AZZ Inc (NYSE:AZZ) stock rose 1.71% (As on July 11, 11:54:53 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 25. AZZ Metal Coatings’ sales of $176.7 million increased by 4.7% over the first quarter of last year, primarily due to increased volume supported by the continued ramp up in infrastructure spending, including construction, bridge and highway, transmission and distribution and renewables. AZZ Precoat Metals’ sales of $236.6 million increased by 6.5% over the first quarter of last year on increased volume driven by growth in end markets including construction, HVAC, and recreational transportation. The Company generated significant operating cash of $71.9 million for the first three months of fiscal year 2025 through improved earnings and disciplined working capital management.  At the end of the first quarter, the Company’s net leverage was 2.8x trailing twelve months EBITDA.  During the first quarter of fiscal year 2025, the Company paid down debt of $25 million and returned cash to common shareholders through cash dividend payments totaling $4.3 million. Capital expenditures for the first quarter were $27.4 million, and full fiscal year capital expenditures are expected to be approximately $100 – $120 million.

Further, the Company has also completed a secondary public offering of common stock for net proceeds of $308.7 million and used the proceeds to redeem the Series A Preferred Stock for $308.9 million. The redemption resulted in a one-time redemption premium payment of $75.2 million in the first quarter.

AZZ in the first quarter of FY 25 has reported the adjusted earnings per share of $1.46, beating the analysts’ estimates for the adjusted earnings per share of $1.31, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 5.7 percent to $413.2 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $400.6 million. The company’s consolidated EBITDA margin grew to 22.8%, attributed to increased volume and zinc productivity improvements over the prior year. AZZ’s Metal Coatings segment, in particular, benefited from continued demand in various end markets, including construction and renewables, achieving an EBITDA margin of 30.9%

For the fiscal year 2025, AZZ Inc. anticipates an adjusted EPS range of $4.50 to $5.00, while analysts had estimated an average of $4.88. Similarly, the company’s revenue guidance for the year is projected to be between $1.525 billion and $1.625 billion, with the midpoint below the consensus estimate of $1.6 billion.