AZZ’s third quarter results outpaced Wall Street revenue and profit expectations, driven by double-digit sales growth across both Metal Coatings and Precoat Metals. Management attributed this performance to robust demand in construction and industrial markets, the successful integration of the Seattle Galvanizing acquisition, and effective pricing strategies that offset raw material cost increases. CEO Tom Ferguson highlighted strong execution and operational leverage, particularly in Metal Coatings, stating, “Our performance and market demand continue to validate the investments we made to expand capacity, strengthen customer partnerships and enhance our market positions.”
Is now the time to buy AZZ? Find out in our full research report (it’s free for active Edge members).
AZZ (AZZ) Q3 CY2026 Highlights:
- Revenue: $486.9 million vs analyst estimates of $463.4 million (16.7% year-on-year growth, 5.1% beat)
- Adjusted EPS: $2 vs analyst estimates of $1.84 (8.4% beat)
- Adjusted EBITDA: $110.9 million vs analyst estimates of $104.2 million (22.8% margin, 6.4% beat)
- The company lifted its revenue guidance for the full year to $1.85 billion at the midpoint from $1.83 billion, a 1.4% increase
- Management raised its full-year Adjusted EPS guidance to $7.15 at the midpoint, a 2.9% increase
- EBITDA guidance for the full year is $400 million at the midpoint, in line with analyst expectations
- Operating Margin: 17.2%, in line with the same quarter last year
- Market Capitalization: $4.12 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AZZ’s Q3 Earnings Call
-
Ghansham Panjabi (Baird) asked what drove the second quarter upside and why guidance for the back half held steady. CEO Thomas E. Ferguson explained strength in both business segments, successful integration of Seattle Galvanizing, and noted seasonal winter uncertainty as reasons for caution.
-
Mark La Reichman (Barclays) inquired about how much of Metal Coatings’ growth was organic versus contributed by the acquisition. CFO Jason Crawford clarified the acquisition had minimal impact in the quarter, with most growth coming from the underlying business.
-
Timna Tanners (Wells Fargo) pressed on steel substrate availability and how AZZ ensures supply for customers. Ferguson and Crawford detailed their logistics support and warehousing model, emphasizing that customer inventory management and strong supplier relationships help address tight markets.
-
Adam Thalhimer (Thomas Davis) sought details on greenfield and brownfield expansion projects and their drivers. Ferguson described rising infrastructure demand, anchor customer partnerships, and efficiency benefits as catalysts for these expansions.
-
John Franzreb (Sidoti & Company) questioned the sustainability of volume growth and margin expansion amid higher interest rates. Ferguson responded that while growth rates may normalize, capacity additions and targeted acquisitions should support ongoing expansion.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts are focused on (1) execution and ramp-up progress at new and expanded facilities such as Washington, Missouri and Tulsa, (2) the pace and profitability of additional acquisitions or greenfield projects in targeted regions, and (3) resilience in end-market demand for construction, infrastructure, and industrial applications. We also expect improvements in AZZ’s digital platforms and supply chain partnerships to be critical indicators of continued operational strength.
AZZ currently trades at $137.70, in line with $136.73 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.