Azz Inc. (AZZ)
NYSE:AZZ
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AZZ
(NYSE:AZZ)
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Rating:78Outperform
Price Target:
$151.00
▲(16.87% Upside)
Action:ReiteratedDate:03/05/26
The score is led by strong TTM financial performance and a positive earnings outlook with narrowed guidance and solid capital allocation. Offsetting factors are mixed near-term technical signals and only moderate valuation support given the low dividend yield.
Positive Factors
Balance Sheet Strength
AZZ's TTM balance sheet shows very low leverage and a high ROE, providing durable financial flexibility. Low debt supports continued debt paydown, capacity to fund capex and M&A, and maintain dividends/buybacks, reducing bankruptcy and refinancing risk during downturns.
Negative Factors
Step-change Durability Risk
The TTM step-up in revenue and profitability is unusually large versus prior periods, indicating concentration or timing effects. Such abrupt improvements can be hard to replicate, creating risk that margins and cash flow could revert if project timing, one-offs, or JV/divestiture impacts normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
AZZ's TTM balance sheet shows very low leverage and a high ROE, providing durable financial flexibility. Low debt supports continued debt paydown, capacity to fund capex and M&A, and maintain dividends/buybacks, reducing bankruptcy and refinancing risk during downturns.
Read all positive factors
AZZ (AZZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.86B
Dividend Yield0.67%
Average Volume (3M)191.02K
Price to Earnings (P/E)19.1
Beta (1Y)1.18
Revenue Growth1.55%
EPS Growth701.41%
CountryUS
Employees3,684
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)1.52
Shares Outstanding29,855,665
10 Day Avg. Volume200,407
30 Day Avg. Volume191,023
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)2.67
Price to Sales (P/S)1.77
P/FCF Ratio20.86
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.75
Enterprise Value/Gross Profit11.52
Enterprise Value/Ebitda7.78
Forecast
1Y Price Target
$135.50Price Target Upside4.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)6.78
Revenue Forecast (FY)$1.75B
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 inte...
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 stee...
AZZ Key Performance Indicators (KPIs)
AZZ Earnings Call Summary
Earnings Call Date:Jan 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: record quarterly sales, record trailing adjusted EBITDA, improved EPS, strong Metal Coatings growth, successful ramp of new container capacity, active capital allocation (debt paydown, buybacks, maintained dividend) and narrowed, confident FY2026 guidance. Offsets include a modest contraction in adjusted EBITDA margin and gross margin percentages, a small decline in Precoat Metals sales due to construction softness and import dynamics, and AVAIL-related equity earnings headwinds that temporarily reduce consolidated earnings contributions. On balance, the positive, company-driven achievements and forward-looking guidance outweigh the identified headwinds.Positive Updates
Record Quarterly Sales
Q3 record sales of $425.7M (reported as $426M), up 5.5% YoY from $403.7M, the highest quarterly revenue in company history.
Negative Updates
Precoat Metals Sales Decline
Precoat Metals sales were down 1.8% YoY driven by softness in construction, HVAC and transportation end markets despite sequential improvement; excess imported prepainted metal has pressured the segment.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Sales
Q3 record sales of $425.7M (reported as $426M), up 5.5% YoY from $403.7M, the highest quarterly revenue in company history.
Read all positive updates
Company Guidance
AZZ narrowed its fiscal 2026 outlook to total sales of $1.625–$1.700 billion, adjusted EBITDA of $360–$380 million and adjusted diluted EPS of $5.90–$6.20. That guidance follows a record Q3 (sales $425.7M, +5.5% Y/Y), Q3 adjusted EBITDA $91.2M (21.4% of sales), Q3 adjusted net income $46M and adjusted EPS $1.52, and a record trailing‑12‑month adjusted EBITDA of $358M; management also reported Q3 gross profit $101.9M (23.9% of sales), operating income $69.5M (16.3%), cash flow from operations $79.7M, capex $18.5M, $20M of share repurchases (avg $99.28), net debt $534.7M with $337.1M available capacity and a credit‑agreement net leverage of 1.6x (target 1.5–2.5x). Management noted potentially easier Q4 comparisons vs. last year’s weather‑impacted quarter and said FY2027 guidance will be released in the coming weeks.AZZ Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
82
Very Positive
| 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
Positive
129.20
Price Trends
128.34
Positive
118.86
Positive
112.68
Positive
Market Momentum
-0.22
Negative
56.64
Neutral
85.04
Negative
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 129.2 is above the 20-day moving average (MA) of 124.25, above the 50-day MA of 128.34, and above the 200-day MA of 112.68, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.86B | 19.10 | 26.34% | 0.67% | 1.55% | 701.41% | |
74 Outperform | $754.07M | 16.91 | 9.20% | ― | 7.61% | 25.35% | |
72 Outperform | $1.37B | 50.09 | 3.20% | ― | 2.82% | -34.29% | |
70 Outperform | $2.58B | 15.14 | 11.58% | 1.27% | 7.43% | 148.83% | |
68 Neutral | $654.24M | 20.81 | 13.31% | 3.49% | 22.39% | 112.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AZZ
AZZ
129.20
54.20
72.26%
IIIN
Insteel Industries
33.73
10.80
47.11%
NWPX
Northwest Pipe Company
78.76
39.11
98.64%
PRLB
Proto Labs
57.53
26.41
84.87%
WOR
Worthington Industries
52.10
8.59
19.73%
AZZ Corporate Events
Business Operations and StrategyExecutive/Board Changes
AZZ Announces Board Leadership Transition and New Directors
Positive
Mar 5, 2026
On February 28, 2026, AZZ Inc. announced a series of board succession moves, including the planned retirement of long-serving director and board chair Dan Feehan at the end of his term in July 2026, in line with the company’s mandatory retir...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
AZZ Updates Strategy and Performance as Metal Coatings Leader
Positive
Feb 13, 2026
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 a...
Business Operations and StrategyExecutive/Board Changes
AZZ Announces Leadership Transition in Metal Coatings Division
Neutral
Feb 3, 2026
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 i...
Dividends
AZZ Declares Fiscal Q3 2026 Cash Dividend
Positive
Jan 7, 2026
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 ...
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.