Core Viewpoint - AZZ Inc. has announced a new stock repurchase program, allowing for the acquisition of up to $100 million of its outstanding common stock, aimed at offsetting the dilutive effects of employee equity grants [1][2]. Group 1: Stock Repurchase Program Details - The 2026 Share Repurchase Program is in addition to a prior $100 million repurchase authorization from November 2020, and both programs are substantially similar [2]. - As of November 30, 2025, there were approximately 30.0 million shares of AZZ common stock outstanding, with about $33.2 million remaining for repurchases under the previous program [2]. Group 2: Execution and Compliance - Repurchases will be conducted through open market purchases, private transactions, or other methods compliant with federal securities laws, including Rule 10b-18 and Rule 10b5-1 trading plans [3]. - The timing and amount of shares repurchased will depend on various future factors, including market conditions and the company's stock price [4]. Group 3: Management Commentary - The CEO of AZZ expressed confidence in the company's strong financial performance and views the current market conditions as favorable for share repurchases, emphasizing a commitment to enhancing shareholder value [4]. Group 4: Company Overview - AZZ Inc. is recognized as a leading independent provider of hot-dip galvanizing and coil coating solutions, serving a wide range of end-markets and focusing on sustainable metal coating solutions [5].

Company Overview - AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions in North America, serving a broad range of end-markets [3] - The company's business segments offer sustainable metal coating solutions that enhance the longevity and appearance of essential infrastructure and products [3] Upcoming Conferences - AZZ Inc. will participate in the Noble Capital Markets' Emerging Growth Virtual Equity Conference on February 4-5, 2026, with virtual one-on-one meetings scheduled [6] - The company will also attend Barclay's 43rd Annual Industrial Select Conference from February 17-19, 2026, in Miami, Florida, holding one-on-one meetings on February 17, 2026 [6] Management Contacts - Investors interested in meeting with company management can contact Giorgia Pigato, Erin Bruno, or Phillip Kupper from Three Part Advisors [2]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company achieved record sales of $426 million in the third quarter, a 5.5% increase from $403.7 million in the prior year period [7][13] - Adjusted EBITDA reached a record high of $358 million over the trailing 12 months, with third quarter adjusted EBITDA reported at $91.2 million, or 21.4% of sales [7][18] - Net income for the third quarter was $41.1 million, compared to $33.6 million for the same quarter of the prior year, while adjusted net income was $46 million, reflecting a 9.4% increase year-over-year [17][18] Business Line Data and Key Metrics Changes - Metal Coatings segment sales increased by 15.7% year-over-year, driven by higher volumes and strong demand from infrastructure projects, with segment EBITDA margins at 30.3% [9][13] - Precoat Metals experienced a sequential improvement but saw a 1.8% decline in sales year-over-year due to softness in construction, HVAC, and transportation markets [9][13] - Demand for food and beverage containers reached new record highs, driven by new customer acquisitions and market share gains, particularly in the shift from plastics to aluminum [9][10] Market Data and Key Metrics Changes - The increase in end market demand was attributed to growth in infrastructure modernization, energy transition, and industrial reshoring, along with data center construction and renewable energy projects [10] - Non-residential construction remained subdued, primarily due to interest rate and tariff-related uncertainties, while residential construction also showed weakness [22][66] - The metal roofing market is gradually taking share from asphalt roofing, with metal roofing now representing about 5% of new construction and 14% of the replacement market [59] Company Strategy and Development Direction - The company is focused on strategic growth opportunities, including evaluating several tuck-in acquisitions to expand market reach in metal coatings and Precoat Metals [25][26] - The proprietary ERP platform is emphasized as a core differentiator, enhancing operational efficiencies and customer connectivity [10] - The company plans to release fiscal 2027 guidance soon, indicating a positive outlook for the upcoming year [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Metal Coatings segment finishing strong for the fiscal year, with good opportunities in data centers and solar projects [30][35] - The company believes the markets have stabilized and is seeing opportunities to gain market share despite challenges in the Precoat segment [33][34] - Weather-related impacts from the previous year are expected to be less severe, providing a favorable comparison for the fourth quarter [23] Other Important Information - The company maintained a cash dividend of $0.20 per share, marking 63 consecutive quarters of returning capital to shareholders [8] - The net debt position at the end of the quarter was $534.7 million, with a net leverage ratio of 1.6x, within the target range [19] Q&A Session Summary Question: Impact of government shutdown on order backlogs - Management indicated that the Metal Coatings segment does not typically have much backlog but has a positive outlook based on customer feedback, while Precoat is facing challenges but is benefiting from data center projects [29][30] Question: Outlook for Precoat segment and market conditions - Management believes the market has bottomed and is stabilizing, with opportunities arising from the ramp-up of the Washington plant and the shift from plastics to aluminum [33][34] Question: M&A opportunities and focus areas - The M&A pipeline is active, focusing on bolt-on acquisitions that align with the company's growth strategy, with expectations for future wins [38][40] Question: Sensitivity to aluminum prices - Management does not anticipate significant sensitivity to aluminum prices, as the shift to aluminum in the container market is driven by consumer preferences [41][42] Question: Weather impact on fourth quarter performance - Management noted that last year's severe weather resulted in lost production days, and current weather conditions are expected to be more favorable [47] Question: Pricing impact in the Metal Coatings segment - Management discussed the competitive nature of larger projects affecting margins but emphasized disciplined pricing strategies [53][54] Question: Regional prevalence of metal roofing - Management confirmed that metal roofing is more prevalent in southern regions, particularly Florida, Texas, and California [63] Question: Lag time for demand recovery in non-residential construction - Management indicated a typical six- to nine-month lag for demand recovery following easing credit conditions [66][67]

Financial Data and Key Metrics Changes - The company achieved record sales of $426 million in Q3 2026, a 5.5% increase from $403.7 million in the prior year period [5][9] - Adjusted EBITDA for the quarter was $91.2 million, or 21.4% of sales, compared to $90.7 million, or 22.5% of sales for the same period last year [12][13] - Reported net income for the quarter was $41.1 million, up from $33.6 million in the same quarter of the prior year [12] - The company maintained a cash dividend of $0.20 per share, marking 63 consecutive quarters of dividends [5] Business Line Data and Key Metrics Changes - Metal Coatings segment sales rose 15.7% year over year, driven by higher volumes and strong demand from infrastructure projects [6][9] - Precoat Metals segment saw a sequential improvement but reported a 1.8% decline in sales year over year due to softness in construction, HVAC, and transportation markets [6][9] - Food and beverage container demand reached record highs, driven by new customer acquisitions and market share gains [6] Market Data and Key Metrics Changes - Increased end market demand was driven by growth in infrastructure modernization, energy transition, and industrial reshoring [7] - The U.S. infrastructure investment cycle and investments in generative AI and machine learning technologies are driving demand for advanced cooling systems and coatings [16] - Non-residential construction remained subdued, primarily due to interest rate and tariff-related uncertainties, while residential construction was also soft [17] Company Strategy and Development Direction - The company is focused on strategic growth opportunities, including evaluating several tuck-in acquisitions to expand market reach in metal coatings and Precoat Metals [20][21] - The proprietary ERP platform is emphasized as a core differentiator, enhancing operational efficiencies and customer connectivity [7] - The company is optimistic about the ramp-up at the new Washington facility, which aligns with the shift from plastics to aluminum [27] Management's Comments on Operating Environment and Future Outlook - Management believes the markets have stabilized and are seeing opportunities to gain market share despite challenges in the Precoat segment [26][27] - The company anticipates a strong finish to the fiscal year for the Metal Coatings segment, with good opportunities stacking up for the next year [29] - Fiscal 2026 guidance was narrowed, with expected sales in the range of $1.625-$1.7 billion and adjusted EBITDA between $360-$380 million [19][20] Other Important Information - The company completed the sale of a majority interest in its welding solutions business, simplifying its portfolio [8] - Interest expense for the quarter was $12.2 million, a $7 million improvement from the prior year [11] - The company ended the quarter with a net debt position of $534.7 million and a net leverage ratio of 1.6 times [14] Q&A Session Summary Question: Impact of government shutdown on order backlogs - Management indicated that the Metal Coatings segment does not have much backlog but has a good forward look from sales [24] - The Precoat segment faced challenges but did not feel significant impacts from the government shutdown [25] Question: Outlook for Precoat segment and market conditions - Management believes the Precoat segment has bottomed and is stabilizing, with opportunities arising from the ramp-up at the Washington plant [26][27] Question: M&A opportunities and focus areas - The M&A pipeline is active, focusing on bolt-on acquisitions that align with the company's growth strategy [32][33] Question: Sensitivity to aluminum prices - Management does not expect significant sensitivity to aluminum prices due to a secular shift towards aluminum in the container market [36] Question: Weather impact on fourth quarter performance - Management noted that last year's fourth quarter was impacted by severe weather, and they expect better conditions this year [42] Question: Pricing impact in the Metal Coatings segment - Management discussed the balance between chasing larger projects and maintaining margin discipline [48][49] Question: Metal roofing market share - Management indicated that metal roofing is gaining share, particularly in the residential replacement market [54] Question: Regional prevalence of metal reroofing - Management confirmed that metal reroofing is more prevalent in southern regions like Florida and Texas [58]

Financial Data and Key Metrics Changes - The company achieved record sales of $426 million in the third quarter, a 5.5% increase from $403.7 million in the prior year period [4][9] - Adjusted EBITDA for the quarter was $91.2 million, or 21.4% of sales, compared to $90.7 million, or 22.5% of sales for the same period last year [12][13] - Reported net income for the third quarter was $41.1 million, up from $33.6 million in the same quarter of the prior year [12] - The company maintained a cash dividend of $0.20 per share, marking 63 consecutive quarters of returning capital to shareholders [4] Business Line Data and Key Metrics Changes - Metal Coatings segment sales rose 15.7% year over year, driven by higher volumes and strong demand from infrastructure projects [5][9] - Precoat Metals experienced a sequential improvement over the prior quarter, though sales were down 1.8% year over year due to softness in construction, HVAC, and transportation markets [5][9] - Food and beverage container demand reached new record highs, driven by new customer acquisitions and market share gains [5] Market Data and Key Metrics Changes - Increased end market demand was driven by growth in infrastructure modernization, energy transition, and industrial reshoring, along with data center construction and renewable energy projects [6] - The U.S. infrastructure investment cycle and investments in generative AI and machine learning technologies are driving demand for high power density and advanced cooling systems [17] - Non-residential construction remained subdued, primarily due to interest rate and tariff-related uncertainty, while residential construction was also soft [18] Company Strategy and Development Direction - The company is focused on strategic growth opportunities, including evaluating several strategic tuck-in acquisitions to expand market reach in metal coatings and Precoat Metals [20][21] - The proprietary ERP platform is emphasized as a core differentiator, enhancing operational efficiencies and customer connectivity [7] - The company is committed to a disciplined approach to M&A, targeting opportunities that drive sustainable growth and shareholder value [21] Management's Comments on Operating Environment and Future Outlook - Management believes the markets have stabilized and sees opportunities for growth, particularly in the Metal Coatings segment [25] - The company anticipates a strong finish to the fiscal year, with expectations for flat to modest growth in construction through calendar year 2026 [18][20] - The fourth quarter is expected to present easier year-over-year comparisons due to last year's weather-related impacts [19] Other Important Information - The company completed the sale of a majority interest in its welding solutions business, simplifying its portfolio [8] - The net debt position at the end of the quarter was $534.7 million, with a net leverage ratio of 1.6 times [15] Q&A Session Summary Question: Impact of government shutdown on order backlogs - Management indicated that the Metal Coatings segment does not have much backlog but has a good forward look from sales, feeling optimistic about finishing the year strong [24] Question: Operating environment for Precoat segment - Management believes the Precoat segment has bottomed and is stabilizing, with opportunities arising from the ramp-up at the Washington plant [26] Question: M&A opportunities - The M&A pipeline is active, focusing on bolt-on acquisitions that align with the company's growth strategy [32] Question: Sensitivity to aluminum prices - Management does not expect significant sensitivity to aluminum prices, as the shift to aluminum in the container market is driven by consumer preferences [35] Question: Impact of weather on fourth quarter performance - Management noted that last year's fourth quarter was impacted by severe weather, and they expect better conditions this year [42] Question: Pricing in the metal coatings segment - Management discussed the impact of larger projects on margins, indicating a disciplined approach to pricing while pursuing volume growth [48]

Earnings Reports - TD Synnex Corp. is expected to report quarterly earnings of $3.73 per share on revenue of $16.93 billion, with shares closing at $151.00, down 0.8% [1] - AZZ Inc. reported adjusted earnings of $1.52 per share, exceeding estimates of $1.47 per share, with sales of $425.746 million compared to expectations of $418.164 million, leading to a 2.1% increase in shares to $112.09 [1] - Commercial Metals Co. is anticipated to post quarterly earnings of $1.56 per share on revenue of $2.06 billion, with shares rising 3.1% to $75.50 in after-hours trading [1] - Constellation Brands, Inc. reported quarterly earnings of $3.06 per share, surpassing the consensus estimate of $2.64, with revenue of $2.22 billion exceeding the estimate of $2.16 billion, resulting in a 1.9% increase in shares to $143.15 [1] - Acuity Inc. is expected to report quarterly earnings of $4.59 per share on revenue of $1.14 billion, with shares rising 0.1% to $370.25 in after-hours trading [1]

Core Insights - AZZ Inc. reported strong financial performance for the third quarter of fiscal year 2026, with an EPS of $1.52, exceeding analysts' expectations of $1.43 [1][6] - The company's revenue reached approximately $425.7 million, a 5.5% increase year-over-year, driven primarily by a 15.7% surge in Metal Coatings sales [2][6] - Net income for the quarter was $41.1 million, reflecting a 22.2% increase from the previous year [3][6] Financial Performance - Revenue for the third quarter was approximately $425.7 million, surpassing forecasts of $418.2 million [2] - Metal Coatings sales increased by 15.7% to $195 million, while Precoat Metals sales slightly declined by 1.8% to $230.7 million [2] - Adjusted net income rose by 9.7% to $46 million, with GAAP diluted EPS increasing by 21.4% to $1.36 [3] Shareholder Returns and Debt Management - The company repurchased 201,416 shares for $20 million at an average price of $99.28 per share [4] - AZZ reduced its debt by $35 million during the quarter, contributing to a year-to-date debt reduction of $325.4 million [4] - Cash provided by operating activities increased by 20% to $79.7 million, and a cash dividend of $0.20 per share was paid to common shareholders [4] Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 10.23, indicating a positive market valuation of its earnings [5] - The price-to-sales ratio stands at about 2.04, and the enterprise value to sales ratio is around 2.06 [5] - AZZ's debt-to-equity ratio is 0.024, and the current ratio is approximately 1.66, demonstrating a solid ability to cover short-term liabilities [5]

Core Viewpoint - AZZ Inc. has announced a cash dividend of $0.20 per share for the third quarter, payable on February 26, 2026, to shareholders of record as of February 5, 2026 [1] Group 1: Dividend Announcement - The Board of Directors has authorized a cash dividend of $0.20 per share on the outstanding shares of common stock [1] - The dividend payment date is set for February 26, 2026, with a record date of February 5, 2026 [1] Group 2: Future Dividend Intentions - AZZ intends to pay regular quarterly cash dividends in the foreseeable future, subject to review and discretion by the Board of Directors [2] - The company is committed to enhancing shareholder value based on various factors, including operating results and financial condition [2] Group 3: Company Overview - AZZ Inc. is a leading independent provider of hot-dip galvanizing and coil coating solutions, serving a broad range of end-markets [3] - The company's business segments offer sustainable metal coating solutions that enhance the longevity and appearance of essential infrastructure and products [3]

Financial Performance - Total sales reached $425.7 million, an increase of 5.5% compared to the prior year[4] - Adjusted EBITDA was $91.2 million, representing 21.4% of sales, compared to 22.5% in the prior year[6] - Adjusted diluted EPS increased to $1.52, up 9.4% year-over-year[6] - Net income rose to $41.1 million, a 22.2% increase from the previous year[6] - Net cash provided by operating activities for the nine months ended November 30, 2025, was $452.9 million, significantly higher than $185.6 million in 2024[27] - Adjusted net income for the nine months ended November 30, 2025, was $301.3 million, compared to $108.6 million in 2024[34] - Net income for the three months ended November 30, 2024, was $33,603, compared to a net loss of $57,105 in the previous period[37] - For the nine months ended November 30, 2025, net income reached $301,329, a substantial increase from a net loss of $196,213 in the prior year[38] Sales and Revenue - Metal Coatings sales grew by 15.7% to $195.0 million, driven by infrastructure-related project spending[7] - Precoat Metals sales decreased by 1.8% to $230.7 million due to weaker demand in certain end markets[8] - Total sales for the three months ended November 30, 2025, reached $425.7 million, a 5.4% increase from $403.7 million in the same period of 2024[23] Cash Flow and Assets - Cash provided by operating activities was $79.7 million, up 20% from last year[6] - Current assets increased to $400.8 million as of November 30, 2025, compared to $375.4 million as of February 28, 2025[25] - Cash and cash equivalents at the end of the period were $623,000, down from $1.5 million at the beginning of the period[27] Debt and Leverage - The company reduced debt by $35 million, achieving a net leverage ratio of 1.6x[5] - Long-term debt decreased to $534.7 million as of November 30, 2025, from $852.4 million as of February 28, 2025[25] - The company reported a gross debt of $574,875 as of November 30, 2025, with a net leverage ratio of 1.6x, indicating improved financial stability[40] Guidance and Future Plans - Fiscal Year 2026 guidance for sales is narrowed to a range of $1.625 - $1.7 billion[12] - Capital expenditures for the fiscal year are expected to be approximately $60 - $80 million[9] - The company plans to continue focusing on restructuring efforts and operational efficiencies to enhance future performance[40] Operational Performance - The company recorded a total segment adjusted EBITDA of $323.6 million for the nine months ended November 30, 2025, compared to $317.4 million in 2024[23] - Adjusted EBITDA for the three months ended November 30, 2025, was $91.2 million, slightly up from $90.7 million in the prior year[35] - Adjusted EBITDA for the nine months ended November 30, 2025, was $286,304, reflecting strong operational performance despite restructuring charges[38] - Depreciation and amortization expenses for the nine months ended November 30, 2025, totaled $66,976, up from $61,383 in the previous year[38] - Interest expense for the nine months ended November 30, 2025, was $44,434, compared to $63,906 in the prior year, showing a reduction in financing costs[38] Adjustments and Other Expenses - The company recognized a significant adjustment of $(226,843) related to equity in earnings from the AVAIL joint venture, impacting overall profitability[38] - Legal settlements and accruals accounted for $3,483 in expenses during the three months ended November 30, 2024[37]