AZZ Inc. Announces Fiscal Year 2026 Second Quarter Earnings Results

AZZ Inc. (AZZ) today announced its financial results for the fiscal quarter, revealing a strong performance despite a slight miss on revenue expectations. The company reported earnings per share of $2.95, significantly surpassing analysts’ estimates of $1.57, marking a notable earnings beat. However, revenue for the quarter came in at $417.3 million, falling short of the anticipated $426.2 million.

Key Highlights:

• Total Sales: $417.3 million, up 2.0% year-over-year.
• Metal Coatings sales: $190.0 million, up 10.8%.
• Precoat Metals sales: $227.3 million, down 4.3%.
• Net Income: $89.3 million, up 152.3%; Adjusted net income: $46.9 million, up 13.8%.
• GAAP diluted EPS: $2.95 per share, up 150.0%; Adjusted diluted EPS: $1.55, up 13.1%.
• Consolidated Adjusted EBITDA: $88.7 million, or 21.3% of sales.
• Cash provided by operating activities: $58.4 million, up 23% from last year.
• Acquisition of a galvanizing facility in Canton, Ohio for $30.1 million completed.
• Fiscal Year 2026 guidance remains unchanged: Sales projected at $1.625 - $1.725 billion, Adjusted EBITDA at $360 - $400 million, and Adjusted Diluted EPS at $5.75 - $6.25.

In the second quarter of fiscal year 2026, AZZ Inc. reported solid financial results, with total sales reaching $417.3 million, marking a 2.0% increase compared to the previous year. The Metal Coatings segment experienced significant growth, driven by infrastructure-related project spending, while the Precoat Metals segment faced challenges due to weaker demand in certain end markets. President and CEO Tom Ferguson noted, “Metal Coatings delivered strong, double-digit sales gains on volume increases,” highlighting the positive impact of construction and industrial markets on their performance. Despite a slight decline in Adjusted EBITDA, the company maintained a robust cash flow and a strong balance sheet, with a net debt leverage of 1.7x.

Looking ahead, AZZ Inc. is confident in achieving its fiscal year 2026 guidance, which remains unchanged despite market fluctuations. The company is focused on managing working capital and capital expenditures while pursuing high-quality acquisition opportunities. Ferguson emphasized the importance of monitoring customer trends in key markets and expressed gratitude to the employees for their dedication and commitment to quality and service.

AZZ Inc. (AZZ) has experienced a notable rollercoaster in its stock price, with a recent decline of 2.87% over the past week and an 8.32% drop in the last month. However, this short-term volatility belies a more positive longer-term trend, as the stock has surged by 40.74% over the past six months and 32.42% over the past year. The company’s fundamentals appear robust, highlighted by a price-to-earnings ratio of 12.23, which suggests that the stock may be undervalued relative to its earnings potential. AZZ’s impressive 24.52% compound annual growth rate (CAGR) in earnings per share over the last two years indicates strong profitability, while a net profit margin of 15.81% reflects effective cost management. Additionally, the company boasts a remarkable free cash flow CAGR of 274.14%, showcasing its ability to generate cash efficiently. With a return on invested capital of 17.37%, AZZ demonstrates its capability to generate substantial returns on its investments. Overall, while recent price fluctuations may raise eyebrows, the underlying financial metrics suggest that AZZ Inc. is well-positioned for continued growth.

AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. The company operates through two segments, Infrastructure Solutions and Metal Coatings. The Metal Coatings segment offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. This segment sells its products through internal sales force, manufacturers’ representatives, distributors, and agents. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.