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AZZ
(NYSE:AZZ)
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Rating:73Outperform
Price Target:
$151.00
â–²(9.02% Upside)
Action:Reiterated
Date:08/04/26
AZZ scores well primarily due to improved financial strength (profitability rebound and much stronger leverage profile) and a bullish earnings call with raised FY2027 guidance and continued debt-reduction plans. The score is held back by weak-to-mixed technicals (negative MACD and price below short-term moving averages) and cash-flow volatility, plus only modest valuation support given a moderate P/E and low dividend yield.
Positive Factors
Revenue and Metal Coatings Growth
Broad quarterly growth and four consecutive quarters of double-digit Metal Coatings expansion indicate sustained demand across construction, infrastructure and data centers. This supports utilization, revenue visibility and the company’s ability to leverage its established coating network over the next several quarters.
Negative Factors
Free Cash Flow Volatility
The sharp TTM free-cash-flow decline shows that reported profitability has not converted into cash as consistently as in the prior annual period. Higher working-capital needs, capital spending or timing effects could constrain internally funded investment and slow the pace of debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Metal Coatings Growth
Broad quarterly growth and four consecutive quarters of double-digit Metal Coatings expansion indicate sustained demand across construction, infrastructure and data centers. This supports utilization, revenue visibility and the company’s ability to leverage its established coating network over the next several quarters.
Read all positive factors
AZZ Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Shows the revenue generated from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Shows the revenue generated from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyAZZ (AZZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.19B
Dividend Yield0.6%
Average Volume (3M)229.03K
Price to Earnings (P/E)21.1
Beta (1Y)1.05
Revenue Growth5.68%
EPS Growth-23.91%
CountryUS
Employees3,767
SectorIndustrials
Sector Strength72
IndustryIndustrial - Specialties
Share Statistics
EPS (TTM)6.61
Shares Outstanding30,051,500
10 Day Avg. Volume288,513
30 Day Avg. Volume229,027
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.05
Price to Sales (P/S)2.47
P/FCF Ratio9.16
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit11.49
Enterprise Value/Ebitda12.27
Forecast
1Y Price Target
$165.40Price Target Upside19.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)7.07
Revenue Forecast (FY)$1.82B
AZZ Business Overview & Revenue Model
Company Description
AZZ Inc. specializes in a comprehensive range of services and products, encompassing metal coating and galvanizing processes, welding expertise, specialized electrical equipment, and engineered solutions. The company serves a diverse client base a...
How the Company Makes Money
AZZ primarily makes money by providing corrosion-protection services—most notably hot-dip galvanizing—where customers deliver fabricated steel or metal parts to AZZ facilities to be cleaned, treated, and coated, and then returned for use in end pr...
AZZ Earnings Call Summary
Earnings Call Date:Jul 08, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 13, 2026
Earnings Call Sentiment Positive
The call conveyed multiple strong operational and financial positives: record quarterly sales, double-digit Metal Coatings growth, a successful ramp at the Washington, MO Precoat facility (driving a 194% container sales increase), improved margins and cash flow, a 20% dividend increase, lower interest expense, low net leverage, and an upgraded full-year outlook. Lowlights centered on comparability noise from the Avail JV divestiture, a decline in Infrastructure Solutions adjusted EBITDA, some Precoat volume softness in HVAC/appliances/transportation, and substrate/tariff-related disruptions. Overall, the positive execution, upgraded guidance, balance sheet improvement and capacity investments materially outweigh the challenges highlighted.Positive Updates
Record Quarterly Sales
First quarter sales of $448.5 million, up 6.3% year over year, driven by broad end-market momentum.
Negative Updates
Infrastructure Solutions EBITDA Decline
Infrastructure Solutions adjusted EBITDA fell from $7.6 million in prior-year Q1 to a loss of $0.8 million in the current quarter, largely reflecting Avail JV divestitures and comparability effects.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Sales
First quarter sales of $448.5 million, up 6.3% year over year, driven by broad end-market momentum.
Read all positive updates
Company Guidance
AZZ raised its fiscal 2027 outlook to sales of $1.80–$1.85 billion, adjusted EBITDA of $375–$415 million and adjusted diluted EPS of $6.75–$7.15, and said it expects to reduce debt by $130–$170 million in FY27. The raise follows a strong Q1 (sales $448.5M, +6.3% YoY; metal coatings +12.3%, Precoat +1.5%), consolidated adjusted EBITDA $99.5M (22.2% of sales), gross profit $112.2M (25.0%), operating income $77.0M (17.2%), adjusted diluted EPS $1.85 (+3.9%), operating cash flow $37.1M, CapEx $18.7M, net leverage 1.4x, interest expense $11.3M, tax rate 21.2%, GAAP net income $52.0M, plus a 20% dividend increase to $0.24/qtr and $133.2M of share repurchase capacity—management tied the guidance lift to metal coatings momentum, the Washington, MO ramp and recent capacity investments.AZZ Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.68B | 1.65B | 1.58B | 1.54B | 1.32B | 525.60M |
| Gross Profit | 402.99M | 394.95M | 382.68M | 363.46M | 295.94M | 146.15M |
| EBITDA | 377.09M | 566.02M | 334.17M | 316.59M | 252.06M | 111.47M |
| Net Income | 198.36M | 317.26M | 128.83M | 101.61M | -52.97M | 84.02M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.21B | 2.23B | 2.20B | 2.22B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 705.00K | 1.49M | 4.35M | 2.82M | 12.08M |
| Total Debt | 542.82M | 538.39M | 879.13M | 977.23M | 1.09B | 241.18M |
| Total Liabilities | 876.28M | 876.44M | 1.18B | 1.26B | 1.37B | 465.66M |
| Stockholders Equity | 1.38B | 1.34B | 1.05B | 934.49M | 853.46M | 667.37M |
Cash Flow | ||||||
| Free Cash Flow | 169.19M | 444.67M | 134.03M | 149.35M | 13.04M | 57.60M |
| Operating Cash Flow | 247.81M | 525.45M | 249.91M | 244.47M | 70.16M | 86.01M |
| Investing Cash Flow | -93.06M | -91.48M | -115.00M | -95.06M | -1.23B | -86.83M |
| Financing Cash Flow | -156.78M | -434.12M | -138.69M | -147.89M | 1.15B | 912.00K |
AZZ Technical Analysis
Positive
138.51
Price Trends
141.54
Negative
143.78
Negative
135.57
Positive
Market Momentum
-1.19
Negative
54.56
Neutral
70.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZZ, the sentiment is Positive. The current price of 138.51 is above the 20-day moving average (MA) of 135.96, below the 50-day MA of 141.54, and above the 200-day MA of 135.57, indicating a neutral trend. The MACD of -1.19 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZZ.
AZZ Risk Analysis
AZZ disclosed 35 risk factors in its most recent earnings report. AZZ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AZZ Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.97B | 18.05 | 16.19% | 1.27% | 18.44% | 54.40% | |
74 Outperform | $7.14B | 37.35 | 27.51% | 0.18% | 7.04% | 8.18% | |
74 Outperform | $2.05B | 47.08 | 9.03% | 0.20% | 17.07% | 3.40% | |
73 Outperform | $4.19B | 21.09 | 14.87% | 0.60% | 5.68% | -23.91% | |
64 Neutral | $4.35B | 25.60 | 7.66% | 0.63% | 9.65% | -33.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | $1.33B | -20.79 | -3.18% | 2.94% | 31.54% | -171.56% |
* Industrials Sector Average
AZZ
AZZ
139.39
33.17
31.23%
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RYZ
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25.57
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ESAB
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69.90
-48.15
-40.79%
AZZ Corporate Events
Business Operations and StrategyExecutive/Board Changes
AZZ Appoints Rhonda Davenport as Chief HR Officer
Positive
Aug 3, 2026
On August 3, 2026, AZZ Inc. appointed veteran human resources executive Rhonda Davenport as Chief Human Resources Officer, tasking her with overseeing talent acquisition, leadership development, employee engagement, total rewards and culture initi...
Executive/Board ChangesShareholder Meetings
AZZ shareholders approve directors, compensation and auditor
Positive
Jul 7, 2026
On July 7, 2026, AZZ Inc. held its 2026 annual meeting of shareholders, where investors voted on key governance items including the election of directors, executive pay and auditor ratification. Shareholders elected seven directors to one-year ter...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.