AZZ Inc. Reports 15.7% Growth in Metal Coatings Amid Challenges in Precoat Metals

### AZZ Inc. Reports Strong Growth in Metal Coatings Segment

AZZ Inc., a prominent player in the hot-dip galvanizing and coil coating industry, announces its third-quarter financial results for fiscal year 2026, showcasing a solid performance driven predominantly by its Metal Coatings segment. The company reports total sales of $425.7 million, reflecting a 5.5% increase from the same quarter in the previous year. The surge in sales is largely attributed to a remarkable 15.7% rise in the Metal Coatings division, which generates $195.0 million in revenue. This growth indicates a robust response to increased infrastructure-related spending, a key driver for demand in this sector, aligning with broader trends in construction and public works that have gained momentum in the post-pandemic recovery phase.

Despite the strong performance in Metal Coatings, AZZ faces challenges in its Precoat Metals segment, which experiences a 1.8% decline in sales to $230.7 million. This downturn is a consequence of weakened demand in specific markets, highlighting the volatility that can accompany diverse sector performances. Nevertheless, the overall financial health of AZZ remains strong, with net income increasing by 22.2% to reach $41.1 million and an adjusted net income rise of 9.7% to $46.0 million. The company's commitment to enhancing shareholder value is further underscored by its decision to repurchase 201,416 shares for $20 million during the quarter, reducing its net leverage ratio and showcasing prudent financial management.

President and CEO Tom Ferguson emphasizes the company’s optimistic outlook, particularly in the Metal Coatings segment, while acknowledging the challenges faced in Precoat Metals. As AZZ continues to expand its operations, including the ongoing development of a new facility in Washington, Missouri, it remains focused on adapting to market conditions and meeting customer demands. The company's proactive approach to managing risks, such as fluctuations in raw material costs and labor expenses, positions it to navigate potential challenges in the future effectively.

In addition to its financial performance, AZZ's Board of Directors has approved a cash dividend of $0.20 per share for the third quarter, payable on February 26, 2026. This decision reflects the company's ongoing commitment to returning value to shareholders while also maintaining a cautious approach to future dividend declarations based on operating results and the overall business outlook. As AZZ continues to prioritize sustainable practices in metal coating solutions, its ability to balance growth with shareholder returns will be key in navigating a competitive market landscape.

Overall, AZZ Inc. stands steadfast in its mission to provide durable metal coating solutions essential for infrastructure and industrial applications, ensuring that it remains a vital contributor to the sector while addressing the complexities of market demand and economic conditions.