Tuesday, March 11, 2025
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
AVAIL joint venture. Through a joint venture, AZZ owns a non-controlling 40% interest in Avail Infrastructure Solutions with the remaining 60% owned by the Fernweh Group LLC. Avail recently executed a definitive agreement to sell its Electrical Products Group to nVent Electric plc (NYSE: NVT) for $975 million, subject to adjustments. The transaction is expected to close during the first half of the 2025 calendar year. AZZ will continue to own a 40% interest in Avail which will consist of its Industrial Lighting and Welding Solutions businesses.
Use of proceeds. AZZ will use its share of the transaction proceeds to further reduce debt or fund potential M&A activity. The gain on the transaction will be treated as a one-time adjustment to net income and EPS. A reduction in the $16 million to $18 million of joint venture equity income included in AZZ’s fiscal year 2026 guidance is expected to be offset by interest savings. While AZZ is not adjusting its fiscal year 2026 earnings guidance, debt reduction will be higher than the range of $140 million to $160 million provided in their guidance.
Get the Full Report
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
