Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
FORT WORTH - AZZ Inc. (NYSE:AZZ), a leading provider of hot-dip galvanizing and coil coating solutions, reported second-quarter fiscal 2026 earnings that fell short of analyst expectations, sending shares down 3.5% following the announcement.
The company posted adjusted earnings per share of $1.55 for the quarter ended August 31, missing the analyst consensus of $1.59. Revenue came in at $417.3 million, up 2.0% YoY but below the $428.79 million analysts had expected. The results reflected mixed performance across the company’s segments, with Metal Coatings showing strength while Precoat Metals faced headwinds.
Metal Coatings sales increased 10.8% to $190.0 million, driven by higher volumes in construction, industrial, and electrical transmission markets. However, Precoat Metals sales declined 4.3% to $227.3 million due to weakness in building construction, HVAC, and appliance end markets.
"Second quarter sales expanded to $417.3 million, up 2.0% over the prior year, and generated adjusted diluted EPS of $1.55, up 13.1%," said Tom Ferguson, President and CEO of AZZ. "We continue to have confidence that our full-year 2026 financial guidance is achievable, as we carefully monitor customer trends in key markets."
The company maintained its fiscal 2026 guidance, projecting revenue of $1.625-$1.725 billion and adjusted EPS of $5.75-$6.25, in line with analyst consensus of $1.664 billion and $6.04, respectively.
AZZ reported consolidated adjusted EBITDA of $88.7 million or 21.3% of sales, compared to $91.9 million or 22.5% of sales in the prior year quarter. Cash flow from operations improved significantly to $58.4 million, up 23% from the same period last year.
During the quarter, AZZ completed the acquisition of a galvanizing facility in Canton, Ohio for $30.1 million and maintained a net debt leverage ratio of 1.7x trailing twelve months adjusted EBITDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.