AZZ Inc. (NYSE: AZZ) Q2 2026 Earnings Call | 10/09/2025

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AZZ Inc. reported solid Q2 fiscal 2026 results with total sales of $417.3 million, a 2% year-over-year increase driven primarily by a strong 10.8% rise in Metal Coatings sales to $190 million, offsetting a 4.3% decline in Precoat Metals impacted by softer demand in construction, HVAC, and appliances. Net income surged 152.3% to $89.3 million, with adjusted net income rising 13.8% to $46.9 million. GAAP diluted EPS soared 150% to $2.95, and adjusted diluted EPS increased 13.1% to $1.55, exceeding analyst forecasts. Consolidated adjusted EBITDA was $88.7 million or 21.3% of sales, down slightly from prior year due to seasonal factors in Welding Services. Operating income for Metal Coatings rose 8.4%, and segment adjusted EBITDA margin improved 90 basis points to 30.8%, while Precoat Metals margin also gained 90 basis points to 20.2%. Cash flow from operations increased 23% to $58.4 million, enabling ongoing debt reduction and maintaining a net leverage ratio of 1.7x. No common stock repurchases were made during the quarter, but $11.1 million was returned to shareholders in dividends. Management reaffirmed full-year guidance with sales projected between $1.625 billion and $1.725 billion, adjusted EBITDA of $360 million to $400 million, and adjusted diluted EPS targeted between $5.75 and $6.25. The company remains confident in navigating market dynamics with balanced growth expectations and sustained operational discipline. About Inside Ticker: Inside Ticker provides clear, timely, and professional coverage of earnings reports, market updates, and financial insights. Stay informed with expert analysis at https://www.insideticker.com/. HashTags: #AZZInc #AZZ #Q22026 #Earnings #FinancialResults #Revenue #NetIncome #EPS #EBITDA #MetalCoatings #PrecoatMetals #CashFlow #DebtReduction #Dividends #StockRepurchase #OperatingIncome #SegmentGrowth #MarketTrends #OperationalDiscipline #Construction #HVAC #Appliance #InvestorUpdate #InsideTicker #QuarterlyResults #FinancialPerformance #IndustrialSolutions #Manufacturing #StockMarket #businessgrowth