AZZ (AZZ) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 0.61%
• Average Volume (3M): 290.64K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.23
• Revenue Growth: 1.70%
• EPS Growth: 684.20%
• Country: US
• Employees: 3,684
• Sector: Industrials
• Sector Strength: 76
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.78
• Shares Outstanding: 30,014,036
• 10 Day Avg. Volume: 218,267
• 30 Day Avg. Volume: 290,643
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $121.75
• Price Target Upside: 4.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $129.00 ▲(10.79% Upside)

AZZ's overall stock score of 80 reflects its strong financial performance, positive earnings call sentiment, and solid technical indicators. The company's effective debt management and strategic initiatives further enhance its investment appeal. While the valuation is fair, the modest dividend yield is a secondary consideration.

Positive Factors

Financial Performance

Steady organic growth, operational efficiencies, and expanding free cash flow drive a Buy rating with a price target of $108.

Market Position

AZZ is the US leader in galvanizing and coating with significant market shares, providing opportunities for continued expansion.

Negative Factors

Market Uncertainty

Private sector project spending has reverted lower in recent months given heightened levels of market uncertainty.

Volume Growth

The 2FQ deceleration in volume growth is a partial offset to the margin gains given some concern over the sustainability of the elevated profitability profile.

AZZ Business Overview & Revenue Model

Company Description

AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. The company operates through two segments, Infrastructure Solutions and Metal Coatings. The Metal Coatings segment offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. This segment sells its products through internal sales force, manufacturers' representatives, distributors, and agents. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.

How the Company Makes Money

AZZ generates revenue through its two main segments: Metal Coatings and Electrical. In the Metal Coatings segment, the company earns money by providing hot-dip galvanizing services, which involves coating steel products to prevent corrosion. This service is essential for industries that require durable steel structures, such as construction and infrastructure projects. The Electrical segment contributes to revenue through the sale of electrical equipment and services, including products used in power generation, transmission, and distribution. Key revenue streams include service contracts, product sales, and project-based contracts. Additionally, AZZ benefits from strategic partnerships with various companies in the construction and energy sectors, which help to secure long-term contracts and expand its market presence. Factors contributing to its earnings include the increasing demand for corrosion-resistant materials and a growing focus on infrastructure development.

AZZ Financial Statement Overview

Summary

AZZ exhibits strong financial performance with notable revenue growth and improved profitability. The company has effectively managed its debt, leading to a stronger balance sheet. Cash flow metrics are robust, reflecting excellent cash generation capabilities. While historical high leverage remains a consideration, the current financial health is solid, positioning AZZ well for future growth.

Income Statement

AZZ has demonstrated strong revenue growth with a significant increase from $902.7M in 2022 to $1,586.5M TTM. The gross profit margin improved to approximately 24.2%, indicating solid profitability. Net profit margin also increased to 16.4% TTM, showcasing effective cost management. The EBIT and EBITDA margins are robust at 14.9% and 19.5% respectively, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, declining from 1.73 in 2023 to a more manageable 0.02 TTM, primarily due to debt reduction. The return on equity is impressive at 21.4% TTM, reflecting strong profitability relative to shareholder investment. The equity ratio is healthy at 56.3%, indicating a strong equity base. However, the previous high leverage poses a potential risk.

Cash Flow

AZZ's free cash flow has shown remarkable growth, increasing to $383.4M TTM. The operating cash flow to net income ratio is exceptionally high at 1.89, indicating strong cash generation from operations. The free cash flow to net income ratio of 1.47 further supports the company's ability to generate cash beyond its net income, enhancing financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.59B	1.58B	1.54B	1.32B	525.60M	480.57M
Gross Profit	384.14M	382.68M	363.46M	295.94M	146.15M	122.90M
EBITDA	506.30M	334.17M	316.59M	252.06M	111.47M	105.25M
Net Income	260.14M	128.83M	101.61M	79.11M	84.02M	39.61M
Balance Sheet
Total Assets	2.16B	2.23B	2.20B	2.22B	1.13B	996.44M
Cash, Cash Equivalents and Short-Term Investments	3.04M	1.49M	4.35M	2.82M	12.08M	14.84M
Total Debt	598.18M	879.13M	977.23M	1.09B	241.18M	217.67M
Total Liabilities	944.89M	1.18B	1.26B	1.37B	465.66M	373.15M
Stockholders Equity	1.21B	1.05B	934.49M	853.46M	667.37M	623.29M
Cash Flow
Free Cash Flow	383.36M	134.03M	149.35M	34.31M	57.60M	54.96M
Operating Cash Flow	492.75M	249.91M	244.47M	91.43M	86.01M	92.03M
Investing Cash Flow	-104.74M	-115.00M	-95.06M	-1.23B	-86.83M	-28.59M
Financing Cash Flow	-395.67M	-138.69M	-147.89M	1.15B	912.00K	-88.42M

AZZ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZZ, the sentiment is Positive. The current price of 116.44 is above the 20-day moving average (MA) of 112.02, above the 50-day MA of 105.96, and above the 200-day MA of 92.66, indicating a bullish trend. The MACD of 2.52 indicates Positive momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZZ.

AZZ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	80 Outperform	$3.47B	13.36	23.85%	0.61%	1.70%	684.20%
IIIN	75 Outperform	$750.77M	24.14	8.87%	2.89%	9.44%	53.83%
WOR	74 Outperform	$3.33B	34.83	10.52%	1.01%	-60.43%	-14.19%
NWPX	72 Outperform	$510.21M	15.91	9.14%	―	5.83%	33.50%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
RYI	62 Neutral	$739.29M	37.86	-1.73%	3.29%	-7.98%	-124.63%
MEC	61 Neutral	$296.84M	17.23	7.37%	―	-16.95%	66.04%

AZZ Corporate Events

AZZ Unveils New Investor Presentation Materials

On August 14, 2025, AZZ Inc. announced the release of presentation materials intended for use with investors and stakeholders, highlighting its strategic focus on metal coatings and sustainability initiatives. The company emphasized its commitment to growth through operational improvements, strategic acquisitions, and disciplined capital allocation, aiming to enhance shareholder value and maintain a strong market position in the North American steel and aluminum sectors.

AZZ Inc. Successfully Reprices $434.9 Million Term Loan

On August 5, 2025, AZZ Inc. announced the successful repricing of its $434.9 million Term Loan B, reducing the interest rate margin by 75 basis points to SOFR + 175 basis points, resulting in annual interest savings of approximately $3.3 million. This marks the fourth repricing since the loan’s issuance in May 2022, achieving total interest rate margin savings of 250 basis points, and reflects AZZ’s disciplined approach to managing its net debt to EBITDA leverage ratio, which stood at 1.7x as of May 2025.

AZZ Secures $150 Million Securitization Facility

On July 10, 2025, AZZ Inc. and its subsidiaries entered into a three-year $150 million accounts receivable securitization facility with Wells Fargo Bank. This facility allows AZZ SPE-1 LLC, a special purpose subsidiary, to draw up to $150 million in revolving loans, aimed at reducing interest costs by paying down existing debt. The securitization facility, which includes various agreements and covenants, is designed to enhance AZZ’s financial flexibility and operational efficiency by securing lower interest rates and providing structured financing options.

AZZ Releases Investor Presentation Highlighting Growth Strategy

On July 10, 2025, AZZ Inc. announced the release of presentation materials intended for investors and stakeholders, highlighting its strategic focus on growth and sustainability. The company aims to reduce debt, improve leverage, and support high return on invested capital (ROIC) investments while maintaining a commitment to environmental, social, and governance (ESG) initiatives. Recent achievements include a reduction in net leverage, an increase in dividends, and the acquisition of Canton Galvanizing, reflecting AZZ’s robust growth strategy and commitment to shareholder value.

AZZ Shareholders Approve Key Proposals at Annual Meeting

On July 8, 2025, AZZ Inc. held its annual meeting of shareholders where three proposals were approved. These included the election of seven directors for a one-year term, approval of the executive compensation program, and ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending February 28, 2026. The approval of these proposals reflects shareholder support for the company’s leadership and financial oversight, potentially impacting its governance and operational strategies.

AZZ Increases Dividend by 17.6% for Q1 2026

On June 26, 2025, AZZ Inc. announced a 17.6% increase in its fiscal year 2026 first quarter cash dividend, raising it from $0.17 to $0.20 per share, payable on July 31, 2025. This decision reflects AZZ’s commitment to enhancing shareholder value while considering factors like operating results and financial condition.