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AZZ Inc. Q3 Fiscal Year 2026 Results Overview

AZZ Inc., a prominent player in the hot-dip galvanizing and coil coating sectors, recently shared its financial outcomes for the third quarter ended on November 30, 2025. The company's robust operational strength significantly contributed to its sales and earnings performance, with total sales reaching an impressive $425.7 million, marking a 5.5% increase compared to the previous year.

Financial Breakdown

The company's revenue streams demonstrated mixed outcomes. Notably, Metal Coatings sales surged to $195.0 million, reflecting an astonishing 15.7% growth driven by increasing volume from infrastructure-related projects. Conversely, Precoat Metals experienced a slight decline, with sales falling to $230.7 million, a dip of 1.8% due to reduced demand in certain end markets, particularly building construction and HVAC.

The net income for the quarter stood at $41.1 million, indicating a remarkable 22.2% increase year over year, with adjusted net income also rising by 9.7% to $46.0 million. This performance translated to a GAAP diluted earnings per share (EPS) of $1.36, up 21.4%, while adjusted diluted EPS reached $1.52, up 9.4%. Furthermore, consolidated adjusted EBITDA hit $91.2 million, representing 21.4% of sales, showcasing a solid operational performance.

Segment Performance

In detail, the Metal Coatings segment achieved a remarkable adjusted EBITDA margin of 30.3%, albeit with a slight decline from the previous quarter, attributed to a higher mix of specialized projects like electrical and solar. Conversely, the Precoat Metals segment improved its EBITDA margin to 19.7% due to effective cost management despite lower sales figures.

Strategic Actions and Debt Management

AZZ Inc. has strategically repurchased 201,416 shares of common stock, costing approximately $20.0 million, reflecting the company's commitment to enhancing shareholder value. The company also reported a net leverage ratio of 1.6x, driven by a debt reduction of $35 million during the quarter, which curtailed the total debt to about $534.7 million. Additionally, operating cash flows surged to $79.7 million, up 20% from the prior year, allowing the firm to maintain a robust liquidity position.

As CEO Tom Ferguson highlighted, the company remains optimistic about its strategic direction and operational momentum. "We continue to ramp up sales at our new facility in Washington, Missouri, and we are prepared to navigate the evolving market landscape as we move into 2026. Our commitment to disciplined operational execution has been pivotal in driving our recent success."

Future Outlook

Looking towards the fiscal year ahead, AZZ Inc. has narrowed its annual guidance range, projecting total sales between $1.625 billion and $1.7 billion, with adjusted EBITDA anticipated in the $360 million to $380 million bracket. The adjusted diluted EPS guidance for the fiscal year is projected between $5.90 and $6.20. These estimates reflect the company's confidence in sustainable growth driven by infrastructural investments and a well-managed operational framework.

AZZ's resilience amidst fluctuating market demands showcases its strategic focus and operational capabilities, solidifying its position as a leader in metal coatings. The ongoing commitment to enhancing production capacity and improving customer service remains a priority for the foreseeable future.

For further updates, stakeholders are encouraged to tune into the Q3 earnings conference call scheduled for January 8, 2026, where management will discuss the financial results and future strategies to capitalize on emergent market opportunities.