AZZ (AZZ) Q2 2026 earnings summary

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%.

• Net income surged 152.3% to $89.3 million for the quarter, with adjusted net income up 13.8% to $46.9 million.

• Operating cash flow reached $58.4 million for the quarter, up 23% year-over-year.

• Metal Coatings segment delivered double-digit sales growth, while Precoat Metals gained market share due to tariffs on imports.

• Infrastructure project activity and the shift to aluminum packaging supported growth, while non-residential and residential construction remained soft.

Financial highlights

• Gross profit was $101.3 million (24.3% of sales) versus $103.5 million (25.3%) a year ago.

• Adjusted net income was $46.9 million, with adjusted diluted EPS of $1.55, up 13.1% year-over-year.

• Adjusted EBITDA was $88.7 million (21.3% margin); Metal Coatings segment margin was 30.8%, Precoat Metals 20.2%.

• Interest expense dropped to $13.7 million, down $8.2 million year-over-year, due to debt paydown and repricing.

• Operating cash flow reached $58.4 million; net leverage ratio improved to 1.7x from 2.7x a year ago.

Outlook and guidance

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

• Adjusted EBITDA expected in the lower half of $360–$400 million range due to lack of AVAIL equity income.

• Adjusted diluted EPS forecasted at $5.75–$6.25, a 10–20% increase over fiscal 2025.

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

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