8-K

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

October 12, 2021

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 of incorporation)	(Commission File Number)	(I.R.S. Employer 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:

Title of each class	Trading Symbol	Name of each exchange on which registered
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 October 12, 2021, AZZ Inc. ("AZZ") issued a press release reporting AZZ’s second quarter financial results for the period ended August 31, 2021. 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 7.01 Regulation FD Disclosure.

On October 12, 2021, AZZ also posted an investor presentation to its website at https://www.azz.com/investor-relations. A copy of the investor presentation is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in this Item 7.01 (including Exhibit 99.2) 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 there 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.

Exhibit	Description
99.1	Press release, dated October 12, 2021, reporting AZZ's second quarter and full fiscal year 2022 financial results.
99.2	Investor Presentation, dated October 12, 2021.

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:	October 12, 2021	By:	/s/ Philip A. Schlom
			Philip A. Schlom Chief Financial Officer

EX-99.1

AZZ Inc. Reports Results for Second Quarter of Fiscal Year 2022; Generates EPS of $0.76 and Revises Guidance

Company revises fiscal year 2022 guidance: Sales of $865- $925 million, and earnings per share of $2.90- $3.20, excluding potential acquisitions or divestitures

October 12, 2021 - FORT WORTH, TX - AZZ Inc. (NYSE: AZZ), a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services today announced financial results for the second quarter of fiscal year 2022, ended August 31, 2021.

Second Quarter Overview (references throughout are to adjusted amounts for FY2021)(1):

•Strong year-over-year financial results

◦Diluted earnings per share of $0.76, up $0.27, or 55%

◦Net income of $19.0 million, up $6.0 million

◦EBITDA of $36.7 million, up $6.0 million

◦Sales of $216.4 million, up 6.4% versus last year

•Metal Coatings segment versus same quarter, prior year:

◦Sales of $129.6 million, up 10.7%

◦Operating income of $31.6 million, up 17.3%

◦Operating margins of 24.4%, up 140 basis points

•Infrastructure Solutions segment versus same quarter, prior year:

◦Sales of $86.9 million, up 0.6%

◦Operating income of $7.0 million, up 129.6%

◦Operating margins of 8.1%, up 460 basis points

•Declared quarterly cash dividend in the amount of $0.17 per share of common stock

•Repurchased $15.0 million in shares during the quarter; year-to-date we have repurchased 416,279shares of common stock, totaling $21.2 million

Management Discussion

Tom Ferguson, President and Chief Executive Officer of AZZ, commented, “We continue to build positive momentum in fiscal 2022 with strong operating performance in the second quarter, driven by sales increasing 6%, operating income up 37% and net income up 46%, compared to the same quarter last year. The strength of our businesses coupled with our teams executing at a high level are key drivers for our growth and improving profitability across all segments.”

“Our Metal Coatings segment delivered strong operating resultswith sales of $129.6 million, up 10.7%, and operating margin of 24.4%, up 140 basis points compared with the operating margin of 23.0% in last year’s second quarter. Segment level results were driven by improved market conditions in solar, agriculture, bridge and highway and OEM, along with managing the increasing costs of materials and labor, and delivering on several operational improvement initiatives.”

(1) See "Non-GAAP Disclsoures" section included in the attached Financial Tables for a reconciliation of non-GAAP Adjusted Earnings Measures for the three and six months ended August 31, 2020.

Mr. Ferguson continued, “During the second quarter, our Infrastructure Solutions segment generated sales of $86.9 million, up 0.6% and operating margin of 8.1%, an improvement of 460 basis points, compared to operating margin of 3.5% for the same period last year. Results were driven by continued electrical sales and operations improvement, coupled with the benefit from cost reduction actions taken last year in our WSI business. I would like to thank our employees for their hard work in delivering these results, managing COVID-19, and continuing to provide exceptional service to our customers.”

Second Quarter Results

For the second quarter of fiscal year 2022, the Company reported sales of $216.4 million compared to $203.4 million for the comparable period last year, an increase of 6.4%. Operating income increased to $26.5 million, or by $7.2 million, compared to $19.3 million during last year’s comparable three-month period. Net income for the current quarter increased $6.0 million to $19.0 million, or $0.76 per diluted share compared to $13.0 million, or $0.49 per diluted share for the same quarter in the prior fiscal year. The provision for income taxes of $4.9million reflects an effective tax rate of 20.4% for the three months ended August 31, 2021, as compared to $3.8 million, or 22.7%, for the prior year comparable period. Bookings for the three-month period increased to $231.8 million, compared to $208.6 million for the same quarter last year. The book-to-sales ratio improved to 1.07, compared to 1.03 in last year’s comparable period. Backlog at the end of the second quarter was $201.5 million, a decrease of 4.3% as compared to backlog at the end of the same quarter in the prior year. The decrease in backlog versus prior year is largely attributable to the completion of large orders in China. Sequentially, backlog was up $15.4 million, or 8.3% from the period ended May 31, 2021.

Metal Coatings Segment

For the second quarter of fiscal year 2022, Metal Coatings segment sales increased 10.7% to $129.6 million and operating income increased 17.3% to $31.6 million compared to $117.0 million and $26.9 million, respectively, for the same period in the prior fiscal year. Operating margins for the quarter were 24.4%, an improvement of 140 basis points compared to operating margins of 23.0% generated in the second quarter of fiscal year 2021. Operating margin improvement was driven by both improved price realization in the current quarter, and a continued focus on operational excellence.

Infrastructure Solutions Segment

For the second quarter of fiscal year 2022, Infrastructure Solutions segment sales increased 0.6% to $86.9 million as compared to $86.3 million in the same quarter of the prior year. Operating income for the second quarter of fiscal year 2022 totaled $7.0 million, an increase of $4.0 million, or 129.6% compared to operating income of $3.1 million in the prior year quarter. Operating margins for the quarter were 8.1% an improvement of 460 basis points over operating margin of 3.5% generated in the second quarter of fiscal year 2021. The increase in net sales and operating income was primarily attributable to improving end market conditions for both our industrial and electrical products and services, both of which faced significant COVID-related headwinds in their end markets during the previous year.

Fiscal Year 2022 Guidance

Mr. Ferguson added, “Due to the continued operating performance in our segments, we have revised our previously issued fiscal 2022 sales and earnings per share guidance. We now anticipate annual sales to be in the range of $865 million to $925 million and earnings per share to be in the range of $2.90 to $3.20 per diluted share for fiscal year 2022. This compares to the previously issued guidance of sales in the range $855 million to $935 million and earnings in the range of $2.65 to $3.05 per diluted share for fiscal year 2022.”

“For the remainder of fiscal 2022, we remain highly focused on growing our Metal Coatings segment while focusing our Infrastructure Solutions team on continuing to improve profitability. The underlining fundamentals of our business remain strong, providing us the foundation to aggressively pursue growth opportunities that fit our strategic plan. As part of our corporate commitment to Trust, Respect, Accountability, Integrity, Teamwork and Safety (“TRAITS”), we continue to carefully manage our workforce to ensure a safe and healthy operating

environment, while leveraging our operational capacity to match our customers’ improved demand for our products and services.”

“We continue to actively pursue initiatives to enhance shareholder value, drive growth, and accelerate our strategy to become predominately a metal coatings company. We continue to explore a small number of specific opportunities related to Infrastructure Solutions, with increasing confidence that AZZ will be able become predominately a focused metal coatings company. We are a much stronger company today and well-positioned to meet the growing demands for infrastructure improvements in the U.S and globally,” concluded Mr. Ferguson.

Conference Call Details

AZZ Inc. will conduct a conference call to discuss financial results for the second quarter of fiscal year 2022 today, Tuesday, October 12, 2021, 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 for three days at (877) 344-7529 or (412) 317-0088 (international), confirmation # 10160370, or for 30 days at http://www.azz.com/investor-relations.

There will be a slide presentation accompanying today’s event. The Company’s slide presentation for the call will be available on the Investor Relations page at http://www.azz.com/investor-relations.

Non-GAAP Disclosures

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

About AZZ Inc.

AZZ Inc. is a global provider of galvanizing and a variety of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to a broad range of markets, including but not limited to the power generation, transmission, distribution, refining and industrial markets. The Company’s Metal Coatings segment is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, to the North American steel fabrication industry. The Company’s Infrastructure Solutions segment is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy and waste management markets worldwide.

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,” “should,” “expects,” “plans,” “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. 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 products and services, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the metal coatings markets. In addition, within each of the markets we serve, our customers and our operations could potentially continue to be adversely impacted by the ongoing COVID-19 pandemic, including governmental issued mandates regarding the same. 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; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition or disposition opportunities; currency exchange rates; availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility or changes in the political stability in the United States and other foreign markets in which we operate; 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 in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 and other filings with the Securities and Exchange Commission (“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 in 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, Senior Vice President of Marketing, Communications and Investor Relations

AZZ Inc.

(817) 810-0095

www.azz.com

Investor Contact:

Joe Dorame, Managing Partner

Lytham Partners

(602) 889-9700

www.lythampartners.com

---Financial tables on the following page---

AZZ Inc.
Condensed Consolidated Statements of Income
(dollars and shares in thousands, except per share data)
(unaudited)
	Three Months Ended August 31,				Six Months Ended August 31,
	2021		2020		2021		2020
Sales	216,447		203,372		446,273		416,664
Cost of sales	161,332		157,278		333,231		328,363
Gross margin	55,115		46,094		113,042		88,301
Selling, general and administrative	28,587		26,749		55,802		54,639
Restructuring and impairment charges	—		18,693		—		18,693
Operating income	26,528		652		57,240		14,969
Interest expense	1,754		2,470		3,451		5,104
Other (income) expense, net	918		92		(51)		1,547
Income before income taxes	23,856		(1,910)		53,840		8,318
Income tax expense	4,878		(120)		12,525		4,567
Net income	$	18,978	$	(1,790)	$	41,315	$	3,751
Earnings per common share
Basic	$	0.76	$	(0.07)	$	1.65	$	0.14
Diluted	$	0.76	$	(0.07)	$	1.64	$	0.14
Diluted weighted average shares outstanding	25,135		26,175		25,216		26,198

AZZ Inc.
Segment Reporting
(dollars in thousands)
(unaudited)
	Three Months Ended August 31,				Six Months Ended August 31,
	2021		2020		2021		2020
Sales:
Metal Coatings	$	129,593	$	117,037	$	257,328	$	236,027
Infrastructure Solutions	86,854		86,335		188,945		180,637
Total sales	$	216,447	$	203,372	$	446,273	$	416,664
Operating income:
Metal Coatings	$	31,589	$	15,600	$	63,165	$	40,684
Infrastructure Solutions	7,024		(4,310)		16,648		(5,358)
Corporate	(12,085)		(10,638)		(22,573)		(20,357)
Total operating income	$	26,528	$	652	$	57,240	$	14,969

AZZ Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
	August 31, 2021		February 28, 2021
Assets:
Current Assets(1)	$	329,039	$	303,492
Property, Plant and Equipment, Net	202,220		205,909
Other assets, net	491,979		487,041
Total assets	$	1,023,238	$	996,442
Liabilities and Shareholders’ Equity:
Current liabilities	$	118,991	$	113,850
Long-term debt due after one year, net	182,451		178,419
Other liabilities	83,370		80,881
Shareholders' equity	638,426		623,292
Total liabilities and shareholders' equity	1,023,238		996,442
(1) Includes assets held for sale of $5,758 and $3,684 as of August 31, 2021 and February 28, 2021, respectively.

AZZ Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
	Six Months Ended August 31,
	2021	2020
Net cash provided by operating activities	37,758	32,166
Net cash used in investing activities	(10,562)	(10,531)
Net cash used in financing activities	(26,348)	(45,131)
Effect of exchange rates on cash	(197)	837
Net increase (decrease) in cash and cash equivalents	651	(22,659)
Cash and cash equivalents at beginning of period	14,837	36,687
Cash and cash equivalents at end of period	15,488	14,028

AZZ Inc.

Non-GAAP Disclosure

Adjusted Operating Income, Adjusted Earnings and Adjusted Earnings Per Share

(dollars in thousands, except per share data)

(unaudited)

In the second quarter of fiscal 2021, the Company developed and began the implementation of a plan to divest certain non-core businesses and later, divested several non-core businesses. During the six months ended August 31, 2021, the Company did not recognize any restructuring and impairment charges. The following tables provides a reconciliation for the three and six months ended August 31, 2021 and 2020 between the various measures calculated in accordance with GAAP to the Adjusted Earnings Measures (dollars in thousands, except per share data):

	Three Months Ended August 31,						Six Months Ended August 31,
	2021			2020			2021			2020
Metal Coatings Segment
Sales	$	129,593		$	117,037		$	257,328		$	236,027
Segment operating income (loss):
Metal Coatings, as reported	$	31,589		$	15,600		$	63,165		$	40,684
Impact of impairment	—			11,324			—			11,324
Metal Coatings, as adjusted	$	31,589		$	26,924		$	63,165		$	52,008
Operating income percent, as adjusted	24.4		%	23.0		%	24.5		%	22.0		%
Infrastructure Solutions Segment
Sales	$	86,854		$	86,335		$	188,945		$	180,637
Segment operating income (loss):
Infrastructure Solutions, as reported	7,024			(4,310)			16,648			(5,358)
Impact of impairment	—			7,369			—			7,369
Infrastructure Solutions, as adjusted	$	7,024		$	3,059		$	16,648		$	2,011
Operating income percent, as adjusted	8.1		%	3.5		%	8.8		%	1.1		%

	Three Months Ended				Six Months Ended
	August 31, 2020				August 31, 2020
	Amount		Per  Diluted Share		Amount		Per  Diluted Share
Net income (loss) and diluted earnings (loss) per share	$	(1,790)	$	(0.07)	$	3,751	$	0.14
Adjustments (net of tax):
Restructuring and impairment charges:
Metal Coatings	11,324		0.43		11,324		0.43
Infrastructure Solutions	7,369		0.28		7,369		0.28
Subtotal	18,693		0.71		18,693		0.71
Tax benefit related to restructuring and impairment charges	(3,930)		(0.15)		(3,930)		(0.15)
Total adjustments	14,763		0.56		14,763		0.56
Adjusted earnings and adjusted earnings per share	$	12,973	$	0.50	$	18,514	$	0.71
(1) Earnings per share amounts included in the table above may not sum due to rounding differences.

EX-99.2

AZZ Inc. Q2 FY2022 Earnings Release Presentation October 12, 2021

Q2 FY2022 EARNINGS PRESENTATION Safe Harbor Statement 2 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,” “should,” “expects,” “plans,” “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. Certain factors could affect the outcome of the matters described herein. This presentation may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our products and services, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the metal coatings markets. In addition, within each of the markets we serve, our customers and our operations could potentially be adversely impacted by the ongoing COVID-19 pandemic. We could also experience fluctuations in prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition opportunities; currency exchange rates; adequacy of financing; availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility or changes in the political stability in the United States and other foreign markets in which we operate; 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 in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 and other filings with the Securities and Exchange Commission (“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 in 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.

Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Performance Update Total Q2 FY2022 Sales: $216.4 million Segment Updates Metal Coatings Segment $129.6 Infrastructure Solutions Segment $86.8 • Sales up over prior year, on strong demand from agriculture, recreation, solar, bridge and highway, and OEM end markets • Sales of over $257 million YTD, up 9.0% versus prior year • Overall segment sales flat due to: - protracted COVID disruptions in some international markets - SMS divested in 3rd quarter of last year • Electrical platform sales, bookings and backlog up over same quarter, prior year, on growing demand • Replacing China backlog with domestic orders 3 10.7% vs. Q2 FY2021 0.6% vs. Q2 FY2021

Q2 FY2022 EARNINGS PRESENTATION Sales Net Income Diluted EPS Q2 FY2022 Summary - Consolidated $203.4 $216.4 FY2021 FY2022 +6.4% • Higher Metal Coatings segment sales • Price realization • Electrical demand continues to grow • Metal Coatings strength • Businesses benefitting from realignment actions taken in prior year • Q2 FY 2021 adjustments included restructuring and impairment of $18.7 million, offset by tax benefits of $(3.9) • Improved earnings across platforms • Lower interest expense from lower rate financing in prior year • Share repurchases continue in FY2022 +46.3% (a) In $ millions, except per share amounts 4 -$1.8 $13.0 $18.9 FY2021(r) FY2021(a) FY2022 -$0.07 $0.49 $0.76 FY2021 (r) FY2021(a) FY2022 Legend: (r) – Reported (a) – Adjusted +55.1% (a)

Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Results – Metal Coatings • Segment sales up 10.7% from prior year quarter, driven by strong growth in several end markets including solar, agriculture, bridge and highway, and OEM • Overall segment operating margins of 24.4%, compared to 23.0% in the prior year a result of price, mix, and operational excellence • Increased costs in Galvanizing (zinc, labor, acid, energy) were offset by operating efficiencies, productivity and value pricing In $ millions except percentages Sales $117.0 $129.6 FY2021 FY2022 10.7% Operating Income 17.3%Key Statistics FY2021 Sales Organic Acquisitions FY2022 Sales $117.0 $129.6 $2.3 $10.3 Segment Summary: 5 $15.6 $26.9 $31.6 FY2021(r) FY2021(a) FY2022 Operating Margin 13.3% 23.0% 24.4% FY2021(r) FY2021(a) FY2022 140 bps Legend: (r) – Reported (a) – Adjusted

Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Results – Infrastructure Solutions • Backlog increasing on stronger U.S. domestic bookings as the Electrical Platform replaces China backlog • Q2 sales, excluding SMS divestiture, were up 4.3% • Electrical sales improved from same quarter, prior year, across many business units, including bus • Operating income benefitted from restructuring costs taken in the same quarter, prior year, related to COVID-driven downturn and slow oil and gas sector In $ millions except percentages Key Statistics FY2021 Book to Ship 1.03 to 1 Segment Summary: FY2022 Book to Ship 1.07 to 1 FY 2021 Sales $86.3 FY2022 Sales $86.9 6 Sales $86.3 $86.8 FY2021 FY2022 +0.6% Operating Income +129.6% Operating Margin +460 bps -$4.3 $3.1 $7.0 FY2021(r) FY2021(a) FY2022 -5.0% 3.5% 8.1% FY2021(r) FY2021(a) FY2022 Legend: (r) – Reported (a) – Adjusted

Q2 FY2022 EARNINGS PRESENTATION FY2022 – Updated Full Year Financial Guidance Key Drivers: Metal Coatings: • Volume/mix and steel availability for customers • Ability to realize price as production costs increase Infrastructure Solutions: • Refining end-market showing improvement • Orders for Electrical equipment strengthening • Managing labor availability Corporate: • Tax rate changes, and our ability to recognize planned tax savings in FY2022 • Continued low interest rate environment • Opportunistically repurchasing shares 7 Sales Earnings Per Share $855-935 $2.65- $3.05 In millions, except for EPS Updated RangePrevious Range $865 - $925 $2.90 - $3.20

Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Consolidated Results In $ millions, except for EPS and percentages Q2 FY 2022 Q2 FY 2021 Reported Q2 FY 2021 Adjusted % Change, vs. Prior Year (a) Sales $216.4 $203.4 $203.4 6.4% Gross Profit $55.1 $46.1 $46.1 19.6% Gross Margin 25.5% 22.7% 22.7% 280 bps Operating Profit $26.5 $0.7 $19.3 37.1% Operating Margin 12.3% 0.3% 9.5% 280 bps EBITDA $36.6 $12.0 $30.7 19.1% Net Income $19.0 $(1.8) $13.0 46.3% Diluted EPS $0.76 $(0.07) $0.49 55.1% Diluted Shares Outstanding 25,135 26,175 26,175 -3.9% 8 Legend: (r) – Reported (a) – Adjusted

Q2 FY2022 EARNINGS PRESENTATION FY 2022 Year-to-date Cash Flow Highlights In $ millions, except for percentages YTD FY 2022 YTD FY 2021 (a) YTD FY 2021 (r) Cash flows used in operating activities $37.8 $32.2 $32.2 Less: Capital Expenditures $(13.1) $(19.3) $(19.3) Free Cash Flow $24.7 $12.9 $12.9 Net Income $41.3 $3.8 $18.5 Free Cash Flow / Net Income 59.8% 339.5% 69.7% Acquisition of Subsidiaries, net of cash acquired $0.0 $0.0 $0.0 Dividends $8.5 $8.9 $8.9 Share Repurchases $21.2 $6.4 $6.4 9 Legend: (r) – Reported (a) – Adjusted

Q2 FY2022 EARNINGS PRESENTATION Capital Allocation Focused on Growth $5.1 $0.0 $15.0 $4.3 Capital Expenditures Acquisitions Share Repurchases Dividends Capital Expenditures Acquisitions Share Repurchases Dividends Q2 2022 Capital Deployment In $ millions • Safety, Health and Environmental • Facility maintenance • Product/technology growth initiatives • $5.1M in quarter; $14.0M YTD • Full year estimate $35.0M • No year-to-date acquisitions • Active portfolio of opportunities • Repurchased $15.0 million in outstanding common stock in the quarter and $21.2 million year to date • Approved second quarter FY2022 dividend Gr ow th Sh ar eh ol de r R et ur n 10

Q2 FY2022 EARNINGS PRESENTATION 11 Metal Coatings Segment  Fabrication activity remains solid for Q3; some customers experiencing intermittent steel shortages. Active hurricane season in gulf states having some effect on customers  Zinc cost in our kettles continues to rise Infrastructure Solutions Segment  Industrial platform • Fall turnaround season underway; Craft deployed - opportunity of increased scope of work from some sites • Pandemic-related travel constraints persist in some international markets  Electrical platform • Continued focus on sales/front end effectiveness and operations improvements • Order intake consistent, and improving Corporate  Continue to monitor cash flow, customer credit, expenses and ensure effective capital deployment Key Indicators

Q2 FY2022 EARNINGS PRESENTATION • The previously announced board-led strategic review of our portfolio and capital allocation is complete • With respect to strategic alternatives for AIS, we continue to explore a small number of specific opportunities with the expectation that AZZ will become a focused metal coatings company • Infrastructure Solutions is focused on operational performance to its FY2022 Plan • Specialty Welding will grow through leveraging the international footprint and improved North American turnarounds, offering the best customized welding technology • Electrical businesses will continue to focus on improving profitability through business process alignment, and on market growth • Long term strategy to continue to grow Metal Coatings organically and with a robust acquisition program, while targeting sustainable 21-23% Operating Margins • Focus on operating excellence and providing outstanding customer service • Assumes continued inorganic growth in Galvanizing and Surface Technologies Strategic Direction 12

Q&A

Appendix and Additional Information

Q2 FY2022 EARNINGS PRESENTATION • In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with a greater transparency comparison of operating results across a broad spectrum of companies, which provides a more complete understanding of AZZ’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as EBITDA, to assess operating performance and that such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. Non-GAAP Disclosure of EBITDA 15

Q2 FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of Consolidated EBITDA 16 In millions Consolidated Q2 FY 22 Consolidated Q2 FY 21 GAAP Net Income $19.0 $(1.8) Adjustments to reconcile GAAP to non- GAAP Financial Measures Interest Expense $1.7 $2.5 Income Tax Expense $4.9 $(0.1) Depreciation and Amortization Expense $11.0 $11.4 Total Adjustments $17.6 $13.8 Non-GAAP EBITDA $36.6 $12.0 Legend: (r) – Reported (a) – Adjusted Current Year vs. Prior Year As Reported Fiscal 2021 (prior year) As Reported to As Adjusted $(millions) except share information As Reported Adjustment F/N As Adjusted Sales $ 203.4 $ 203.4 Gross Profit 46.1 46.1 Gross Margin 22.7% 0.2 SG&A 44.2 17.5 (1) 26.7 Loss on Sale 1.2 1.2 (2) - Operating Profit 0.7 19.3 Operating Margin 0.3% 9.5% Other (income) / expense, net 0.1 0.1 Interest 2.5 2.5 Tax (0.1) (3.9) (3) 3.8 Net Income (1.8) 13.0 Diluted shares outstanding 26,175 26,175 Diluted EPS $ (0.07) $ 0.49 Deprreciation and Amortization 11.4 11.4 EBITDA 12.0 30.7 Footnotes: (1) - Impairments of $17.5M include $10.1M in the Metal Coatings SEgment and $7.4M in the Infrastructure Solutions Segment. (2) - $1.2M relates to the Metal Coatings Segment loss on the disposal of the GalvaBar (3) - $3.9M tax adjustment is the tax benefit of the $18.7M in disposals and impairments.

XML

Document and Entity Information Document and Entity Information	Oct. 12, 2021	Apr. 22, 2020
Document & Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 12, 2021
Entity Registrant Name	AZZ Inc.
Entity Incorporation, State or Country Code	TX
Entity File Number	1-12777
Entity Tax Identification Number	75-0948250
Entity Address, Address Line One	One Museum Place, Suite 500
Entity Address, Address Line Two	3100 West 7th Street
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76107
City Area Code	817
Local Phone Number	810-0095
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	AZZ
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key		0000008947
Amendment Flag		false