AZZ Inc
NYSE:AZZ
AZZ Inc
Established in 1956 and headquartered in Fort Worth, Texas, AZZ Inc. has long been a key player in the protection, repair, and maintenance of critical infrastructure. The company's story is one of strategic positioning and targeted specialization. With a focus on metal coating services, AZZ has carved out a niche in the safeguarding of metal assets. Through its Metal Coatings segment, which provides galvanizing, powder coating, and anodizing services, AZZ extends the lifespan of steel components, aiding industries such as energy, transportation, and construction in preserving their substantial investments.
Meanwhile, AZZ's Infrastructure Solutions segment caters directly to industries with complex electrical and other infrastructure needs. Specializing in the design and manufacture of custom switchgear, electrical enclosures, and engineered solutions, this segment supplies essential products for power generation, transmission, and distribution. By integrating these offerings into their customers' project lifecycles, AZZ secures recurring revenue streams while establishing itself as a trusted partner. Through its dedication to quality and longevity, AZZ sustains its growth model, rooted in industrial functionality and resilience, turning protective and bespoke solutions into robust financial performance.
Established in 1956 and headquartered in Fort Worth, Texas, AZZ Inc. has long been a key player in the protection, repair, and maintenance of critical infrastructure. The company's story is one of strategic positioning and targeted specialization. With a focus on metal coating services, AZZ has carved out a niche in the safeguarding of metal assets. Through its Metal Coatings segment, which provides galvanizing, powder coating, and anodizing services, AZZ extends the lifespan of steel components, aiding industries such as energy, transportation, and construction in preserving their substantial investments.
Meanwhile, AZZ's Infrastructure Solutions segment caters directly to industries with complex electrical and other infrastructure needs. Specializing in the design and manufacture of custom switchgear, electrical enclosures, and engineered solutions, this segment supplies essential products for power generation, transmission, and distribution. By integrating these offerings into their customers' project lifecycles, AZZ secures recurring revenue streams while establishing itself as a trusted partner. Through its dedication to quality and longevity, AZZ sustains its growth model, rooted in industrial functionality and resilience, turning protective and bespoke solutions into robust financial performance.
Record Sales: AZZ delivered record quarterly sales of $425.7 million, the highest in company history, with a 5.5% year-over-year increase.
Strong Metal Coatings: Metal Coatings segment sales jumped 15.7% year-over-year, driven by infrastructure demand and large projects, though margins were slightly pressured by competitive pricing.
Precoat Metals Bottoming: Precoat Metals improved sequentially but sales were down 1.8% from last year; management believes the segment is stabilizing with new container business ramping up.
Raised Guidance: Fiscal 2026 guidance was narrowed, with sales of $1.625–$1.7 billion, adjusted EBITDA of $360–$380 million, and adjusted EPS of $5.90–$6.20.
Capital Deployment: The company paid down $35 million in debt, repurchased $20 million in shares, and maintained its $0.20 per share dividend for the 63rd consecutive quarter.
M&A Pipeline: Management is actively evaluating strategic bolt-on acquisitions, especially in Metal Coatings and Precoat Metals.
Favorable Market Trends: Data center, infrastructure, and container demand are key growth drivers, while residential and commercial construction remain soft but show signs of recovery.
