AZZ Inc. Reports 6.3% Revenue Growth but Declines in Net Income for Quarter Ended May 31, 2026

AZZ Inc. reported its financial results for the three months ended May 31, 2026, revealing a total revenue of $448.5 million, a 6.3% increase from $422.0 million in the same period last year. The company's net income for the quarter was $52.0 million, a significant decline from $170.9 million in the prior year, primarily due to a lack of extraordinary gains from its joint venture, AVAIL, which had previously contributed $173.5 million in equity earnings. Basic earnings per share fell to $1.74 from $5.71, reflecting the reduced profitability.

The company's operating income increased to $77.0 million, up 10.8% from $69.5 million a year earlier, driven by improved sales in both the AZZ Metal Coatings and AZZ Precoat Metals segments. The AZZ Metal Coatings segment saw a 12.3% increase in sales, attributed to higher volumes processed, particularly in the construction and industrial markets. Conversely, the AZZ Precoat Metals segment experienced a modest 1.5% sales increase, influenced by higher average prices for coated coils, although overall volume declined.

In terms of operational metrics, AZZ's total assets grew to $2.25 billion as of May 31, 2026, compared to $2.21 billion at the end of February 2026. The company’s cash and cash equivalents increased to $1.1 million, while trade accounts receivable rose to $163.9 million, reflecting a growing customer base and demand for its services. However, the company reported a decrease in cash flows from operating activities, which fell to $37.1 million from $314.8 million in the prior year, largely due to reduced cash distributions from the AVAIL joint venture.

Strategically, AZZ completed the acquisition of Canton Galvanizing, LLC for approximately $30.1 million, enhancing its metal coatings capacity in the Midwest. The company also amended its credit agreement, extending the maturity of its revolving credit facility to May 2029 and adjusting interest rate tiers to improve financial flexibility. Looking ahead, AZZ anticipates modest increases in sales prices across its segments, driven by rising input costs, while maintaining a focus on operational efficiency and market demand trends. The company remains committed to leveraging its strong liquidity position, with $359.4 million available under its revolving credit facility, to support ongoing operations and strategic initiatives.