On this page of StockholderLetter.com we present the latest annual shareholder letter from AZZ INC — ticker symbol AZZ. Reading current and past AZZ letters to shareholders can bring important insights into the investment thesis.
Fiscal Year 2024 Annual Report
TO OUR
SHAREHOLDERS,
CUSTOMERS,
PARTNERS, AND
EMPLOYEES:
Fiscal Year 2024 Achievements
Fiscal year 2024 was an exceptional year for AZZ. We successfully completed the transition
from a company of diverse businesses to a focused metal coatings solutions company. AZZ
now provides sustainable, unmatched metal coatings solutions that enhance the longevity
and appearance of buildings, products and infrastructure that are essential to everyday life.
We completed a number of corporate initiatives during the fiscal year to position us for
future growth and profitability. We achieved our 37th consecutive year of profitability and generated strong cash flows from
continuing operations. The Company increased sales by 16.2% to a record $1.5 billion, reduced debt by $115 million, and
returned $31.4 million to our shareholders through cash dividend payments. We also successfully repriced both the Term
Loan B and $400 million Revolving Credit Facility, resulting in savings of over $11 million in annual interest expense. Our
financial results during fiscal year 2024 reflects the tenacity and discipline of our management team and employees, and the
strength of our streamlined business portfolio.
In fiscal year 2024, we published our third environmental, social responsibility and governance (ESG) report, which included
more than a 30% increase in ESG disclosures to further advance our ESG initiatives. We are honored to report that AZZ
was named in Newsweek   s list of America   s Most Responsible Companies for the second year in a row and recognized by
Forbes as one of America   s Most Successful Small Companies.
Future Outlook
As we look to the year ahead, we will continue to pursue initiatives to drive growth, target new M&A opportunities, reduce
debt, and maintain our leadership position in the market segments in which we conduct business to further enhance
shareholder value. Our Board remains actively focused on overseeing our leadership team, business operations, risk
management, talent development, succession planning and the development and execution of our long-term strategy, including
the further development of AZZ   s role in the global transition to a low carbon economy. We remain committed to advancing
ESG initiatives in our operations and providing a sustainable workplace for our employees.
Finally, we are excited about AZZ   s future as we remain committed to providing superior customer service, quality, and
operational excellence, while enhancing shareholder value. We thank you for your continued investment in and support of
AZZ.
Dan Feehan
Chairman of the Board
Tom Ferguson
President and Chief Executive Officer
AZZ AT A GLANCE
(in millions)
1,538
Net Sales
$1600
1400
1,324
1200
1000
800
903
839
600
400
SELECT FINANCIAL INFORMATION
200
(in thousands, except per-share data and percentages)
For the four fiscal years
ending February 28/29
Net sales
2023
2024(1)
$ 902,664 $ 1,323,649
$ 1,537,589
2021
$ 838,917
Net income
2022
39,614
84,022
101,607
66,339
2021
2022
2023
2024
102
Net Income
$100
Earnings per share:
Basic earnings per common share
0



2.34
3.48
1.53 $
3.38
Diluted earnings per common share
1.52
3.35
2.33
3.46
Return on shareholders    equity
6.4%
12.6%
10.7%
14.5%
Pretax profits to sales
6.1%
11.8%
6.7%
8.5%
Net income to sales
4.7%
9.3%
5.0%
6.6%
84
80
66
60
40
40
20
Total Assets
$ 999,227
$ 1,133,028 $ 2,221,479
$ 2,195,505
0
179,000
227,000
1,058,120
952,742
Total liabilities
375,935
465,663
1,368,019
1,261,014
Shareholders    equity
623,292
667,365
619,738
700,769
210
Debt-to-equity ratio
0.29 to 1
0.34 to 1
1.71 to 1
1.36 to 1
180
2.6 to 1
2.6 to 1
2.2 to 1
1.9 to 1

91,430
244,468
86,010
Capital expenditures
37,079
28,405
57,120
95,119
Basic average shares outstanding
25,897
24,855
24,828
25,041
(1) FY2024 based on continuing operations


92,035 $
2023
2024
244
$240
150
120
Cash provided by operations
2022
Cash Provided
by Operations
Debt
Current ratio
2021
90
92
86
91
2021
2022
2023
60
30
0
2024
SERVING THE
GROWING
NEEDS OF CRITICAL
INFRASTRUCTURE
AZZ Inc. is the leading independent
provider of hot-dip galvanizing and
coil coating solutions to a broad range
of end-markets. Collectively, our
business segments provide sustainable,
unmatched metal coating solutions that
enhance the longevity and appearance
of buildings, products and infrastructure
that are essential to everyday life.
Our comprehensive capabilities create
enduring infrastructure for constructing
a stronger, safer, and more sustainable
world.
METAL COATINGS
North America   s leading hot-dip galvanizer
The AZZ Metal Coatings segment provides hot-dip galvanizing, powder coating, plating, anodizing, plating and other metal coating applications to
the steel fabrication industry and other industries through facilities located throughout North America and Canada. Hot-dip galvanizing is a metallurgical manufacturing process in which molten zinc is applied to steel. The zinc alloying renders corrosion protection and extends the lifecycle
of fabricated steel for several decades. As of February 29, 2024, we operated 41 galvanizing plants, six surface technology plants and one tubular
products plant.
    HOT-DIP
GALVANIZING
    SURFACE
TECHNOLOGIES
PRECOAT METALS
North America   s leading provider in metal coil coating solutions
The AZZ Precoat Metals segment engages in the advanced application of protective and decorative coatings and related value-added solutions
for steel and aluminum coil primarily serving the construction, appliance, heating, ventilation, and air conditioning (HVAC), container, transportation and other end markets. AZZ Precoat Metals operates through 13 strategically located manufacturing facilities located in the United States,
with 15 coating lines and 17 value-added processing lines.
ating
    COIL COATING
 • shareholder letter icon 5/28/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/30/2023 AZZ Stockholder Letter
 • stockholder letter icon More "Metals Fabrication & Products" Category Stockholder Letters
 • Benford's Law Stocks icon AZZ Benford's Law Stock Score = 93


AZZ Shareholder/Stockholder Letter Transcript:

Fiscal Year 2024 Annual Report

TO OUR
SHAREHOLDERS,
CUSTOMERS,
PARTNERS, AND
EMPLOYEES:
Fiscal Year 2024 Achievements
Fiscal year 2024 was an exceptional year for AZZ. We successfully completed the transition
from a company of diverse businesses to a focused metal coatings solutions company. AZZ
now provides sustainable, unmatched metal coatings solutions that enhance the longevity
and appearance of buildings, products and infrastructure that are essential to everyday life.
We completed a number of corporate initiatives during the fiscal year to position us for
future growth and profitability. We achieved our 37th consecutive year of profitability and generated strong cash flows from
continuing operations. The Company increased sales by 16.2% to a record $1.5 billion, reduced debt by $115 million, and
returned $31.4 million to our shareholders through cash dividend payments. We also successfully repriced both the Term
Loan B and $400 million Revolving Credit Facility, resulting in savings of over $11 million in annual interest expense. Our
financial results during fiscal year 2024 reflects the tenacity and discipline of our management team and employees, and the
strength of our streamlined business portfolio.
In fiscal year 2024, we published our third environmental, social responsibility and governance (ESG) report, which included
more than a 30% increase in ESG disclosures to further advance our ESG initiatives. We are honored to report that AZZ
was named in Newsweek   s list of America   s Most Responsible Companies for the second year in a row and recognized by
Forbes as one of America   s Most Successful Small Companies.
Future Outlook
As we look to the year ahead, we will continue to pursue initiatives to drive growth, target new M&A opportunities, reduce
debt, and maintain our leadership position in the market segments in which we conduct business to further enhance
shareholder value. Our Board remains actively focused on overseeing our leadership team, business operations, risk
management, talent development, succession planning and the development and execution of our long-term strategy, including
the further development of AZZ   s role in the global transition to a low carbon economy. We remain committed to advancing
ESG initiatives in our operations and providing a sustainable workplace for our employees.
Finally, we are excited about AZZ   s future as we remain committed to providing superior customer service, quality, and
operational excellence, while enhancing shareholder value. We thank you for your continued investment in and support of
AZZ.
Dan Feehan
Chairman of the Board
Tom Ferguson
President and Chief Executive Officer

AZZ AT A GLANCE
(in millions)
1,538
Net Sales
$1600
1400
1,324
1200
1000
800
903
839
600
400
SELECT FINANCIAL INFORMATION
200
(in thousands, except per-share data and percentages)
For the four fiscal years
ending February 28/29
Net sales
2023
2024(1)
$ 902,664 $ 1,323,649
$ 1,537,589
2021
$ 838,917
Net income
2022
39,614
84,022
101,607
66,339
2021
2022
2023
2024
102
Net Income
$100
Earnings per share:
Basic earnings per common share
0



2.34
3.48
1.53 $
3.38
Diluted earnings per common share
1.52
3.35
2.33
3.46
Return on shareholders    equity
6.4%
12.6%
10.7%
14.5%
Pretax profits to sales
6.1%
11.8%
6.7%
8.5%
Net income to sales
4.7%
9.3%
5.0%
6.6%
84
80
66
60
40
40
20
Total Assets
$ 999,227
$ 1,133,028 $ 2,221,479
$ 2,195,505
0
179,000
227,000
1,058,120
952,742
Total liabilities
375,935
465,663
1,368,019
1,261,014
Shareholders    equity
623,292
667,365
619,738
700,769
210
Debt-to-equity ratio
0.29 to 1
0.34 to 1
1.71 to 1
1.36 to 1
180
2.6 to 1
2.6 to 1
2.2 to 1
1.9 to 1

91,430
244,468
86,010
Capital expenditures
37,079
28,405
57,120
95,119
Basic average shares outstanding
25,897
24,855
24,828
25,041
(1) FY2024 based on continuing operations


92,035 $
2023
2024
244
$240
150
120
Cash provided by operations
2022
Cash Provided
by Operations
Debt
Current ratio
2021
90
92
86
91
2021
2022
2023
60
30
0
2024

SERVING THE
GROWING
NEEDS OF CRITICAL
INFRASTRUCTURE
AZZ Inc. is the leading independent
provider of hot-dip galvanizing and
coil coating solutions to a broad range
of end-markets. Collectively, our
business segments provide sustainable,
unmatched metal coating solutions that
enhance the longevity and appearance
of buildings, products and infrastructure
that are essential to everyday life.
Our comprehensive capabilities create
enduring infrastructure for constructing
a stronger, safer, and more sustainable
world.

METAL COATINGS
North America   s leading hot-dip galvanizer
The AZZ Metal Coatings segment provides hot-dip galvanizing, powder coating, plating, anodizing, plating and other metal coating applications to
the steel fabrication industry and other industries through facilities located throughout North America and Canada. Hot-dip galvanizing is a metallurgical manufacturing process in which molten zinc is applied to steel. The zinc alloying renders corrosion protection and extends the lifecycle
of fabricated steel for several decades. As of February 29, 2024, we operated 41 galvanizing plants, six surface technology plants and one tubular
products plant.
    HOT-DIP
GALVANIZING
    SURFACE
TECHNOLOGIES
PRECOAT METALS
North America   s leading provider in metal coil coating solutions
The AZZ Precoat Metals segment engages in the advanced application of protective and decorative coatings and related value-added solutions
for steel and aluminum coil primarily serving the construction, appliance, heating, ventilation, and air conditioning (HVAC), container, transportation and other end markets. AZZ Precoat Metals operates through 13 strategically located manufacturing facilities located in the United States,
with 15 coating lines and 17 value-added processing lines.
ating
    COIL COATING



shareholder letter icon 5/28/2024 Letter Continued (Full PDF)
 

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