AZZ Inc. (NYSE:AZZ) is a leading entity in the metal coatings and coil coating industry, known for its hot-dip galvanizing services. The company stands out in the industrial service sector, showcasing robust financial performance on January 7, 2026. AZZ reported an Earnings Per Share (EPS) of $1.52, surpassing the analysts' expectations of $1.43.
The company's revenue for the third quarter of the fiscal year 2026 was approximately $425.7 million, exceeding the forecasts of $418.2 million. This represents a 5.5% increase compared to the same period in the previous year. The growth was significantly driven by Metal Coatings sales, which surged by 15.7% to $195 million, despite a slight decline in Precoat Metals sales by 1.8%, totaling $230.7 million.
AZZ's net income for the quarter stood at $41.1 million, marking a 22.2% increase from the year before. The adjusted net income saw a 9.7% rise to $46 million. The GAAP diluted EPS increased by 21.4% to $1.36, and the adjusted diluted EPS grew by 9.4% to $1.52. The company's consolidated adjusted EBITDA was $91.2 million, representing 21.4% of sales, slightly down from 22.5% in the prior year.
In addition to its operational success, AZZ repurchased 201,416 shares of common stock for $20 million at an average price of $99.28 per share and reduced its debt by $35 million during the quarter, contributing to a year-to-date debt reduction of $325.4 million. Cash provided by operating activities increased by 20% to $79.7 million, and a cash dividend of $0.20 per share was paid to common shareholders.
The company's financial metrics underscore its strong market position, with a price-to-earnings (P/E) ratio of approximately 10.23, indicating the market's positive valuation of its earnings. The price-to-sales ratio stands at about 2.04, and the enterprise value to sales ratio is around 2.06. The enterprise value to operating cash flow ratio is approximately 6.44, showcasing cash flow efficiency. With a debt-to-equity ratio of 0.024 and a current ratio of approximately 1.66, AZZ demonstrates a solid ability to cover short-term liabilities.
