David Nark, Senior Vice President – AZZ Inc.

The company, founded in 1956 in the United States, stands as North America’s leading provider of metal coating finishes. We operate in two main segments. Our first segment is the metal coatings division, which offers hot-dip galvanizing services through a network of 41 locations across North America, predominantly in the United States, with three facilities in Canada. Additionally, we have a second segment known as Precoat Metals. This division operates across 13 locations and specializes in coating a layer of paint onto unrolled coiled steel, which is then dried, recoiled, and shipped to the customer. Combined, these segments generate approximately $1.5 billion in annual sales, with an EBITDA ranging from $310 to $350 million. Both of our divisions are market leaders: the metal coatings business holds a 27% market share—twice that of our nearest competitor—while our Precoat Metals segment commands roughly 20% of its market, again double the share of its closest rival.

There are several key factors. Over the past few years, we’ve undertaken substantial efforts to transform the business. About two years ago, we acquired the Precoat Metals business, which replaced a previous segment called infrastructure solutions. That segment was highly cyclical, seasonal, and lower-margin, so we divested those assets to streamline our focus on becoming a dedicated metal coatings provider. This strategic shift has been instrumental in positioning us for success. Another crucial factor is our extensive footprint, which allows us to stay geographically close to our clients across North America. This proximity enables us to deliver rapid turnaround times, supported by superior customer service and advanced technology. For example, our systems allow us to provide customers with real-time updates on their orders, whether for galvanizing or coil coating, and this ability to communicate seamlessly regarding any delays, modifications, or updates sets us apart in the industry.

Our largest end market is the construction sector, accounting for roughly 54% of our business, with both residential and non-residential segments evenly represented. In the residential market, we offer coil coating services for steel used in appliances such as washers, dryers, and refrigerators, and for HVAC units, including outdoor condensers and furnaces. We also provide coatings for metal roofs, garage doors, entry doors, aluminum siding, and gutters. On the non-residential side, we galvanize structural steel used in construction projects, including beams and roof spans, as well as in projects like data centers and utilities.
The industrial sector represents about 10% of our business, where we primarily supply galvanized steel for large industrial facilities, such as petrochemical and agricultural plants. Another 10% is tied to the transportation industry, mainly focusing on recreational vehicles and semi-trailers with galvanized chassis, as well as prepainted steel for buses. Additionally, our electrical market comprises around 8-10% of our total, providing galvanized steel for electrical infrastructure, including substations, high-voltage towers, cellular towers, and solar power projects. Finally, we serve a consumer segment, around 8% of our market, where we coat aluminum cans with FDA-approved finishes for the beverage industry and support the HVAC and appliance sectors.

Innovation is central to our approach. We’ve invested extensively in technology solutions, including our Digital Galvanizing System (DGS), deployed across our 41 galvanizing plants, which provides customers with real-time insights on their galvanized steel orders. This capability not only enhances communication with clients but also boosts operational efficiency. Since we don’t hold financial exposure to steel or aluminum—our clients supply the materials directly—our role is to process them efficiently, adding value without the risk of material cost volatility.
For our Precoat Metals division, we’ve implemented a system called CoilZone, which offers customers real-time access to their orders. We also utilize custom blending cells for color matching and slitting lines to customize coil specifications. One of our standout innovations is the ability to make steel appear like wood, adding unique aesthetic options for our clients. Additionally, we collaborate with Texas A&M University for research and development, using their engineering lab to test new technologies and directly apply research insights to our operations.

We are always committed to enhancing turnaround times, elevating customer experience, reducing costs, and improving our solutions. Whether in terms of finishes or operational processes, we are open to new ideas and collaborations. For suppliers, zinc and paint represent our largest purchasing needs. While we have established strategic partnerships, we are always open to exploring fresh ideas and new partnerships.

ESG is a fundamental part of our values at AZZ Inc. We’ve received recognition from Newsweek as one of America’s most responsible companies, reflecting our commitment to responsible business practices. For years, we’ve published comprehensive ESG reports, and we’ve set a goal of reducing our Scope 1 and Scope 2 emissions by 10%. Furthermore, our workforce is diverse, with approximately 54% of employees identifying as non-Caucasian—a diversity we consider one of our strengths.

We are extremely pleased with our position in the market. We’ve built a robust business on a solid foundation, and our efforts to reduce debt have lowered our debt-to-EBITDA ratio to about 2.8 times. This strong financial position allows us to effectively manage debt and invest in growth initiatives, including our new coil coating facility near Washington, Missouri—a $125 million investment to expand capacity and drive growth.
We are confident about our future. This is a profitable, essential business—one that plays a critical role in North American infrastructure. While it may not seem glamorous, our work is vital to the growth and development occurring across North America.