total net leverage of 1.7x as of May 31, 2025, and reduced debt by $370 million over the trailing twelve-month period ended May 31, 2025.
- The company increased its dividend by 17.6% from $0.17 to $0.20 per share on June 26, 2025, and completed a new aluminum coil coating line in Washington, Missouri, in Q4 FY25.
- AZZ Inc. (NYSE: AZZ) has entered into an agreement to acquire all the assets of Canton Galvanizing, LLC, a privately held hot-dip galvanizing company based in Canton, Ohio.
- The acquisition is expected to be accretive to AZZ's earnings within the first year of operation.
- This strategic move expands AZZ's metal coatings capabilities in the Midwest, increasing its total galvanizing network to 42 sites in North America.
- Canton Galvanizing, founded in 2019, specializes in coating small to mid-size parts.
- AZZ is the largest independent toll processor in the US with 41 hot-dip galvanizing locations and 15 coil-coating lines, achieving $1.5 B in sales and $384 M EBITDA (24.4% margin) in FY2024.
- The company plans bolt-on M&A to consolidate regional family-run galvanizers and underutilized coil-coating assets, leveraging secular tailwinds from reshoring in plastics, data centers, and semiconductors.
- A new $125 M St. Louis aluminum coil-coating line, serving beverage-packaging ends/tabs, launched under a 7-year, 75% take-or-pay agreement with TriArrows.
- Financially, AZZ reduced net leverage from 4.3× post-Precoat acquisition to 2.5× as of February 2025 via $100 M+ annual debt pay-downs and has maintained full-year guidance for sales, adjusted EBITDA, and EPS.
- AZZ Inc. resumed its $100 million share repurchase program, having repurchased approximately $46.8 million with $53.2 million remaining available.
- Repurchases will be executed under a 10b5-1 plan through a third-party broker to support the company's disciplined capital allocation strategy.
- AZZ Inc released its investor presentation on April 2025, providing an update on its strategic initiatives including sustainability efforts, operational improvements, and capital allocation priorities.
- The presentation outlines forward-looking statements on key financial metrics and guidance aimed at enhancing growth prospects and long-term shareholder value.
- Record fiscal 2025 performance: Total sales reached approximately $1.578 billion with strong contributions from the Metal Coatings and Precoat Metals segments, driving improved gross margins and net income.
- Operational challenges and recovery: The fourth quarter experienced over 200 days of lost production due to inclement weather, particularly affecting key regions, though early Q1 improvements have been noted.
- New facility and revenue potential: A new 25-acre aluminum coil coating facility in Washington, Missouri is now shipping commercial production, with modeling indicating up to a $60 million revenue opportunity as the facility ramps up.
- Robust FY 2026 outlook: Guidance for fiscal 2026 remains strong with estimated sales of $1.625–$1.725 billion, adjusted EBITDA of $360–$400 million, and EPS in the range of $5.50–$6.10, along with plans for significant debt reduction exceeding $165 million and an active acquisition pipeline.