AZZ Inc. Reports Fiscal Year 2026 Third Quarter Results

Rhea-AI Summary

AZZ (NYSE: AZZ) reported fiscal 2026 third quarter results for the period ended November 30, 2025. Total sales were $425.7M (+5.5% YoY). Metal Coatings sales rose to $195.0M (+15.7%) while Precoat Metals sales were $230.7M (−1.8%). Net income was $41.1M (+22.2%); GAAP diluted EPS was $1.36 (+21.4%) and adjusted diluted EPS was $1.52 (+9.4%). Consolidated adjusted EBITDA was $91.2M (21.4% of sales). Cash from operations in the quarter was $79.7M. Year-to-date cash from operations totaled $452.9M, including a $273.2M distribution from the AVAIL JV. Net leverage was 1.6x after $325.4M debt paydown YTD. Company repurchased $20.0M of shares and paid a $0.20 quarterly dividend. FY2026 guidance narrowed to $1.625–$1.7B sales and $5.90–$6.20 adjusted EPS.

Positive

• Net income +22.2% to $41.1M
• GAAP diluted EPS +21.4% to $1.36
• Metal Coatings sales +15.7% to $195.0M
• Operating cash flow YTD $452.9M including $273.2M JV distribution
• Net leverage improved to 1.6x after $325.4M debt reduction YTD
• Share repurchases of $20.0M in the quarter

Negative

• Precoat Metals sales −1.8% to $230.7M
• Consolidated adjusted EBITDA margin 21.4%, down vs prior-year margin
• Infrastructure Solutions segment EBITDA loss of $0.8M in quarter
• Full-year sales guidance midpoint implies modest growth vs prior year

News Market Reaction

-0.53%

3 alerts

-0.53% News Effect

-$19M Valuation Impact

$3.57B Market Cap

0.1x Rel. Volume

On the day this news was published, AZZ declined 0.53%, reflecting a mild negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $19M from the company's valuation, bringing the market cap to $3.57B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 FY2026 Sales: $425.7M Metal Coatings sales: $195.0M Precoat Metals sales: $230.7M +5 more

8 metrics

Q3 FY2026 Sales $425.7M Quarter ended November 30, 2025; up 5.5% YoY

Metal Coatings sales $195.0M Q3 FY2026; up 15.7% YoY

Precoat Metals sales $230.7M Q3 FY2026; down 1.8% YoY

Q3 Net income $41.1M Quarter ended November 30, 2025; up 22.2% YoY

Q3 GAAP diluted EPS $1.36 Quarter ended November 30, 2025; up 21.4% YoY

Q3 Adjusted diluted EPS $1.52 Quarter ended November 30, 2025; up 9.4% YoY

FY2026 Sales guidance $1.625–$1.7B Narrowed full-year FY2026 sales outlook

FY2026 Adj. EPS guidance $5.90–$6.20 Narrowed full-year FY2026 adjusted diluted EPS outlook

Market Reality Check

Price: $121.57 Vol: Volume 146,802 is below t...

normal vol

$121.57 Last Close

Volume Volume 146,802 is below the 20-day average 171,606 (relative volume 0.86), indicating no unusual trading ahead of the release. normal

Technical Shares at $110.42 are trading above the 200-day MA of $100.66 and about 7.94% below the 52-week high.

Peers on Argus

AZZ slipped 0.51% while key peers like UNF (+3.52%), FA (+2.30%), ABM (+0.46%) a...

AZZ slipped 0.51% while key peers like UNF (+3.52%), FA (+2.30%), ABM (+0.46%) and CBZ (+0.36%) traded higher. With no peers in the momentum scanner, the move appears stock-specific rather than sector-driven.

Common Catalyst One peer, UNF, also reported earnings today, but only a single same-day peer headline limits evidence of a broad sector catalyst.

Historical Context

5 past events · Latest: Dec 08 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	Earnings call notice	Neutral	+1.6%	Announcement of timing and access details for the Q3 FY2026 results call.
Nov 24	IR conferences	Neutral	+2.3%	Planned participation in multiple December 2025 investor and industry conferences.
Nov 03	IR conferences	Neutral	-1.1%	Schedule of November 2025 investor conferences and one-on-one meeting availability.
Oct 08	Earnings results	Positive	+0.8%	Q2 FY2026 results with higher sales, EPS, cash generation and reaffirmed guidance.
Oct 02	Dividend declaration	Positive	-0.7%	Announcement of a <b>$0.20</b> per-share cash dividend for fiscal 2026 Q2.

Pattern Detected

Recent news, including earnings and capital return updates, has more often been followed by modestly positive price reactions, with only occasional divergences on shareholder-friendly items like dividends.

Recent Company History

Over the past few months, AZZ has reported improving fiscal 2026 results, highlighted by strong Q2 metrics on Oct 8, 2025 and a follow-on Q3 earnings call announcement on Dec 8, 2025. The company also maintained a regular $0.20 quarterly dividend and remained active on the investor-relations circuit with multiple conference appearances in November and December 2025. Today’s Q3 release extends that trajectory with further sales, EPS and cash flow growth and a narrowed FY2026 guidance range.

Market Pulse Summary

This announcement highlights Q3 FY2026 momentum, with sales of $425.7M, net income of $41.1M, and ad...

Analysis

This announcement highlights Q3 FY2026 momentum, with sales of $425.7M, net income of $41.1M, and adjusted EPS of $1.52, alongside strong cash generation and a net leverage ratio of 1.6x. Metal Coatings continues to post double-digit growth, while Precoat Metals faces weaker end-markets. The company narrowed FY2026 guidance to $1.625–$1.7B of sales and $5.90–$6.20 in adjusted EPS. Investors may focus on segment margins, demand trends in construction and transportation, and continued debt reduction.

Key Terms

adjusted ebitda, net leverage ratio, hot-dip galvanizing, ebitda margin, +1 more

5 terms

adjusted ebitda financial

"Consolidated Adjusted EBITDA of $91.2 million or 21.4% of sales"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net leverage ratio financial

"Net leverage ratio 1.6x; debt reduction in the quarter of $35 million"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

hot-dip galvanizing technical

"leading independent provider of hot-dip galvanizing and coil coating solutions"

A metal-protection process where steel or iron is dipped into molten zinc to form a durable, corrosion-resistant coating — like giving metal a long-lasting raincoat. It matters to investors because hot-dip galvanizing extends product life, reduces maintenance and warranty costs, and can be a regulatory or quality requirement in construction, infrastructure and manufacturing markets; changes in demand, energy or zinc prices and environmental rules can affect company margins and capital needs.

ebitda margin financial

"Segment Adjusted EBITDA margin of 30.3% for Metal Coatings and 19.7% for Precoat Metals"

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

basis points financial

"margin of 30.3%, a decrease of 120 basis points from the prior year third quarter"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

Operational Strength Drives Sales, EPS, Cash Flow Growth and Value Creation

Fiscal Year 2026 Guidance Narrowed

FORT WORTH, Texas, January 7, 2026 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial results for the third quarter ended November 30, 2025. 

Fiscal Year 2026 Third Quarter Overview (as compared to prior fiscal year third quarter⁽¹⁾):

• Total Sales of $425.7 million, up 5.5%
  • Metal Coatings sales of $195.0 million, up 15.7%
  • Precoat Metals sales of $230.7 million, down 1.8%
• Net Income of $41.1 million, up 22.2%; Adjusted net income of $46.0 million, up 9.7%
• GAAP diluted EPS of $1.36 per share, up 21.4%; Adjusted diluted EPS of $1.52, up 9.4%
• Consolidated Adjusted EBITDA of $91.2 million or 21.4% of sales, versus prior year of $90.7 million, or 22.5% of sales
• Segment Adjusted EBITDA margin of 30.3% for Metal Coatings and 19.7% for Precoat Metals
• Repurchased 201,416 shares of common stock, or $20.0 million at an average purchase price of $99.28
• Net leverage ratio 1.6x; debt reduction in the quarter of $35 million; year-to-date $325.4 million
• Cash provided by operating activities in the quarter of $79.7 million, up 20% from last year
• Cash dividend of $0.20 per share to common shareholders paid during the quarter
• Subsequent to the quarter end, Avail Infrastructure Solutions ("AVAIL"), completed the sale of the majority of its Welding Solutions LLC business (the "Welding Solutions Business") to Pelican Energy Partners L.P.

(1) Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and net leverage ratio are non-GAAP financial measures as defined and reconciled in the tables below.

Tom Ferguson, President, and Chief Executive Officer of AZZ, commented, "We are pleased with our third quarter performance as sales expanded to $425.7 million, up 5.5% over the prior year. Our sales momentum and disciplined operational execution resulted in higher Adjusted EBITDA of  $91.2 million, or 21.4% of sales, which generated adjusted diluted EPS of $1.52, up 9.4%. Metal Coatings delivered strong, double-digit sales gains on volume increases, while Precoat Metals continued to navigate weaker demand in certain end markets. Infrastructure-driven project spending drove Metal Coatings third quarter results, supported by growth in construction, industrial, and electrical transmission and distribution end-markets. In line with broader industry trends, Precoat Metals' sales results were lower due to softness in building construction, HVAC, and transportation end-markets. On a year-to-date basis, consolidated sales increased $39.1 million, or 3.2% over prior year and Adjusted EBITDA increased $9.6 million, or 3.5% over prior year. We continue to ramp sales at our new Washington, Missouri, facility aligned with our expectations through the fiscal year end. As we advance through the fourth quarter, we remain confident in our business momentum; therefore, we have narrowed our annual guidance range.

"During the quarter we continued to strengthen our balance sheet. We are pleased to attain a net debt leverage of 1.6x at the end of the quarter, after reducing debt by $35 million, and repurchasing $20 million shares of common stock in the quarter. The third quarter's performance generated $79.7 million cash from operations, and we will continue to closely manage working capital, capital expenditures, and debt as we progress through the balance of our fiscal year. We believe the Company is well-positioned to capitalize upon our growing pipeline of M&A opportunities, reflecting the strength of our strategy and our disciplined approach to pursuing high-quality acquisition targets. Finally, I want to thank all of our dedicated AZZ employees for their hard work, disciplined focus and pride and passion for delivering outstanding quality and service to our customers." Ferguson concluded.

Segment Performance
Third Quarter 2026 Metal Coatings
Sales of $195.0 million increased by 15.7% over the third quarter of last year, primarily due to increased volume supported by infrastructure-related project spending in several end markets, including construction, industrial, and electrical transmission and distribution. Segment Adjusted EBITDA of $59.2 million resulted in Adjusted EBITDA margin of 30.3%, a decrease of 120 basis points from the prior year third quarter due to a continued higher mix of electrical, solar, transmission and distribution projects.

Third Quarter 2026 Precoat Metals
Sales of $230.7 million decreased by 1.8% compared to the third quarter of last year, primarily due to weaker end markets, including building construction, HVAC, and transportation, partially offset by container. Segment EBITDA of $45.5 million resulted in EBITDA margin of 19.7%, an increase of 60 basis points from the prior year third quarter, primarily due to lower fixed, and selling, general and administrative costs.

Balance Sheet, Liquidity and Capital Allocation
The Company generated significant operating cash of $452.9 million for the first nine months of fiscal year 2026 through improved earnings, which included a distribution of $273.2 million from the AVAIL JV following the sale of its Electrical Products Group, coupled with a continued focus on working capital management. At the end of the third quarter, the Company's net leverage was 1.6x trailing twelve months Adjusted EBITDA. During the first nine months of fiscal year 2026, the Company paid down debt of $325.4 million, repurchased $20.0 million of common shares, completed an acquisition in the Metal Coatings segment of $30.1 million and returned cash to common shareholders through cash dividend payments totaling $17.1 million. Capital expenditures for the first nine months of fiscal year 2026 were $58.7 million, and full fiscal year capital expenditures are expected to be approximately $60 - $80 million. 

Subsequent Event
On December 31, 2025, Avail Infrastructure Solutions ("AVAIL"), in which we have an unconsolidated investment through the AVAIL JV, completed the sale of the majority of its Welding Solutions LLC business (the "Welding Solutions Business") to Pelican Energy Partners LP.

Following the sale, AZZ will continue to own a 40% interest in AVAIL, which will consist of AVAIL's Industrial Lighting and the remaining Welding Solutions business.

Financial Outlook — Fiscal Year 2026 Guidance Narrowed
We are narrowing our fiscal year guidance for the year ending February 28, 2026, which reflects our best estimates given anticipated market conditions for the full year, lower interest expense, an annualized effective tax rate of 24% and excludes M&A activity and any federal regulatory changes that may emerge.

	FY2026 Guidance(1)
Sales	$1.625 - $1.7 billion
Adjusted EBITDA	$360 - $380 million
Adjusted Diluted EPS	$5.90 - $6.20

(1)  FY2026 Guidance Assumptions:
			a.	Excludes any future acquisitions.
			b.	Excludes any future equity in earnings (loss) from AVAIL joint venture.
			c.	Management defines adjusted earnings per share to exclude intangible asset amortization, restructuring charges and additional stock compensation expense related to the adoption of our executive retiree long-term incentive program from the reported GAAP measure.
			d.	Assumes EBITDA margin range of 27 - 32% for the Metal Coatings segment and 17% - 22% for the Precoat Metals segment.

Conference Call Details
AZZ Inc. will conduct a live conference call with Tom Ferguson, Chief Executive Officer, Jason Crawford, Chief Financial Officer, and David Nark, Chief Marketing, Communications, and Investor Relations Officer to discuss financial results for the third quarter of the fiscal year 2026, Thursday, January 8, 2026, at 11:00 A.M. ET. Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). A webcast of the call will be available on the Company's Investor Relations page at http://www.azz.com/investor-relations.   

A replay of the call will be available at (855) 669-9658 or (412) 317-0088 (international), replay access code: 9962123 through January 15, 2026, or by visiting http://www.azz.com/investor-relations for the next 12 months.

About AZZ Inc.
AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets in North America. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life. 

Safe Harbor Statement
Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as "may," "could," "should," "expects," "plans," "will," "might," "would," "projects," "currently," "intends," "outlook," "forecasts," "targets," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases, including increases due to inflation, in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process, paint used in our coil coating process; customer requested delays of our manufactured solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ's growth strategy; a downturn in market conditions in any industry relating to the manufactured solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in the United States and other foreign markets in which we operate; tariffs, acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business, including in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov. You are urged to consider these factors carefully when evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Company Contact:   
David Nark, Chief Marketing, Communications, and Investor Relations Officer
AZZ Inc.
(817) 810-0095
www.azz.com 

Investor Contact:
Sandy Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207 or (817) 368-2556
www.threepa.com 

---Financial tables on the following page---

 

AZZ Inc.
Condensed Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended November 30,				Nine Months Ended November 30,
	2025		2024		2025		2024
Sales	$                 425,746		$                 403,654		$             1,264,983		$             1,225,869
Cost of sales	323,805		305,876		957,620		921,907
Gross margin	101,941		97,778		307,363		303,962
Selling, general and administrative	32,462		39,243		99,874		108,032
Operating income	69,479		58,535		207,489		195,930
Interest expense, net	(12,206)		(19,223)		(44,434)		(63,906)
Equity in earnings (loss) of unconsolidated subsidiaries	(1,437)		7,168		231,431		12,470
Other income, net	(276)		(763)		1,239		(142)
Income before income taxes	55,560		45,717		395,725		144,352
Income tax expense	14,485		12,114		94,396		35,728
Net income	41,075		33,603		301,329		108,624
Series A Preferred Stock Dividends	—		—		—		(1,200)
Redemption premium on Series A Preferred Stock	—		—		—		(75,198)
Net income available to common shareholders	$                   41,075		$                   33,603		$                 301,329		$                   32,226
Basic earnings per common share	$                       1.37		$                       1.12		$                     10.05		$                       1.12
Diluted earnings per common share	$                       1.36		$                       1.12		$                       9.97		$                       1.11
Weighted average shares outstanding - Basic	29,963		29,879		29,983		28,819
Weighted average shares outstanding - Diluted	30,198		30,118		30,231		29,076
Cash dividends declared per common share	$                       0.20		$                       0.17		$                       0.57		$                       0.51

 

AZZ Inc.
Segment Reporting
(dollars in thousands)
(unaudited)
	Three Months Ended November 30,				Nine Months Ended November 30,
	2025		2024		2025		2024
Sales:
Metal Coatings	$                  194,998		$                  168,599		$                  572,197		$                  516,750
Precoat Metals	230,748		235,055		692,786		709,119
Total Sales	$                  425,746		$                  403,654		$              1,264,983		$              1,225,869
Adjusted EBITDA:
Metal Coatings	$                    59,172		$                    53,103		$                  179,224		$                  162,113
Precoat Metals	45,501		44,983		139,921		142,837
Infrastructure Solutions	(836)		7,139		4,462		12,403
Total Segment Adjusted EBITDA(1)	$                  103,837		$                  105,225		$                  323,607		$                  317,353
(1) See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with     GAAP to the non-GAAP financial measures.

 

AZZ Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
		As of
		November 30, 2025		February 28, 2025
Assets:
Current assets		$                         400,763		$                          375,444
Property, plant and equipment, net		604,091		592,941
Other non-current assets, net		1,226,053		1,258,716
Total Assets		$                      2,230,907		$                      2,227,101
Liabilities and Shareholders' equity:
Current liabilities		$                         242,019		$                         220,992
Long-term debt, net		534,746		852,365
Other non-current liabilities		134,894		108,249
Shareholders' equity		1,319,248		1,045,495
Total Liabilities and Shareholders' equity		$                      2,230,907		$                      2,227,101

 

AZZ Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
	Nine Months Ended November 30,
	2025		2024
Net cash provided by operating activities(1)	$                    452,872		$                    185,597
Net cash used in investing activities	(84,988)		(85,100)
Net cash used in financing activities	(368,327)		(103,912)
Effect of exchange rate changes on cash	(422)		550
Net decrease in cash and cash equivalents	(865)		(2,865)
Cash and cash equivalents at beginning of period	1,488		4,349
Cash and cash equivalents at end of period	$                            623		$                        1,484

(1)	For the nine months ended November 30, 2025, net cash provided by operating activities includes distributions from AVAIL of $273.2 million. Refer to footnote 7 on page 12.

 

AZZ Inc.
Non-GAAP Disclosure
Adjusted Net Income, Adjusted Earnings Per Share and Adjusted EBITDA

In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), we provide adjusted net income, adjusted earnings per share and Adjusted EBITDA (collectively, the "Adjusted Earnings Measures"), which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency when comparing operating results across a broad spectrum of companies, which provides a more complete understanding of our financial performance, competitive position, prospects for future capital investment and debt reduction. Management also believes that investors regularly rely on non-GAAP financial measures, such as adjusted net income, adjusted earnings per share and Adjusted EBITDA to assess operating performance and that such measures may highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP.

In calculating adjusted net income and adjusted earnings per share, management excludes: 1) intangible asset amortization, 2) restructuring charges, 3) retirement and other severance expenses, 4) redemption premium on Series A Preferred Stock, 5) additional stock compensation expense related to the adoption of our executive retiree long-term incentive program, and 6) certain adjustments related to the Company's unconsolidated joint venture from the reported GAAP measure. Management defines Adjusted EBITDA as adjusted net income excluding depreciation, amortization, interest, provision for income taxes and Series A Preferred Stock dividends. Management believes Adjusted EBITDA is used by investors to analyze operating performance and evaluate the Company's ability to incur and service debt, as well as its capacity for making capital expenditures in the future. 

Management provides non-GAAP financial measures for informational purposes and to enhance understanding of the Company's GAAP consolidated financial statements. Readers should consider these measures in addition to, but not instead of or superior to, the Company's financial statements prepared in accordance with GAAP, and undue reliance should not be placed on these non-GAAP financial measures. Additionally, these non-GAAP financial measures may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

The following tables provide a reconciliation for the three and nine months ended November 30, 2025 and November 30, 2024 between the non-GAAP Adjusted Earnings Measures to the most comparable measures, calculated in accordance with GAAP (in thousands, except per share data):

Adjusted Net Income and Adjusted Earnings Per Share

	Three Months Ended November 30,								Nine Months Ended November 30,
	2025				2024				2025				2024
	Amount		Per  Diluted Share(1)		Amount		Per  Diluted Share(1)		Amount		Per  Diluted Share(1)		Amount		Per  Diluted Share(1)
Net income	$    41,075				$    33,603				$  301,329				$  108,624
Less: Series A Preferred Stock dividends	—				—				—				(1,200)
Less: Redemption premium on Series A Preferred Stock	—				—				—				(75,198)
Net income available to common shareholders(2)	41,075		$       1.36		33,603		$       1.12		301,329		$       9.97		32,226		$       1.07
Impact of Series A Preferred Stock dividends(2)	—		—		—		—		—		—		1,200		0.04
Net income and diluted earnings per share for Adjusted net income calculation(2)	41,075		1.36		33,603		1.12		301,329		9.97		33,426		1.11
Adjustments:
Amortization of intangible assets	5,800		0.19		5,773		0.19		17,357		0.57		17,353		0.58
Restructuring charges(3)	—		—		—		—		3,827		0.13		—		—
Legal settlement and accrual	—		—		3,483		0.12		—		—		3,483		0.12
Retirement and other severance expense(4)	—		—		1,666		0.06		—		—		3,554		0.12
Redemption premium on Series A Preferred Stock(5)	—		—		—		—		—		—		75,198		2.50
Executive retiree long-term incentive program(6)	—		—		—		—		2,185		0.07		—		—
AVAIL JV equity in earnings adjustment(7)	622		0.02		—		—		(226,843)		(7.50)		—		—
Subtotal	6,422		0.21		10,922		0.37		(203,474)		(6.73)		99,588		3.31
Tax impact(8)	(1,541)		(0.05)		(2,621)		(0.09)		48,834		1.62		(5,854)		(0.19)
Total adjustments	4,881		0.16		8,301		0.28		(154,640)		(5.12)		93,734		3.11
Adjusted net income and adjusted earnings per share (non-GAAP)	$    45,956		$       1.52		$    41,904		$       1.39		$  146,689		$       4.85		$  127,160		$       4.22
Weighted average shares outstanding—Diluted for Adjusted earnings per share(2)			30,198				30,118				30,231				30,123
See notes on page 12.

Adjusted EBITDA

	Three Months Ended November 30,				Nine Months Ended November 30,
	2025		2024		2025		2024
Net income	$                   41,075		$                   33,603		$                 301,329		$                 108,624
Interest expense	12,206		19,223		44,434		63,906
Income tax expense	14,485		12,114		94,396		35,728
Depreciation and amortization	22,777		20,633		66,976		61,383
Adjustments:
Restructuring charges(3)	—		—		3,827		—
Legal settlement and accrual	—		3,483		—		3,483
Retirement and other severance expense(4)	—		1,666		—		3,554
Executive retiree long-term incentive program(6)	—		—		2,185		—
AVAIL JV equity in earnings adjustment(7)	622		—		(226,843)		—
Adjusted EBITDA (non-GAAP)	$                   91,165		$                   90,722		$                 286,304		$                 276,678
See notes on page 12.

Adjusted EBITDA by Segment

	Three Months Ended November 30, 2025
	Metal Coatings		Precoat Metals		Infra- structure Solutions		Corporate		Total
Net income (loss)	$         52,102		$         35,884		$          (1,458)		$        (45,453)		$         41,075
Interest expense	—		—		—		12,206		12,206
Income tax expense	—		—		—		14,485		14,485
Depreciation and amortization	7,070		9,617		—		6,090		22,777
Adjustments:
AVAIL JV equity in earnings adjustment(7)	—		—		622		—		622
Adjusted EBITDA (non-GAAP)	$         59,172		$         45,501		$             (836)		$        (12,672)		$         91,165
See notes on page 12.
	Three Months Ended November 30, 2024
	Metal Coatings		Precoat Metals		Infra- structure Solutions		Corporate		Total
Net income (loss)	$         46,489		$         37,080		$            7,139		$        (57,105)		$         33,603
Interest expense	—		—		—		19,223		19,223
Income tax expense	—		—		—		12,114		12,114
Depreciation and amortization	6,614		7,903		—		6,116		20,633
Adjustments:
Legal settlement and accrual	—		—		—		3,483		3,483
Retirement and other severance expense(4)	—		—		—		1,666		1,666
Adjusted EBITDA (non-GAAP)	$         53,103		$         44,983		$            7,139		$        (14,503)		$         90,722
See notes on page 12.
	Nine Months Ended November 30, 2025
	Metal Coatings		Precoat Metals		Infra- structure Solutions		Corporate		Total
Net income (loss)	$       154,479		$       111,758		$       231,305		$     (196,213)		$       301,329
Interest expense	—		—		—		44,434		44,434
Income tax expense	—		—		—		94,396		94,396
Depreciation and amortization	20,560		28,163		—		18,253		66,976
Adjustments:
Restructuring charges(3)	3,827		—		—		—		3,827
Executive retiree long-term incentive program(6)	358		—		—		1,827		2,185
AVAIL JV equity in earnings adjustment(7)	—		—		(226,843)		—		(226,843)
Adjusted EBITDA (non-GAAP)	$       179,224		$       139,921		$            4,462		$        (37,303)		$       286,304
See notes on page 12.
	Nine Months Ended November 30, 2024
	Metal Coatings		Precoat Metals		Infra- structure Solutions		Corporate		Total
Net income (loss)	$       142,158		$       119,703		$         12,403		$     (165,640)		$       108,624
Interest expense	—		—		—		63,906		63,906
Income tax expense	—		—		—		35,728		35,728
Depreciation and amortization	19,955		23,134		—		18,294		61,383
Adjustments:
Legal settlement and accrual	—		—		—		3,483		3,483
Retirement and other severance expense(4)	—		—		—		3,554		3,554
Adjusted EBITDA (non-GAAP)	$       162,113		$       142,837		$         12,403		$        (40,675)		$       276,678
See notes on page 12.

Debt Leverage Ratio Reconciliation

	Trailing Twelve Months Ended
	November 30, 2025		February 28, 2025
Gross debt	$                        574,875		$                        900,250
Less: Cash per bank statement	(7,200)		(12,670)
Add: Finance lease liability	13,931		6,647
Consolidated indebtedness	$                        581,606		$                        894,227
Net income	$                        321,538		$                        128,833
Depreciation and amortization	87,798		82,205
Interest expense	61,810		81,282
Income tax expense	100,518		41,850
EBITDA	571,664		334,170
Cash items(9)	13,651		15,325
Non-cash items(10)	13,915		12,161
Equity in earnings, net of distributions	(229,324)		(3,598)
Adjusted EBITDA per Credit Agreement	$                        369,906		$                        358,058
Net leverage ratio	1.6x		2.5x

(1)	Earnings per share amounts included in the "Adjusted Net Income and Adjusted Earnings Per Share" table above may not sum due to rounding differences.
(2)	For the nine months ended November 30, 2024, diluted earnings per share is based on weighted average shares outstanding of 29,076, as the Series A Preferred Stock that was redeemed May 9, 2024, is anti-dilutive for this calculation.  The calculation of adjusted diluted earnings per share is based on weighted average shares outstanding of 30,123, as the Series A Preferred Stock is dilutive to adjusted diluted earnings per share.  Adjusted net income for adjusted earnings per share also includes the addback of Series A Preferred Stock dividends for the period noted above.  For further information regarding the calculation of earnings per share, see "Item 1. Financial Statements—Note 4" in the Company's Form 10-Q for the third quarter of fiscal year 2026.
(3)	Includes restructuring charges related to the closure of two surface technology facilities in our Metal Coatings segment. See "Item 1. Financial Statements—Note 18" in the Company's Form 10-Q for the third quarter of fiscal year 2026.
(4)	Related to retention and transition of certain executive management employees.
(5)	On May 9, 2024, we redeemed AZZ's Series A Preferred Stock. The redemption premium represents the difference between the redemption amount paid and the book value of the Series A Preferred Stock.
(6)	During the nine months ended November 30, 2025, we recognized additional stock-based compensation expense of $2.2 million upon the adoption of the Executive Retiree Long-term Incentive Program. For further information regarding the adoption of the ERP, see "Item 1. Financial Statements—Note 16" in the Company's Form 10-Q for the third quarter of fiscal year 2026.
(7)	During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group ("EPG") to nVent Electric plc. The three months ended November 30, 2025 includes an adjustment to the gain related to the sale of the EPG of $(0.6) million. The nine months ended November 30, 2025 includes $226.8 million, which represents the gain related to the sale of the EPG, partially offset by the recognition of an impairment loss on the AVAIL JV and an adjustment related to a change in AVAIL's transfer pricing policy. For further information, see "Item 1. Financial Statements—Note 8" in the Company's Form 10-Q for the third quarter of fiscal year 2026.
(8)	The non-GAAP effective tax rate for each of the periods presented is estimated at 24.0%.
(9)	Cash items include certain legal settlements, accruals, retirement and other severance expenses, and restructuring charges associated with the Metal Coatings segment.
(10)	Non-cash items include stock-based compensation expense.

 

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SOURCE AZZ, Inc.

FAQ

What were AZZ (AZZ) third quarter fiscal 2026 sales and EPS on January 7, 2026?

Third quarter sales were $425.7M and GAAP diluted EPS was $1.36 for the period ended November 30, 2025.

How did AZZ's Metal Coatings and Precoat Metals segments perform in Q3 FY2026?

Metal Coatings sales rose to $195.0M (+15.7%) with 30.3% segment adjusted EBITDA margin; Precoat Metals sales were $230.7M (−1.8%) with 19.7% segment margin.

What is AZZ's updated fiscal year 2026 guidance announced January 7, 2026?

FY2026 guidance narrowed to $1.625–$1.7B in sales, $360–$380M adjusted EBITDA, and $5.90–$6.20 adjusted diluted EPS.

How much debt reduction and cash generation did AZZ report through Q3 FY2026?

AZZ reported $325.4M of debt paydown year-to-date and $452.9M of operating cash flow through nine months, including a $273.2M JV distribution.

Did AZZ return cash to shareholders in the quarter ending November 30, 2025?

Yes. AZZ repurchased $20.0M of common stock and paid a quarterly cash dividend of $0.20 per share.