AZZ (AZZ) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly sales of $426 million and record trailing 12-month adjusted EBITDA of $358 million, with third quarter sales up 5.5% year-over-year to $425.7 million, driven by strong Metal Coatings performance and infrastructure demand.

• Net income for the nine months ended November 30, 2025, was $301.3 million, primarily due to a significant gain from the AVAIL JV's asset sale and robust demand in utilities, construction, and consumer markets.

• Maintained a quarterly cash dividend of $0.20 per share for the 63rd consecutive quarter and repurchased $20 million in shares.

• Proprietary ERP and digital platforms enhanced operational efficiency and customer connectivity.

• Completed sale of majority interest in Avail's welding solutions business, simplifying the portfolio and retaining a 40% interest.

Financial highlights

• Consolidated sales for the nine months increased 3.2% year-over-year to $1.26 billion; third quarter sales rose 5.5% to $425.7 million.

• Adjusted EBITDA for the quarter was $91.2 million (21.4% of sales), and for the nine months was $286.3 million, up from $276.7 million in the prior year.

• Adjusted net income was $46 million, or $1.52 per diluted share, up 9.4% year-over-year; net income for the quarter increased 22.2% to $41.1 million.

• Gross profit was $101.9 million (23.9% of sales) for the quarter; gross margin for the nine months was $307.4 million.

• Interest expense decreased to $44.4 million from $63.9 million year-over-year due to lower average debt and interest rates.

Outlook and guidance

• Fiscal 2026 guidance narrowed: sales expected at $1.625–$1.7 billion, adjusted EBITDA at $360–$380 million, and adjusted EPS at $5.90–$6.20.

• Fiscal 2027 guidance to be released in the coming weeks.

• Guidance assumes no further M&A, excludes future AVAIL JV earnings, and expects Metal Coatings EBITDA margin of 27–32% and Precoat Metals 17–22%.

• Sales prices and demand in Metal Coatings and Precoat Metals segments are expected to remain stable, following typical seasonal patterns.

• Anticipates easier year-over-year comparisons in Q4 due to last year's weather-related disruptions.