AZZ (AZZ) investor relations material

Executive summary

• Second quarter sales rose 2% year-over-year to $417.3 million, with Metal Coatings up 10.8% and Precoat Metals down 4.3%.

• Adjusted diluted EPS increased 13.1% to $1.55, while GAAP diluted EPS was $2.95, up 150%.

• Net income surged 152.3% to $89.3 million, driven by gains from the AVAIL JV sale and strong Metal Coatings demand.

• Cash from operations reached $58.4 million for the quarter, up 23% year-over-year.

• Acquisition of a galvanizing facility in Canton, Ohio for $30.1 million completed.

Financial highlights

• Consolidated adjusted EBITDA was $88.7 million (21.3% of sales), with Metal Coatings at 30.8% margin and Precoat Metals at 20.2%.

• Operating income for the quarter was $68.5 million, up slightly from $67.6 million a year ago.

• Interest expense dropped to $13.7 million, down from $21.9 million a year ago, due to debt paydown and repricing.

• Net leverage ratio improved to 1.7x, down from 2.5x at the prior year-end.

• Cash dividend of $0.20 per share paid during the quarter.

Outlook and guidance

• Fiscal 2026 sales guidance reiterated at $1.625–$1.725 billion.

• Adjusted EBITDA expected in the $360–$400 million range; adjusted diluted EPS forecasted at $5.75–$6.25.

• Guidance assumes Metal Coatings EBITDA margin of 27–32% and Precoat Metals at 17–22%.

• Excludes future acquisitions and equity in earnings from the AVAIL joint venture.

• Anticipates multi-year tailwinds from infrastructure spending, especially in energy and power generation.