AZZ (AZZ) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: 0.67%
• Average Volume (3M): 160.81K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.26
• 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: 145,143
• 30 Day Avg. Volume: 160,813
• 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: 0.87
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 8.21
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: $126.83
• Price Target Upside: 4.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $135.00 ▲(11.13% Upside)

AZZ scores well primarily on strong financial performance (materially improved profitability, cash generation, and balance-sheet metrics) and a constructive earnings-call outlook with narrowed guidance after record results. Technicals support the uptrend, but near-overbought RSI raises pullback risk, while valuation looks reasonable on P/E with only a modest dividend yield.

Positive Factors

Margin Expansion

Material margin expansion and a large TTM revenue step-up reflect improved operational leverage and profitability. Sustained gross (~24%) and net (~20%) margins increase free-cash-flow capacity, support reinvestment and capital returns, and strengthen competitive positioning over the medium term.

Cash Generation

Strong operating cash flow and high free-cash-flow conversion indicate durable cash-generation ability. This supports deleveraging, disciplined capex, dividends and buybacks, giving management flexibility to invest in growth or return capital across business cycles.

Balance-Sheet Strength

Very low reported leverage and high ROE materially improve financial flexibility and lower interest burden. A stronger balance sheet enables strategic M&A, sustained capital returns, and better insulation from cyclical downturns in end markets over the coming quarters.

Negative Factors

Durability Risk

The unusually large TTM step-change following prior weaker periods signals earnings and capital-structure volatility. Episodic performance makes forecasting tougher and raises the risk that current margins, cash flow and leverage metrics may revert, undermining medium-term predictability.

Precoat Metals Exposure

Exposure to nonresidential/residential construction cycles and import competition can structurally suppress volumes and pricing in Precoat Metals. Persistent softness and import dynamics increase revenue cyclicality and create a headwind to sustaining segment margins over multiple quarters.

JV/Equity-Earnings Drag

Lower JV equity earnings and divestiture activity (AVAIL/WSI changes) reduce recurring consolidated contributions and introduce transitional uncertainty. Until portfolio reconfiguration settles, equity-earnings variability may depress reported EBITDA and complicate near-term profitability trends.

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 step-up in TTM profitability and scale (very strong margins), improved balance-sheet strength (very low debt-to-equity and strong ROE), and robust free-cash-flow generation. Main risk is durability: results and leverage metrics show notable period-to-period volatility and the TTM jump may reflect a hard-to-repeat step-change.

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

AZZ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 121.48 is above the 20-day moving average (MA) of 110.87, above the 50-day MA of 105.92, and above the 200-day MA of 101.09, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 74.33 is Negative, neither overbought nor oversold. The STOCH value of 88.42 is Negative, 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	$3.65B	11.48	27.38%	0.67%	1.55%	701.41%
NWPX	78 Outperform	$633.66M	18.44	9.78%	―	7.61%	25.35%
IIIN	73 Outperform	$642.99M	15.81	11.36%	3.49%	22.39%	112.75%
PRLB	70 Outperform	$1.30B	89.16	2.21%	―	2.82%	-34.29%
WOR	68 Neutral	$2.67B	25.35	11.31%	1.27%	7.43%	148.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RYI	52 Neutral	$909.27M	-39.77	-2.81%	2.84%	-4.89%	-214.50%

AZZ Corporate Events

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.

AZZ Highlights Strategic Focus in New Presentation

On October 17, 2025, AZZ Inc. released presentation materials for use in discussions with various stakeholders, highlighting its strategic focus on metal coatings and recent achievements. The company has made significant strides in operational excellence, debt reduction, and strategic acquisitions, including the purchase of Canton Galvanizing. AZZ’s commitment to growth is supported by investments in new facilities and technologies, while maintaining a disciplined capital allocation strategy aimed at enhancing shareholder value.

The most recent analyst rating on (AZZ) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on AZZ stock, see the AZZ Stock Forecast page.