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]

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 ...

Core Viewpoint - AZZ Inc. is set to release its third-quarter earnings on January 7, 2025, with expectations of increased earnings and revenue compared to the previous year [1]. Earnings Expectations - Analysts predict AZZ will report earnings of $1.49 per share, an increase from $1.39 per share in the same quarter last year [1]. - The consensus estimate for quarterly revenue is $419.47 million, up from $403.65 million a year earlier [1]. Stock Performance - AZZ shares rose by 2.4%, closing at $109.74 on the previous Friday [2]. Analyst Ratings - Wells Fargo analyst Timna Tanners maintained an Overweight rating, lowering the price target from $128 to $121 [3]. - B. Riley Securities analyst Lucas Pipes maintained a Buy rating, raising the price target from $131 to $140 [3]. - Evercore ISI Group analyst Stephen Richardson maintained an Outperform rating, increasing the price target from $90 to $108 [3]. - Sidoti & Co. analyst John Franzreb downgraded the stock from Buy to Neutral with a price target of $101 [3]. - Roth MKM analyst Gerry Sweeney initiated coverage with a Buy rating and a price target of $108 [3].

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]

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