AZZ (NYSE:AZZ) Surpasses Q4 CY2025 Revenue Projections

AZZ Surpasses Revenue Projections in Q4 CY2025

AZZ (NYSE:AZZ), a leader in metal coating and infrastructure solutions, outperformed analysts’ revenue forecasts for the fourth quarter of calendar year 2025. The company posted sales of $425.7 million, marking a 5.5% increase compared to the same period last year. For the full year, AZZ’s revenue guidance stands at $1.66 billion (midpoint), which is 1.4% higher than what analysts anticipated. Adjusted earnings per share came in at $1.52, exceeding consensus estimates by 2.5%.

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Highlights from AZZ’s Q4 CY2025 Performance

• Revenue: $425.7 million, surpassing analyst expectations of $418.2 million (5.5% year-over-year growth, 1.8% above estimates)
• Adjusted EPS: $1.52, compared to the $1.48 forecast (2.5% above expectations)
• Adjusted EBITDA: $91.17 million, slightly ahead of the $90.37 million estimate (21.4% margin, 0.9% beat)
• The company revised its full-year revenue outlook downward to $1.66 billion (midpoint), from $1.68 billion previously—a 0.7% reduction
• Management increased its full-year Adjusted EPS guidance to $6.05 (midpoint)
• EBITDA guidance for the year is now $370 million (midpoint), above the $365.1 million analyst consensus
• Operating Margin: 16.3%, up from 14.5% in the prior-year quarter
• Market Cap: $3.32 billion

About AZZ

AZZ (NYSE:AZZ) specializes in metal coating and power infrastructure, supporting projects such as nuclear facilities and other critical infrastructure developments.

Examining Revenue Trends

Consistent sales growth is a strong indicator of a company’s long-term health. Over the past five years, AZZ has achieved an impressive compound annual growth rate (CAGR) of 12.7% in revenue, outpacing the average for industrial companies and demonstrating strong customer demand for its solutions.

AZZ Quarterly Revenue

While long-term growth is vital, it’s also important to consider recent trends. In the last two years, AZZ’s annualized revenue growth slowed to 3.6%, falling short of its five-year average and suggesting a deceleration in demand.

AZZ Year-On-Year Revenue Growth

For the latest quarter, AZZ delivered 5.5% year-over-year revenue growth, with sales of $425.7 million—1.8% higher than Wall Street’s projections.

Looking forward, analysts expect AZZ’s revenue to increase by 5.5% over the next year. Although this forecast points to improved performance from new offerings, it remains below the sector average. Nonetheless, AZZ continues to show strength in other financial metrics.

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Profitability: Operating Margin

Operating margin measures how much profit a company retains from its revenue after covering core expenses, making it a key indicator of operational efficiency. It also allows for fair comparisons between companies with varying debt and tax structures, as it excludes interest and taxes.

Over the last five years, AZZ has maintained an average operating margin of 15.2%, positioning it among the more profitable companies in the industrial sector. This is particularly notable given its relatively low gross margin, which is largely determined by its product mix. High operating margins in this context reflect effective cost management.

During this period, AZZ’s operating margin improved by 2.1 percentage points, benefiting from increased sales and operational leverage.

AZZ Trailing 12-Month Operating Margin (GAAP)

In the fourth quarter, AZZ achieved an operating margin of 16.3%, a 1.8 percentage point increase from the previous year. This improvement suggests greater efficiency in managing expenses such as marketing, research and development, and administrative costs.

Earnings Per Share Growth

Tracking earnings per share (EPS) over time helps assess whether a company’s growth is translating into profitability for shareholders. Over the past five years, AZZ’s EPS has grown at a remarkable 24.2% CAGR, outpacing its revenue growth and indicating rising profitability per share.

AZZ Trailing 12-Month EPS (Non-GAAP)

The main driver behind this EPS growth has been the expansion of AZZ’s operating margin, which increased by 2.1 percentage points over five years. While factors like interest and taxes also influence EPS, operating margin improvements are more reflective of core business performance.

Looking at more recent trends, AZZ’s two-year annual EPS growth rate was 22.3%, slightly below its five-year average but still strong. The company reported adjusted EPS of $1.52 in Q4, up from $1.39 a year earlier, beating analyst expectations by 2.5%. Wall Street anticipates full-year EPS to reach $5.83 in the next 12 months, representing a 10.4% increase.

Summary of Q4 Results

AZZ delivered a solid quarter, outperforming revenue expectations and providing full-year guidance that slightly exceeds analyst forecasts. The company’s shares rose 3.2% to $113.50 following the earnings release. While these results are promising, investors should consider valuation, business fundamentals, and recent performance before making investment decisions.