Start here if you're new
what it is
AZZ coats steel so bridges, factories, and utility gear last longer.
how it gets paid
Last year Azz made $1.6B in revenue. Metal Coatings was the main engine at $665.1M, or 42% of sales.
why it's growing
Revenue grew 2.6% last year. Management’s focus will be aimed at driving sustainable market share expansion while completing the full ramp-up of its washington.
what just happened
AZZ missed by 15.85% while revenue still ran at $1.3B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
35/100 earnings predictability — expect surprises
11.4x trailing p/e — the market's not buying it — or you found a deal
0.6% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 66/100 — average
What they do
AZZ coats steel so bridges, factories, and utility gear last longer.
AZZ runs 41 galvanizing plants, six surface technologies plants, and one tubing plant across the U.S. and Canada. Galvanizing (zinc coating) keeps steel from rusting, and your project does not switch vendors lightly. You are dealing with 3,837 employees, so the service network is the product.
How they make money
$1.6B
annual revenue · their business grew +2.6% last year
Metal Coatings
$665.1M
+10%
Precoat Metals
$644.9M
+2.6%
Infrastructure Solutions
$240.0M
+2.6%
Tubing & specialty
$50.0M
0.0%
The products that matter
protects steel from corrosion
Metal Coatings
inside a $1.6B company
this is the core industrial service. the business finished fiscal 2025 expecting $1.68B in consolidated sales, and management pointed to strong volume in construction, industrial, and electrical transmission work.
infrastructure-linked
coats metal coil for manufacturers
Precoat Metals
fiscal 2026 guide: $1.725B–$1.775B
this piece sells into hvac and appliance demand. the page does not disclose its standalone revenue, but management still expects resilient volume even as residential construction cools.
mix diversifier
capacity expansion project
Washington, Missouri facility
expected to help fiscal 2026
management says the plant should be accretive in fiscal 2026. with adjusted earnings guided to $6.75 per share at the midpoint, this ramp matters more than the press-release language around it.
the swing factor
Key numbers
$7.50
fy2027 eps est
$2B
fy2029 rev est
11.4x
trailing p/e
0.6%
dividend yield
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $535M (13% of capital)
- net profit margin 13.0% — keeps 13 cents of every dollar in revenue
- return on equity 11% — $0.11 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AZZ 3 years ago → it's now worth $31,000.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
AZZ missed by 15.85% while revenue still ran at $1.3B.
EDGAR shows $1.3B of revenue and 24.3% gross margin. Wall Street had $1.14 EPS versus $1.35 expected, which was a 15.85% miss.
$1.3B
revenue
$1.14
eps
24.3%
gross margin
the number that mattered
The $1.14 EPS print versus $1.35 expected matters because it says growth did not turn into a clean beat.
-
azz inc. should deliver record fiscal 2025 results. (year ends february 28th.) we expect the company to report consolidated sales of $1.68 billion, a 6.5% vs. prior year increase.
-
metal coatings is likely to deliver strong, double-digit sales gains on volume increases, supported by infrastructure-driven project spending in construction, industrial, and electrical transmission and distribution end-markets.in line with broader industry trends, the precoat metals segment should yield resilient volume performance in the hvac and appliance markets despite a broader slowdown in residential construction. the company’s dual-segment business allows for diversified exposure across end markets, helping to smooth cyclicality.
-
fiscal 2026 guidance suggests another year of steady growth.
-
management’s focus will be aimed at driving sustainable market share expansion while completing the full ramp-up of its washington, missouri facility.
-
moreover, the missouri plant enhances azz’s competitive position in high-capacity aluminum coil coating and is expected to be accretive to earnings in fiscal 2026.all told, the company expects adjusted earnings to be $6.75 per share at the midpoint, which faces a tough comparison due to non-recurring gains, while sales should range between $1.725 billion and $1.775 billion.
source: company earnings report, 2026
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What could go wrong
the top risk is fiscal 2026 earnings normalization after a distorted fiscal 2025 comparison.
med
earnings fall back faster than the valuation implies
fiscal 2025 EPS hit $11.05, but fiscal 2026 adjusted EPS is guided to $6.75 at the midpoint because non-recurring gains helped the prior year. that is a big step down.
if adjusted earnings fail to stabilize near that $6.75 guide, the stock stops looking cheap at 11.4x trailing earnings and starts looking optically cheap on stale numbers.
med
industrial demand rolls over
AZZ is tied to construction, industrial work, electrical transmission, hvac, and appliances. those are real end markets, but they are still cyclical.
management is guiding to $1.725B–$1.775B in sales. if the business struggles to clear the low end, you will find out fast how much of the three-year return came from a good cycle.
med
tariffs and input costs pressure margins
the company has already flagged tariff challenges. in a business that posted an 8.2% quarterly margin, cost pressure does not need to be dramatic to matter.
a margin squeeze hits earnings faster than revenue because there is not much room between a solid industrial margin and a disappointing one.
med
the missouri facility ramp takes longer than planned
management wants the washington, missouri facility to help earnings in fiscal 2026. until that happens, it is still a promise carrying execution risk.
if the plant is not accretive on schedule, the market loses one of the cleaner reasons to believe the next year deserves more than a hold-your-breath multiple.
AZZ has real operating momentum, but the risk stack is clear: a $1.6B cyclical industrial business with $535M of long-term debt and only 35 / 100 predictability does not get infinite benefit of the doubt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
fiscal 2026 eps against the $6.75 midpoint
that is the cleanest scorecard on whether fiscal 2025 was improvement or accounting noise from non-recurring gains.
calendar
sales staying inside the $1.725B–$1.775B guide
the low end matters more than the high end. the stock is already priced like the market does not want a miss.
trend
metal coatings volume versus precoat demand
construction and electrical transmission have been stronger. hvac and appliances held up. you want both sides working, not just one.
risk
washington, missouri reaching accretive status
management says the plant should help earnings in fiscal 2026. until the numbers show up, treat that as a checkpoint, not a conclusion.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts expect AZZ to outperform most stocks over the next year.
risk profile
average
stability score 3 — you are not buying a bunker, but you are not buying a rollercoaster either.
chart momentum
average
technical score 3 — the chart is constructive without screaming that you are early.
earnings predictability
35 / 100
earnings do not land with megacap consistency here. that is why the multiple stays modest.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 126 buyers vs. 95 sellers in 4q2025. total institutional holdings: 28.8M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$99
$220
$126
current price
$160
target midpoint · +27% from current · 3-5yr high: $255 (+105% · 20% ann'l return)
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