Metal coating services firm AZZ Q2 adjusted EBITDA misses estimates

Overview

• AZZ Inc fiscal Q2 sales rise 2% yr/yr to $417.3 mln

• Adjusted EPS for fiscal Q2 of $1.55

• Adjusted EBITDA for fiscal Q2 misses analyst expectations

Outlook

• AZZ maintains FY2026 sales guidance at $1.625 - $1.725 bln

• Company expects FY2026 adjusted EBITDA of $360 - $400 mln

• AZZ projects FY2026 adjusted diluted EPS between $5.75 and $6.25

Result Drivers

• METAL COATINGS GROWTH - Infrastructure-related project spending drove a 10.8% increase in Metal Coatings sales

• PRECOAT METALS DECLINE - Weaker demand in building construction, HVAC, and appliance markets led to a 4.3% sales decline in Precoat Metals

• EBITDA MISS - Adjusted EBITDA decreased due to a slow season in the Welding Services business within AVAIL

Key Details

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 $126.50, about 16.9% above its October 7 closing price of $105.08

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: nPn3wSGx0a

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