Azz 2026 Q2 Earnings Strong Performance as Net Income Surges 152.3%

Azz (AZZ) reported its fiscal 2026 Q2 earnings on Oct 08th, 2025, delivering results that exceeded expectations. The company posted a 152.3% year-over-year increase in net income and maintained its full-year guidance, reflecting strong operational performance and resilience. The earnings demonstrated Azz’s ability to capitalize on market tailwinds while managing costs effectively.

Revenue
The company’s total revenue for Q2 2026 rose 2.0% year-over-year to $417.27 million, driven by the Precoat Metals and Metal Coatings segments. Specifically, the Metal Coatings division contributed $189.98 million, reflecting robust demand across infrastructure and industrial applications, while the Precoat Metals segment accounted for $227.29 million. Notably, the Infrastructure Solutions and Corporate segments reported no revenue during the quarter.

Earnings/Net Income
Azz’s net income surged 152.3% to $89.35 million in Q2 2026, up from $35.42 million in the same period in 2025. Earnings per share (EPS) also jumped 149.6% to $2970.00. The company has remained consistently profitable for over 20 years, underscoring its strong operational foundation and effective business strategy.

Price Action
The stock price of Azz edged up 0.17% on the latest trading day, though it declined 2.87% for the week and 8.32% month-to-date, reflecting mixed short-term investor sentiment following the earnings release.

Post-Earnings Price Action Review
Following the earnings report, Azz’s stock experienced a modest intraday gain but faced a broader downward trend over the week and month, likely influenced by market conditions and broader sector performance. Despite this, the company’s strong earnings and guidance signaled long-term confidence among investors.

CEO Commentary
Tom Ferguson, President and CEO, noted that second-quarter sales reached $417.3 million, up 2.0% year-over-year, with adjusted diluted EPS rising 13.1% to $1.55. The Metal Coatings segment posted double-digit sales growth driven by infrastructure-related demand in construction, industrial, and electrical transmission sectors. Precoat Metals, however, faced softer performance in building construction and HVAC markets. Adjusted EBITDA for the quarter stood at $88.7 million, or 21.3% of sales, slightly lower year-over-year due to seasonal factors in the Welding Service business. Ferguson expressed confidence in the company’s ability to achieve full-year 2026 guidance, citing strong M&A opportunities and disciplined capital allocation.

Guidance
Azz has reaffirmed its full-year 2026 guidance, with year-to-date sales up 2.1% and Adjusted EBITDA increasing 4.9%. The CEO emphasized continued confidence in achieving these targets, with a focus on monitoring customer trends, managing working capital, and controlling debt. Capital expenditures for fiscal year 2026 are expected to range between $60–$80 million. The company also highlighted a robust M&A pipeline and intends to pursue high-quality acquisition targets while maintaining a net leverage ratio of 1.7x.

Additional News
According to the CMoney Research Report titled “AZZ/AZZ|美股|最新新聞資訊及財務研究報告” from 2025/08/15, Wall Street banks have shown increasing optimism toward the steel sector, with Steel Dynamics and other firms highlighted as top picks. While the report does not include specific earnings figures for Azz, it underscores the sector’s strong outlook and potential for growth. Azz is also positioning itself for strategic expansion, with a clear focus on M&A opportunities to enhance long-term value. The company’s disciplined approach to capital allocation and debt management further supports its strategic direction.