#United States #Fort Worth #AZZ Inc. #Metal Coatings #Precoat Metals

AZZ Inc. Releases Fiscal Year 2026 Second Quarter Performance Overview

Financial Highlights

On October 8, 2025, AZZ Inc. (NYSE: AZZ), a prominent provider of hot-dip galvanizing and coil coating solutions, unveiled its financial results for the second quarter, concluding on August 31, 2025. The company reported total sales of $417.3 million, marking a 2.0% increase compared to the previous fiscal year's second quarter.

Key statistics from this quarter include:

• - Metal Coatings sales: $190.0 million, rising 10.8%
• - Precoat Metals sales: $227.3 million, decreasing 4.3%
• - Net Income: $89.3 million, reflecting a significant 152.3% increase; adjusted net income rose to $46.9 million, up 13.8%
• - GAAP diluted EPS: $2.95 per share, a 150% increase; adjusted diluted EPS reached $1.55, increasing 13.1%

Despite the slight dip in total earnings before interest, taxes, depreciation, and amortization (EBITDA), which stood at $88.7 million or 21.3% of sales, the company remains optimistic about its ability to meet annual guidance metrics.

Segment Performance Breakdown

The Metal Coatings segment exhibited robust performance with sales driven by ongoing infrastructure projects, including construction and electrical distribution. This surge contributed to an Adjusted EBITDA margin of 30.8% despite a slight decline in margin from the prior year. Conversely, the Precoat Metals segment faced challenges due to demand weaknesses in several sectors, including building construction, HVAC, and appliance manufacturing, resulting in a drop in sales and a 90-basis-point reduction in EBITDA margin, now sitting at 20.2%.

Strategic Focus and Future Outlook

During the quarter, AZZ solidified its financial stability by implementing an Accounts Receivable securitization program and successfully decreasing the interest rate on its Term Loan B, coupled with a modest debt paydown. At the end of the second quarter, the company reported a net debt leverage ratio of 1.7x, positioning it favorably for ongoing operations.

Looking ahead, AZZ Inc. is maintaining its financial guidance for FY 2026, estimating sales between $1.625 billion and $1.725 billion and an adjusted EBITDA of $360 million to $400 million. The executive team remains vigilant, monitoring customer trends while capitalizing on M&A opportunities to further strengthen the company’s future growth.

Conclusion

Tom Ferguson, President and CEO, praised the dedicated workforce at AZZ Inc. for their remarkable contributions, emphasizing the commitment to delivering quality service. The second quarter's results reflect a calculated approach to navigating market dynamics, ultimately positioning AZZ Inc. for sustainable growth moving forward.

Upcoming Conference Call

AZZ Inc. will host a live conference call on October 9, 2025, at 11:00 A.M. ET to discuss these results in greater detail. Interested stakeholders can join by dialing (844) 855-9499 or (412) 317-5497 for international access. A recording will also be made available on the Company’s Investor Relations page.

In summary, AZZ Inc. successfully navigated its second quarter of FY 2026, showcasing resilience amid fluctuating market conditions while continuing to focus on growth opportunities across its segments.