AZZ, Inc. (AZZ)
NYSEIndustrialsIndustrial - SpecialtiesSnapshot 2026-09-09
$138.29-0.85%
Close 2026-09-09 · 1-day change
NYSEIndustrialsIndustrial - SpecialtiesSnapshot 2026-09-09
Warn: Primary pillar under pressure — EPS near $6.75 for fiscal 2027: EPS $6.95 vs $6.50 target.
AZZ grows sales about 7% yearly, helped by U.S. infrastructure spending. Metal Coatings sales hit $758.7M with a strong 31% profit margin. The company keeps net debt manageable at 1.4x leverage. Earnings per share are expected near $6.75 next year.
Growth could slow if infrastructure spending weakens. Profit margins might shrink from operational challenges. Debt levels could rise if cash flow weakens.
The price is about 14% below our fair value near $169. Analysts expect roughly 7% revenue growth. Our view aligns with this but sees risk from soft guidance and market pullback.
Breaks if: EPS falls below $6.5 in FY27
Breaks if: Metal Coatings sales fall below $700M or EBITDA margin below 28%
net leverage rises above 2.0x
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a medium confidence level. The current thesis state is intact, supported by recent financial performance and management's commitment to organic growth strategies.
The market appears to price AZZ as cheap compared to its peers, with a low expectations gap. There is a justified valuation, indicating that investors may not be overly optimistic about future performance.
Fundamentals are likely to remain stable, as management is executing on growth strategies and maintaining financial discipline. However, there is a moderate risk due to the overall sector backdrop, which could impact performance.
The long-term thesis hinges on sector performance, particularly the results of major players like CSW and APT. If these companies continue to perform well, it could positively influence AZZ; conversely, any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Sustain financial discipline by keeping net leverage within the target range to ensure balance sheet strength and flexibility.
Stated as a priority in 4 of last 4 quarters. Net leverage improved from 1.7x in 2026-Q2 to 1.4x in 2027-Q1, reflecting debt reduction and strong EBITDA. Management consistently emphasizes maintaining leverage within 1.0x-2.0x and is delivering on this financial discipline.
“CEO: 'Net leverage ratio of 1.4x trailing twelve months Adjusted EBITDA.'”
“CEO: 'At the end of the fourth quarter, the Company's net leverage was 1.4x for the trailing twelve months ended February 28, 2026.'”
“CEO: 'We are pleased to maintain a net debt leverage of 1.7x at the end of the quarter.'”
“CEO: 'We are pleased to maintain a net debt leverage of 1.7x at the end of the quarter.'”
Breaks if: total sales fall below $1.58B in FY26 Q4
Continue to drive organic growth through sales momentum, operational execution, and expansion in Metal Coatings and Precoat Metals segments.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $421.96 million in 2026-Q2 to $448.53 million in 2027-Q1 (+6.3%), with Metal Coatings sales up 12.3% in 2027-Q1 and 14.1% growth for fiscal 2026. Management consistently emphasizes organic growth execution and is delivering on sales momentum.
“CEO: 'Sales grew to $448.5 million, up 6.3% over prior year quarter. Metal Coatings sales up 12.3%, Precoat Metals sales up 1.5%.'”
“CEO: 'Fiscal year 2026 represents record full year sales and profitability... Metal Coatings sales of $758.7 million, up 14.1%.'”
“CEO: 'Second quarter sales expanded to $417.3 million, up 2.0% over prior year... Metal Coatings delivered strong, double-digit sales gains.'”
“CEO: 'Second quarter sales of $417.3 million, up 2.0% over prior year, driven by infrastructure-related project spending.'”
Overall, AZZ is positioned to navigate its current environment, but its future performance will depend on broader sector dynamics. Not investment advice.