AZZ Inc (NYSE:AZZ) stock rose 0.63% (As on April 22, 11:28:03 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter revenue that missed analyst expectations and provided full-year guidance that was largely in line with estimates. However, AZZ reported a 41.7% increase in net income to $20.2 million for the fourth quarter. The company also noted it reduced debt by $110 million during fiscal 2025, bringing its net leverage ratio below 2.5 times trailing twelve-month EBITDA. The Company generated significant operating cash of $249.9 million for fiscal 2025 through improved earnings and disciplined working capital management.  Capital expenditures were $115.9 million during the year, which included $52.8 million for the greenfield facility in Washington, Missouri.  Fiscal 2026 capital expenditures are expected to be approximately $60 – $80 million.  In fiscal 2026, the company will continue to allocate the strong cash flow generated from operations as well as the proceeds from the AVAIL joint venture transaction, which the company now estimates will be over $200 million, to support the capital allocation strategy. The company has successfully completed a secondary public offering of common stock, and fully redeemed the Company’s Series A Preferred Stock. For the year, the Metal Coatings segment delivered sales of $665.1 million, and 30.9% EBITDA margin, while Precoat Metals delivered sales of $912.6 million and 19.6% EBITDA margin.

AZZ in the fourth quarter of FY25 has reported the adjusted earnings per share of 98 cents, which matches the analysts’ estimates for the adjusted earnings per share of 95 cents. The company had reported the adjusted revenue growth of 2.6 percent to $351.9 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $375.63 million. AZZ attributed the revenue miss primarily to inclement weather during the quarter, which impacted both its Metal Coatings and Precoat Metals segments. Sales in Metal Coatings declined 3.9% to $148.4 million, while Precoat Metals revenue dropped 4.1% to $203.5 million compared to the prior-year period. The company delivered Adjusted EBITDA of $71.2 million or 20.2% of sales, versus prior year of $73.9 million, or 20.2% of sales.

For fiscal 2026, AZZ projects adjusted earnings of $5.50 to $6.10 per share on revenue between $1.63 billion and $1.73 billion. The midpoint of both ranges aligns closely with Wall Street’s estimates of $5.84 in EPS and $1.68 billion in revenue. FY 26 adjusted EBITDA is expected to be in the range of $360 – $400 million.