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WS Investor 08 Oct 2025, 20:20
AZZ Inc. (NYSE: AZZ) reported fiscal Q2 2026 results showing steady growth in sales, earnings, and cash flow. Quarterly sales rose 2% year over year to $417.3 million, driven by strong performance in Metal Coatings, which grew 10.8% to $190 million, offsetting a 4.3% decline in Precoat Metals to $227.3 million. Net income surged 152% to $89.3 million, with adjusted EPS up 13.1% to $1.55, while adjusted EBITDA came in at $88.7 million, or 21.3% of sales. Operating cash flow increased 23% to $58.4 million, and the company maintained net leverage of 1.7x.

CEO Tom Ferguson credited the results to infrastructure-driven growth in galvanizing operations and disciplined financial management, including debt reduction, repricing its Term Loan B, and introducing an accounts receivable securitization program. During the quarter, AZZ acquired a galvanizing facility in Canton, Ohio for $30.1 million and paid a $0.20 per share dividend. The company reaffirmed its fiscal 2026 guidance, citing confidence in demand from construction, industrial, and electrical transmission markets, while noting softness in building and appliance sectors.

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