AZZ Inc

AZZ

Market cap $3.61B

Recently, Zacks.com users have been paying close attention to AZZ (AZZ). This makes it worthwhile to examine what the stock has in store.

George Tsilis looks at AZZ Inc. (AZZ) for today's Overlooked Stock, noting that steel fabricator and galvanizer posted stronger-than-expected earnings. Tailwinds in industries using these materials are another factor George says lifted AZZ's outlook.

AZZ Inc. (AZZ) Q3 2026 Earnings Call Transcript

FORT WORTH, Texas, Jan. 7, 2026 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced its Board of Directors has authorized a third quarter cash dividend in the amount of $0.20 per share on the Company's outstanding shares of common stock. The dividend is payable on February 26, 2026, to shareholders of record as of the close of business on February 5, 2026.

Operational Strength Drives Sales, EPS, Cash Flow Growth and Value Creation Fiscal Year 2026 Guidance Narrowed FORT WORTH, Texas, January 7, 2026 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the third quarter ended November 30, 2025.  Fiscal Year 2026 Third Quarter Overview  (as compared to prior fiscal year third quarter(1)): Total Sales of $425.7 million, up 5.5% Metal Coatings sales of $195.0 million, up 15.7% Precoat Metals sales of $230.7 million, down 1.8% Net Income of $41.1 million, up 22.2%; Adjusted net income of $46.0 million, up 9.7% GAAP diluted EPS of $1.36 per share, up 21.4%; Adjusted diluted EPS of $1.52, up 9.4% Consolidated Adjusted EBITDA of $91.2 million or 21.4% of sales, versus prior year of $90.7 million, or 22.5% of sales Segment Adjusted EBITDA margin of 30.3% for Metal Coatings and 19.7% for Precoat Metals Repurchased 201,416 shares of common stock, or $20.0 million at an average purchase price of $99.28 Net leverage ratio 1.6x; debt reduction in the quarter of $35 million; year-to-date $325.4 million Cash provided by operating activities in the quarter of $79.7 million, up 20% from last year Cash dividend of $0.20 per share to common shareholders paid during the quarter Subsequent to the quarter end, Avail Infrastructure Solutions ("AVAIL"), completed the sale of the majority of its Welding Solutions LLC business (the "Welding Solutions Business") to Pelican Energy Partners L.P.

AZZ Inc. (NYSE: AZZ) will release earnings results for its third quarter after the closing bell on Wednesday, Jan. 7, 2025.

In the most recent trading session, AZZ (AZZ) closed at $107.18, indicating a -1.57% shift from the previous trading day.

AZZ (AZZ) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

AZZ Inc. presents an attractive buy due to a valuation disconnect driven by cyclical weakness in precoat metals, while Metal Coatings benefits from infrastructure tailwinds. AZZ trades at a discount to infrastructure peers despite higher margins, strong cash generation, and reduced net leverage at 1.7x, positioning it as a low-risk, high-upside opportunity. The Metal Coatings segment delivers 10.8% YoY sales growth and 30.8% EBITDA margin, supported by infrastructure demand and the Infrastructure Investment and Jobs Act.

AZZ Inc. remains a soft 'buy' as shares are modestly undervalued and management guides for continued growth. Revenue and adjusted earnings are rising, though recent results are mixed due to one-time events and segment volatility. AZZ Metal Coatings outperforms, offsetting Precoat Metals' weakness from tariffs and soft demand; infrastructure projects drive optimism.