AZZ · AZZ Inc.

AZZ Inc. delivered robust FY2026 financial results, with revenue reaching $1.7 billion, up 4.6% from $1.6 billion in the prior year. This growth occurred against a backdrop of segment-specific dynamics, where higher sales volumes in certain areas drove topline expansion, though tempered by a decrease in coil coating volumes primarily due to softer demand in construction and transportation end markets, as noted in management discussion.

Gross profit improved 3.2% to $395.0 million, maintaining a healthy 23.9% margin. Operating income advanced more sharply by 12.0% to $264.6 million, achieving a 16.0% operating margin. The increase stems primarily from the net rise in sales, though offset by higher cost of sales and selling, general, and administrative expenses. Cost of sales rose due to elevated sales volumes alongside increases in zinc, labor, and overhead costs, demonstrating resilience in margin performance despite input cost pressures.

Net income more than doubled, up 146.3% to $317.3 million, with diluted EPS jumping 486.6% to $10.50. This outsized profitability highlights the impact of non-operating factors on bottom-line results, distinguishing core operational progress from overall earnings volatility.

Cash generation remained strong, with net cash provided by operating activities at $525.4 million. After capital expenditures of $80.8 million—down from $115.9 million the prior year—free cash flow totaled $444.7 million. This positions AZZ to support ongoing operations, strategic investments, and potential capital returns, aligning with management's view that metrics like Adjusted EBITDA help investors assess debt servicing capacity and future capex potential.