Core Insights - AZZ Inc. reported a third-quarter sales increase to $425.7 million, reflecting a 5.5% growth year-over-year, driven by strong performance in the Metal Coatings segment and operational execution [4][6] - Adjusted EBITDA for the quarter was $91.2 million, representing 21.4% of sales, with adjusted diluted EPS rising to $1.52, a 9.4% increase from the previous year [4][6] - The company narrowed its fiscal year 2026 guidance, projecting sales between $1.625 billion and $1.7 billion, with adjusted EBITDA expected to be between $360 million and $380 million [11][12] Financial Performance - Sales for the Metal Coatings segment reached $195.0 million, up 15.7% due to increased volume from infrastructure-related projects, while Precoat Metals saw a decline in sales to $230.7 million, down 1.8% due to weaker demand in certain markets [6][8] - Net income for the quarter was $41.1 million, a 22.2% increase, with adjusted net income rising to $46.0 million, up 9.7% [6][19] - Cash generated from operations was $79.7 million, a 20% increase from the previous year, contributing to a net debt leverage ratio of 1.6x after a $35 million debt reduction [5][9] Segment Analysis - The Metal Coatings segment's adjusted EBITDA margin was 30.3%, while Precoat Metals achieved a margin of 19.7%, reflecting a 60 basis point increase year-over-year [6][8] - The overall adjusted EBITDA for the company was $91.2 million, slightly up from $90.7 million in the prior year, indicating stable operational efficiency despite market challenges [6][7] Balance Sheet and Capital Allocation - The company reduced its debt by $35 million during the quarter and repurchased $20 million worth of common stock, demonstrating a commitment to strengthening its balance sheet [5][9] - For the first nine months of fiscal year 2026, AZZ generated $452.9 million in operating cash, supported by improved earnings and a focus on working capital management [9][19] Guidance and Outlook - The company has provided narrowed guidance for fiscal year 2026, anticipating an effective tax rate of 24% and excluding any future acquisitions or changes in federal regulations [11][12] - The expected adjusted diluted EPS for the fiscal year is projected to be between $5.90 and $6.20, reflecting confidence in continued operational momentum [12][11]

Financial Performance - For the nine months ended November 30, 2025, net income was $301.3 million, significantly impacted by equity in earnings from the AVAIL JV and increased demand in utilities, construction, and consumer industries [144]. - Consolidated sales for the quarter ended November 30, 2025, increased by $22.1 million, or 5.5%, compared to the prior year quarter, reaching a total of $425 million [151]. - Operating income for the current quarter was $69.5 million, an increase of $10.9 million, or 18.7%, compared to the prior year quarter [154]. - Consolidated operating income increased by $11.6 million, or 5.9%, to $207.5 million compared to the prior year [167]. - Adjusted net income for the three months ended November 30, 2025, was $41,075,000, representing an increase from $33,603,000 in the same period of 2024, with diluted earnings per share rising from $1.12 to $1.36 [208]. - The company reported a net income of $301,329,000 for the nine months ended November 30, 2025, significantly higher than $108,624,000 for the same period in 2024 [208]. Sales and Segment Performance - Sales for the AZZ Metal Coatings segment rose by $26.4 million, or 15.7%, driven by a higher volume of steel processed, despite a $5.7 million decrease in selling price due to product mix [152]. - For the nine months ended November 30, 2025, total sales reached $1.26 billion, with the AZZ Metal Coatings segment contributing $572.2 million and the AZZ Precoat Metals segment contributing $692.8 million [161]. - Sales for the AZZ Metal Coatings segment rose by $55.4 million, or 10.7%, driven by a higher volume of steel processed [165]. - Sales for the AZZ Precoat Metals segment decreased by $16.3 million, or 2.3%, primarily due to lower volume of coil coated [166]. - Operating income for the AZZ Metal Coatings segment increased by $12.5 million, or 8.8%, due to improved sales and lower selling, general and administrative expenses [168]. Expenses and Costs - Corporate selling, general and administrative expenses decreased by $6.4 million, or 25.8%, primarily due to reductions in salaries, employee benefits, and stock-based compensation [157]. - Interest expense decreased by $7.0 million to $12.2 million, attributed to a reduction in the weighted average debt outstanding and interest rates [158]. - Corporate selling, general and administrative expenses decreased by $7.0 million, or 10.7%, primarily due to lower compensation costs [170]. - The company incurred interest expenses of $12,206,000 for the three months ended November 30, 2025, down from $19,223,000 in the same period of 2024 [209]. Equity and Investments - Equity in earnings of unconsolidated subsidiaries decreased by $8.6 million to a loss of $1.4 million, following the sale of the Electrical Products Group business by AVAIL [159]. - Equity in earnings of unconsolidated subsidiaries increased by $219.0 million to $231.4 million, due to a gain from the sale of the Electrical Products Group [172]. - For the nine months ended November 30, 2025, the company recorded $231.4 million in equity in earnings, including a net gain of $274.5 million from the sale of the Electrical Products Group [198]. Cash Flow and Liquidity - Net cash provided by operating activities was $452.9 million, driven by net income of $301.3 million [177]. - As of November 30, 2025, total liquidity was $337.1 million, consisting of $336.4 million available on the Revolving Credit Facility and $0.6 million in cash [176]. - The company has a maximum senior secured Revolving Credit Facility of $400.0 million, due May 13, 2027, with a letter of credit sub-facility of up to $100.0 million [190]. - As of November 30, 2025, total outstanding letters of credit amounted to $13.7 million, primarily for customer retention and warranty purposes [191]. Capital Expenditures and Investments - A new aluminum coil coating facility in Washington, Missouri, became operational in Q1 fiscal 2026, with total capital expenditures expected to be approximately $121.8 million [194]. - The company received a cash distribution of $273.2 million from the AVAIL JV during Q1 fiscal 2026, resulting in a gain of $165.8 million after reducing the investment to zero [196]. - The company recorded an impairment charge of $45.9 million on its investment in the AVAIL JV during Q2 fiscal 2026 due to a decline in fair value [197]. Market Risks and Taxation - The company has exposure to commodity price increases, particularly in zinc and natural gas, and employs strategies to mitigate these risks [199]. - The effective tax rate for the current quarter was 26.1%, slightly down from 26.5% in the prior year quarter, influenced by higher tax deductions for stock compensation [160]. - The company’s income tax expense for the three months ended November 30, 2025, was $14,485,000, compared to $12,114,000 in the same period of 2024 [209]. - The company has not reported any material changes to its market risk disclosures during the three and nine months ended November 30, 2025 [216]. Shareholder Activities - During the nine months ended November 30, 2025, the company repurchased 201,416 shares for $20.0 million at an average price of $99.28, with $33.2 million remaining under the 2020 Share Authorization [199]. - The company reported a total of 30,198,000 diluted shares outstanding for the adjusted earnings per share calculation for the three months ended November 30, 2025 [208].

AZZ Inc. (NYSE:AZZ) will release earnings results for its third quarter after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the Draper, Utah-based company to report quarterly earnings at $1.49 per share, up from $1.39 per share in the year-ago period. The consensus estimate for AZZ's quarterly revenue is $419.47 million, up from $403.65 million a year earlier, according to Benzinga Pro data.On Oct. 9, AZZ reported worse-than-expected second-quarter financial results.Shares of AZZ rose 2.4% to ...

AZZ Inc. (NYSE:AZZ) will release earnings results for its third quarter after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the Draper, Utah-based company to report quarterly earnings at $1.49 per share, up from $1.39 per share in the year-ago period. The consensus estimate for AZZ's quarterly revenue is $419.47 million, up from $403.65 million a year earlier, according to Benzinga Pro data.On Oct. 9, AZZ reported worse-than-expected second-quarter financial results.Shares of AZZ rose 2.4% to ...

Earnings Reports - Next Wednesday will see a notable increase in earnings, with nine companies reporting [1] - Key reports include Constellation Brands Inc., a consumer staples giant, and Jefferies Financial Group Inc., a financials firm, both reporting after market close [1] - Albertsons Companies Inc. Class A leads a group of retail and industrial companies reporting pre-market on Wednesday, which includes MSC Industrial Direct Company Inc., Cal-Maine Foods Inc., Unifirst Corporation, and AZZ Inc. [1] - AAR Corp. and technology companies Penguin Solutions Inc. and Applied Digital Corp. are set to report after market close on Tuesday and Wednesday, respectively [1]

Core Viewpoint - AZZ Inc. presents an attractive buying opportunity following its Q2 2026 results, highlighting a significant disconnection between its two business segments [1] Financial Performance - The company reported its Q2 2026 results, which are pivotal in assessing its investment potential [1] Business Segments - There is a notable disparity between the two segments of AZZ Inc., indicating potential for strategic realignment or investment focus [1]

Group 1 - The core focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers benefit from a 50+ stock model account, which provides a comprehensive overview of investment opportunities [1] - The service includes in-depth cash flow analyses of exploration and production (E&P) firms, enhancing understanding of financial health and potential [1] Group 2 - The platform offers a live chat discussion feature, fostering community engagement and real-time insights into the oil and gas industry [1] - A two-week free trial is available for new subscribers, encouraging exploration of the service's offerings [2]

Group 1 - The earnings calendar is expected to be sparse until the end of the year, with notable reports from AAR Corp. on January 6 and AZZ Inc. on January 7 [5] - AZZ has received a Relative Strength Rating upgrade, indicating improved technical performance [5] - AAR Corp. has also achieved a Relative Strength Rating upgrade, hitting a key threshold [9] Group 2 - Oracle's stock has seen a significant increase following reports that TikTok has signed a deal to create a U.S. joint venture [6] - The stock market is experiencing a rebound, with Nasdaq leading the way, while Snowflake's outlook has caused a decline in its stock price [7] - Acuity Brands is highlighted as a strong performer, nearing a buy point, alongside Taiwan Semiconductor and other stocks [9]

Company Overview - AZZ Inc. is a leading North American provider of sustainable metal coating solutions, focusing on two high-margin core businesses: Metal Coatings and Precoat Metals [2][4] - The company is the largest independent post-fabrication hot-dip galvanizer in North America, providing corrosion protection solutions that extend the lifecycle of steel assets while reducing emissions and lifecycle costs [2] Business Segments - The Metal Coatings segment benefits from strong exposure to regulated infrastructure spending, including bridges, highways, utilities, and transmission towers, alongside growing demand from renewables and industrial construction [3] - This segment operates under a tolling model that largely eliminates commodity price risk, delivering structurally high margins in the 30% EBITDA range [3] - The acquisition of Precoat Metals in fiscal 2023 has positioned AZZ as the leading independent coil coater in North America, serving various markets such as building products and transportation [4] Strategic Focus - AZZ has simplified its portfolio by monetizing its Infrastructure Solutions exposure, using the proceeds to deleverage and reinvest in its core coatings platform [6] - The company is positioned as a high-quality, cyclical industrial compounder with durable competitive advantages and attractive long-term value creation potential, supported by large addressable markets tied to infrastructure renewal and energy transition [6]

Company Performance - AZZ closed at $105.80, with a daily increase of +1.65%, outperforming the S&P 500 which fell by 0.09% [1] - Over the past month, AZZ shares have appreciated by 2.7%, surpassing the Industrial Products sector's gain of 1.14% and the S&P 500's gain of 1.89% [1] Upcoming Financial Results - Analysts expect AZZ to report earnings of $1.47 per share, reflecting a year-over-year growth of 5.76% [2] - The projected revenue for AZZ is $417.31 million, indicating an increase of 3.38% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $6.05 per share, representing a growth of +16.35% year-over-year [3] - Revenue is projected to be $1.65 billion, showing an increase of +4.26% from the prior year [3] Analyst Estimates and Stock Performance - Recent upward revisions in earnings estimates by analysts are seen as a positive indicator for AZZ's business outlook [3] - The Zacks Rank system, which incorporates estimate changes, suggests actionable insights for stock performance [4] Zacks Rank and Valuation - AZZ currently holds a Zacks Rank of 3 (Hold), with a recent upward shift of 1.09% in the consensus EPS estimate [5] - The Forward P/E ratio for AZZ is 17.2, which is lower than the industry average of 24.98, indicating a potential discount [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 40, placing it in the top 17% of over 250 industries [6] - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1, highlighting the significance of industry rankings [7]