Azz Inc (AZZ)

Price$140.36Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because solid growth is already reflected in a demanding valuation.

At the observed market value, AZZ trades at about 19.6 times the midpoint of management's $6.75-$7.15 adjusted profit-per-share guidance. Its roughly $4.10 billion market value plus net debt implies an enterprise value near $4.64 billion, about 11.7 times midpoint adjusted EBITDA, a profit measure before interest, taxes, depreciation and amortization. Normalized FY2026 free cash flow, meaning cash left after operations and capital spending while excluding a large joint-venture distribution, was about $171 million, only a 4.2% yield on market value. That supports Fair-priced rather than clearly cheap.

Big pictureRevenue and operating profit are growing, but recurring cash generation is less spectacular than reported results.

FY2026 revenue rose 4.6% to $1.65 billion while operating income increased about 12% to $264.6 million. Q1 FY2027 continued the improvement, with sales up 6.3% and operating income up 10.8%. However, FY2026 operating cash flow of $525.4 million included $273.2 million of AVAIL joint-venture distributions classified as operating cash. Removing that unusual inflow and subtracting $80.8 million of capital spending leaves about $171 million of normalized free cash flow. Q1 FY2027 free cash flow was only about $18 million, so stronger cash conversion later in the year remains important.

Business strengthStrong galvanizing profits and much lower debt improve resilience, although several coating markets remain cyclical.

Metal Coatings is currently the strongest engine: Q1 FY2027 sales rose 12.3%, helped by construction, industrial and infrastructure projects, and its adjusted EBITDA margin reached 30.3%. Precoat Metals grew sales only 1.5%, with lower volumes in construction, infrastructure, heating and cooling, and appliances offset by pricing and the Washington, Missouri plant ramp. Total debt fell from about $879 million in February 2025 to about $543 million by May 2026. Current assets of $440 million were nearly twice current liabilities, although roughly $714 million of goodwill means acquisition returns still matter materially.

What could change the storyFaster debt reduction and successful expansion could lift value, while weaker volumes would expose the valuation.

Management expects $130-$170 million of FY2027 debt reduction, while the Washington plant and newly acquired Seattle Galvanizing operations offer additional growth. Seattle adds two Pacific Northwest sites and more than 50,000 tons of annual processing capacity, but the purchase price was not disclosed. The main bear case is continued Precoat volume weakness while investors pay nearly 20 times guided adjusted earnings. Capital allocation also bears watching: AZZ issued 4.6 million shares in 2024 to redeem preferred stock, materially diluting common owners, although FY2026 included $20 million of buybacks and the share count has since stabilized near 30 million.

AI: News

Guidance raised after strong quarterFirst-quarter sales grew and management raised its full-year outlook as both coating businesses posted higher revenue.

On July 8, AZZ reported Q1 FY2027 sales of $448.5 million, up 6.3%, and adjusted diluted profit per share of $1.85, up 3.9%. Metal Coatings sales increased 12.3%, while Precoat Metals rose 1.5%. Management raised FY2027 sales guidance to $1.80-$1.85 billion, adjusted profit per share to $6.75-$7.15 and adjusted EBITDA to $375-$415 million. The shares fell about 1.9% on July 9 before rebounding about 3.9% on July 10; timing alone does not prove the earnings report caused either move.

Seattle Galvanizing acquisitionAZZ added two Pacific Northwest galvanizing sites, widening its network and creating another path for earnings growth.

On July 30, AZZ acquired Seattle Galvanizing, establishing its first Metal Coatings presence in the Pacific Northwest and expanding its North American galvanizing network to 43 sites. The acquired operations can process more than 50,000 tons of steel annually, and management expects the deal to add to earnings within the first year. Transaction terms were not disclosed, leaving the purchase valuation and expected return uncertain. The shares rose about 2.6% that day, but the same-day move does not establish that the acquisition caused the gain.

Loading local price history

Revenue

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$1.65B	$1.58B	$1.54B	$1.32B	$525.6M	$480.6M	$1.06B	$927.1M	$810.4M	$863.5M	$889.4M	$819.7M	$751.7M	$570.6M	$469.1M	$380.6M	$357.0M
Gross profit	$395.0M	$382.7M	$363.5M	$295.9M	$146.2M	$122.9M	$237.2M	$198.6M	$160.3M	$205.3M	$228.1M	$206.8M	$205.7M	$164.2M	$124.6M	$107.6M	$109.6M
Gross margin	23.94%	24.25%	23.64%	22.36%	27.81%	25.57%	22.34%	21.42%	19.78%	23.78%	25.65%	25.23%	27.36%	28.77%	26.56%	28.28%	30.71%
Operating expenses	$130.3M	$146.3M	$141.9M	$122.3M	$66.9M	$75.4M	$157.9M	$121.7M	$112.1M	$106.4M	$107.8M	$98.9M	$657.8M	$476.2M	$405.5M	$325.7M	$296.6M
Operating income	$264.6M	$236.4M	$221.6M	$173.6M	$79.2M	$47.5M	$79.3M	$77.0M	$48.2M	$98.9M	$120.3M	$107.9M	$100.1M	$98.0M	$98.7M	$84.0M	—
Operating margin	16.04%	14.98%	14.41%	13.12%	15.07%	9.88%	7.47%	8.30%	5.95%	11.45%	13.53%	13.16%	13.32%	17.17%	21.05%	22.08%	—
EBITDA	$354.7M	$318.6M	$301.0M	$248.2M	$111.3M	$79.6M	$129.5M	$127.2M	$98.8M	$149.3M	$167.7M	$154.0M	$143.4M	$127.3M	$121.3M	$106.2M	—
EBITDA margin	21.49%	20.19%	19.58%	18.75%	21.18%	16.56%	12.20%	13.72%	12.19%	17.29%	18.86%	18.79%	19.08%	22.32%	25.86%	27.90%	—
Net income	$317.3M	$128.8M	$101.6M	−$53.0M	$84.0M	$39.6M	$48.2M	$51.2M	$45.2M	$61.3M	$75.5M	$65.6M	$59.6M	$60.5M	$40.7M	$35.0M	$37.7M
Net profit margin	19.23%	8.17%	6.61%	−4.00%	15.99%	8.24%	4.54%	5.52%	5.57%	7.09%	8.49%	8.00%	7.93%	10.60%	8.68%	9.18%	10.57%
Basic EPSper basic share	$10.59	$1.80	$3.48	-$2.47	$3.38	$1.53	$1.84	$1.97	$1.74	$2.36	$2.93	$2.56	$2.34	$2.39	$0.81	$0.70	$1.54
Diluted EPSper diluted share	$10.50	$1.79	$3.46	-$2.45	$3.35	$1.52	$1.84	$1.96	$1.73	$2.35	$2.91	$2.55	$2.32	$2.37	$0.81	$0.70	$1.51

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈15.47%of listed shares

BlackRock, Inc.4.64M shares · Jun 30, 2026

View holders

Top 20 reported holders of AZZ
Holder	% owned
BlackRock, Inc.	≈15.47%4.64M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.94%1.78M shares
FMR LLC	≈4.83%1.45M shares
T. Rowe Price Investment Management, Inc.	≈4.62%1.39M shares
Capital International Investors	≈4.58%1.38M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.33%1.3M shares
STATE STREET CORP	≈3.98%1.2M shares
Invesco Ltd.	≈3.12%935.62K shares
DIMENSIONAL FUND ADVISORS LP	≈3.08%924.75K shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.58%775.04K shares
PRICE T ROWE ASSOCIATES INC /MD/	≈2.26%677.26K shares
MORGAN STANLEY	≈1.95%584.48K shares
Capital World Investors	≈1.68%503.86K shares
Copeland Capital Management, LLC	≈1.45%435.56K shares
NORTHERN TRUST CORP	≈1.27%381.01K shares
WESTWOOD HOLDINGS GROUP INC	≈1.22%367.6K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.22%366.04K shares
GAMCO INVESTORS, INC. ET AL	≈1.13%338.99K shares
Harvey Partners, LLC	≈1.08%323.14K shares
FEDERATED HERMES, INC.	≈0.95%285.8K shares

Percentages use 30.02M shares of this listed class outstanding on May 31, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$95.3K disclosed value

Sells (SEC code S)19$15.97M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 11, 2026Form 4 · 10b5-1	Mackey Tara DChief Legal Officer	SellCOMMON STOCK	2.9K	$136.00	$397.5K	22.4K
Feb 3, 2026Form 4	FERGUSON THOMAS EPresident and CEO	SellCOMMON STOCK	25.0K	$127.29	$3.18M	158.2K
Jan 21, 2026Form 4	Mackey Tara DChief Legal Officer	SellCOMMON STOCK	2.8K	$126.64	$353.3K	25.3K
Jan 9, 2026Form 4	Mackey Tara DChief Legal Officer	SellCOMMON STOCK	1.6K	$119.43	$187.3K	28.1K
Jan 8, 2026Form 4	Mackey Tara DChief Legal Officer	SellCOMMON STOCK	1.0K	$118.71	$118.7K	29.7K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about AZZ yet. Start the conversation.

Write the first post

Azz Inc (AZZ)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.