AZZ Q2 earnings soar on better demand for hot-dip galv

AZZ Inc. posted sharply higher second-quarter profits driven by increased sales and better demand for its products.

The Fort Worth, Texas-based hot-dipped galvanized and coil coater reported net income of $35.4 million in the second quarter of 2024, up 43.3% from $24.7 million in the same quarter last year. It posted Q2’24 sales of $409 million, up 2.6% from $398.5 million in Q2’23.

The gains were driven by “focused execution and seasonal strength,” AZZ President and CEO Tom Ferguson said in a statement released with earnings data after the close of markets on Wednesday.

“I want to thank all of our dedicated AZZ employees for their work this quarter on both sales volume and productivity improvements,” he added.

AZZ bills itself as North America’s largest hot-dipped galvanizer. It become so with its $1.28-billion acquisition of Precoat Metals in 2022.

The company has two business segments: Metal Coating and Precoat.

The Metal Coating segment recorded sales of $171.5 million in Q2’24, up 1% from Q2’23. AZZ said the gain came thanks to “slightly increased” volumes related to infrastructure spending, bridge and highway work, electricity transmission and distribution, and renewable energy.

Precoat posted sales of $237.5 million in Q2’24, up 3.8% from Q2’23. The increase resulted from higher sales volumes to construction, HVAC, and transportation, AZZ said.

On the cap-ex side, meanwhile, AZZ said it spent $32.1 million in Q2’24. Of that amount, the company earmarked $19.4 million for its new facility in Washington, Mo. The new plant remains on budget and on schedule, the company said.