How Does AZZ Company Work?

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How does AZZ Inc. operate?

AZZ Inc. is a leader in metal coating solutions for infrastructure and industrial markets. In fiscal year 2024, the company achieved record sales of $1.5 billion, a 16.2% increase, showcasing its strong financial health and focus on its core galvanizing and coil coating services.

AZZ's services are vital for protecting and enhancing the lifespan of essential structures and products through superior corrosion resistance. Understanding its business model is key for stakeholders interested in its profitability and market position.

AZZ Inc. operates by providing specialized metal coating services, primarily galvanizing and coil coating. Galvanizing involves coating steel with zinc to prevent rust, a crucial process for infrastructure like bridges, utility poles, and guardrails. Coil coating applies protective and decorative finishes to metal coils before they are fabricated into products such as appliances, building panels, and automotive parts. These services are essential for extending the durability and aesthetic appeal of a wide range of manufactured goods and infrastructure components. The company also offers electrical equipment and services, contributing to power generation, transmission, and distribution infrastructure. This diversified approach allows AZZ to serve multiple critical sectors. For a deeper dive into their strategic positioning, consider the AZZ BCG Matrix.

AZZ Inc. operates through two main segments, Metal Coatings and Precoat Metals, focusing on delivering sustainable metal coating solutions that enhance the durability and appearance of steel and aluminum. These services are crucial for various industries, including construction, industrial applications, transportation, renewable energy projects, and utility infrastructure. As of February 29, 2024, the company managed a significant operational footprint with 41 galvanizing plants, six surface technologies plants, and one tubing plant across North America, further expanding its galvanizing network to 42 sites with the acquisition of Canton Galvanizing, LLC on July 1, 2025.

Metal Coatings Segment

This segment specializes in hot-dip galvanizing, a process that immerses steel in molten zinc to create a robust, corrosion-resistant layer. This significantly extends the lifespan of fabricated steel, often for several decades. Additional services include spin galvanizing, powder coating, anodizing, and plating.

Precoat Metals Segment

As a leading independent provider, this segment offers coil coating solutions. This involves pre-painting metal coils before they are fabricated, serving key markets such as construction, appliance manufacturing, HVAC systems, and the automotive sector.

Operational Workflow and Supply Chain

AZZ's operational workflow involves advanced manufacturing techniques and efficient sourcing of essential raw materials like zinc and natural gas. The company manages extensive logistics across its network of over 60 service centers in North America, ensuring timely delivery and service to its diverse client base.

Value Proposition and Market Role

The company's core value proposition centers on providing superior metal coating solutions that offer exceptional corrosion protection and enhance aesthetic appeal. AZZ's extensive network, deep technical expertise, and commitment to operational excellence enable it to meet large-scale production demands with rapid turnaround times, solidifying its role in the market.

AZZ Company's Core Competencies

AZZ's business strategy and execution are built upon several key components that define its market position and how AZZ works. These competencies are crucial for understanding AZZ company's revenue streams and how AZZ company makes money.

• Extensive operational network with 42 galvanizing sites as of July 2025.
• Decades of accumulated technical expertise in metal coating processes.
• Commitment to customer service and operational excellence.
• Ability to deliver durable, low-maintenance solutions across various industries.
• Strategic acquisitions to expand service capabilities and market reach, as seen with Canton Galvanizing, LLC.

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AZZ Inc. primarily generates revenue through its two core business segments: Metal Coatings and Precoat Metals. For the fiscal year 2025, which concluded on February 28, 2025, the company reported total sales amounting to $1,577.7 million, reflecting a 2.6% increase compared to the previous fiscal year.

Metal Coatings Revenue

The Metal Coatings segment contributed $665.1 million to sales in fiscal year 2025. This represents a 1.4% increase from the prior year, driven by higher volumes in hot-dip galvanizing, particularly from the renewables, utility, and construction sectors.

Precoat Metals Revenue

Precoat Metals recorded sales of $912.6 million in fiscal year 2025, an increase of 3.5% from the previous year. This growth is attributed to higher volumes within the segment.

Quarterly Performance

In the third quarter of fiscal year 2025, Metal Coatings sales saw a 3.3% rise to $168.6 million. Concurrently, Precoat Metals sales grew by 7.6% to $235.1 million, contributing to total quarterly sales of $403.7 million.

Monetization Approach

Monetization strategies focus on providing specialized services for corrosion protection and aesthetic enhancement. Pricing reflects the value added through extended material lifecycles and reduced maintenance costs for critical infrastructure.

Market Position

The company leverages its extensive network and technical expertise to offer tailored solutions and capture market share. This approach supports its revenue generation and growth within its core segments.

Strategic Evolution

Changes in revenue sources reflect a strategic shift, including the divestiture of 60% of its Infrastructure Solutions segment in 2022 and the acquisition of Precoat Metals, sharpening its focus on metal coatings.

Understanding AZZ company's revenue streams reveals a business model centered on specialized metal coating services. The company's operational workflow involves providing solutions that enhance material durability and appearance, thereby commanding value in the market. This focus on value-added services is a key component of AZZ company's business operations explained. The company's business strategy and execution are geared towards growth in its core competencies, which are detailed in Revenue Streams & Business Model of AZZ.

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AZZ Inc. has strategically evolved into a focused metal coatings solutions provider, marked by significant divestitures and acquisitions. The company's business model centers on delivering essential metal coating services and precooked metal products across various industries.

Strategic Transformation

In 2022, AZZ divested a 60% stake in its Infrastructure Solutions segment and acquired Precoat Metals for approximately $1.28 billion. This pivotal move reshaped AZZ into a company primarily focused on metal coatings.

Financial Performance and Growth

Fiscal year 2024 marked AZZ's 37th consecutive year of profitability, with sales reaching a record $1.5 billion, a 16.2% increase. The company also reduced its debt by $115 million during this period.

Organic Growth Initiatives

AZZ is concentrating on organic growth within its Metal Coatings and Precoat Metals segments. The Precoat Metals segment, for example, saw volumes increase by approximately 9% in Q4 FY2024, outperforming the market in construction and appliance sectors.

Network Expansion and Investment

A key investment includes a new greenfield plant in Washington, Missouri, with $50-$60 million allocated for completion in fiscal year 2025. Additionally, the acquisition of Canton Galvanizing, LLC, as of July 1, 2025, expanded its North American galvanizing sites to 42.

Competitive Advantages

AZZ's competitive edge is built on its market leadership in North American galvanizing, supported by scale and brand recognition. Its extensive network offers logistical benefits and customer proximity, creating entry barriers.

• Market leadership in North American galvanizing
• Extensive network of coating plants for logistical advantages
• Decades of technical expertise in metal coating
• Adaptability to sustainability trends and infrastructure spending

Understanding how AZZ company makes money involves recognizing its core competencies in metal coating services and precooked metal products. The company's business strategy and execution focus on leveraging its operational workflow to serve key industries. Details of AZZ company's manufacturing and how AZZ company provides its services are central to its revenue streams. The AZZ company business operations explained show a commitment to efficiency and customer service, contributing to its financial operations. The AZZ company's role in the market is significant, impacting the industries it serves through its specialized offerings. For more on its journey, see the Brief History of AZZ.

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AZZ Inc. stands as a dominant force in North America's metal coatings sector, particularly in hot-dip galvanizing and coil coating. Its extensive network of over 60 service centers provides a significant competitive advantage, ensuring close proximity to its customer base across various industries.

Industry Position

AZZ is the leading independent provider of hot-dip galvanizing and coil coating solutions in North America. The company's Metal Coatings segment holds a substantial market share, supported by its broad operational footprint and established brand recognition.

Key Strengths and Advantages

AZZ's extensive network of over 60 service centers across North America, particularly strong in the Midwest, offers logistical efficiencies and enhances customer accessibility. A commitment to quality and customer service further solidifies its market standing.

Identified Risks

The company faces risks including rising labor costs and volatility in raw material prices, such as zinc and natural gas. Supply chain disruptions, customer-initiated delays, and economic downturns in key sectors like construction also present challenges.

Future Outlook and Strategy

For fiscal year 2025, AZZ reported sales of $1,577.7 million and adjusted diluted EPS of $5.20. The company projects fiscal year 2026 sales between $1.625 billion and $1.725 billion, with adjusted diluted EPS expected between $5.50 and $6.10.

Strategic Growth and Financial Projections

AZZ's strategy involves leveraging strong cash flow and proceeds from the AVAIL joint venture to support debt reduction and capital allocation. The acquisition of Canton Galvanizing, LLC in July 2025 is a key initiative to expand its geographic reach and operational capabilities, aligning with increased demand for durable metal coatings in infrastructure projects.

• Fiscal Year 2026 Sales Guidance: $1.625 billion - $1.725 billion
• Fiscal Year 2026 Adjusted EBITDA Guidance: $360 million - $400 million
• Fiscal Year 2026 Adjusted Diluted EPS Guidance: $5.50 - $6.10
• Capital Expenditures for FY2026: $60 million - $80 million
• Acquisition of Canton Galvanizing, LLC completed in July 2025

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