Metal coating firm AZZ's Q3 sales beat expectations

AZZ

07/01/2026 21:28

Overview

Galvanizing solutions firm's fiscal Q3 sales rose 5.5%, beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations, rising 9.4% yr/yr

Company repurchased $20 mln in shares and reduced debt by $35 mln in Q3

Outlook

AZZ Inc. narrows FY2026 sales guidance to $1.625 bln - $1.7 bln

Company expects FY2026 adjusted EBITDA of $360 mln - $380 mln

AZZ Inc. anticipates FY2026 adjusted EPS of $5.90 - $6.20

Result Drivers

METAL COATINGS GROWTH - Sales in Metal Coatings rose 15.7% due to increased volume from infrastructure-related projects in construction, industrial, and electrical transmission and distribution markets

PRECOAT METALS DECLINE - Precoat Metals sales fell 1.8% due to weaker demand in building construction, HVAC, and transportation markets

OPERATIONAL EXECUTION - Higher adjusted EBITDA and EPS were attributed to sales momentum and disciplined operational execution

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$425.70 mln
$418.16 mln (9 Analysts)
Q3 Adjusted EPS
Beat
$1.52
$1.47 (10 Analysts)
Q3 Adjusted EBITDA
Slight Beat*
$91.20 mln
$90.76 mln (10 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the iron & steel peer group is "buy"

Wall Street's median 12-month price target for AZZ Inc is $123.00, about 11.4% above its January 6 closing price of $110.42

Press Release: ID:nPn9q4jF2a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)