AZZ (AZZ) AI Stock Analysis

• Market Cap: $3.98B
• Dividend Yield: 0.67%
• Average Volume (3M): 152.08K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.20
• Revenue Growth: 1.55%
• EPS Growth: 701.41%
• Country: US
• Employees: 3,684
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.52
• Shares Outstanding: 29,855,665
• 10 Day Avg. Volume: 176,287
• 30 Day Avg. Volume: 152,079
• PEG Ratio: -0.45
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 11.93
• Enterprise Value/Ebitda: 8.06
• 1Y Price Target: $131.83
• Price Target Upside: -2.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.07
• Revenue Forecast (FY): $1.65B

• Rating: 79 Outperform
• Price Target: $157.00 ▲(16.38% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial performance (materially higher profitability, cash flow, and improved leverage) and a constructive earnings outlook with narrowed guidance. These positives are moderated by technically overbought conditions that raise near-term pullback risk, while valuation appears reasonable on earnings but offers limited dividend support.

Positive Factors

Improved Profitability

AZZ's materially higher margins indicate a structural improvement in mix and operational efficiency, driven by higher‑value Metal Coatings and container volumes. Sustained margins at these levels would lock in stronger cash generation and reinvestment capacity, raising long‑term return potential.

Strong Cash Generation

High operating and free cash flow provide durable financial flexibility: supports debt reduction, capacity investments, dividends, and buybacks. If AZZ sustains this conversion, it reduces refinancing risk and funds organic growth and capital allocation priorities over the next several quarters.

Market Leadership in Coatings

Leadership in galvanizing and coil coating confers scale, customer stickiness, and pricing leverage in infrastructure, utilities, and packaging end markets. Combined with targeted capacity investments and reshoring trends, this bolsters durable demand and competitive advantage across core segments.

Negative Factors

Volatile Leverage

Wide swings in leverage suggest capital structure and cash allocation have varied materially, which raises uncertainty about repeatability of current low‑debt position. Episodic leverage increases could constrain flexibility or force tradeoffs between M&A, buybacks, and investment in capacity.

Precoat Demand Softness

Exposure to soft construction and transportation end markets makes Precoat revenues cyclical and vulnerable to imports. Persistent weakness would weigh on consolidated growth and margins, limiting AZZ's ability to rely on this segment for sustained top‑line expansion.

JV / Equity Earnings Headwinds

Material variability in JV and equity earnings introduces volatility to reported results and can obscure core operating performance. Ongoing divestiture impacts and overhead drag from partners may soften near‑term consolidated profitability despite strong standalone cash flow.

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 multiple streams, primarily by offering galvanizing services and manufacturing electrical products. The galvanizing segment contributes significantly to the company's earnings by providing protective coatings for steel, which is essential for construction and infrastructure projects. The electrical segment includes manufacturing and selling electrical equipment, such as enclosures and power distribution units, which cater to industries like utilities, oil and gas, and construction. Key partnerships with major construction and utility companies bolster AZZ's market presence and revenue stability. Additionally, the company benefits from long-term contracts and repeat business from customers in various sectors, ensuring a steady cash flow.

AZZ Financial Statement Overview

Summary

Strong TTM step-up in profitability and cash generation, with markedly improved balance-sheet leverage and high returns. Key risk is durability: results and leverage have shown volatility across periods, making repeatability the main watch-out.

Income Statement

Profitability has strengthened materially. In TTM (Trailing-Twelve-Months), revenue is up sharply (about +139% vs. the prior annual period) and margins are very strong (gross margin ~24%, net margin ~20%, with high operating profitability). This is a major improvement versus recent annual periods where net margins were mid‑single digits and there was a loss in 2023. The key watch-out is that the TTM jump is unusually large relative to the prior-year growth trend, which can signal a step-change event and may be harder to repeat.

Balance Sheet

Leverage and equity strength improved significantly in TTM (Trailing-Twelve-Months): debt is very low relative to equity (debt-to-equity ~0.02) and return on equity is strong (~27%). This is a notable turnaround from 2023–2025 annual periods when debt-to-equity ran high (~0.84–1.24). The main risk is the apparent volatility in leverage across periods, suggesting the capital structure may be undergoing meaningful change rather than following a steady, predictable path.

Cash Flow

Cash generation is strong in TTM (Trailing-Twelve-Months), with operating cash flow of ~$517M and free cash flow of ~$429M, and a large free-cash-flow increase versus the prior annual period. Cash conversion is solid with free cash flow at ~83% of net income, supporting earnings quality. That said, cash-flow performance has been uneven historically (including weaker operating cash flow relative to earnings in earlier years), so sustaining the current elevated run-rate is the key question.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	1.62B	1.58B	1.54B	1.32B	525.60M	480.57M
Gross Profit	386.08M	382.68M	363.46M	295.94M	146.15M	122.90M
EBITDA	571.66M	334.17M	316.59M	252.06M	111.47M	79.99M
Net Income	321.54M	128.83M	101.61M	-52.97M	84.02M	39.61M
Balance Sheet
Total Assets	2.23B	2.23B	2.20B	2.22B	1.13B	996.44M
Cash, Cash Equivalents and Short-Term Investments	623.00K	1.49M	4.35M	2.82M	12.08M	14.84M
Total Debt	566.61M	879.13M	977.23M	1.09B	241.18M	217.67M
Total Liabilities	911.66M	1.18B	1.26B	1.37B	465.66M	375.94M
Stockholders Equity	1.32B	1.05B	934.49M	853.46M	667.37M	623.29M
Cash Flow
Free Cash Flow	428.52M	134.03M	149.35M	13.04M	57.60M	54.96M
Operating Cash Flow	517.18M	249.91M	244.47M	70.16M	86.01M	92.03M
Investing Cash Flow	-114.89M	-115.00M	-95.06M	-1.23B	-86.83M	-28.59M
Financing Cash Flow	-403.11M	-138.69M	-147.89M	1.15B	912.00K	-88.42M

AZZ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.90
• 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 134.9 is above the 20-day moving average (MA) of 130.24, above the 50-day MA of 120.10, and above the 200-day MA of 107.10, indicating a bullish trend. The MACD of 4.83 indicates Positive momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 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	79 Outperform	$3.98B	12.53	27.38%	0.67%	1.55%	701.41%
NWPX	78 Outperform	$698.53M	20.02	9.78%	―	7.61%	25.35%
PRLB	72 Outperform	$1.56B	74.67	3.16%	―	2.82%	-34.29%
WOR	70 Outperform	$2.81B	26.76	11.31%	1.27%	7.43%	148.83%
IIIN	68 Neutral	$718.83M	15.25	13.77%	3.49%	22.39%	112.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RYI	52 Neutral	$1.22B	-33.57	-2.81%	2.84%	-4.89%	-214.50%

AZZ Corporate Events

AZZ Updates Strategy and Performance as Metal Coatings Leader

On February 12, 2026, AZZ Inc. released updated investor presentation materials outlining its strategy and recent performance as a focused metal coatings company. The deck highlighted AZZ’s #1 market positions in North American galvanizing and coil coating, trailing 12‑month sales of about $1.62 billion and adjusted EBITDA of $399 million, and its emphasis on environmentally friendly coatings that support the shift to pre‑painted steel and aluminum.

Management detailed progress since its FY 2022 strategic transformation, including divesting most of its Infrastructure Solutions segment, acquiring Precoat Metals and Canton Galvanizing, investing $125 million in a new coil coating facility, and cutting debt by more than $350 million over the year to November 30, 2025. AZZ reiterated its leverage target of 1.5x‑2.5x, reported net leverage of 1.6x, and underscored capital returns via higher dividends and share buybacks, positioning the group to outgrow its markets on the back of infrastructure spending, reshoring and rising demand for coated metals.

The most recent analyst rating on (AZZ) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on AZZ stock, see the AZZ Stock Forecast page.

AZZ Announces Leadership Transition in Metal Coatings Division

On January 28, 2026, AZZ Inc. announced that Bryan Stovall, President and Chief Operating Officer – Metal Coatings, plans to retire at the end of his current employment agreement on June 8, 2026. To ensure a smooth leadership transition in its metal coatings business, the company has appointed long-time executive Todd Bella as President – Metal Coatings effective March 1, 2026, with Stovall remaining as Chief Operating Officer – Metal Coatings until his retirement to support the handover. Bella, who has progressed through a series of sales, plant management, regional operations, and senior vice president roles since joining AZZ in 2007, assumes the top position in the segment without any special appointment arrangements, family relationships with other leaders, or related-party transactions requiring disclosure, underscoring a continuity-based, internally driven succession plan for the division.

The most recent analyst rating on (AZZ) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on AZZ stock, see the AZZ Stock Forecast page.

AZZ Declares Fiscal Q3 2026 Cash Dividend

On January 7, 2026, AZZ Inc. announced that its board of directors declared a fiscal 2026 third-quarter cash dividend of $0.20 per share on its common stock, payable on February 26, 2026, to shareholders of record as of February 5, 2026. The move underscores AZZ’s ongoing emphasis on returning capital to shareholders and signals continued confidence in its operating performance and financial condition, while noting that future dividends will remain subject to board review and broader business and market factors.

The most recent analyst rating on (AZZ) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on AZZ stock, see the AZZ Stock Forecast page.