AZZ AZZ, Inc.

Risks

• Our business segments operate in highly competitive markets.
• Climate change could impact our business.
• Changes in greenhouse gas regulations could impact our operating results.
• Our business segments are sensitive to economic downturns.
• International and political events may adversely affect our Energy and Metal Coatings Segments.
• Fluctuations in the price and supply of raw materials and natural gas for our business segments may adversely affect our operations.
• Our volume of fixed-price contracts for our Energy Segment could adversely affect our business.
• Our operations could be adversely impacted by the continuing effects from government regulations.
• New regulations related to conflict minerals could adversely impact our business.
• Our use of over time revenue accounting in the Energy Segment could result in a reduction or elimination of previously reported profits.
• We may not be able to fully realize the revenue value reported in our backlog for our Energy Segment.
• Our operating results may vary significantly from quarter to quarter.
• We may be unsuccessful at generating internal growth.
• The departure of key personnel could disrupt our business.
• Our business requires skilled labor, and we may be unable to attract and retain qualified employees.
• Actual and potential claims, lawsuits, and proceedings could ultimately reduce our profitability and liquidity and weaken our financial condition.
• Technological innovations by competitors may make existing products and production methods obsolete.
• Catastrophic events could disrupt our business.
• Adoption of new or revised employment and labor laws and regulations could make it easier for our employees to obtain union representation and our business could be adversely impacted.
• AZZ’s flexibility to operate its business could be impacted by provisions in its debt obligations.
• A failure in our operational systems or cyber security attacks on any of our facilities, or those of third parties, may
• affect adversely our financial results.
• We could face significant liabilities for withdrawal from Multiemployer Pension Plans.
• Uncertainties in the interpretation and application of the 2017 Tax Cuts and Jobs Act could materially affect our tax obligations and effective tax rate.
• We have identified a material weakness in our internal control over financial reporting which could, if not remediated, adversely affect investor confidence in our company, the value of our common stock and our ability to report our financial condition and results of operations in a timely and accurate manner.