AZZ - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to the AZZ Inc.

Second Quarter Fiscal Year 2022 Financial Results Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. to conference like Dorame to now Partner. Managing would turn over the Joe I ahead. go Please

Joe Dorame

the Anthony. you, us financial Inc. year review joining and XX, August today the of XXXX. for XXXX AZZ ended of Thank results morning, to Good thank quarter fiscal second you for

Philip note, the remarks, Senior call Marketing, Please on Vice there today a we'll page open Officer; Communications questions. the Ferguson, conclusion Officer; which prepared at Financial and Chief found for Tom the Chief for and presentation be After under Presentation call, of AZZ's is President, today's Release call today's Joining slide Executive IR. are Relations Schlom, azz.com. David Latest Nark, can Earnings Investor

strategies. forward-looking to and the call of made for remind everyone ended conference including markets are Before XX-K natural Those the metal of from by and and conditions generation Act but in involve to financing report with and begin management changes markets; the and statements transmission customer and exchange customer-requested including which Form company; of annual political Securities documents growth markets, to: Litigation Changes fiscal we certain response in may industrial by Reform the gas, process; historical used adequate management fact, and this domestic; XXXX. material conference are rates; currency of and of like by AZZ the constitute AZZ during some galvanizing forward-looking of Private delays and Securities foreign product meaning risks raw within coatings XXXX. serves, markets, in implement by economic services Except the experienced with filed not the uncertainties, and and availability prepared the the power the that the I'd call hot-dip to time detailed Exchange various distribution employees time on costs, shipment; are prices of February Commission, include, the limited opportunities; which zinc markets to XX, and the including demand for year statements acquisition contain team that statements statements the the company's and demand stability in risks this remarks, offered AZZ electrical uncertainties of

any turn Officer addition, Executive a to hereof AZZ's out assumes In obligation pandemic. way, call its information, forward-looking COVID-XX potentially are give update of as by The no as be the let and ongoing Tom? otherwise. statements These AZZ. new statements, the result could information customers assurance to company or can and forward-looking such adversely AZZ whether be based operations that to will Ferguson, Tom on the date over that the no of prove events correct. of me statements future of With impacted Chief

Tom Ferguson

Thank you, this and earnings call, thank fiscal you Joe, us welcome and to joining XXXX our morning. quarter for second

related in will labor million. flat Solutions material go especially were and I we Infrastructure about and this COVID as year. the performance We gain Metal sales to up I consecutive first COVID-XX second disruptions continued from the solid fourth momentum of quarter thank with the businesses. at of want constraints half get for quarter Coatings adjusted the to of quarter almost Sales into divestiture million, some and sales in impacted completed after in to our in the Overall employees X% our attain shortages versus to the $XXX through allowed million well. results when their and excellent every past are improved who details or the the somewhat so do we along. months has $XX AZZ COVID-XX up by day now jobs year show turmoil XX.X% of Their another of prior X.X% $XXX XX reporting. turned SMS. perseverance of last

are We completed to quarter have strong another performance. of pleased

shareholders. flow net our We returning reflecting cash generate quarter during and the and while our dedication to our capital to also diluted $X.XX businesses the strong resiliency income second generated of people. EPS of of share, of We the per continue $XX.X million

actions business' Our on while last taken year outstanding focus leverage and to the to providing realignment our customers. their maintaining profitability improve quality service

$XXX distributed also over for commitment year. in strategic This we've $X.X while productivity The driving In XXX,XXX represented In and being Metal incurring Coatings, dividends. and million from benefited zinc, while operating XX.X% the from in pricing which sales improvement margin over rate creation, face achieved shares improved margins XX% We with quarter. of lower for on tax million. interest second repurchased sales quarter, income value our XX.X% was XX% expense to the resulted $XX line and operating our in efficiencies rising up of labor realizing in operating the primarily to costs. energy of previous we the due million

we Delta the underway, COVID due slowed in several to cases were travel. have some we that variant While somewhat uptick acquisition discussions reduced active

Metal to zinc and Coatings increasing labor costs. team to Our demonstrate ability the and while great deliver their managing shortages results continues perform

their realignment versus Our of The but We SMS last did XXX%, segment up quarter. The operating delivered of segment X.X% up delays. were material constraints year. million actions slow continued Infrastructure team dramatically demonstrated its year the about Solutions from when $X face divestiture. some and from considering prior impact income the profitability seasonally labor improvement through benefited the second or

initiatives deliver strategic XXXX. positioned a on fiscal are strong focused are We year well to and selling

labor opportunities anticipate to to to as and balance sales of Coatings service acquisitions is sites, spin increased while our be $XXX to and several of and $XXX leveraging million and million growth, EPS including XXXX, expenses Metal any in excludes We guidance. on range operating many our due seeing galvanizing at some we to operations $X.XX first raising year execution continues uncertainty to the and more generate or sectors, in to divestitures. continuing performance year, are focus $X.XX. strong sales tightening operational at the customer this fiscal For risks This our half given inflation. the than COVID due in

third entered in with Electrical. the Solutions business Infrastructure in seeing Our particularly momentum and quarter is segment activity, levels some normalized bookings more

Our sites. business interest at WSI facility, low the continues the from delays to We intermittent COVID its some businesses. The outbreaks benefit customer and project good e-house certain results seen electrical platform to to experience operational expanded Poland business focused and growing although has anticipate continuing rates. switchgear due execution internationally, from is on

quarter we not international past this we anticipate While performance the a third due COVID experienced continued strong we as in our impact in as do performance markets, of solid to on expect the first quarter. quite

is several likely already for seeing into to spring will are projects that quarter. activity note activity I a turnaround up the we the fall seeing we lot are the lining are of already stretch While fourth season. good, that

year to execute will fiscal strategic XXXX, value. For on growth our drive AZZ objectives continue to shareholder

Our service commitment to unwavering. is customer superior

to operational is that platforms. discipline initiatives drive based on within manage emphasis strong our and generate ability flow operating ensure on costs, cash excellence, pricing Our receivables collection

our vital see that businesses We sustaining it position are working are and we over actively we and With I'll so sustainable of infrastructure confident improving that infrastructure, turn whether Philip. to remain regardless profitability any core to legislation. businesses to said, provide to our

Philip Schlom

million orders over incoming $XX.X or prior Tom. or second quarter a XX.X% quarter $XXX.X Thanks, the the the in year. were increase million, Bookings of second

Coatings we market Our to and bookings conditions to segments. Metal Solutions sales both saw the as Infrastructure improving ratio across XXX% increased

of sales sales year profit of second were higher compared million Tom gross year. prior X.X% quarter million with generated year in second quarter of As million fiscal than prior profit mentioned, $XXX.X $XXX.X million. or previously the XXXX $XX.X $XX.X quarter We of the the $XX.X second of gross million

XX.X% of was both the in business a margin recover quarter lows compared income the the for which compared quarter gross in last with gross year. the last witnessed [$XXX,XXX] second to was from year, second of Our $XX.X continue pandemic of prior year. XX.X% segments in a time basis with point was improvement for XXX the million this quarter, as margin the Operating quarter

results charges During quarter, difficult growth. in restructuring actions foundation second financial impairment We the segments recorded took impacting $XX.X our believe fiscal of believe both year. are the last million. we strong and a year established decisions prior for management this We of have strongly our year and we future

was of reported restructuring and loss per $X.XX charges $X.XX. $X.XX as the The quarter loss share of impairment $X.XX $X.XX EPS by discussed. year's year above than and of pandemic last Our and quarter the second second prior was the higher impacted adjusted of impacts earnings significantly previously

year of $XX.X million, the quarter quarter XXXX in fiscal fiscal second $XX.X an sales from were Second EBITDA for Year-to-date or EBITDA year XXXX $X.X increase year-to-date the through second quarter XXXX million. XX.X%. adjusted year with a of last of million quarter increase of compared fiscal $XXX.X second $XXX.X X.X% reported sales million, year's was of million

million adjusted divestiture, above Year-to-date XXXX have SMS EPS net Fiscal was the XXX% adjusted $XX.X prior or $XX.X was $X.XX. year-to-date sales XXX.X% net million of of than higher net of income year-to-date of income EPS year-to-date the the Excluding XX% $X.X year-to-date prior $X.XX year-over-year. million. reported impact income Prior as $XX.X million. increased was year would the of

flows. Turning to our liquidity and cash

maintain balance our capital return strong continue our to a We are highlights. allocation to and capital shareholders. sheet following The

spending million have the constraints million retaining extent, make as planned capacity, in million supported expenditures. $X quarter of and year. group $XXX chain timing Year-to-date, negotiated year. and of $XXX above capital impacted $XX.X our deployed of million, the end during renewed the activity of and delayed credit to quarter year by Gross second the the outstanding million Supply five quarter, of reflects share in roughly in the we anticipate outstanding the our $XX nearly still some of at purchased we as year, During at we the and capital have debt capital debt $XXX facility, our investments increased which this to banks. last we borrowing $XX million the in shares purchase strong is have facility second prior outstanding million investments

$XX $XX.X quarterly of we payments. during noted, We outstanding stock declared had Tom history and million prior our million quarter continued in a repurchased on basis. and making dividend year-to-date the As

year, year. $XX.X flow or XX.X% of above $XX.X the $XX.X generated a million from $X.X or half by as million prior result Free For million, cash prior the the realized XX.X% the first up net of sales operations income was the cash and strong from $XX.X million in year flow solid million, was business.

expect and before merger same We opportunities to several end year. make acquisition and continue execute fiscal the the regarding to of announcements our on

roughly as celebrate the partners been support with like business would as during the serving second Lastly, for employees and our thank year has I I to CFO, rewarding company anniversary it thoughts. my our period Tom what for to and company's a strategies. final company as I'll and operations back his pandemic the through businesses turn our for of a portfolio we align challenging the and and to navigate their now

Tom Ferguson

Thanks, Philip.

to. attention particular are some paying key that Here indicators we are

Coatings carefully the are Galvanizing of construction labor cost material activity, For segment's business, and fabrication Metal and legislation. we inflation and progress tracking infrastructure

base the we performance. our operational improved Technologies from Surface are platform, focused primarily expanding and For benefiting customer on

and pursuing can center utility filings that strategic and narrowed and activity international For customers impacted energy has somewhat a number level. company. predominantly Infrastructure distribution, options become electrical the issues. season looking Infrastructure and is to COVID AZZ domestic due muted, to returned metal we focused growing benefiting earlier, have and confident as the further we to a increasingly data Solutions, The platform to review are noted regards from turnaround of fall outage be spending albeit related Solutions, is The transmission battery storage of good, will In currently being are by normal activity.

We we As at and but galvanizing realize committed announcement. achieving of around continue to strategy confidentiality our rapidly growth noted we margins meetings the one our ongoing previously, performance surface to be being we agreements, steady due year having remain discussions Metal time, while cannot Board, technologies. XX% with and we improve the with are of specific have to this but quite sensitivity approaching are to operating Coatings anniversary we XX% regular more the

remain We in Coatings. particularly Metal will acquisitive,

we are For flow. profitability on Infrastructure focused Solutions, and cash

more solid in T&D center Our e-houses market and switchgear. seasons and normalized turnaround outage a for units utility AIS from should and business benefit data

first several in the to for support continuing engaged ESG tight And and and we report. Our provide to projects be soon corporate while accounting finally, will controls office and retaining actively acquisition merger our is maintain issuing talent. acquiring field

tuned. stay we'll that, it up please questions. open So With for

Operator

[Operator Franzreb Our John & question comes Company. Sidoti Instructions] from of first

John Franzreb

a I ago your go characterized months quite heard three are construction saying delays, to to want [Technical on references you sure. us some that if looking And domestic, morning, I the year-over-year kind international turnaround I'm in it up correctly they good. you be there in of [Technical Difficulty] context or this Could or Difficulty]? season, basis as you're for not about fall now I think you back

Tom Ferguson

John. Yes,

that turnarounds often larger end last quarter projects in those means quarter. are towards delayed that the jobs over stretching would and going of are which not the that I fourth see. we'll of away. improved international But year. we third somewhat of they're just the more And they're the some actually think the it's revenue recognize It's the quarter,

activity. good kind it's not we're delays running no, international of refineries really either through So But projects. just the also And seeing the large or season.

good the quarter, we nicely strong level why but the of about as at at to same good, solid, strong So which quite as and feel $X.XX quarter, first couch we've our activity EPS. that's was it probably third tried not a

John Franzreb

be little to bit Metals so in And in Coatings what [Technical prices. in maintaining you Difficulty] doing margin a just that successful you're Can you had well there talk about profile? the zinc margin the pretty

Tom Ferguson

say for fashion making automated hundred respond. couple they're our -- satisfaction more some efficiencies. to allows and to operational they're probably guys performance, helped the those an we to Metal smiling The react to value In have and service, ability and crowds a giving direct focused short of digital they're galvanizing I creating from improves we're of used is quickly, would our labor now through but operating productivity because of some it's so people, here. also We're system, highly Yes, with direct manually us Coatings pulling manage together. us benefiting us it handle it our shortages of labor up that driving from information for I'm team And it the the it customer on customer customers.

to and to some growth of So that's of high what's a advantage areas. taking the level other allowing them continue in perform solar at opportunities really and

leadership real they've feel the about and just team good been good business and able that what about we accomplish. So really to

John Franzreb

pricing? through push a have You

Tom Ferguson

rising price. in as well as virtually and as all But think well up as to the that's zinc I we're Yes, offsetting somewhat. both mostly continually pushing increases wage relation labor are materials costs

give service yes, So to trying to the but we're customers pricing. the pushing that the deserve

John Franzreb

one, about be Difficulty]? you there now Infrastructure specifically [Technical action And didn't just this, in in one I Difficulty] know that the more Solutions, [Technical will but out and year-end

Tom Ferguson

We're pursuing I call of exclusive. deals would what transformational those and are some three mutually

small you'd not thought,one still would initiative transformational. know only don't having we versus So doing prefer anything one, I what or

Operator

comes Stifel. Our from next from question Noelle Dilts

Noelle Dilts

walk you're T&D you solar know seeing that hoping helpful was I markets of but what end markets be of the industrial, some other the could for that in seeing demand just Coatings. well. trends within kind some of through Metal as I the and mentioned you you're would just

Tom Ferguson

across board, of I'd kind It's say. the

good holes but has and tower been stuff has look been side, or And ag and there's type the So that things side OEM we continuing. on I is been electrical still really and seeing they're interestingly see seeing, guess components. T&D more then the pieces some strong. usually docs we're activity really pull We're trailer solar recreational it and at type in now. enough, good. strong so pulling truck trailers and We business in

board And a probably basis. been so it's but generally across solar on year-over-year the the bigger has driver

Noelle Dilts

was would And and thing you hoping that with side. et about of then could the bus the the trends talk on do I electrical be cetera, enclosures some you're Maybe switchgear seeing great. deck, same

Tom Ferguson

particularly benefits and really our activity been the strong. of good seeing but -- is utility strong, switchgear. We're centers on E-houses utility-grade have on side the switchgear really T&D been data the which seeing lots has We’re business also solid.

from are over piece came years. been, business enclosures I'd with activity but that there, some couple had last of solar We've backlog we our China in big to of that the with good offsetting say backlog. get came it's rebuild You

more that's work bus and the been focus voltage. building on that's on So activity high good medium and voltage been service side fairly

on So strong. also the it's T&D board kind of is but across electrical,

Noelle Dilts

and then moving priorities for given comment stands share you in about on And repurchase repurchase the million just thinking maybe you're $XX cash the quarter, how just could where forward?

Philip Schlom

continuing market. in plan XXbX-X and been a opportunistically follow we've purchasing No, shares the to

COVID alluded to our ability to to somewhat just in we've and with locations. M&A Tom travel been little activities earlier, As a bit hampered

So this as I to how that And $XX reinvesting year, evaluating payments dividend move then up make of are think shares in opportunistically our the on on we M&A we to continuing as focused purchase million business forward. capital spend themselves. continue priorities our as present split opportunities the

Operator

Our next question comes Capital. from John Braatz of Kansas City

John Braatz

talked been your you're about and you so productivity Metal Tom, a -- the the workers but that on couple of has Coatings good. hundred side on, short

think can do a do of you with people? do you of doing minimum you're going those or As about to you the rehire need sort think continue forward, see what you number to people

Tom Ferguson

Well, prepared I aren't efficiencies balance and from of do shortages to that level but for many month, at the afford have galvanizing with getting because more But just trying then much seeing areas are how look at are I system, productivity deal a good country, been really and -- do productive to plant-by-plant a work to digital more to more every we we solid in make and it's And we the that it for between -- yes, can with we certain we up think we of up hire. DGS. and lack overtime. think a overtime because every not guys labor benefiting our quarter, but we're not are applicants the make

of not the because need some labor to just that But it. we're hoping this will we do folks retain to bodies going is material those So it. of of you are continue to improve but need it some and product retain, handling to of some

from benefit that. we We things should have to some continue automated and

plant-by-plant at -- our So every teams every but basically, day. -- look yes, that decision leadership it's a

John Braatz

months higher from have fully to these further. be ahead, costs able up have the you'll And be nine costs? maybe prices and any rise? Do destruction pass a six prior think, about costs little relative number year zinc demand you'll prices go zinc now, moving facing concern those and probably looking to to as to up been And one, you on

Tom Ferguson

high think their pressure at fairly on costs I lot also all same costs challenging. levels. can't are customers availability. so. pricing of experiencing and a their material -- I on material It We're that inflationary get But our think labor of

up. So wages or we're it's zinc are up in or that. And steel, whether are their line commodities with copper and

to to value just continue we'll try more them, our them more transportation, work ways So deliver it's help it, to whether logistics customers streamline. and that with to them innovative call with, with work closely working I'll or to

have a initiatives wide our we So that drive of variety folks on.

so And hope that we I and that delivering the for we're continue paying continue us to increase customers will value value.

Operator

Our Gabelli Instructions] comes Kearney of next question Fund. [Operator from Brett

Brett Kearney

area about I to spin of for the that's sounds marketplace It your forward. an to ask see offering all galvanizing internally. kind how an like the see you thinking wanted you in opportunity about going expand opportunity are and you

set the So maybe opportunity there.

Tom Ferguson

as for that good opportunity see We a us.

more and full stuff for you look significantly And the that's seeing what through recent into facilities pallet quality plant benefit You think that. call go of now, The the versus into through right better. just then the some dedicated if business and finish smaller a I’d one spin lines our hot structural And plants started up for six seen fiscal our at most you one pieces. tend up are of going the and normal I the year and hybrids. we've of pick to of it's But you a get that. our galvanizing what's think plants, more components sites in, side quantity, is designed of gone finish in having of we're more were at dip the spin a get this our the about Houston beginning lot I finer where

So it small into market. component gets us that

acquisitions, capability we be that our helped focused Illinois, So able Rockford, and that. that. of sites. It to resources fits recent some really regionally gave have two like spin some and ours We're well focused, our us for and sustain more up us ramp of Chattanooga

with happy that continued doing and area. So market are our that us really in at look investments we what as are a growth for

Brett Kearney

then just quick one And other one.

small know any business divisions of is and I operations, it's decreasing the they the overall the AZZ? associated international are for Your those with stay would But possible with in relevance. a kind paths even thinking of forward part that

Tom Ferguson

Yes, particularly a we it concept. would, call WSI, I’d hub-and-spoke in

in the So support there's US of a resides group that in operations that their lot technology international. that

and international at Obviously, comes more and technology to support have welders of some more integrated. or handled other services, that's centrally craft they're least to it centrally. So the extent. a own engineering when supported operations But great their the and the

sticks of terms those together So in pieces. that really

Operator

DeForest Our next of and Walthausen question Hinman comes from Co.

DeForest Hinman

from first must a acquisition talked a I talking part you've an Just clarification. And have sales missed transformational the perspective? Are sentence. transactions of you transformational perspective deals. the about about from or

Tom Ferguson

Both. But I'd say both.

DeForest Hinman

it the And going do coatings side. know the scale of a something? guess, businesses or then are we about actually been define looking we've metal metal maybe purchasing if of businesses. we're buying talking outside you on to I how more side be acquisition on Is I coatings transformational? building function at

Tom Ferguson

our by path the the metal now I Coatings think Most we a the recent two moment. we've side got we're is One, were acquisition Metal -- working opportunities Coatings to that engaged galvanizing-type COVID mostly disrupted more uptick. And have yes, acquisition, on mention. deals at we in. are factors on -- some the the of were Metal on in little we're there's normal all Delta No, larger right I the that

people a more corporate visit, and also office restrained it few in wanting was when the not different travel initiatives to some somewhat we're M&A. to but quite shorthanded comes Just pursuing

prioritizing the and focused and this hyper year. that more on getting time things are ones we're really getting done sensitive So

DeForest Hinman

it has we're the or pushback a to there forth the is with Is dealing yes, more increase like, price? back thing? and in level, is to high of the dialog looking or same regards how And conversation then just kind anecdotally customers, much

Tom Ferguson

to trying Obviously, customers the our of to them two more experiencing force same ago, particularly, And never we've good they're the how we're that's thrilled. We're those business. we're I'd when things. But we've say, it's we're off, from think for in good with service increase -- got most are I or conversations transformation we relationships did fabricator bring like do do kinds got and because for Coatings, the paying we having are never great three providing different figure said, the relationships. years on we part, just conversations. of they're of time that maintaining and out value in deliveries spite those can prices, I raising we labor outstanding, in zinc. we're shortages plenty times vast the some our our plants But do four sales majority cycle great have and of -- Metal

So good. that's always

the you project On business. more electrical side, get into

to And run-of-the-mill costs, and competitively and to type component still it's more for are of that than seeing perform. in projects but And having able steel we're so business. some bid still be inflation customers our projects there,

the how more we there, are effective are competitively perform So around conversations priced. can on project and we a

different scenarios. So two

DeForest Hinman

also people, it’s my maybe other too. some but And just knowledge for

case characterized discipline and those in been the in had due space. past space, we're that that structural to you bid changes putting the think still improving electrical I has right the out in bids when the now? Is some

Tom Ferguson

order say would XX get we to we I repricing continue those I orders. in don't true. we're that's and bid mean days, an

tide the inflationary increased of discipline our and bidding costs. our So we've with rising around efforts practices

Philip Schlom

customers themselves. part -- ability it are the and from we think the I the including schedules expedite to is materials perform just the components sometimes of

a supply caused of dynamic chain new by the disruption. kind that's So

DeForest Hinman

same? electrical availability Anecdotally, staying side, metals better getting these are the the job we on seeing then federal of Is some resumes, the better, benefits and side. higher maybe for worse, first off? and in state rolling inbounds then of it And doing with a volume fair labor

Tom Ferguson

Getting slightly better.

that gone doubled getting recruiting we're of and tools from Fort applications a job unsolicited And here advertising, more in more we've seeing headquarters. a So doing staff few the our not more using people in. Worth seeing course, and few coming to any doing fairs,

But also of more So do to more we're getting able see to start we're make and we of and unemployment off, to in trying that a some things right to are drawing be getting quality applicants. be contribute. the sure benefits, roll few going we're as we're the individuals disciplined

the maintain to discipline applicants. face in few the trying relatively we're So of

DeForest Hinman

on And deployment… capital last question

Tom Ferguson

better, a getting little is it bit So a it's battle.

DeForest Hinman

And strong. the Balance question on very last deployment. then sheet remains capital

take the You these we to are these you XXbX-X looking some share deals. of would activity? stock, the about the size repurchase of a or see buy breather on Board deals company talked Do at continuing the or where

Tom Ferguson

we're probably our likely are to potential deals, or And a number have taking in on. we'd this Yes, the of to a just ramp in of we the And can breather second of the which breather close at up year. be taking also like we because we see point. and CapEx the half

and those XXbX-X factors, the we're now is not both So buying won't. right probably

DeForest Hinman

then more. I'll guess, one I And sneak

still valid still some comments the closing think timing, Is of that statement terms variant In or given calendar potentially does year get comment last transactions anticipated before year of made the next some and shifted the was of end. before it I this that into around you potentially call Delta or one just sense? that, you that had make previous

Tom Ferguson

able last just get No, we've out been more month. in the to

getting still want year. better be done. some enough, the of or challenged the the year, And feel the opportunities are close calendar that of to the some we we're because so folks to of end interestingly about So going get end to by --

to we're do best going So it our we're give to but to challenged that, going be effort.

Operator

comes Anthony Baldwin Our Baldwin next from question Securities. from Bill

Bill Baldwin

generation in show a that solar power you that industrial up that So when first record kind question is XX-Qs? in on or does your the in business your category question definitional -- of

David Nark

Yes, that falls within the industrial, Bill.

Bill Baldwin

over best in right now segment, you electrical you're in XX electrical of The the or What looking infrastructure at solar in visibility And offer markets do falls to you electrical months the okay. or that have your six markets kind next area? of visibility within the segment, the Industrial your looking business. any out the

David Nark

also switchgear is this really is our to I'd in see, on on projects, again, storage and battery And side. and we're storage. both earlier more mentioned and well had It's T&D at that performed well team are center to and in also improved driving see it's the things Those the mentioned doing say, order solar solar we Dave. continue continue you his perform starting continues combined intake as we Bill, And the Tom really project for markets. data battery enclosures you said, well, comments, to us. look as market. as focused at quoted where a particular, to

So that forward. going well team for bode electrical will the

Bill Baldwin

on what And growth CapEx, kind $XX much would of And markets? how much the of how and CapEx, maintenance that growth? roughly is the are what that focused million, be areas

Philip Schlom

typically $XX our Coatings maintenance lot million-ish We a spend Metal million, that capital on our going towards $XX business. with of

on On or refresh. the WSI our we're the side, the investing hot hot segment, with side, equipment in welding pole it’s the just poles Industrial growth

continuing last So facility. into We there. new there started a moved grow Poland operations finished facility and in We six the recently to we're our months.

So And forward. move with we looking some time. additional international come at we're will then growth, further enhancing that we're that so as

Tom Ferguson

investment It's And on We're have But thrilled Speakers] the good a doing international I’m on of Poland. do front. Metal Coatings really new well. side with in the any [Multiple that. stuff aware we not

our to we another Metal building competitors where say we're not Coatings spin now. because just the don't On anticipate side, out operation. going let we do I'm

and the back half continuing that year in upgrades. So we this well of upgrades kettle furnace as as some going with have

high-end and focused to area. on ability So powder plating streamline and and coating that we're continuing capabilities improve also quality improve up our we're then to doing deliver service beef some to in our things and

Operator

remarks. I over This the turn question-and-answer for Ferguson our conference Tom like to would to back session. any closing concludes

Tom Ferguson

through how just and all We're times can deals, the any guarantee our on thank done to in teams the for well the also performed difficult things our we of appreciate going on I people, for I our never are balance we're for want discussion. underway. And this not but focused outlook businesses, excited close that to while have and only for we about you getting we hyper we've the year. things

not it. of appreciate third to end So if our at forward the you talking to Look sooner. quarter,

Operator

has concluded. presentation. attending conference today's now The for you Thank

may now You disconnect.

AZZ (AZZ) 12 Oct 212022 Q2 Earnings call transcript