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AZZ Inc. Announces a New Share Repurchase Program

AZZ Inc., recognized as a leading independent provider of hot-dip galvanizing and coil coating solutions, has recently announced the implementation of a new share repurchase program. This initiative, referred to as the 2026 Share Repurchase Program, allows the company to buy back up to $100 million of its outstanding common stock. The Board of Directors approved this program due to its belief in the continued financial resilience and operational strength of AZZ. This strategic move is intended to primarily counterbalance the dilutive effects of equity grants provided to employees over time.

Key Components of the 2026 Share Repurchase Program

The newly launched share repurchase program is designed to operate in conjunction with the previous $100 million common stock repurchase initiative authorized in November 2020. Management views this new program as fundamentally similar in nature to its predecessor, aiming to maintain a robust balance sheet while fostering shareholder trust and confidence in the company's future.

As of the conclusion of AZZ's third quarter for fiscal year 2026, approximately 30 million shares of AZZ common stock were reported as issued and outstanding. Moreover, about $33.2 million remained available for repurchases under the earlier program. The flexibility in executing these repurchases could occur through various methods, including open market purchases and private transactions, all while adhering to applicable federal securities laws, such as Rule 10b-18 under the Securities Exchange Act of 1934.

Management's Confidence in Future Outlook

AZZ President and CEO, Tom Ferguson, expressed his satisfaction with the company’s strong financial performance for the fiscal year to date. He articulated that, given the current market conditions, engaging in share buybacks at the existing valuation represents a prudent allocation of capital. Ferguson emphasized that the continuation of this stock repurchase program not only reinforces management's confidence in the operational stability of AZZ but also aims to augment shareholder value further.

Factors Influencing Buyback Decisions

Despite the positive outlook surrounding the repurchase program, AZZ highlighted that the actual timing and volume of stock purchases will depend on multiple variables. These include potential constraints defined in any trading plans under Rule 10b5-1, future market prices for its shares, prevailing economic conditions, and other investment opportunities that may arise. The company has assured stakeholders that any updates regarding share repurchases will be consistently shared in periodic reports, specifically in Form 10-Q and Form 10-K filings with the Securities and Exchange Commission.

About AZZ Inc.

AZZ Inc. is a distinguished player in the hot-dip galvanizing and coil coating sector, serving a range of end markets that demand durability and aesthetics in their products. The company's innovative metal coating solutions are designed to extend the lifespan and visual appeal of buildings, infrastructure, and products essential for everyday life.

Moreover, the financial report preceding this announcement notes the external economic factors that could influence AZZ's operations, including shifts in production costs due to inflationary pressures and customer demand variations. With these developments in mind, AZZ remains committed to its strategic growth objectives while maintaining a proactive approach to shareholder engagement and value enhancement.

In conclusion, the introduction of the 2026 Share Repurchase Program signifies AZZ Inc.'s ongoing commitment to maximizing shareholder returns while addressing potential challenges and opportunities in the market. As the company moves forward, investors and stakeholders will undoubtedly be keeping a close watch on its implementation and the corresponding impact on AZZ's market presence.