AZZ · AZZ Inc.

AZZ Inc. reported mixed fourth quarter results with strong sales growth but lower net income, while achieving record full-year performance. For the quarter ended February 28, 2026, total sales increased 9.4% to $385.1 million, driven by a 25.7% surge in Metal Coatings sales to $186.5 million, primarily due to increased infrastructure-related demand and favorable weather conditions compared to the prior year. However, net income declined 21.2% to $15.9 million, with GAAP diluted EPS falling to $0.53. On an adjusted basis, which excludes items like AVAIL JV equity adjustments and intangible amortization, performance was stronger with adjusted net income rising 36.4% to $40.4 million and adjusted diluted EPS increasing 36.7% to $1.34. Adjusted EBITDA grew 14.1% to $81.3 million, representing 21.1% of sales. For the full fiscal year, AZZ achieved record sales of $1.65 billion, up 4.6%, with Metal Coatings growing 14.1% to $758.7 million while Precoat Metals declined 2.3% to $891.4 million. Full-year net income surged 146.3% to $317.3 million, significantly impacted by equity earnings from AVAIL joint venture divestitures, while adjusted net income increased 19.3% to $187.1 million. The company generated substantial operating cash flow of $525.4 million, including $273.2 million from AVAIL JV distributions, enabling debt reduction of $385.3 million and reducing the net leverage ratio to 1.4x from 2.5x. Management highlighted the 39th consecutive year of profitability and noted the new Washington, Missouri facility reached profitability in the fourth quarter. Looking ahead, AZZ reiterated fiscal 2027 guidance projecting sales of $1.725-$1.775 billion, adjusted EBITDA of $360-$400 million, and adjusted diluted EPS of $6.50-$7.00, with capital expenditures expected to be $80-$100 million for capacity expansions and technology improvements.