• AZZ Inc. reported a 2% increase in total sales, reaching $417.3 million, with Metal Coatings sales up by 10.8%.
• Net income surged by 152.3% to $89.3 million, and adjusted net income increased by 13.8% to $46.9 million.
• The company's price-to-earnings (P/E) ratio is approximately 12.19, indicating the market's valuation of its earnings.

AZZ Inc. (NYSE:AZZ) specializes in providing metal coating services and solutions for industrial markets, operating in two main segments: Metal Coatings and Precoat Metals. Despite facing competition within the metal coating industry, AZZ reported earnings per share (EPS) of $1.55, slightly below the estimated $1.56, and generated revenue of approximately $417.3 million, which was lower than the estimated $426.2 million on October 8, 2025.

Despite missing estimates, AZZ's financial results for the second quarter of fiscal year 2026 show growth in key areas. The company's total sales reached $417.3 million, marking a 2% increase compared to the previous year. Metal Coatings sales rose significantly by 10.8% to $190 million, while Precoat Metals sales declined by 4.3% to $227.3 million. Net income surged by 152.3% to $89.3 million, with adjusted net income increasing by 13.8% to $46.9 million.

The company's GAAP diluted EPS rose by 150% to $2.95 per share, and the adjusted diluted EPS increased by 13.1% to $1.55. AZZ's consolidated adjusted EBITDA was $88.7 million, representing 21.3% of sales, slightly down from the previous year's 22.5%. The segment adjusted EBITDA margin was 30.8% for Metal Coatings and 20.2% for Precoat Metals. Infrastructure Solutions reported an adjusted EBITDA of negative $2.3 million, excluding gains and other adjustments.

AZZ completed the acquisition of a galvanizing facility in Canton, Ohio, for $30.1 million and paid a cash dividend of $0.20 per share to common shareholders. Tom Ferguson, President and CEO of AZZ, highlighted the strong performance of Metal Coatings, driven by infrastructure project spending and growth in construction, industrial, and electrical transmission and distribution markets. Despite weaker demand in some end markets for Precoat Metals, the overall fiscal year 2026 guidance remains unchanged.

AZZ's financial metrics provide insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 12.19, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 2.00, reflecting the market's valuation of its revenue. Additionally, AZZ's enterprise value to sales ratio is around 2.38, and its enterprise value to operating cash flow ratio is approximately 7.66. The earnings yield for AZZ is 8.20%, offering a perspective on the return on investment. The company's debt-to-equity ratio is 0.49, suggesting a moderate level of debt relative to equity, and it maintains a current ratio of 1.51, indicating its ability to cover short-term liabilities with short-term assets.