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AZZ
(NYSE:AZZ)
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Rating:82Outperform
Price Target:
$177.00
▲(28.97% Upside)
Action:Reiterated
Date:06/26/26
AZZ scores well primarily on improved financial performance—stronger balance sheet, sharply higher operating cash flow and free cash flow, and rebounding profitability. Technicals add support with a clear uptrend and healthy momentum. Valuation is reasonable on earnings but the low dividend yield limits the valuation contribution, while the earnings call remains constructive on FY2027 guidance despite segment softness and JV-related volatility.
Positive Factors
Balance Sheet Strength
A dramatic reduction in leverage and a stronger equity base materially improve financial flexibility for durable uses: funding capex, paying dividends, opportunistic M&A, and withstanding cyclical downturns. Sustained low leverage lowers interest expense risk and preserves strategic optionality.
Negative Factors
AVAIL JV Volatility
Significant, unpredictable JV swings can materially distort GAAP results, tax timing, and cash flows quarter-to-quarter. Reliance on large JV distributions and nonrecurring JV gains raises earnings variability and complicates forward-looking profit and cash visibility for investors and management planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A dramatic reduction in leverage and a stronger equity base materially improve financial flexibility for durable uses: funding capex, paying dividends, opportunistic M&A, and withstanding cyclical downturns. Sustained low leverage lowers interest expense risk and preserves strategic optionality.
Read all positive factors
AZZ Key Performance Indicators (KPIs)
AZZ (AZZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.50B
Dividend Yield0.67%
Average Volume (3M)254.56K
Price to Earnings (P/E)14.2
Beta (1Y)1.18
Revenue Growth4.58%
EPS Growth556.92%
CountryUS
Employees3,684
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)10.58
Shares Outstanding30,016,619
10 Day Avg. Volume325,391
30 Day Avg. Volume254,565
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.05
Price to Sales (P/S)2.47
P/FCF Ratio9.16
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit12.91
Enterprise Value/Ebitda9.01
Forecast
1Y Price Target
$156.00Price Target Upside13.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)6.84
Revenue Forecast (FY)$1.75B
AZZ Business Overview & Revenue Model
Company Description
AZZ Inc. specializes in a comprehensive range of services and products, encompassing metal coating and galvanizing processes, welding expertise, specialized electrical equipment, and engineered solutions. The company serves a diverse client base a...
How the Company Makes Money
AZZ makes money mainly by providing metal coating services (most notably hot-dip galvanizing) to customers that manufacture or fabricate steel products used in infrastructure and industrial end markets. Revenue is generated from service fees charg...
AZZ Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 08, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: record full-year revenue and profitability, robust Metal Coatings growth, margin expansion in the quarter, meaningful debt reduction, strong cash generation (including significant JV distributions), successful ramp of the Washington facility, and confident FY2027 guidance. Notable negatives include softness in Precoat Metals (residential and some nonresidential pressure), a Q4 loss and timing volatility from the AVAIL joint venture that reduced GAAP earnings and increased cash taxes, ongoing commodity and input inflation, and some demand timing uncertainty due to limited backlog. On balance, the financial and operational positives and the reiterated, upwardly framed guidance outweigh the headwinds.Positive Updates
Record Sales and Profitability
Full year sales of $1.65 billion, up ~4.6% YoY, marking record sales and profitability for the third consecutive year; consolidated adjusted EBITDA of $367.6 million (22.3% of sales) and adjusted EPS of $6.19, up 19% YoY.
Negative Updates
Precoat Metals Softness
Precoat Metals full year sales declined ~2.3% YoY (Q4 down ~2.4%); segment impacted by industry-wide softness in residential and pockets of construction, transportation and HVAC demand; management expects Precoat to be roughly flat in FY2027 with near-term headwinds.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Sales and Profitability
Full year sales of $1.65 billion, up ~4.6% YoY, marking record sales and profitability for the third consecutive year; consolidated adjusted EBITDA of $367.6 million (22.3% of sales) and adjusted EPS of $6.19, up 19% YoY.
Read all positive updates
Company Guidance
AZZ reiterated fiscal 2027 guidance calling for sales of $1.725–$1.775 billion, adjusted EBITDA of $360–$400 million, and adjusted diluted EPS of $6.50–$7.00, while estimating debt reduction of $130–$170 million and assuming roughly $90 million of capex at the midpoint; management noted this outlook does not assume incremental M&A benefits. For context, FY2026 delivered record sales of $1.65 billion, adjusted EBITDA of $367.6 million (22.3% of sales), adjusted EPS of $6.19, $80.8 million of capex for the year (≈$125 million invested in the Washington facility over three years), $23 million of cash dividends paid, $20 million of share repurchases, and year-end net debt-to-EBITDA of ~1.4x after $385 million of debt reduction.AZZ Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.65B | 1.58B | 1.54B | 1.32B | 525.60M |
| Gross Profit | 394.95M | 382.68M | 363.46M | 295.94M | 146.15M |
| EBITDA | 566.02M | 334.17M | 316.59M | 252.06M | 111.47M |
| Net Income | 317.26M | 128.83M | 101.61M | -52.97M | 84.02M |
Balance Sheet | |||||
| Total Assets | 2.21B | 2.23B | 2.20B | 2.22B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 705.00K | 1.49M | 4.35M | 2.82M | 12.08M |
| Total Debt | 538.39M | 879.13M | 977.23M | 1.09B | 241.18M |
| Total Liabilities | 876.44M | 1.18B | 1.26B | 1.37B | 465.66M |
| Stockholders Equity | 1.34B | 1.05B | 934.49M | 853.46M | 667.37M |
Cash Flow | |||||
| Free Cash Flow | 444.67M | 134.03M | 149.35M | 13.04M | 57.60M |
| Operating Cash Flow | 525.45M | 249.91M | 244.47M | 70.16M | 86.01M |
| Investing Cash Flow | -91.48M | -115.00M | -95.06M | -1.23B | -86.83M |
| Financing Cash Flow | -434.12M | -138.69M | -147.89M | 1.15B | 912.00K |
AZZ Technical Analysis
Neutral
137.24
Price Trends
144.88
Positive
137.59
Positive
123.19
Positive
Market Momentum
3.11
Positive
51.49
Neutral
19.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZZ, the sentiment is Neutral. The current price of 137.24 is below the 20-day moving average (MA) of 150.10, below the 50-day MA of 144.88, and above the 200-day MA of 123.19, indicating a neutral trend. The MACD of 3.11 indicates Positive momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AZZ.
AZZ Risk Analysis
AZZ disclosed 35 risk factors in its most recent earnings report. AZZ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AZZ Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.50B | 14.18 | 24.53% | 0.67% | 4.58% | 556.92% | |
78 Outperform | $1.32B | 31.55 | 10.73% | ― | 10.67% | 30.61% | |
75 Outperform | $1.82B | 70.74 | 3.84% | ― | 9.43% | 80.11% | |
69 Neutral | $2.69B | 17.11 | 11.58% | 1.27% | 19.72% | 63.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $581.44M | 13.66 | 11.72% | 3.49% | 20.94% | 88.74% |
* Industrials Sector Average
AZZ
AZZ
150.01
51.87
52.86%
IIIN
Insteel Industries
29.92
-7.20
-19.39%
NWPX
Northwest Pipe Company
136.92
94.78
224.92%
PRLB
Proto Labs
76.40
35.86
88.46%
WOR
Worthington Industries
54.57
-8.75
-13.82%
AZZ Corporate Events
Business Operations and StrategyDividends
AZZ Boosts Quarterly Dividend, Signaling Confidence and Growth
Positive
Jun 25, 2026
On June 25, 2026, AZZ Inc. announced that its board declared a fiscal 2027 first-quarter cash dividend of $0.24 per share on its common stock, payable on July 30, 2026, to shareholders of record as of July 9, 2026. The payout represents a 20% incr...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
AZZ Highlights Metal Coatings Strategy and Transformation Progress
Positive
May 28, 2026
On May 28, 2026, AZZ Inc. released updated investor presentation materials outlining its strategy as a focused metal coatings company, including hot-dip galvanizing and coil coating operations positioned for secular growth in North American steel ...
Business Operations and StrategyPrivate Placements and Financing
AZZ Extends Revolving Credit Facility, Lowers Borrowing Costs
Positive
May 8, 2026
On May 7, 2026, AZZ Inc. executed a Seventh Amendment to its existing credit agreement with Wells Fargo Bank and a group of lenders, extending the maturity of its revolving credit commitments to May 7, 2029 and replacing the prior commitments in f...
Dividends
AZZ Declares Fiscal Q4 2026 Cash Dividend
Positive
Apr 9, 2026
On April 9, 2026, AZZ Inc. announced that its board of directors declared a fiscal 2026 fourth-quarter cash dividend of $0.20 per share on its outstanding common stock. The dividend will be paid on May 14, 2026, to shareholders of record as of the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.