olivLaw · US equity research
AZZ Inc. AZZ
Coating, Engraving & Allied Services · SIC 3470 · Vertical: Fabricated metal products (SIC 34xx)
AZZ Inc. is North America's leading independent provider of hot-dip galvanizing and coil coating solutions, serving construction, infrastructure and industrial markets. Sales reached 1.65 billion USD in fiscal 2026, and in the second quarter of fiscal 2027 the company reported record quarterly sales, up 16.7%, which makes its trajectory worth watching now.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, AZZ Inc. (AZZ) stock was 122.22 USD (−7.57% on the day), with market capitalisation 3.7 bn USD, P/E 22.0 on diluted EPS of 5.55 USD over the last 12 months, dividend yield 0.69%, beta 1.18, 52-week range 97.64–160.17 USD. Latest reported quarter (Q2 2027): revenue of 486.9 m USD (+16.7% YoY), net income of 58.5 m USD (−34.6% YoY), diluted EPS 1.94 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 33.1
- weak (30–45)
- Bollinger (20, 2)
- 126.92 – 142.35
- below the lower band · %B -0.30 · band width 11.5%
- SMA 50 / 200
- 135.82 / 138.38
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -1.42 / -0.68
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.7% | −5.9% | −7.7 pp | — |
| 3 months | −19.0% | −4.6% | −14.4 pp | — |
| 6 months | −15.2% | +0.2% | −15.4 pp | — |
| Year to date | +14.0% | +7.4% | +6.6 pp | — |
| 1 year | +18.0% | +8.2% | +9.7 pp | +11.1% |
| 3 years | +155.7% | +68.4% | +87.3 pp | +35.9% |
| 5 years | +114.0% | +56.5% | +57.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 31 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 403.7 m | 351.9 m | 422.0 m | 417.3 m | 425.7 m | 385.1 m | 448.5 m | 486.9 m |
| Cost of revenue | 305.9 m | 273.2 m | 317.8 m | 316.0 m | 323.8 m | 297.5 m | 336.4 m | 364.8 m |
| Gross profit | 97.8 m | 78.7 m | 104.1 m | 101.3 m | 101.9 m | 87.6 m | 112.2 m | 122.1 m |
| SG&A | 39.2 m | 38.3 m | 34.6 m | 32.8 m | 32.5 m | 30.5 m | 35.1 m | 38.3 m |
| Operating income | 58.5 m | 40.4 m | 69.5 m | 68.5 m | 69.5 m | 57.1 m | 77.0 m | 83.8 m |
| Depreciation & amortisation | 20.6 m | 20.8 m | 21.8 m | 22.4 m | 22.8 m | 23.1 m | 23.5 m | 24.2 m |
| Interest expense | 19.2 m | 17.4 m | 18.6 m | 13.7 m | 12.2 m | 11.2 m | 11.3 m | 10.8 m |
| Pre-tax income | 45.7 m | 26.3 m | 225.8 m | 114.3 m | 55.6 m | 24.6 m | 66.0 m | 79.8 m |
| Income tax | 12.1 m | 6.1 m | 54.9 m | 25.0 m | 14.5 m | 8.7 m | 14.0 m | 21.3 m |
| Net income | 33.6 m | 20.2 m | 170.9 m | 89.3 m | 41.1 m | 15.9 m | 52.0 m | 58.5 m |
| Diluted EPS | 1.12 | 0.67 ≈ | 5.66 | 2.95 | 1.36 | 0.53 ≈ | 1.72 | 1.94 |
| Operating cash flow | 66.2 m ≈ | 64.3 m | 314.8 m | 58.4 m ≈ | 79.7 m ≈ | 72.6 m | 37.1 m | 102.8 m ≈ |
| Capex | 26.4 m ≈ | 29.9 m | 20.9 m | 19.3 m ≈ | 18.5 m ≈ | 22.1 m | 18.7 m | 18.5 m ≈ |
| Dividends paid | 5.1 m ≈ | 5.1 m | 5.1 m | 6.0 m ≈ | 6.0 m ≈ | 6.0 m | 6.0 m | 7.2 m ≈ |
| Share repurchases | — | 0 | — | — | 20.0 m ≈ | 0 | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 42 percentile of its own 36-quarter history (min 9.9, median 24.0, max 117.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | ⚠ 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 927.1 m | 1.1 bn | 480.6 m | 525.6 m | 1.3 bn | 1.5 bn | 1.6 bn | 1.7 bn |
| Revenue YoY | +14.4% | +14.5% | — | +9.4% | +151.8% | +16.2% | +2.6% | +4.6% |
| Net income | 51.2 m | 48.2 m | 39.6 m | 84.0 m | -53.0 m | 101.6 m | 128.8 m | 317.3 m |
| Net income YoY | +13.4% | −5.8% | — | +112.1% | −163.0% | unavailable | +26.8% | +146.3% |
| Diluted EPS | 1.96 | 1.84 | 1.52 | 3.35 | -2.45 | 3.46 | 1.79 | 10.50 |
| Diluted EPS YoY | +13.3% | −6.1% | — | +120.4% | −173.1% | unavailable | −48.3% | +486.6% |
| net % | 5.5% | 4.5% | 8.2% | 16.0% | -4.0% | 6.6% | 8.2% | 19.2% |
| Free cash flow | 85.9 m | 109.7 m | 64.9 m | 62.4 m | unavailable | 149.3 m | 134.0 m | 444.7 m |
The series breaks before 2021: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 28 Feb 2026
- Cash
- 705.0 k USD
- Financial debt
- 477.7 m USD
- Net debt
- 477.0 m USD
- Equity
- 1.3 bn USD
- Total assets
- 2.2 bn USD
- Debt / equity
- 0.36x
- Current ratio
- 1.70x
- ROE
- 26.6%
- ROA
- 14.3%
- FCF margin
- 26.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 480.6 m | 525.6 m | 1.3 bn | 1.5 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 22 Apr 2026verified |
| Cost of revenue | 357.7 m | 379.4 m | 1.0 bn | 1.2 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 22 Apr 2026verified |
| Gross profit | 122.9 m | 146.2 m | 295.9 m | 363.5 m | 382.7 m | 395.0 m | SEC (XBRL)· 22 Apr 2026verified |
| SG&A | 59.3 m | 66.9 m | 122.3 m | 141.9 m | 146.3 m | 130.3 m | SEC (XBRL)· 22 Apr 2026verified |
| Operating income | 47.5 m | 79.2 m | 173.6 m | 221.6 m | 236.4 m | 264.6 m | SEC (XBRL)· 22 Apr 2026verified |
| Depreciation & amortisation | 32.1 m | 32.1 m | 74.6 m | 79.4 m | 82.2 m | 90.1 m | SEC (XBRL)· 22 Apr 2026verified |
| EBITDA | 79.6 m ≈ | 111.3 m ≈ | 248.2 m ≈ | 301.0 m ≈ | 318.6 m ≈ | 354.7 m ≈ | SEC (XBRL)· 22 Apr 2026derived |
| Interest expense | 9.5 m | 6.4 m | 88.8 m | 107.1 m | 81.3 m | 55.7 m | SEC (XBRL)· 22 Apr 2026verified |
| Pre-tax income | 38.4 m | 73.0 m | 88.7 m | 130.1 m | 170.7 m | 420.3 m | SEC (XBRL)· 22 Apr 2026verified |
| Income tax | 11.2 m | 23.2 m | 22.3 m | 28.5 m | 41.9 m | 103.1 m | SEC (XBRL)· 22 Apr 2026verified |
| Net income | 39.6 m | 84.0 m | -53.0 m | 101.6 m | 128.8 m | 317.3 m | SEC (XBRL)· 22 Apr 2026verified |
| Diluted EPS | 1.52 | 3.35 | -2.45 | 3.46 | 1.79 | 10.50 | SEC (XBRL)· 22 Apr 2026verified |
| Weighted average diluted shares | 26.0 m | 25.1 m | 25.0 m | 25.2 m | 29.3 m | 30.2 m | SEC (XBRL)· 22 Apr 2026verified |
| Dividend per share | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.77 | SEC (XBRL)· 22 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 14.8 m | 12.1 m | 2.8 m | 4.3 m | 1.5 m | 705.0 k | SEC (XBRL)· 22 Apr 2026verified |
| Receivables | 128.8 m | 85.1 m | 156.4 m | 142.2 m | 135.1 m | 142.6 m | SEC (XBRL)· 22 Apr 2026verified |
| Inventories | — | — | 143.9 m | 117.7 m | 112.3 m | 113.4 m | SEC (XBRL)· 22 Apr 2026verified |
| Current assets | 305.1 m | 386.5 m | 417.4 m | 367.0 m | 375.4 m | 395.4 m | SEC (XBRL)· 22 Apr 2026verified |
| Property, plant & equipment, net | 207.1 m | 193.4 m | 498.5 m | 541.7 m | 592.9 m | 609.3 m | SEC (XBRL)· 22 Apr 2026verified |
| Goodwill | 353.9 m | 190.4 m | 702.5 m | 705.5 m | 703.9 m | 714.8 m | SEC (XBRL)· 22 Apr 2026verified |
| Intangibles (excl. goodwill) | 91.4 m | 39.1 m | 469.4 m | 445.4 m | 421.9 m | 409.7 m | SEC (XBRL)· 22 Apr 2026verified |
| Total assets | 999.2 m | 1.1 bn | 2.2 bn | 2.2 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 22 Apr 2026verified |
| Accounts payable | 41.5 m | 24.8 m | 84.3 m | 88.0 m | 106.5 m | 114.6 m | SEC (XBRL)· 22 Apr 2026verified |
| Short-term debt | 0 | 0 | 0 | — | — | — | SEC (XBRL)· 09 Jan 2024verified |
| Long-term debt | 178.4 m | 226.5 m | 1.1 bn | 952.7 m | 852.4 m | 477.7 m | SEC (XBRL)· 22 Apr 2026verified |
| Current liabilities | 116.6 m | 150.5 m | 187.2 m | 194.3 m | 221.0 m | 232.3 m | SEC (XBRL)· 22 Apr 2026verified |
| Total liabilities | 375.9 m | 465.7 m | 1.4 bn | 1.3 bn | 1.2 bn | 876.4 m | SEC (XBRL)· 22 Apr 2026verified |
| Equity | 623.3 m † | 667.4 m † | 619.7 m † | 700.8 m † | 1.0 bn † | 1.3 bn † | SEC (XBRL)· 22 Apr 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 92.0 m | 86.0 m | — | 244.5 m | 249.9 m | 525.4 m | SEC (XBRL)· 22 Apr 2026verified |
| Capex | 27.2 m | 23.6 m | 57.1 m | 95.1 m | 115.9 m | 80.8 m | SEC (XBRL)· 22 Apr 2026verified |
| Free cash flow | 64.9 m ≈ | 62.4 m ≈ | — | 149.3 m ≈ | 134.0 m ≈ | 444.7 m ≈ | SEC (XBRL)· 22 Apr 2026derived |
| Investing cash flow | -28.6 m | -86.8 m | — | -95.1 m | -115.0 m | -91.5 m | SEC (XBRL)· 22 Apr 2026verified |
| Financing cash flow | -88.4 m | 912.0 k | — | -147.9 m | -138.7 m | -434.1 m | SEC (XBRL)· 22 Apr 2026verified |
| Dividends paid | 17.6 m | 16.9 m | 22.7 m | 31.4 m | 23.1 m | 23.1 m | SEC (XBRL)· 22 Apr 2026verified |
| Share repurchases | 48.3 m | 30.8 m | 0 | 0 | 0 | 20.0 m | SEC (XBRL)· 22 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 65 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 3.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns55
- Growth64
- Balance sheet61
- Valuation68
- Quality69
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 79.69 – 182.25 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)109.46 – 182.25 (Mid 137.18)WACC 8.7% · starting FCFF 248.2 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 3.1%
- Peers: EV/EBITDA79.69 – 150.44 (Mid 143.19)14 companies used · median multiple 12.5x · quartiles 7.5x – 13.0xACA, ACU, CXT, EML, HLIO, LCUT, MAS, MTRN, PKOH, RECT, SNA, SSD, VATE, VMI
- Peers: P/E87.87 – 156.66 (Mid 122.93)24 companies used · median multiple 22.2x · quartiles 15.8x – 28.2xACA, ACU, BALL, CIX, CXT, EML, HLIO, LCUT, MAS, MTRN, NPK, OFLX, PH, PKOH, PRLB, RECT, SNA, SSD, SWBI, TRS, VMI, WTS, XPEL, ZJK
- Dividend discount (DDM)outside the aggregate10.12 – 13.61 (Mid 11.61)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 65/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.4% | 50 (vs peers) | 11% |
| Net margin · Quality | 9.6% | 68 (vs peers) | 7% |
| FCF conversion · Quality | 128.1% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 7.6% | 64 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 1.2x | 44 (vs peers) | 11% |
| Interest coverage · Balance sheet | 6.3x | 74 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.8x | 83 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 22.0x | 56 (vs peers) | 11% |
| EV/EBITDA · Valuation | 10.8x | 75 (vs peers) | 11% |
| FCF yield · Valuation | 5.9% | 73 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 1.8% | 25 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 11.7% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet61/100 · 3/3 factors with a value
- Growth· partial64/100 · 1/2 factors with a value
- Quality69/100 · 3/3 factors with a value
- Returns55/100 · 2/2 factors with a value
- Valuation68/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
AZZ Inc. (AZZ). Latest full fiscal year: 2026; data up to 2026-08-31.
Figures computed from the financial statements: revenue 1.7 bn USD in 2026; YoY growth 4.6%; net margin 9.6%; ROE 12.3%; net debt/EBITDA 1.2x.
The estimated value range is 87.87–156.66 USD per share (median of 3 methods, agreement: high); assumptions are illustrative. Against the central value of 137.18 USD, the price of 122.22 USD leaves a potential of 12.2% (value / price − 1) and a margin of safety of 10.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 65/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 128.1%
- Interest coverage: 6.3x
- Current ratio: 1.8x
- EV/EBITDA: 10.8x
- FCF yield: 5.9%
- Payout ratio (FCF): 11.7%
What contradicts it
- Shareholder yield (distributions): 1.8%
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Fabricated metal products (SIC 34xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PHParker-Hannifin Corporation | 112.5 bn | 30.6 | 25.0% | 16.6% | +8.3% | +4% / +106% |
| AXONAxon Enterprise, Inc. | 31.1 bn | 158.5 | 6.2% | 6.2% | +33.5% | −29% / +66% |
| SNASnap-on Inc | 18.9 bn | 19.1 | 17.0% | 19.2% | unavailable | +8% / +33% |
| BALLBall Corporation | 17.4 bn | 33.7 | 9.6% | 3.5% | +11.6% | +35% / +21% |
| MASMasco Corporation | 16.2 bn | 18.2 | — | 12.1% | −3.4% | +29% / +38% |
| SSDSimpson Manufacturing Co., Inc. | 8.1 bn | 21.5 | 18.3% | 15.6% | +4.5% | +19% / +19% |
| VMIValmont Industries, Inc. | 7.6 bn | 15.1 | 30.8% | 12.1% | +0.7% | −4% / +81% |
| ACAArcosa, Inc. | 7.3 bn | 14.9 | 17.9% | 17.9% | +12.2% | +46% / +116% |
| MTRNMaterion Corporation | 3.7 bn | 36.3 | 10.5% | 4.6% | +6.0% | +45% / +57% |
| AZZAZZ Inc. | 3.7 bn | 22.0 | 12.3% | 9.6% | +4.6% | +18% / +156% |
| CXTCrane Nxt, Co. | 3.4 bn | 26.3 | 10.5% | 7.1% | +11.4% | +5% / +15% |
| AMBPArdagh Metal Packaging S.A. | 2.8 bn | — | — | 0.2% | +12.0% | +27% / +18% |
| HLIOHelios Technologies, Inc. | 2.0 bn | 28.0 | 7.7% | 8.0% | unavailable | +11% / +57% |
| PRLBProto Labs, Inc. | 1.5 bn | 44.2 | 5.1% | 6.0% | +6.4% | +24% / +74% |
| TRSTrimas Corporation | 1.4 bn | 1.6 | 83.9% | 136.2% | +2.4% | +11% / +48% |
| XPELXpel, Inc. | 1.1 bn | 20.3 | 19.5% | 10.8% | +13.3% | −14% / −12% |
| SMRNuscale Power Corporation | 1.0 bn | — | -13.0% | -6,817.0% | −15.0% | −78% / +58% |
| NPKNational Presto Industries Inc | 1.0 bn | 23.5 | 10.9% | 7.9% | +29.7% | +50% / +88% |
| RGRSturm, Ruger & Company, Inc. | 790.9 m | 49.0 | 5.7% | 2.7% | +1.9% | +64% / +13% |
| SWBISmith & Wesson Brands, Inc. | 643.0 m | 26.3 | 6.6% | 4.4% | +10.4% | +65% / +4% |
| PKOHPark-Ohio Holdings Corp | 573.1 m | 16.1 | 9.0% | 2.0% | −3.4% | +85% / +74% |
| BWBabcock & Wilcox Enterprises, Inc | 461.8 m | — | — | -2.2% | +1.1% | −50% / +118% |
| CIXCompx International Inc | 451.8 m | 22.8 | 16.3% | 14.0% | +8.5% | +63% / +56% |
| MECMayville Engineering Company, Inc. | 332.8 m | — | -5.0% | -2.3% | −6.0% | −23% / +3% |
| IMSRTerrestrial Energy Inc. | 271.7 m | — | -36.8% | — | unavailable | −73% / unavailable |
1- and 3-year price returns: for AZZ from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 75.16 Total return -38% · Per year -38% | 132.68 Total return 9% · Per year 9% | 199.59 Total return 64% · Per year 64% |
| 3 years | 77.59 Total return -35% · Per year -13% | 153.68 Total return 28% · Per year 9% | 253.16 Total return 110% · Per year 28% |
| 5 years | 80.11 Total return -32% · Per year -7% | 178.01 Total return 50% · Per year 8% | 321.12 Total return 169% · Per year 22% |
- Exit P/E± 38.42
- Net margin± 26.89
- Annual revenue growth± 21.43
- Annual dilution± 2.26
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 13 Oct 2026; since then the company filed 10-Q/A (15 Oct 2026).
In brief
AZZ Inc. is North America's leading independent provider of hot-dip galvanizing and coil coating solutions, serving construction, infrastructure and industrial markets. Sales reached 1.65 billion USD in fiscal 2026, and in the second quarter of fiscal 2027 the company reported record quarterly sales, up 16.7%, which makes its trajectory worth watching now 13.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Intense price competitionmedium
Lower-cost competitors could offer better prices, and a slow response could lead to lost market share 1.
- Volatile zinc and energy costshigh
If zinc or natural gas prices rise and cannot be passed on to customers, margins could be affected 12.
- Cyclicality and seasonalitymedium
A slowdown in construction or severe winter weather could reduce volumes and quarterly results 1.
- AVAIL JV resultshigh
Gains or losses from the AVAIL JV can distort reported profit, making period-to-period comparison difficult 13.
- Dependence on skilled labormedium
A shortage of skilled workers or rising wages could raise costs and limit production 1.
Investment thesis
What would need to be true (bull case)
- Sustained demand from construction and infrastructure, combined with growing sales in the first half of fiscal 2027, could lead to another record year if the trend holds 23.
- Acquisitions and the new Missouri facility can add capacity and are expected to be accretive, according to the revised guidance 3.
- Operating cash generation and debt reduction could provide flexibility for dividends and share repurchases 3.
What would break the thesis
- Reported net income depends on AVAIL JV gains, which may not recur, so future results could be weaker than current ones 13.
- If zinc and energy prices rise faster than selling prices, margins could shrink 12.
- Cyclical activity could be hit by an economic slowdown, reducing demand from construction and industry 1.
What to watch
- Third-quarter fiscal 2027 results and Metal Coatings sales trendQ3 2027
- Delivery against the revised fiscal 2027 guidance, including sales and adjusted EPS2027
- AVAIL JV results and their effect on reported net incomeQ3 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 13 Oct 2026; since then the company filed 10-Q/A (15 Oct 2026).
The business
AZZ provides hot-dip galvanizing and coil coating solutions across North America, founded in 1956 and incorporated in Texas 1. It has three operating segments: AZZ Metal Coatings, offering hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the steel fabrication industry; AZZ Precoat Metals, which applies protective and decorative coatings to steel and aluminum coil; and AZZ Infrastructure Solutions, which represents a 40% non-controlling interest in the AVAIL JV 1. As of February 28, 2026 the company operated 42 galvanizing plants and four surface technologies plants, plus 14 coil coating plants 1.
The business is cyclical and seasonal: volumes rise in warmer months when construction is busier, while severe winter weather can hurt volumes and earnings, especially in the fourth fiscal quarter 1. Galvanizing is a metallurgical process in which molten zinc reacts with steel to protect it from corrosion for several decades, and served markets are generally limited to areas near the plants 1. Fiscal 2026 results were favorably affected by the AVAIL JV, which contributed to net income of 317.3 million USD 1.
In the second quarter of fiscal 2027, ended August 31, 2026, the company completed the acquisition of Seattle Galvanizing in Arlington, Washington, and raised its annual guidance 3. The new Washington, Missouri facility became operational in fiscal 2026 and is expected to be accretive to earnings in fiscal 2027 13.
Segments
AZZ Infrastructure Solutions
The segment reflects the 40% stake in the AVAIL JV, which supplies electrical equipment and industrial lighting; in fiscal 2026 its contribution was driven mainly by the gain from AVAIL divestitures, and after the December 2025 sale of most of its welding services business the lighting business remained 1.
Market context
AZZ operates in the protective coatings market for steel and aluminum in North America, with demand linked to construction, infrastructure, transportation, HVAC and appliances 1. The company expects Metal Coatings prices to increase slightly due to zinc inflation, and average Precoat Metals prices could rise on pass-through of higher material costs 12.
Trends
- Investment in construction and infrastructuretailwind
Demand from construction, infrastructure and industrial users supported sales in fiscal 2026 and in the first half of fiscal 2027, which could continue if projects stay active 12.
- Zinc and energy cost pressureheadwind
Zinc and natural gas make up a large part of cost of sales, and rising prices could compress margins if they cannot be passed on to customers, a pattern already seen in zinc inflation 12.
- Effects from the AVAIL JVmixed
Reported results are strongly influenced by gains or losses from the AVAIL JV stake after divestitures, which makes net income volatile from quarter to quarter 13.
- Growth through acquisitionstailwind
The Seattle Galvanizing acquisition and galvanizing capacity expansion show a strategy of growth through acquisitions and investment, which could add volume if integration goes well 3.
Competitive position
In galvanizing, AZZ competes with other galvanizing companies, captive facilities operated by manufacturers, and alternatives such as stainless steel, aluminum or paint 1. In coil coating, competition comes from other toll coaters, integrated steel and aluminum mills, and substitute materials 1.
The company notes that some competitors may have lower cost structures or greater economies of scale on raw materials, which could let them price lower 1. If its response to competitor pricing is not timely, it could lose market share 1.
- Other galvanizing service providers
Independent galvanizing companies competing in the same nearby regional markets as AZZ plants 1.
- Captive galvanizing facilities of manufacturers
In-house galvanizing operations of steel fabricators that can replace outside services 1.
- Other coil coating toll processors
Direct competitors in the Precoat Metals segment offering contract painting of coil 1.
- Integrated steel and aluminum mills
Producers that can offer pre-coated coil and compete with outside coating services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report26 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report (amendment)15 Oct 2026
- Current report13 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report13 Oct 2026
- Current report08 Oct 2026Other events · Financial statements and exhibits
- Current report03 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report08 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report08 Jul 2026
- Current report07 Jul 2026Shareholder vote · Financial statements and exhibits
- Current report25 Jun 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-02-28 · SEC / AZZ Inc. · 22 Apr 2026
- [2] Form 10-Q, quarter ended 2026-08-31 · SEC / AZZ Inc. · 13 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / AZZ Inc. · 13 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.