AZZ Inc. Achieves Strong Financial Performance in Q2 2026

Author: Henry Turner Updated: 10-08-2025 04:28 PM

Solid Earnings Highlight

AZZ Inc. (NYSE: AZZ) recently released its financial results for the second quarter, showcasing remarkable performance metrics. The company reported total sales of $417.3 million, reflecting a 2.0% increase compared to last year, indicating a positive trend across its business segments.

Performance Breakdown

Segment Highlights

In the Metal Coatings segment, sales reached $190.0 million, marking a robust 10.8% growth driven by a surge in demand due to infrastructure-related projects. However, the Precoat Metals segment faced challenges, with sales of $227.3 million, which is down 4.3% year-over-year due to weaker demand in certain end markets such as building construction and HVAC.

Income and Earnings

AZZ's net income soared to $89.3 million, reflecting a staggering increase of 152.3%. Adjusted net income also experienced significant growth of 13.8%, amounting to $46.9 million. The company’s GAAP diluted EPS was $2.95, a 150.0% increase, while adjusted diluted EPS stood at $1.55, up 13.1%.

Adjusted EBITDA Metrics

The company reported a consolidated adjusted EBITDA of $88.7 million, which accounted for 21.3% of total sales. This represents a slight decline from the prior year's EBITDA, mainly attributed to seasonal fluctuations in demand and business operations. Despite these challenges, AZZ maintains a strong EBITDA margin, demonstrating resilience in times of shifting market dynamics.

Operational Efficiency

During the quarter, AZZ generated $58.4 million in cash from operating activities, up by 23% compared to the previous year. The company is committed to effective working capital management and continues to observe customer trends closely to sustain its financial trajectory.

Financial Outlook for FY 2026

AZZ has provided guidance for fiscal year 2026, maintaining expectations for total sales between $1.625 billion to $1.725 billion, alongside adjusted EBITDA predictions of $360 million to $400 million. This guidance reflects an optimistic view of market conditions and operational capacity, with a focus on managing expenses and investing in growth opportunities.

Strategic Investments and Acquisitions

In line with its growth strategy, AZZ has recently completed the acquisition of a galvanizing facility for $30.1 million, which is expected to bolster production capabilities in the future. The company’s effective capital allocation strategy emphasizes careful investment in high-quality assets to support long-term strategic goals.

Management Comments

Tom Ferguson, President, and CEO of AZZ, expressed confidence in the company’s performance, noting the strong sales figures in the Metal Coatings segment and a willingness to adapt strategically in challenging markets. He acknowledged the hard work and dedication of the AZZ workforce in maintaining the standards of quality and service that the company is known for.

Frequently Asked Questions

What were AZZ's total sales in Q2 of fiscal 2026?

AZZ reported total sales of $417.3 million.

How did the Metal Coatings segment perform?

The Metal Coatings segment achieved sales of $190.0 million, a 10.8% increase from the previous year.

What is AZZ's projection for total sales for the fiscal year 2026?

AZZ expects total sales to be between $1.625 billion to $1.725 billion for the fiscal year 2026.

How did net income change compared to the previous year?

Net income reached $89.3 million, which is up by 152.3% compared to the prior year.

What strategic steps is AZZ taking regarding new acquisitions?

AZZ has completed an acquisition for a galvanizing facility for $30.1 million, enhancing its production capabilities.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

Contact Henry Turner privately here. Or send an email with ATTN: Henry Turner as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.