Metal coating firm AZZ's Q3 sales beat expectations

Overview

• Galvanizing solutions firm's fiscal Q3 sales rose 5.5%, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations, rising 9.4% yr/yr

• Company repurchased $20 mln in shares and reduced debt by $35 mln in Q3

Outlook

• AZZ Inc. narrows FY2026 sales guidance to $1.625 bln - $1.7 bln

• Company expects FY2026 adjusted EBITDA of $360 mln - $380 mln

• AZZ Inc. anticipates FY2026 adjusted EPS of $5.90 - $6.20

Result Drivers

• METAL COATINGS GROWTH - Sales in Metal Coatings rose 15.7% due to increased volume from infrastructure-related projects in construction, industrial, and electrical transmission and distribution markets

• PRECOAT METALS DECLINE - Precoat Metals sales fell 1.8% due to weaker demand in building construction, HVAC, and transportation markets

• OPERATIONAL EXECUTION - Higher adjusted EBITDA and EPS were attributed to sales momentum and disciplined operational execution

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for AZZ Inc is $123.00, about 11.4% above its January 6 closing price of $110.42

Press Release: ID:nPn9q4jF2a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)