AZZ - Earnings call transcript Q1 2025

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Operator

Good day, and welcome to the AZZ Inc.

First Quarter 2025 Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Sandy Martin of Three Part Advisors. ma'am. ahead, go Please

Sandra Martin

Good review thank the AZZ's which XXXX. first operator. us fiscal for today quarter, XX, May to financial ended morning, you, you and joining XXXX Thank results for

for Tom the Financial for we Marketing, call will prepared Chief David today's Communications Ferguson, Joining Investor and live Please are President Chief note Officer. Jason Officer; President Executive Vice Senior found call remarks, Relations be open questions. at and the Nark, and the Crawford, Officer; of webcast can today's call After www.azz.com/investors-events.

actual uncertain to begin, I Commission, the control. the company's everyone we AZZ containing the or today forward-looking Act some Before documents year. which statements and are risks discussion time provisions the for By Except involve the from are with will on harbor forward-looking comments Securities filed of want fiscal may Private including in and outside under remind made time of XXXX. that annual Reform Exchange Litigation nature, to report of statements uncertainties, the detailed our Form Securities XX-K of include by their safe results statements for forward-looking and

upon Therefore, differ These guarantees not of be future results materially Actual reliance statements should not performance. placed from these are them. could undue expectations.

will in GAAP non-GAAP measures. to financial We In press Non-GAAP financial the financial substitute for from to, earnings call non-GAAP GAAP addition, measures today's supplemental release. measures. refer discuss a should be not considered today's reconciliation to

call turn I would now like over to Ferguson. the Tom to

Thomas Ferguson

on Crawford, some the newly detailed quarter for end results walk markets. for our today. results, thank appointed for through update open and provide us first our an CFO, will Good our David the year. I will discuss outlook and Sandy. industry the Nark cover morning, Jason you we'll you, Then up rest of it financial our questions. Thank will and joining

and are profitability improved first the very record end revenue in margins. quarter million, in EBITDA both segments. we We expanded and in and reported our of performance dollars pleased segment emphasis higher Our and on the with quarterly expectations, $XXX both of terms results execution of met

cash the [Technical flow and X Difficulty] year, the first the sales Precoat [Technical versus for growth Difficulty] Difficulty] topline [Technical Metals significant from year operations generated prior revenue months prior both Difficulty] results Our for [Technical segments. of increased

higher [Technical energy [Technical shift Difficulty] to the which public have number of Difficulty] continuing end David projects spending [Technical markets, Difficulty] projects. In both strength private and private highway, a construction, levels. construction potential construction be residential and construction, we for tracking sector demonstrates that commercial Difficulty] and spending benefited including [indiscernible] bridge interest we pre-pandemic first quarter, and rates. will distribution public in than [Technical from year, [Technical transmission renewables. and This and project cover manufacturing now Difficulty] is our The

XX.X% both Continuing of with Precoat ahead exceeding to due XX.X%, also zinc XX% the EBITDA margin to prior to range our margin XX% of and slightly meaningful. quarter first results, Metals and was our grew target Metal of [Technical improvement. EBITDA margin productivity year Difficulty] Coatings

in drive of range As our we to XX% helps towards reasonable margins have XX% and any XX%. the of communicated upper noted uptick mark before, end the that volume above

and the operational execution timing stock. escalate convertible common of initiatives also critical first A May to Series preferred strategic offering of rationale the addition redemption discuss was the In stock will in more few this moments, to solid our redemption but on completed we public set were XX. as Jason of fund a premium in quarter, the AZZ to a the fully

coatings Precoat Metals. derisk associated sheet. into supported redeemed significant transaction our the very strong In Precoat efficient pure-play fully we further The mezzanine less by and and business profile balance markets metal with a expertise, were months, return improve than with transforming execution of of of we financing a and long-term and strategy to acquisition support company our right, the partners. our XX scale, was the timing the with this acquisition technology with retired have The the pleased capital

we year, I'm strategic well-executed resulted revenue positive and remain working improvements operational on strong in flow. organic talent profitability last excellence, cash years on and efforts growth, margin to This solid team developing that gratified our our attribute financial improvements, to this the focused our both generation over a capital the all strong in and segments. with success momentum growth several actions free operational in which a of of served-minded with objectives. have We contribute team's enhancements centered bench of

teams of I in our corporate segments and both headquarters. work proud our in the of dedication and am

continue while to and deploy year also investments debt growth, high-return strengthen down dividends prudently continue common shareholders, we for to capital [ to ] the balance further We sheet. this cash repay to

but fit, and we to strategic judicious plan leverage, We as to list are candidates, acquisition drive ability growing be evaluate a evaluating synergies timing. of

reduced million new company costs. again completion significant lower initiative of coil coating Missouri. aluminum by facility and this We quarter A our March year loan this term debt to interest our in in $XX the Washington, repriced is

by testing expect XXXX. We begin quarter with early the plans in to calendar equipment to third operational in be year

be plant's evaluated commitment of to that facility secular this the in aluminum the facility on that total schedule. to This plastic to long-term remains positioned was industry, based customer the build important pleased beverage and accounts to are decision for report respond Our well should shift capacity. to on XX% from project we contractual this

business segments differentiated, highly Metal Coating with our us significant AZZ built America. with strategically-located across is providing competitive recognized edge. North friendly a bring on of a technical XX We customer-centric for strong edge technologies facilities sustainable and growing over its and in of is This #X environmentally Coating market expertise, solutions. and years position both moats, economic Metal

years future drive this scale to with relationships elements our believe operational and and culture are our Our success for crucial customers, blue-chip will of come. we that year continue excellence to

to over I'll And Jason. turn with that, it

Jason Crawford

morning. Good

quarter the last X.X% of $XXX.X we compared Total to year, of by up sales and quarter. with million $XXX.X Metal first in quarter As Tom reported Metals sales Precoat prior first up Coating the million X.X% sales X.X%. year sales increased mentioned, over

as The was sales or helped prior inflationary XX.X% million in compared $XXX.X of $XX productivity to Lower segments of steady year. other resulting zinc segment prior improvement margins in sales or gross million quarter. in year and Metal the first XX.X% and the headwinds, in gross profit to both Coatings quarter's offset compared wage costs the

compared Operating and $XX.X of million million in sales first our XX.X% $XX.X average was year. of rates year's first sales sales of for to or from expense debt lower the that XX The were $XX.X Interest interest over various Selling, improved primarily or the the due to is first down expenses million have prior $XX.X to first sales in million million in income the in debt compared occurred compared to general XX.X% weighted paying or $XX.X repricings X.X% prior quarter. year and to decrease administrative quarter. of quarter months. $XX.X million consistently X% last last quarter or the

compared earnings AVAIL. $X.X earnings ownership the quarter This of is $X.X year. increased to quarter an million prior first income year quarter quarter Current the million million expense $XX.X million same for unconsolidated tax of JV quarter. to million, quarter. the prior effective compared to Equity in compared the increase reflecting from in $XX.X tax Reported subsidiaries last $XX.X was higher to the due rate for for year was XX.X% net first XX% income for XX.X% our and to

redemption value GAAP excludes of This May million was this GAAP and X the our to share X% per of $X.XX. diluted adjusted $XX.X of of we our of common net Series resulted for stock $XX As A net year. or shareholders Series a excess million our income diluted company's EPS Tom the premium, statement. redemption Since as premium, of AZZ in preferred redeemed in income loss adjusted in the recorded mentioned, stock million loss face the reported income $X.XX. in quarter adjusted non-GAAP measure of a $XX.X A dividend preferred a amount first of The

million the net quarter year. timing to to Series This increases. preferred avoid the of our redeem stock annual income further or On XX.X% basis, $XX.X adjusted is first adjusted prior compares diluted fiscal the prior adjusted an The earnings A increased of to EPS right from favorably the $X.XX. of year's

to While in the a resulted the quarter first the million Series decision by redemption the preferred and premium of future redemption $XX during escalations redemption million avoid year. redeem in preferred A future onetime stock company the a $XX.X annual premium to of stock dividends $XX.X per in the minimum million, payment allowed

improved by of EBITDA in and improvement This or or was EBITDA adjusted both compared margin XXX in million quarter $XX.X First point $XX.X sales XX.X% to adjusted of volume sales in XX.X% primarily segments. the was prior driven year. sales basis strength million earnings

sheet. of more balance from to of funding $XX.X generated Turning $XX.X million. and our higher the of first the than cash XX% We $XX.X expenditures quarter than QX cash position million, After flow prior million, year. free our capital flow was was financial which operations

coating coil which mentioned, be Washington, coating XXXX. a aluminum coil expanding Missouri, operationally facility we're As calendar XX-acre our Tom constructing by capabilities in in we new to anticipate

year, on of million paid this fiscal million quarter. facility in new the $XX first approximately the which spend to $XX expect We was

bolt-on in allocation investing shareholders capital acquisitions. our paying to potential through the down dividends evaluating of cash Our returning strategy business, debt, consists and

to reduced pay debt XX, by year. During a total down million the $XX of first expect $XX quarter, million, to the May million which we we $XX and full fiscal ended for

EBITDA compares favorably XX trailing months X.Xx, Our XX-month debt-to-adjusted current ago. which X.Xx is to

offering redemption preferred redeem on, of this and proceeds million stock improves public stock. A net the of shares touched we X.X net raising or capital structure. Tom common believe by secondary these We completed XXX% Series this earlier expenses. offering preferred the company's to transaction secondary of were full million issuing $XXX.X the As used significantly the million of a year $XXX stock from

with ample At quarter a continue the XX, liquidity through no to end XXXX. and of $XXX on calendar we revolver flexibility maturities maintain the million until May debt first

this during in down X.XX%. year, Loan SOFR Finally, of improving repriced Term our plus to debt, B, we margin X.XX% SOFR to our addition paying plus March from

rate rate through to our swap XX, fix our September variable Our portion for interest a interest XXXX. debt of agreement current notional continues

the Nark. With that, I'd over like to to turn call David

David Nark

end everyone. the strength into Jason, in quarter and in year-end you, February from carried morning, Momentum first of good Thank a number markets. with

high by record quarter. we single-digit driven sales volume Metal For reported the Coatings, for expansion high

well we public and include plant mentioned, Tom namely solar, highway, as an T&D, elevated industries essential construction seeing utility work renewables, are chip construction, As to of projects number related critical that projects. as bridge now

We public to the in increases we the mid- segment this which has sector continued Precoat first range. expect market strength, the high total perform better to to Metals year. volume continue in believe than ongoing with spending that The quarter single-digit

growth double-digit fueled to rebound end significantly the saw and a the increases of and build implementation products transportation fact, In based inventory markets single- for cooling vehicle certain upon construction, the market. change ranging range HVAC higher recreational a refrigerant in high of in new by

on essential in panels In if them. private for addition, is for data sector center and interest We a Precoat used this later centers, commercial believe sector enthusiastic public by construction wall market works year, data in spending modern remain construction. soften insulated about it and could prepainting projects growth growing which the spending rates steel signal

We also migration continue aluminum as reshoring benefit prepainted to the plastics to well that space the from and trends to our of see secular business. continue expect to and the will steel to conversion beverage manufacturing, in as growth aluminum

superior both leader providing Metal become As systems to with our metal customers. as is scale, and advantages Coatings cost a capabilities coatings segments customer-centric high technologies Tom mentioned, in innovative [Technical and AZZ have that provider Difficulty] value-added market coatings the

turn now would like to I that, it to back Tom. With over

Thomas Ferguson

David. Thank you,

optimistic peak this typically we appreciate mentioned, prospects are during our year summer business construction that business brisk Dave our the As months. about is and more

impact know or as We and recently hurricanes, Borough, saw events can with our business. macroeconomic also Hurricane that we changes

So prepared should choppiness it for occur. we remain

for out sales. year While have ball into have we for first crystal balance the in for upcoming net we we the adjusted the accomplished of set do quarter. to We EPS and don't records the a holds new adjusted income, what elections, economy the established nor what this impact of

our to also and of quarter. So both credit shares the the redemption of segment our to corporate to teams preferred accomplish during same

to reiterate expected to $X.XX is million, of $XX The $XXX guidance the unchanged expected range. to XXXX fiscal fiscal pleased are guidance $XXX million, is million be million earnings guidance to EPS to $XX our billion million million greenfield for remain debt million EBITDA $XX in adjusted venture including paydowns to are million the our to $XX Capital expenditures $X.XXX million $XX to approximately related at the $X. adjusted we new minority sales equity guidance, are plant. $X.XXX joint billion, current year and $XXX and to of Today, and AVAIL interest this $XXX from in previous to year, the planned

on focused we'll that the bolt-on are continue We pipeline. and are paying beginning opportunities acquisition to evaluate down to enter debt,

business us long-term own risks highly model strategic financial because we growing include with the fewer Our inorganically. coat. through to that we differentiated a value organically plans proposition do a focus and that or positions on We simply continuing tolling not offer customers and commodity the aluminum steel to

sustainable Our position free of margin while adequate and creation sheet. shareholders cash balance maintain us year maintaining liquidity translates and to a the long-term return grow solid into significant to for value through to the our This profiles this well our solutions. flow generate continue business all

to and relentlessly our AZZ's creation. value strategy, continue that to people can continue executing We by we our in accelerate investing recognize

the operator, with please Now for the open call questions. up

Operator

And Securities. first come Lucas from Riley question B. the Pipes Instructions] will with [Operator

Lucas Pipes

first solid year. on QX, to The one your EBITDA just start guidance. is very the

annualizing Range You're million. at fiscal $XXX the for $XXX of annualizing, to so million well kind been $XXX midpoint. below to you've especially year where million, full the

the some conservative really factors, hurricane. of the it when comes what fiscal But to mentioned the You you are to extent year? election, seasonality, rest

Thomas Ferguson

Lucas, to tend you I conservative. -- we be have we probably mean, generally, seen, as

had we'll look normal back at point. guidance having finishing But So and little that -- into then offering updated at we up a the finish typically since finished a gives was the also strong season. as and prior to updating in to we us And April, benchmark that second getting up which what quarter would construction have out the we're cycle our of summer quarter. cadence is better guidance a be then

start. And the quarter to a is off good

a good So little just given at we about nothing point. outlook our But specific. feel hesitant this

production Borough it And don't handful or customers think, I sites, affected. most of down mandates a part, want for the well sites of to sites, affected sites that I in And X Hurricane So Houston. had say couple X X power, our as in of we're did a while about that. -- talking our our while was lost

we'll days. get and clear is few that going So still out to work done, that within a

So very overall, is impact the net minor.

just work at in of say galvanized. almost poles then and the and pick peers sadly, in and because hurricane and things And do tends stuff some towers of transmission longer I'd some to after the that, cases, up photos like we you docks to term, tend look be the gets down that

And longer over work. showed, the term, we the first as we So sales pick we record economy, to had quarter. the tend up in

striving Our teams driving taking market some hard share, are volumes.

normal guidance. but set So we cadence back into of conservative to we're want our get how we just confident,

Lucas Pipes

helpful. very And second That's related. is my question then somewhat

a to EBITDA business, Coatings I you in XX% margin to On at the XX% And of an as you've Metal remember spoken came XX%. target of kind before.

target can did always kind have range. volatile, higher. margins of that the way? on Zinc, wondered, in appreciate for pretty so perspective would unusual And impact I guess your above I go I going there that was this. on example, was an anything any were they

Thomas Ferguson

our the as didn't Zinc Yes, much it It's that's at a -- LME back and already. have right in now, then and forecast all. trending factored but to for higher our zinc didn't One, couple start all gradually us, kettles guidance really the year the up is -- any it head with But on. have of will flip down, costs still cost over our wears things. -- impact into

backlog teams either have in and and it extra shows we mind, little the of no main keep a when backlog in think was that segment. technically our volume get that I no -- bit thing

customer in side, on basically on have the at do they But and aluminum lot galvanizing some on the -- But warehouses we of a least steel plants. Precoat have sitting our yards. their and what's particularly, side,

well. So We've relationship they're a teams management do and sales. great of off their forecasting got our sales capability

philosophy of say bps anticipate, maintain EBITDA they not off. plants an -- way, long that they of not a outstandingly do value they leadership up -- that's and extra executed what But much volume focused not little and and rounding pretty there. just and definitely falls goes picking well, stayed So the a the their on it's XX it's just team we margin, I'd pricing and that bit

a cycle, private choppier sector. But it after the whether summer as does gets construction or fall. little then winter, get into sector that's the it's we when then public up, in construction And slow

a little weaker. the So fourth mind, gets that quarter just in bit keeping

we at to that target. I'm this time. at XX% would not So tend revisit we that range. XX%, find look do they that we sustain to XX% naturally anticipating If to consistent a above continue But that being

Operator

next will Your with from Volkmann question Jefferies. Stephen come

Stephen Volkmann

are the there kind maybe sound market but And little that or mind? the on choppy that same keep there anything you are your Maybe -- in inventory was any of bit. the on David, there and keep think markets that as thread there rest destock year? just the like outlook? pull of line you end sort curious, about some top concern I'm are would should some out exposures, you kind a of for of giving stock any end just Just conservative doesn't this, it we

David Nark

Great question.

stated markets other at saw the across you than we and results, market our every As others. category growth of end the stated look catch-all end

in So don't give choppiness segments saw But concern some When kudos really to across or much to we and too little both there. look us worries you there, we brings for into segment, that further some we strong either take. see anything a the and performance teams each segment. here overall, us

Stephen Volkmann

saw what seeing I just you there? elaborate some sort XX-Q, headwind a on was of skim on sort little that as I then you're Can bit there of And Okay. Great. mix. the through

David Nark

Yes.

as segment, solid. any and as both look each again, as segments, I concerns. they I issues of jumps results quarter really when or the that us on at look the at think by had some at kind you we takes think, were you much out Nothing through mix. overall puts too really again, And far

Stephen Volkmann

this Does rest think year? agreed. the how mix headwind Yes, that continue? we for Or of the do forecasting about

Thomas Ferguson

No.

-- for XX the I we've I galvanizing plants. shift. different can particularly with our mean think got side, plants it mix, on

different load They've will then types they so different focus a And couple different they of shifts, things. chase customers. customers They that as the on. of their chase. market, they of do And got segments

to after slows stuff, they're structural structural need then if if to load, going chase Rope they're to go So I smaller, Soap or going like they call, and Dope. stuff up, as some

we So not anything explain -- just it's to wouldn't beyond we're say lot I that It's But weekly, forecast. that what typically then about. as could move, forecasting detail forward, it, can say It's something don't we I see that happened. we I'd it have of not maybe basis. monthly a -- but we use a looking

and normal we're good mix forward going So anticipating execution. continued

Operator

next Mark The question with from Noble Reichman Capital will come Markets.

Mark La Reichman

in while and mix price due business was Metals. to like looked average Metals segments, average product in the down Coating the the sales in Precoat were up it both Yes, was selling flat price

to So question, in expect do last driven? up you that on I forward? outlook the might Will that your results a for more going of prices be just change mix pricing? the kind the volume help was wondering follow what's Or

Thomas Ferguson

a generally of think couple seeing -- so I things. we're

our trend easier to separate we've is tried hold as zinc the costs it models, up, the to starts has LME, pricing -- been it price. it on makes when zinc though to from even As reality

significant sold. they it, because see are cost goods of customers expecting it's of -- -- So part know our they

about as kettles. we bit moving being it our zinc So little of talk the a a is in company, the of forward, gets easier. how we Part do cost public I'd say, look actually problem

just talk And why on said, kettles, try add. beyond this We so the as value to a includes And galvanizing back the head hot-dip to our going sell we I down price and down sell is services over about, and it bit little good that your customers on flip itself, going So we are multiple up. that transportation. like it's going ask, to too? see

lot a things affect mix. that there's So of

I the like supported continue acid, to that see well still we we to holding our But energy, prices forward, costs name and to we think you zinc of look it. pricing. drive for everything generally, virtually I from And as and fact wages bodes going said, that our on deliver have with usually up, value ability by kind inflation

Mark La Reichman

question the additional Missouri And completed? second contract $XX before XX% of the to facility. expect the what, Do for Washington, you've is $XX contracts is guess I And output to million million you facility take-or-pay revenue. the annual the of that's sign got of

Thomas Ferguson

think possible. I already. other that's We've customers got

another to process similar -- this so us. So plant We actually is for a St. Louis capacity, that have in runs just a smaller speak. not on with new things smaller

we're balance and other So the we we as quality us And the -- the is and thing balancing to ramp for looking customers. up key capacity so up. load will to we're be going ramp for capabilities effectively

already mind, them. But do keep business most in we with of

can move And our we confident looser it, the those we case, look contract as to just little the given one, than investment. are demand the bit speak. and feel was for Typically, us so In give amount a reason this this so of probably the the contracts of with some opportunities. and

some be And is to run can put new we'll looking it in line. customers yes, to we state-of-the-art other get so business a that But that effectively. there

So effectively, efficiently cost we very being anticipate too. effectively, and run

Operator

will next The Davis. with come question from Kevin Gainey Thompson

Kevin Gainey

the on quarter. great Congrats

Thomas Ferguson

Thanks.

Kevin Gainey

term? there margins, there? Is of what to it are year-over-year. you guys for Precoat up? flat those you the like opportunity if are phenomenon? were they still see Or the on year balance we And maybe can of a Maybe start that how -- push over the more then you X-quarter Is thinking longer guys

Thomas Ferguson

paint still the increased, our run plants which of Yes, in and opportunities a some has going things. and we're at point, says, One, couple that inventories there's customer to it.

XX% those of side then that can the opportunities, margins. There's So too. to tends as on sustain give volumes, above it. we confidence volume we'll sustain other And the us some

focused driving outstanding think operational segment both quality. excellence, teams I on

fleet plants on opportunities I'd improve side, quality, we've the got on We're have lines. the improve going say And XX across Precoat to throughput. to and of productivity, drive

I So the year, we going think way when we're fourth too of and where customer productivity, had it to to not allow obvious again. about you go as of those things, the that think some inventory quarter much our that in last distractions are you happen to got back

So like is I something and the XX% the we'd continue move higher range. the think end to XX% the towards hold in range of to

Kevin Gainey

welcome That chance sounds the the about being you working thinking maybe And your guys good. to to cash then to -- call, as Jason, capital cash progresses? able I'll this generate give you How are from year flow.

Jason Crawford

Yes.

I capital. think prior working made improvement we step look fiscal last a if you change in really at year, our

I if There's change. but really more operationally at driving projections, step think not look always this necessarily focus our cash our opportunity, projecting year, from there. then we're you any is

given anything within sit where we'll constituents but #X pick that, levels up focus we it's So inventory other market. our that not and from be we capital certainly that working with and capital, a working our beyond above

Kevin Gainey

up. I appreciate can anything you give then you if talk that it Precoat. else opportunity in to on about guys for center you just color. And that? squeeze brought the can data if more there's one guys because Maybe And

David Nark

Yes.

steel U.S. insulated Just them to in customer market that obviously, and The being data large is a a lot has that, supplying particular, center prepainted been. sandwiched in is the business, little wall The in and Precoat a Kevin. a on used makes customer where that has growing bit market. that of a they're and market,

small area opportunistic them. a but an on, about initiative focused that. that it's for So It's we're for the and growing future they're

Thomas Ferguson

AIS, X of too, was the a into well, not skins of facilities And enclosures. prepainted. enclosures that the it, those majority the we Yes. And the of -- even add -- actually I'd like sold to electrical which were electrical produced on lot

enclosures often data opportunities. that so to the manufacturers that basis form, quite is speak, the the center foundation of So alone, form or that fabricate a

electrical So to In there's the pre-paint. post-paint to for to things. this us opportunities case, of convert themselves type continue enclosures lots

the what a more on more it that's to do sales great focused going efficiently, we're is far understand. the XX.X% just to capture to emissions, at So trying get cost. and far going team and to of customers and effectively We're

what So gets excited. that's we what and to like it's us pitch

We for have some side. now that AVAIL of the doing started

Operator

Jon Your Braatz Kansas come next question from will with Capital. City

Jon Braatz

Tom, trend about talk to and thinking Precoat bit Broadly the can the and talk maybe you you trend speaking, about towards were Can today? accelerating -- a acquired steel relative back question you what the when that? a where little a for little you you. think pre-coated is you bit where about Is talk it same?

Thomas Ferguson

Yes.

had is how I lot a of tracking the trend pretty it, to think much it. we modeled

longer just to of than that is think strong They and I those maybe customers them we working what to opportunities. we're as their opportunities there's finding but to a out probably get balance list We're paint sheet, have we strong -- But take a with access cash. convert, more lines thought. get and to opportunities that. seeing have we do things like more good of

a can aluminum sitting -- here, than conversion. side, the the a water on of actually then that And I'm we out painted myself. metal we but anticipated, little been that's see bit slower do drinking probably

are things those So happening.

moving And so we've on faster. got hand, one things

other the some slower. we've On bit hand, little moving got things a

So overall, margin what profile, on our then track we though, ahead models the record And center perspective. sales into dead that hoped had kind of from they're for. of the

weekly we're And winning I very, a ability conversions. the these hope what read think we and very teams reports, lot focus positive sales overall. battles is the we're that to on seeing So of the as we with And continue. would

post-paint. benefits to job on the the a On to understand macro do of still we the better getting I think side customers macro have side, pre-paint of versus

So that teams. belong to we -- with our that's associations the as that's own well as work ongoing sales and

still So we're on say like innings conversion I'd opportunity. to early this

Jon Braatz

press this think galvanizing zinc release, to using seen improved before, less does operations, what I used productivity. in you're but productivity zinc you're the secondly, in I you don't improvement? haven't your the Okay. zinc And term, trying imply that

Thomas Ferguson

productivity. zinc Yes,

idea is The too one just zinc you not the layering affects enough track perfectly, on to we so that our zinc the of metrics. this. also which you're much want it protect but operating So on, to put It's metal it appearance. key

that effectively the is us, how we for so to utilize zinc just speak. productivity So pound zinc or per

Galvanizing So it, have can us tools more we like effectively efficient, Difficulty] it's more operationally Digital made [Technical how system, effective. apply

it still that this, do We it, look do day experienced call as operators and make easy, not. but a I outstanding it's have kettle it job to as

trying we're rework, to of measurement not not technically So outstanding bunch the we're clump to zinc that's quality, having provide a the amount and key using but zinc the -- for something fabrication. on a us use of optimum any

Jon Braatz

-- big that in the is difference How -- making a help? in much that margins? does improvement margins the Does the that

Thomas Ferguson

it's to give We It's on but information. much I a call, have competitors [Technical got impact. Difficulty]. don't decent out do too this competitive decent some -- a want

Operator

reconnect. while connected has stay our is Please The reconnected. we yours. Pardon me, floor line speaker

Thomas Ferguson

Yes.

Let's the we go on queue. operator, and ahead if individual to jump the next can,

Operator

that Company. And next come from question Franzreb will Mr. Sidoti with John &

John Franzreb

have all questions answered. Yes, my been

Thomas Ferguson

for lost here. service sorry phone We're Jon. disruption. Thanks, We the

Operator

Mr. more are to questions, like would any to call I pass Tom Ferguson for the there no As over remarks. closing

Thomas Ferguson

your you thank for And Operator. you, time. Thank all

be second forward just to months. couple Sorry of end I phone quarter, That of look updating in will you our a for the the at disruption. which

all, thank great day. have So you a and

Operator

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

may You now disconnect.

AZZ (AZZ) 11 Jul 242025 Q1 Earnings call transcript