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]

Core Viewpoint - AZZ Inc. will hold a conference call to discuss its financial results for the third quarter of fiscal year 2026 on January 8, 2026, following the release of its financial results on January 7, 2026 [1] Company Overview - AZZ Inc. is a leading independent provider of hot-dip galvanizing and coil coating solutions, serving a wide range of end-markets [3] - The company's business segments offer sustainable metal coating solutions that enhance the longevity and appearance of essential buildings, products, and infrastructure [3] Conference Call Details - The conference call can be accessed by dialing (844) 855-9499 or (412) 317-5497 for international participants [2] - A webcast will be available on the company's Investor Relations page, and a replay will be accessible until January 15, 2026 [2]

Core Insights - Harvey Partners increased its stake in Gentherm by acquiring 431,072 shares, raising its total holdings to approximately 1 million shares valued at $34.9 million as of September 30 [2][3][11] - Gentherm's market capitalization stands at $1.1 billion, with a revenue of $1.5 billion and a net income of $30.6 million for the trailing twelve months [5] - The company specializes in thermal management technologies, providing solutions for automotive interiors, battery performance, and medical applications [6][9] Financial Performance - Gentherm reported a record quarterly revenue of $386.9 million, reflecting a 4% year-over-year increase, driven by an 8.6% growth in automotive climate and comfort solutions [12] - Adjusted EBITDA increased to $49 million, with healthy margins at 12.7%, and year-to-date operating cash flow reached $87.8 million, up from $73.1 million in the previous year [12] - The company secured $745 million in new automotive awards, positioning it to exceed $2 billion in awards for the year, indicating strong demand for its core technologies despite material cost pressures [12] Market Context - Gentherm's stock price is currently at $36.46, down 13% over the past year, underperforming the S&P 500, which has increased by 13% during the same period [4] - The company's stake now represents 3.1% of Harvey Partners' reportable U.S. equity AUM, ranking below the top five fund holdings [4][11] - Gentherm's diversified product portfolio and established relationships with major OEMs enhance its competitive position in the automotive parts industry [9]

Summary of AZZ (NYSE:AZZ) FY Conference Call - November 19, 2025 Company Overview - AZZ is a pure-play metal coatings company based in Fort Worth, Texas, with approximately 3,700 employees [1][2] - The company operates two main segments: hot-dip galvanizing and roll coating [2][3] Financial Performance - AZZ reported a top line of approximately $1.6 billion and an EBITDA of $392 million [4] - Historical growth: Top line sales increased from $525 million to $1.6 billion over 12 years [4] - Current debt to EBITDA ratio improved from 4.2 times to 1.7 times, ahead of schedule [6][7] - Guidance for adjusted EBITDA is between $360 million and $400 million, with current performance at $357 million [8] Strategic Transformation - In 2022, AZZ divested a low-margin electrical and welding services segment and acquired Precoat Metals for $1.2 billion [5][6] - The focus is now on organic and inorganic growth opportunities, including M&A activities [6][20] - The company aims to reach $2 billion in top line by 2028 while maintaining a debt to EBITDA ratio of 1.5-2.5 times [19][20] Market Position and Segments - AZZ holds a 27% market share in the $2.5 billion hot-dip galvanizing market and a 23% share in the $4.4 billion roll coating market [21][25] - The company is positioned as a leader in both segments, with a strong cash generation profile [21][29] End Markets - Major end markets include construction (56% of sales), industrial (8%), transportation (8%), consumer (8%), and electrical infrastructure [9][10] - The company benefits from infrastructure spending related to the IIJA (Infrastructure Investment and Jobs Act) [11] Growth Drivers - Key growth drivers include reshoring, nearshoring, and the transition from plastics to aluminum in the beverage industry [27][28] - The company is also exploring white space opportunities for expansion within North America [23][24] Technology and Sustainability - AZZ has invested in proprietary technology, including the Digital Galvanizing System and CoilZone, to enhance operational efficiency and customer service [12][14] - The company emphasizes sustainability, achieving a 10% reduction in scope one and two emissions and being recognized as one of the most sustainable companies by Newsweek [13][17] Capital Allocation and Shareholder Returns - AZZ has increased its dividend for the first time since 2017 and is considering share buybacks [8][31] - The company is focused on strategic M&A to enhance ROIC, targeting a minimum of 12% [20][31] Resilience and Stability - AZZ's business model has shown resilience during economic downturns, with consistent performance during the 2008 financial crisis and COVID-19 [30][29] Conclusion - AZZ is positioned for continued growth with a strong market presence, strategic focus on M&A, and a commitment to sustainability and technology innovation [32]

Core Insights - AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions in North America, focusing on enhancing the longevity and appearance of essential infrastructure and products [3]. Company Overview - AZZ Inc. provides sustainable metal coating solutions across various end-markets, emphasizing the importance of their services in everyday life [3]. - The company has scheduled several investor conferences, including participation in The Baird Global Industrials Conference and the NYSE Industrials Day Conference [6]. Financial Information - AZZ Inc. has announced its fiscal year 2026 second quarter results, indicating ongoing financial performance updates [8]. - The company also declared a cash dividend for the fiscal year 2026, reflecting its commitment to returning value to shareholders [9].

Core Insights - AZZ Inc. reported fiscal second-quarter 2026 results that fell short of analyst expectations, leading to a more than 4% decline in share price [1] - Adjusted earnings per share were $1.55, missing the consensus estimate of $1.59, while revenue increased by 2% year-over-year to $417.3 million, but was below the expected $428.79 million [1] Business Unit Performance - Metal Coatings revenue increased by 10.8% to $190.0 million, driven by strong demand in construction, industrial, and electrical transmission markets [2] - Precoat Metals sales decreased by 4.3% to $227.3 million due to ongoing weakness in building construction, HVAC, and appliance sectors [2] Full-Year Guidance and Financial Metrics - The company maintained its full-year fiscal 2026 guidance, forecasting revenue between $1.625 billion and $1.725 billion and adjusted EPS between $5.75 and $6.25, aligning with consensus expectations of $1.664 billion in revenue and $6.04 EPS [3] - Consolidated adjusted EBITDA was reported at $88.7 million, or 21.3% of sales, compared to $91.9 million, or 22.5%, in the same period last year [3] - Operating cash flow improved by 23% to $58.4 million from $47.5 million a year earlier [3]

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Financial Data and Key Metrics Changes - Total sales increased by 2% to $417.3 million from $409 million in the prior year period [9] - Adjusted earnings per share rose by 13.1% to $1.55 compared to $1.57 in the prior year [14] - Operating cash flow improved by 23% [5] - Consolidated adjusted EBITDA for the quarter was $88.7 million, reflecting a margin of 21.3%, down from 22.5% in the prior year [14][15] - Reported net income for the second quarter was $89.3 million, compared to $35.4 million for the prior year quarter [14] Business Line Data and Key Metrics Changes - Metal Coatings segment achieved a sales increase of 10.88%, driven by higher volumes and infrastructure-related spending [9] - Precoat Metals' sales declined by 4.3% due to a weaker end-market environment, particularly in building construction, HVAC, and appliance end markets [9][10] - Metal Coatings margins were at 30.8%, slightly down due to a mix of lower-margin solar and transmission distribution projects [5] Market Data and Key Metrics Changes - End-market sales for utilities increased by 19%, and consumer sales were up by 7.6%, while construction sales were up by less than 1% compared to the same quarter last year [18] - The demand outlook for Precoat's end markets remains mixed, with ongoing tariffs contributing to customer hesitation on non-infrastructure-related projects [7][19] Company Strategy and Development Direction - The company is focused on technology upgrades, including migrating data systems to Oracle and exploring AI opportunities [8] - The company anticipates multi-year tailwinds associated with the Infrastructure Investment and Jobs Act (IIJA) spending, particularly in energy and power generation capacity [17][22] - The company is pursuing strategic growth opportunities, including bolt-on acquisitions that align with its market leadership in metal coatings [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of core markets and growth potential for galvanized steel in construction and industrial projects [5] - The company reiterated guidance for total sales in the range of $1.625 billion to $1.725 billion for the fiscal year 2026 [23] - Management noted that while markets may be choppy in the second half of the fiscal year, strength in projects and structural steel demand forecasts support their outlook [23] Other Important Information - Interest expense for the second quarter was $13.7 million, a significant improvement from the prior year due to debt paydown and repricing [12] - The company generated cash flow from operations of $58.4 million and invested $19.3 million in capital expenditures [15] Q&A Session Summary Question: Can you provide more color on Precoat market share gains? - Management indicated that market share gains were due to a significant decline in pre-painted imports because of tariffs, allowing the company to capture approximately 3% to 4% of market share despite a 9% to 10% market decline [28][30] Question: What is the outlook for Precoat Metals segment volumes in the back half of the year? - Management expects to sustain market share gains and anticipates ramping up production at the Washington, Missouri facility, which is currently operating at about 20% capacity [32][33] Question: What factors could drive the adjusted EBITDA guidance higher? - The biggest impact on EBITDA guidance is the loss of AVAIL equity income, with management hopeful for a strong fall season in the remaining AVAIL business [43] Question: How is the M&A pipeline looking? - Management noted a healthy pipeline with nine good opportunities in various stages, expressing hope for closing deals before the end of the year [65] Question: What is the impact of zinc prices on margins? - Management indicated that while zinc prices have rebounded, they have sufficient inventory to mitigate immediate impacts on margins, with minor effects expected for the current year [96][98]