AZZ Inc. (NYSE:AZZ) Q2 2024 Earnings Call Transcript

Tom Ferguson: Yeah. I think that’s — we feel good. The discipline and the focus from the Precoat Metals team has been really great and getting rid of a lot of that excess customer inventory you can walk in the sites. They’re cleaner, they’re easier to maneuver. You can just feel the improved opportunities for productivity and efficiency. So that’s helpful and that’s continuing. I think we’re still providing great service and a set of solutions to our customers and continuing to inventory a whole bunch of customer metals. So — but in a more effective way. So I like our target range. I really like the fact that we’ve got a couple of quarters in the 20% EBITDA range. I think that’s becoming far more sustainable as we look forward.

And I’m never going to say it’s easy because the team up there would shoot me. But I think they are — they’re in a good cadence and a good rhythm. And then they are, we do have the three or four sites that it shifts, but because we had — there’s still three of the four, but one is now operating much better. We’re focused on three, and we’ve added another win. So we’ll never declare victory on continually improve in some of those facilities. And by the way, this — when I mentioned the vertically integrating some customers. That also gives us some volume with some — a couple of our plants just needed more volume and more demand. So it allows us to make that more predictable, more sustainable and continue to drive to that 20% range and then hopefully go beyond it as we add other services.

And we have deployed capital over the last 18 months to new slitters, new capabilities and all that’s already embedded up and running and providing value now.

Brett Kearney: Excellent. Very helpful. Thanks so much, Tom.

Tom Ferguson: All right. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Ferguson for any closing remarks.

Tom Ferguson: Thank you, operator. Thank you for your time today and I look forward to updating you on our third quarter results in just a few months. Thank you very much. Have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.