AZZ’s fourth quarter saw a positive market response, as the company delivered results above Wall Street’s revenue and profit expectations. Management attributed the strong performance to double-digit growth in the Metal Coatings segment, which benefited from heightened demand across infrastructure, solar, and transmission projects. CEO Tom Ferguson highlighted that “higher volumes and strong demand from infrastructure projects” were key contributors, while Precoat Metals experienced mixed results due to softer construction and transportation markets. The company also saw margin improvement driven by operational efficiencies and a favorable mix of large-scale projects.
Is now the time to buy AZZ? Find out in our full research report (it’s free for active Edge members).
AZZ (AZZ) Q4 CY2025 Highlights:
- Revenue: $425.7 million vs analyst estimates of $418.2 million (5.5% year-on-year growth, 1.8% beat)
- Adjusted EPS: $1.52 vs analyst estimates of $1.48 (2.5% beat)
- Adjusted EBITDA: $91.17 million vs analyst estimates of $90.37 million (21.4% margin, 0.9% beat)
- The company dropped its revenue guidance for the full year to $1.66 billion at the midpoint from $1.68 billion, a 0.7% decrease
- Management slightly raised its full-year Adjusted EPS guidance to $6.05 at the midpoint
- EBITDA guidance for the full year is $370 million at the midpoint, above analyst estimates of $365.1 million
- Operating Margin: 16.3%, up from 14.9% in the same quarter last year
- Market Capitalization: $3.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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 Q4 Earnings Call
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Ghansham Panjabi (Baird): asked about the impact of government shutdowns and order backlogs in Metal Coatings and Precoat segments. CEO Tom Ferguson explained that backlog is limited but forward-looking demand remains strong, with no material impact observed from the shutdown.
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Nick Giles (B. Riley Securities): inquired about M&A opportunities and the sensitivity of Precoat Metals to high aluminum prices. Ferguson described an active pipeline of bolt-on deals and noted the company’s tolling model insulates it from direct aluminum price impacts, though customer behavior is monitored.
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Eric Boyes (Evercore): sought clarification on how the Washington, Missouri plant ramp would affect Precoat segment margins. CFO Jason Crawford indicated the plant should provide a margin tailwind as capacity utilization improves, with additional customer onboarding expected in the coming year.
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Adam Thalhimer (Thompson, Davis): questioned pricing dynamics and margin impact in Metal Coatings. Ferguson highlighted that large project opportunities have brought more competition and slightly lower margins, but operational investments and pricing discipline are helping offset these effects.
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Daniel Rizzo (Jefferies): asked about regional trends in metal roofing and the lag between credit easing and demand recovery in construction markets. Management noted stronger metal roofing adoption in southern states and estimated a six- to nine-month lag for credit improvements to impact demand.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of volume growth and margin expansion in Metal Coatings as infrastructure and data center projects progress, (2) the full ramp and customer onboarding at the Washington, Missouri Precoat Metals facility, and (3) progress toward strategic bolt-on acquisitions in core business lines. We will also track how quickly secular shifts in packaging and roofing translate into sustainable revenue gains.
AZZ currently trades at $122.59, up from $109.83 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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