Azz 2026 Q3 Earnings Beats Expectations with 22.2% Net Income Growth

AZZ Inc. (NYSE:AZZ) delivered robust third-quarter results, surpassing Wall Street’s revenue and EPS estimates. The company narrowed its fiscal 2026 guidance, reflecting confidence in its operational execution and debt-reduction progress.

Revenue

AZZ’s total revenue rose 5.5% year-over-year to $425.75 million, driven by strong performance in its Metal Coatings segment. The Global Coatings & Services division saw a 15.7% revenue increase to $195 million, fueled by infrastructure-related demand, while the Precoat Metals segment declined 1.8% to $230.7 million due to weaker construction and transportation markets.

Earnings/Net Income

Earnings per share (EPS) surged 22.3% to $1.37, with net income climbing 22.2% to $41.08 million. The company’s profitability reflects disciplined cost management and operational resilience, with adjusted EBITDA reaching $91.2 million (21.4% of sales).

Post-Earnings Price Action Review

The strategy of purchasing AZZ shares after a revenue increase and holding for 30 days has historically yielded positive returns. The recent 5.5% revenue growth in Q3 2026 led to a 2.5% stock price gain over 30 days, outperforming the broader market. Over three years, AZZ’s consistent revenue growth and improved margins have reinforced the viability of this approach, supported by a moderate buy analyst rating and a $0.20 quarterly dividend.

CEO Commentary

AZZ’s CEO emphasized a balanced approach to capital allocation, maintaining dividends while prioritizing debt reduction. The board’s cautious stance on future payouts underscores macroeconomic risks but aligns with long-term value creation.

Guidance

AZZ reaffirmed its Q3 dividend of $0.20 per share and narrowed full-year revenue guidance to $1.625–$1.7 billion, with adjusted EPS of $5.90–$6.20. Risks include supply-chain disruptions and raw material costs, but the company remains focused on debt reduction and operational efficiency.

Additional News

1. Acquisition Activity: AZZ completed a $30.1 million acquisition in its Metal Coatings segment, expanding its infrastructure solutions portfolio.

2. Share Repurchases: The company repurchased 201,416 shares for $20 million at an average price of $99.28, signaling confidence in its valuation.

3. Dividend Payments: AZZ distributed $17.1 million in dividends to shareholders during the quarter, maintaining its consistent payout history.

AZZ’s strategic initiatives in debt reduction and segment diversification position it to navigate macroeconomic headwinds while capitalizing on infrastructure demand. Investors should monitor its ability to sustain margin expansion amid supply-chain volatility.