# EDGAR Filing Document

**Accession Number:** 0000008947
**File Stem:** 0000008947-25-000141
**Filing Date:** 2025-7
**Character Count:** 34213
**Document Hash:** 1a5f3fb3f1269c5a45ff8bfb434405a8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000008947-25-000141.hdr.sgml**: 20250709

**ACCESSION NUMBER**: 0000008947-25-000141

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250709

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250709

**DATE AS OF CHANGE**: 20250709

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AZZ INC
- **CENTRAL INDEX KEY:** 0000008947
- **STANDARD INDUSTRIAL CLASSIFICATION:** COATING, ENGRAVING & ALLIED SERVICES [3470]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 750948250
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12777
- **FILM NUMBER:** 251113773

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MUSEUM PLACE, SUITE 500
- **STREET 2:** 3100 W 7TH STREET
- **CITY:** FORT WORTH
- **STATE:** TX
- **ZIP:** 76107
- **BUSINESS PHONE:** 8178100095

**MAIL ADDRESS:**
- **STREET 1:** ONE MUSEUM PLACE, SUITE 500
- **STREET 2:** 3100 W 7TH STREET
- **CITY:** FORT WORTH
- **STATE:** TX
- **ZIP:** 76107

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AZTEC MANUFACTURING CO
- **DATE OF NAME CHANGE:** 20000911

?xml version='1.0' encoding='ASCII'? azz-20250709

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**July 9, 2025**

Date of Report (Date of earliest event reported)

**AZZ Inc.** 

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Texas** | **1-12777** | **75-0948250** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |

---

**One Museum Place, Suite 500** 

**3100 West 7th Street** 

**Fort Worth, Texas 76107** 

(Address of principal executive offices) (Zip Code)

**(817) 810-0095** 

(Registrant's telephone number, including area code)

**Not applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock | AZZ | New York Stock Exchange |

---

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On July 9, 2025, AZZ Inc. ("AZZ") issued a press release reporting AZZ's first quarter financial results for the period ended May 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 (including Exhibit 99.1) is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. Nor shall the information in this Current Report be incorporated by reference in any other filing with the U.S. Securities and Exchange Commission made by AZZ, whether made before or after the date hereof, unless specifically identified therein as being incorporated therein by reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

The following exhibits are filed as part of this report.

---

| | |
|:---|:---|
| **<u>Exhibit</u>** | **<u>Description</u>** |
| 99.1 | <u>[Press release, reporting financial results for the](exhibit991q1fy26earningsre.htm)[first](exhibit991q1fy26earningsre.htm)[quarter of fiscal year 202](exhibit991q1fy26earningsre.htm)[6](exhibit991q1fy26earningsre.htm)[, ended](exhibit991q1fy26earningsre.htm)[May 31](exhibit991q1fy26earningsre.htm)[, 2025.](exhibit991q1fy26earningsre.htm)</u> |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | AZZ Inc. |
| Date: | July 9, 2025 | By: | /s/ Jason Crawford |
|  |  |  | Jason Crawford<br>Senior Vice President, Chief Financial Officer and <br>Principal Accounting Officer |

---

## Exhibit 99.1

**AZZ Inc. Reports Fiscal Year 2026 First Quarter Results** 

**Delivers Record Quarterly Sales, Adjusted EBITDA, and Adjusted EPS over Prior Year** 

**Raising Fiscal Year 2026 Guidance on Strong Earnings**

**July 9, 2025** - *FORT WORTH, TX* - AZZ Inc. **(NYSE: AZZ)**, the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the first quarter ended May 31, 2025.

***Fiscal Year 2026 First Quarter Overview* (as compared to prior fiscal year first quarter**<sup>(1)</sup>**):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Total Sales of $422.0 million, up 2.1%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Metal Coatings sales of $187.2 million, up 6.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Precoat Metals sales of $234.7 million, down 0.8%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $273.2 million cash received from our minority interest in AVAIL related to the sale of the Electrical Products Group to nVent Electric plc

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net Income of $170.9 million, up 331.6%; Adjusted net income of $53.8 million, up 22.3%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ GAAP diluted EPS of $5.66 per share, up 510.1%; Adjusted diluted EPS of $1.78, up 21.9%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Adjusted EBITDA of $106.4 million or 25.2% of sales, versus prior year of $94.1 million, or 22.8% of sales

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Segment Adjusted EBITDA margin of 32.9% for Metal Coatings and 20.7% for Precoat Metals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***◦*** Debt reduction of $285 million in the quarter, resulting in net leverage ratio 1.7x

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Cash dividend of $0.17 per share to common shareholders paid in the quarter

<sup>(1)</sup> Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and net leverage ratio are non-GAAP financial measures as defined and reconciled in the tables below.

Tom Ferguson, President, and Chief Executive Officer of AZZ, commented, "We are off to a great start in the fiscal year as sales grew to $422.0 million, up 2.1% over the prior year, with Adjusted diluted EPS of $1.78 up 21.9%. Consolidated Adjusted EBITDA grew to $106.4 million, or 25.2% of sales, primarily driven by higher volume for hot-dip galvanized steel and operational productivity over the prior year. Metal Coatings benefited from improved zinc utilization and delivered an Adjusted EBITDA margin of 32.9%. Precoat Metals' Adjusted EBITDA margin improved to 20.7%, primarily due to favorable mix and improved operational performance. While volumes were slightly lower for Precoat Metals, customer demand improved, as shipments of customer inventories increased compared to first quarter of last year.

Our fiscal first quarter cash from operations of $314.8 million, including proceeds from AVAIL's sale of the Electrical Products Group, allowed us to reduce debt by $285.4 million. We ended the quarter with a net leverage ratio of 1.7x. Subsequent to the quarter, we successfully closed a bolt-on acquisition within our Metal Coatings segment and announced the increase of our quarterly cash dividend to common shareholders from $0.17 to $0.20 per share. I want to thank all of our dedicated AZZ employees for their hard work, dedicated focus on sales volume, and productivity improvements. Our employees continue to demonstrate their pride and passion for delivering outstanding quality and service to our customers, while driving operational excellence. We are on track to set new profitability records in fiscal year 2026 as we continue to execute on our strategic plans." Ferguson concluded.

------

**<u>Segment Performance</u>**

***First Quarter 2026 Metal Coatings***

Sales of $187.2 million increased by 6.0% over the first quarter of last year, primarily due to increased volume supported by infrastructure related project spending in several end markets, including construction, industrial, and electrical transmission and distribution. Segment Adjusted EBITDA of $61.5 million resulted in Adjusted EBITDA margin of 32.9%, on increased volume and improved zinc utilization, an increase of 200 basis points from the prior year first quarter.

***First Quarter 2026 Precoat Metals***

Sales of $234.7 million were 0.8% lower than the first quarter of last year on decreased volume in certain end markets, including construction, HVAC, and appliance. Segment EBITDA of $48.5 million resulted in EBITDA margin of 20.7%, an increase of 50 basis points from the prior year first quarter.

**<u>Balance Sheet, Liquidity and Capital Allocation</u>**

The Company generated significant operating cash of $314.8 million for the first three months of fiscal year 2026 through improved earnings, which included a distribution of $273.2 million from the AVAIL JV following AVAIL's sale of its Electrical Products Group, coupled with our disciplined working capital management. At the end of the first quarter, the Company's net leverage was 1.7x trailing twelve months Adjusted EBITDA. During the first three months of fiscal year 2026, the Company paid down debt of $285.4 million and returned cash to common shareholders through cash dividend payments totaling $5.1 million. Capital expenditures for the first three months of fiscal year 2026 were $20.9 million, including $3.2 million of spending related to the new Washington, Missouri facility, and full fiscal year capital expenditures are expected to be approximately $60 - $80 million. Pursuant to the Company's existing $100 million Share Repurchase Program, the Company has a remaining balance of $53.2 million available for repurchases.

**<u>Financial Outlook — Fiscal Year 2026 Guidance</u>**

We are adjusting fiscal year guidance, reflecting confidence in our strategic execution, operational resilience, and market positioning. Fiscal year 2026 guidance reflects our best estimates given anticipated market conditions for the full year, lower interest expense, an annualized effective tax rate of 25% and excludes M&A activity and any federal regulatory changes that may emerge.

---

| | |
|:---|:---|
| | **FY2026 Guidance**<sup>(1)</sup> |
| Sales | $1.625 - $1.725 billion |
| Adjusted EBITDA | $360 - $400 million |
| Adjusted Diluted EPS | $5.75 - $6.25 |

---

<sup>(1)</sup> FY2026 Guidance Assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Excludes any future acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Excludes any future equity in earnings from AVAIL joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Management defines adjusted earnings per share to exclude intangible asset amortization, restructuring charges and additional stock compensation expense related to the adoption of our executive retiree long-term incentive program from the reported GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Assumes EBITDA margin range of 27 - 32% for the Metal Coatings segment and 17% - 22% for the Precoat Metals segment.

**<u>Conference Call Details</u>**

AZZ Inc. will conduct a live conference call with Tom Ferguson, Chief Executive Officer, Jason Crawford, Chief Financial Officer, and David Nark, Chief Marketing, Communications, and Investor Relations Officer to discuss financial results for the first quarter of the fiscal year 2026, Thursday, July 10, 2025, at 11:00 A.M. ET. Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). A webcast of the call will be available on the Company's Investor Relations page at http://www.azz.com/investor-relations.

------

A replay of the call will be available at (877) 344-7529 or (412) 317-0088 (international), replay access code: 2234808 through July 17, 2025, or by visiting http://www.azz.com/investor-relations for the next 12 months.

***About AZZ Inc.***

AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets in North America. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.

***Safe Harbor Statement***

*Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as "may," "could," "should," "expects," "plans," "will," "might," "would," "projects," "currently," "intends," "outlook," "forecasts," "targets," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process, paint used in our coil coating process; supply-chain vendor delays; customer requested delays of our manufactured solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ's growth strategy; a downturn in market conditions in any industry relating to the manufactured solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in the United States and other foreign markets in which we operate; tariffs, acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business, including in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov.*

*You are urged to consider these factors carefully when evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.*

**Company Contact:** 

David Nark, Chief Marketing, Communications, and Investor Relations Officer

AZZ Inc.

(817) 810-0095

www.azz.com

**Investor Contact:**

Sandy Martin / Phillip Kupper

Three Part Advisors

(214) 616-2207 or (817) 368-2556

www.threepa.com

------

---

| | | |
|:---|:---|:---|
| **AZZ Inc.** | **AZZ Inc.** | **AZZ Inc.** |
| **Condensed Consolidated Statements of Income** | **Condensed Consolidated Statements of Income** | **Condensed Consolidated Statements of Income** |
| (dollars in thousands, except per share data) | (dollars in thousands, except per share data) | (dollars in thousands, except per share data) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** |
|  | **2025** | **2024** |
| Sales | $421962 | $413208 |
| Cost of sales | 317832 | 310538 |
| &nbsp;&nbsp;Gross margin | 104130 | 102670 |
| Selling, general and administrative | 34581 | 32921 |
| &nbsp;&nbsp;Operating income | 69549 | 69749 |
| Interest expense, net | (18563) | (22774) |
| Equity in earnings of unconsolidated subsidiaries | 173523 | 3824 |
| Other income, net | 1327 | 204 |
| &nbsp;&nbsp;Income before income taxes | 225836 | 51003 |
| Income tax expense | 54928 | 11401 |
| &nbsp;&nbsp;Net income | 170908 | 39602 |
| Series A Preferred Stock Dividends |  | (1200) |
| Redemption premium on Series A Preferred Stock |  | (75198) |
| &nbsp;&nbsp;Net income (loss) available to common shareholders | $170908 | $(36796) |
| Basic earnings (loss) per common share | $5.71 | $(1.38) |
| Diluted earnings (loss) per common share | $5.66 | $(1.38) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding - Basic | 29941 | 26751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding - Diluted | 30217 | 26751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends declared per common share | $0.17 | $0.17 |

---

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| | | |
|:---|:---|:---|
| **AZZ Inc.** | **AZZ Inc.** | **AZZ Inc.** |
| **Segment Reporting** | **Segment Reporting** | **Segment Reporting** |
| (dollars in thousands) | (dollars in thousands) | (dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** |
|  | **2025** | **2024** |
| Sales: |  |  |
| &nbsp;&nbsp;Metal Coatings | $187215 | $176651 |
| &nbsp;&nbsp;Precoat Metals | 234747 | 236557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Sales | $421962 | $413208 |
| Adjusted EBITDA |  |  |
| &nbsp;&nbsp;Metal Coatings | $61516 | $54645 |
| &nbsp;&nbsp;Precoat Metals | 48477 | 47687 |
| &nbsp;&nbsp;Infrastructure Solutions | 7617 | 3795 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Segment Adjusted EBITDA<sup>(1)</sup> | $117610 | $106127 |
| <sup>(1)</sup> See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with <br>&nbsp;&nbsp;&nbsp;&nbsp;GAAP to the non-GAAP financial measures. | <sup>(1)</sup> See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with <br>&nbsp;&nbsp;&nbsp;&nbsp;GAAP to the non-GAAP financial measures. | <sup>(1)</sup> See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with <br>&nbsp;&nbsp;&nbsp;&nbsp;GAAP to the non-GAAP financial measures. |

---

---

| | | |
|:---|:---|:---|
| **AZZ Inc.** | **AZZ Inc.** | **AZZ Inc.** |
| **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** |
| (dollars in thousands) | (dollars in thousands) | (dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **As of** | **As of** |
|  | **May 31, 2025** | **February 28, 2025** |
| Assets: |  |  |
| &nbsp;&nbsp;Current assets | $407945 | $375444 |
| &nbsp;&nbsp;Property, plant and equipment, net | 597892 | 592941 |
| &nbsp;&nbsp;Other non-current assets, net | 1153348 | 1258716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $2159185 | $2227101 |
| Liabilities and Shareholders' equity: |  |  |
| &nbsp;&nbsp;Current liabilities | $270097 | $220992 |
| &nbsp;&nbsp;Long-term debt, net | 569807 | 852365 |
| &nbsp;&nbsp;Other non-current liabilities | 104983 | 108249 |
| &nbsp;&nbsp;Shareholders' Equity | 1214298 | 1045495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Shareholders' equity | $2159185 | $2227101 |

---

------

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| | | |
|:---|:---|:---|
| **AZZ Inc.** | **AZZ Inc.** | **AZZ Inc.** |
| **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** |
| (dollars in thousands) | (dollars in thousands) | (dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended May 31,** | **Three Months Ended May 31,** |
|  | **2025** | **2024** |
| Net cash provided by operating activities | $314782 | $71944 |
| Net cash used in investing activities | (17122) | (27379) |
| Net cash used in financing activities | (295512) | (38542) |
| Effect of exchange rate changes on cash | (593) | 174 |
| Net increase in cash and cash equivalents | 1555 | 6197 |
| Cash and cash equivalents at beginning of period | 1488 | 4349 |
| Cash and cash equivalents at end of period | $3043 | $10546 |

---

<sup>(1)</sup> For the three months ended May 31, 2025, net cash provided by operating activities includes distributions from AVAIL of $273.2 million. Refer to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;footnote 6 on page [10](#idbb44febb082480f9ab81178164d7579_1-0-1-1-398019).

------

**AZZ Inc.**

**Non-GAAP Disclosure**

**Adjusted Net Income, Adjusted Earnings Per Share and Adjusted EBITDA**

In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), we provide adjusted net income, adjusted earnings per share and Adjusted EBITDA (collectively, the "Adjusted Earnings Measures"), which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency when comparing operating results across a broad spectrum of companies, which provides a more complete understanding of our financial performance, competitive position, prospects for future capital investment and debt reduction. Management also believes that investors regularly rely on non-GAAP financial measures, such as adjusted net income, adjusted earnings per share and Adjusted EBITDA to assess operating performance and that such measures may highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP.

Management defines adjusted net income and adjusted earnings per share to exclude intangible asset amortization, restructuring charges, and additional stock compensation expense related to the adoption of our executive retiree long-term incentive program from the reported GAAP measure. Management defines Adjusted EBITDA as adjusted net income excluding depreciation, amortization, interest, provision for income taxes and Series A Preferred Stock dividends. Management believes Adjusted EBITDA is used by investors to analyze operating performance and evaluate the Company's ability to incur and service debt, as well as its capacity for making capital expenditures in the future.

Management provides non-GAAP financial measures for informational purposes and to enhance understanding of the Company's GAAP consolidated financial statements. Readers should consider these measures in addition to, but not instead of or superior to, the Company's financial statements prepared in accordance with GAAP, and undue reliance should not be placed on these non-GAAP financial measures. Additionally, these non-GAAP financial measures may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

The following tables provide a reconciliation for the three months ended and year ended May 31, 2025 and May 31, 2024 between the non-GAAP Adjusted Earnings Measures to the most comparable measures, calculated in accordance with GAAP (dollars in thousands, except per share data):

------

***Adjusted Net Income and Adjusted Earnings Per Share***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended May 31,** | **Three Months Ended May 31,** | **Three Months Ended May 31,** | **Three Months Ended May 31,** |
| | **2025** | **2025** | **2024** | **2024** |
| | **Amount** | **Per**<br> **Diluted Share**<sup>(1)</sup> | **Amount** | **Per**<br> **Diluted Share**<sup>(1)</sup> |
| Net income | $170908 |  | $39602 |  |
| Less: Series A Preferred Stock dividends |  |  | (1200) |  |
| Less: Redemption premium on Series A Preferred Stock |  |  | (75198) |  |
| Net income (loss) available to common shareholders<sup>(2)</sup> | 170908 |  | (36796) |  |
| Impact of Series A Preferred Stock dividends<sup>(2)</sup> |  |  | 1200 |  |
| Net income (loss) and diluted earnings (loss) per share for Adjusted net income calculation<sup>(2)</sup> | 170908 | $5.66 | (35596) | $(1.18) |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 5734 | 0.19 | 5793 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges<sup>(3)</sup> | 3827 | 0.13 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemption premium on Series A Preferred Stock<sup>(4)</sup> |  |  | 75198 | 2.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive retiree long-term incentive program<sup>(5)</sup> | 2185 | 0.07 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AVAIL JV excess distribution<sup>(6)</sup> | (165826) | (5.49) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | (154080) | (5.10) | 80991 | 2.69 |
| &nbsp;&nbsp;Tax impact<sup>(7)</sup> | 36979 | 1.22 | (1390) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments | (117101) | (3.88) | 79601 | 2.64 |
| Adjusted net income and adjusted earnings per share (non-GAAP) | $53807 | $1.78 | $44005 | $1.46 |
| Weighted average shares outstanding - Diluted for Adjusted earnings per share<sup>(2)</sup> |  | 30217 |  | 30194 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

See notes on page [10](#idbb44febb082480f9ab81178164d7579_1-0-1-1-398019).

------

***Adjusted EBITDA***

---

| | | |
|:---|:---|:---|
| | **Three Months Ended May 31,** | **Three Months Ended May 31,** |
| | **2025** | **2024** |
| Net income | $170908 | $39602 |
| &nbsp;&nbsp;Interest expense | 18563 | 22774 |
| &nbsp;&nbsp;Income tax expense | 54928 | 11401 |
| &nbsp;&nbsp;Depreciation and amortization | 21827 | 20323 |
| &nbsp;&nbsp;Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges<sup>(3)</sup> | 3827 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive retiree long-term incentive program<sup>(5)</sup> | 2185 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AVAIL JV excess distribution<sup>(6)</sup> | (165826) |  |
| Adjusted EBITDA (non-GAAP) | $106412 | $94100 |

---

See notes on page [10](#idbb44febb082480f9ab81178164d7579_1-0-1-1-398019).

***Adjusted EBITDA by Segment***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended May 31, 2025** | **Three Months Ended May 31, 2025** | **Three Months Ended May 31, 2025** | **Three Months Ended May 31, 2025** | **Three Months Ended May 31, 2025** |
| | **Metal Coatings** | **Precoat Metals** | **Infra-<br>structure Solutions** | **Corporate** | **Total** |
| Net income (loss) | $50671 | $39354 | $173443 | $(92560) | $170908 |
| Interest expense |  |  |  | 18563 | 18563 |
| Income tax expense |  |  |  | 54928 | 54928 |
| Depreciation and amortization | 6660 | 9123 |  | 6044 | 21827 |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges<sup>(3)</sup> | 3827 |  |  |  | 3827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive retiree long-term incentive program<sup>(5)</sup> | 358 |  |  | 1827 | 2185 |
| &nbsp;&nbsp;&nbsp;&nbsp;AVAIL JV excess distribution<sup>(6)</sup> |  |  | (165826) |  | (165826) |
| Adjusted EBITDA (non-GAAP) | $61516 | $48477 | $7617 | $(11198) | $106412 |

---

See notes on page [10](#idbb44febb082480f9ab81178164d7579_1-0-1-1-398019).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended May 31, 2024** | **Three Months Ended May 31, 2024** | **Three Months Ended May 31, 2024** | **Three Months Ended May 31, 2024** | **Three Months Ended May 31, 2024** |
| | **Metal Coatings** | **Precoat Metals** | **Infra-<br>structure Solutions** | **Corporate** | **Total** |
| Net income (loss) | $47988 | $40094 | $3795 | $(52275) | $39602 |
| Interest expense |  |  |  | 22774 | 22774 |
| Income tax expense |  |  |  | 11401 | 11401 |
| Depreciation and amortization | 6657 | 7593 |  | 6073 | 20323 |
| Adjusted EBITDA (non-GAAP) | $54645 | $47687 | $3795 | $(12027) | $94100 |

---

See notes on page [10](#idbb44febb082480f9ab81178164d7579_1-0-1-1-398019).

------

***Debt Leverage Ratio Reconciliation***

---

| | | |
|:---|:---|:---|
| | **Trailing Twelve Months Ended** | **Trailing Twelve Months Ended** |
| | **May 31, 2025** | **February 28, 2025** |
| Gross debt | $614875 | $900250 |
| Less: Cash per bank statement | (17928) | (12670) |
| Add: Finance lease liability | 10160 | 6647 |
| &nbsp;&nbsp;Consolidated indebtedness | $607107 | $894227 |
| Net income | $260139 | $128833 |
| Depreciation and amortization | 83710 | 82205 |
| Interest expense | 77071 | 81282 |
| Income tax expense | 85376 | 41850 |
| EBITDA | 506296 | 334170 |
| Cash items<sup>(8)</sup> | 20035 | 15325 |
| Non-cash items<sup>(9)</sup> | 14818 | 12161 |
| Equity in earnings, net of distributions | (173835) | (3598) |
| &nbsp;&nbsp;Adjusted EBITDA per Credit Agreement | $367314 | $358058 |
| Net leverage ratio | 1.7x | 2.5x |

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<sup>(1)</sup>  Earnings per share amounts included in the "Adjusted Net Income and Adjusted Earnings Per Share" table above may not sum due to rounding differences.

<sup>(2)</sup>  For the three months ended May 31, 2024, diluted earnings per share is based on weighted average shares outstanding of 26,751, as the Series A Preferred Stock that was redeemed May 9, 2024, is anti-dilutive for this calculation. The calculation of adjusted diluted earnings per share is based on weighted average shares outstanding of 30,194, as the Series A Preferred Stock is dilutive to adjusted diluted earnings per share. Adjusted net income for adjusted earnings per share also includes the addback of Series A Preferred Stock dividends for the period noted above. For further information regarding the calculation of earnings per share, see "Item 1. Financial Statements—Note 3" in the Company's Form 10-Q for the first quarter of fiscal year 2026.

<sup>(3)</sup>  Includes restructuring charges related to the closure of two surface technology facilities in our Metal Coatings segment.

<sup>(4)</sup>  On May 9, 2024, we redeemed AZZ's Series A Preferred Stock. The redemption premium represents the difference between the redemption amount paid and the book value of the Series A Preferred Stock.

<sup>(5)</sup>  During the three months ended May 31, 2025, we recognized additional stock-based compensation expense of $2.2 million upon the adoption of the Executive Retiree Long-term Incentive Program. For further information regarding the adoption of the ERP, see "Item 1. Financial Statements—Note 15" in the Company's Form 10-Q for the first quarter of fiscal year 2026.

<sup>(6)</sup>  During the three months ended May 31, 2025, AVAIL completed the sale of the Electrical Products Group business to nVent Electric plc. Following the completion of the sale, we received a distribution of $273.2 million, which exceeded our investment in the AVAIL JV of $107.4 million as of May 31, 2025. Since we are not liable for the obligations of the AVAIL JV nor otherwise committed to provide financial support after writing off our investment in the AVAIL JV, we recognized $165.8 million as a gain for the three months ended May 31, 2025. We recorded $173.5 million in equity in earnings, which consists of 1) $7.7 million of equity in earnings from the AVAIL JV's operations for the three months ended May 31, 2025, and 2) $165.8 million of a gain from distribution received in excess of our investment in the AVAIL JV. For further information, see "Item 1. Financial Statements—Note 7" in the Company's Form 10-Q for the first quarter of fiscal year 2026.

<sup>(7)</sup>  The non-GAAP effective tax rate for each of the periods presented is estimated at 24.0%.

<sup>(8)</sup>  Cash items include certain legal settlements, accruals, and retirement and other severance expenses, and restructuring charges associated with the Metal Coatings segment.

<sup>(9)</sup>  Non-cash items include stock-based compensation expense.