(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
| NYSE Texas, Inc. | ||||||||||||||
| Exhibit | Description | ||||
| 99.1 | |||||
| AZZ Inc. | ||||||||||||||
| Date: | October 13, 2026 | By: | /s/ Jason Crawford | |||||||||||
| Jason Crawford Senior Vice President, Chief Financial Officer and Principal Accounting Officer | ||||||||||||||
Prior FY2027 Guidance(1) | Revised FY2027 Guidance(1) | ||||||||||
| Sales | $1.80 - $1.85 billion | $1.825 - $1.875 billion | |||||||||
| Adjusted EBITDA | $375 - $415 million | $380 - $420 million | |||||||||
| Adjusted Diluted EPS | $6.75 - $7.15 | $7.00 - $7.30 | |||||||||
| AZZ Inc. | |||||||||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales | $ | 486,892 | $ | 417,275 | $ | 935,422 | $ | 839,237 | |||||||||||||||
| Cost of sales | 364,766 | 315,983 | 701,127 | 633,815 | |||||||||||||||||||
| Gross margin | 122,126 | 101,292 | 234,295 | 205,422 | |||||||||||||||||||
| Selling, general and administrative | 38,345 | 32,831 | 73,481 | 67,412 | |||||||||||||||||||
| Operating income | 83,781 | 68,461 | 160,814 | 138,010 | |||||||||||||||||||
| Interest expense, net | (10,807) | (13,665) | (22,071) | (32,228) | |||||||||||||||||||
| Equity in earnings of unconsolidated subsidiary | 6,789 | 59,345 | 7,298 | 232,868 | |||||||||||||||||||
| Other income (expense), net | 27 | 188 | (233) | 1,515 | |||||||||||||||||||
| Income before income taxes | 79,790 | 114,329 | 145,808 | 340,165 | |||||||||||||||||||
| Income tax expense | 21,339 | 24,983 | 35,351 | 79,911 | |||||||||||||||||||
| Net income | $ | 58,451 | $ | 89,346 | $ | 110,457 | $ | 260,254 | |||||||||||||||
| Basic earnings per common share | $ | 1.95 | $ | 2.97 | $ | 3.69 | $ | 8.68 | |||||||||||||||
| Diluted earnings per common share | $ | 1.94 | $ | 2.95 | $ | 3.66 | $ | 8.61 | |||||||||||||||
| Weighted average shares outstanding—Basic | 29,997 | 30,037 | 29,964 | 29,992 | |||||||||||||||||||
| Weighted average shares outstanding—Diluted | 30,123 | 30,244 | 30,145 | 30,243 | |||||||||||||||||||
| Cash dividends declared per common share | $ | 0.24 | $ | 0.20 | $ | 0.44 | $ | 0.37 | |||||||||||||||
| AZZ Inc. | |||||||||||||||||||||||
| Segment Reporting | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales: | |||||||||||||||||||||||
| Metal Coatings | $ | 233,519 | $ | 189,984 | $ | 443,824 | $ | 377,199 | |||||||||||||||
Precoat Metals | 253,373 | 227,291 | 491,598 | 462,038 | |||||||||||||||||||
| Total Sales | $ | 486,892 | $ | 417,275 | $ | 935,422 | $ | 839,237 | |||||||||||||||
| Adjusted EBITDA: | |||||||||||||||||||||||
| Metal Coatings | $ | 71,576 | $ | 58,538 | $ | 135,391 | $ | 120,053 | |||||||||||||||
Precoat Metals | 53,821 | 45,945 | 105,578 | 94,421 | |||||||||||||||||||
| Infrastructure Solutions | 126 | (2,320) | (713) | 5,297 | |||||||||||||||||||
Total Segment Adjusted EBITDA(1) | $ | 125,523 | $ | 102,163 | $ | 240,256 | $ | 219,771 | |||||||||||||||
(1) | See the non-GAAP disclosure section below for a reconciliation between the various measures calculated in accordance with GAAP to the non-GAAP financial measures. | |||||||
| AZZ Inc. | ||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| As of | ||||||||||||||
| August 31, 2026 | February 28, 2026 | |||||||||||||
| Assets: | ||||||||||||||
| Current assets | $ | 455,395 | $ | 395,368 | ||||||||||
| Property, plant and equipment, net | 617,568 | 609,305 | ||||||||||||
| Other non-current assets, net | 1,264,995 | 1,208,801 | ||||||||||||
| Total Assets | $ | 2,337,958 | $ | 2,213,474 | ||||||||||
| Liabilities and Shareholders' equity: | ||||||||||||||
| Current liabilities | $ | 254,017 | $ | 232,274 | ||||||||||
| Long-term debt, net | 468,470 | 477,738 | ||||||||||||
| Other non-current liabilities | 200,396 | 166,431 | ||||||||||||
| Shareholders' equity | 1,415,075 | 1,337,031 | ||||||||||||
| Total Liabilities and Shareholders' equity | $ | 2,337,958 | $ | 2,213,474 | ||||||||||
| AZZ Inc. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Six Months Ended August 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net cash provided by operating activities(1) | $ | 139,991 | $ | 373,169 | |||||||
Net cash used in investing activities(2) | (78,893) | (66,491) | |||||||||
| Net cash used in financing activities | (59,981) | (306,614) | |||||||||
| Effect of exchange rate changes on cash | 131 | (655) | |||||||||
| Net decrease in cash and cash equivalents | 1,248 | (591) | |||||||||
| Cash and cash equivalents at beginning of period | 705 | 1,488 | |||||||||
| Cash and cash equivalents at end of period | $ | 1,953 | $ | 897 | |||||||
(1) | For the six months ended August 31, 2025, net cash provided by operating activities includes distributions from AVAIL of $273.2 million, deemed to be a return on investment. Refer to footnote five on page 11. | |||||||
(2) | For the six months ended August 31, 2026, net cash used in investing activities includes distributions from AVAIL of $15.7 million, deemed to be a return of investment. Refer to footnote five on page 11. | |||||||
| Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | Per Diluted Share(1) | Amount | Per Diluted Share(1) | Amount | Per Diluted Share(1) | Amount | Per Diluted Share(1) | ||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 58,451 | $ | 1.94 | $ | 89,346 | $ | 2.95 | $ | 110,457 | $ | 3.66 | $ | 260,254 | $ | 8.61 | |||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 5,941 | 0.20 | 5,823 | 0.19 | 11,667 | 0.39 | 11,557 | 0.38 | |||||||||||||||||||||||||||||||||||||||
Restructuring charges(2) | — | — | — | — | — | — | 3,827 | 0.13 | |||||||||||||||||||||||||||||||||||||||
Acquisition costs(3) | 2,771 | 0.09 | — | — | 2,771 | 0.09 | — | — | |||||||||||||||||||||||||||||||||||||||
Executive retiree long-term incentive program(4) | — | — | — | — | — | — | 2,185 | 0.07 | |||||||||||||||||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | (6,663) | (0.22) | (61,639) | (2.04) | (8,011) | (0.27) | (227,465) | (7.52) | |||||||||||||||||||||||||||||||||||||||
Write-off of debt financing costs(6) | — | — | — | — | 572 | 0.02 | — | — | |||||||||||||||||||||||||||||||||||||||
| Subtotal | 2,049 | 0.07 | (55,816) | (1.84) | 6,999 | 0.23 | (209,896) | (6.94) | |||||||||||||||||||||||||||||||||||||||
Tax impact(7) | (365) | (0.01) | 13,396 | 0.44 | (1,553) | (0.05) | 50,375 | 1.67 | |||||||||||||||||||||||||||||||||||||||
| Total adjustments | 1,684 | 0.06 | (42,420) | (1.40) | 5,446 | 0.18 | (159,521) | (5.27) | |||||||||||||||||||||||||||||||||||||||
| Adjusted net income and adjusted earnings per share (non-GAAP) | $ | 60,135 | $ | 2.00 | $ | 46,926 | $ | 1.55 | $ | 115,903 | $ | 3.84 | $ | 100,733 | $ | 3.33 | |||||||||||||||||||||||||||||||
| Weighted average shares outstanding—Diluted for Adjusted earnings per share | 30,123 | 30,244 | 30,145 | 30,243 | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 58,451 | $ | 89,346 | $ | 110,457 | $ | 260,254 | |||||||||||||||
| Interest expense | 10,807 | 13,665 | 22,071 | 32,228 | |||||||||||||||||||
| Income tax expense | 21,339 | 24,983 | 35,351 | 79,911 | |||||||||||||||||||
| Depreciation and amortization | 24,168 | 22,372 | 47,687 | 44,199 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Restructuring charges(2) | — | — | — | 3,827 | |||||||||||||||||||
Acquisition costs(3) | 2,771 | — | 2,771 | — | |||||||||||||||||||
Executive retiree long-term incentive program(4) | — | — | — | 2,185 | |||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | (6,663) | (61,639) | (8,011) | (227,465) | |||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 110,873 | $ | 88,727 | $ | 210,326 | $ | 195,139 | |||||||||||||||
| Three Months Ended August 31, 2026 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 64,104 | $ | 43,334 | $ | 6,789 | $ | (55,776) | $ | 58,451 | |||||||||||||||||||
| Interest expense | — | — | — | 10,807 | 10,807 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 21,339 | 21,339 | ||||||||||||||||||||||||
| Depreciation and amortization | 7,472 | 10,487 | — | 6,209 | 24,168 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Acquisition costs(3) | — | — | — | 2,771 | 2,771 | ||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | — | — | (6,663) | — | (6,663) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 71,576 | $ | 53,821 | $ | 126 | $ | (14,650) | $ | 110,873 | |||||||||||||||||||
| Three Months Ended August 31, 2025 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 51,708 | $ | 36,521 | $ | 59,319 | $ | (58,202) | $ | 89,346 | |||||||||||||||||||
| Interest expense | — | — | — | 13,665 | 13,665 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 24,983 | 24,983 | ||||||||||||||||||||||||
| Depreciation and amortization | 6,830 | 9,424 | — | 6,118 | 22,372 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | — | — | (61,639) | — | (61,639) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 58,538 | $ | 45,945 | $ | (2,320) | $ | (13,436) | $ | 88,727 | |||||||||||||||||||
| Six Months Ended August 31, 2026 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 120,653 | $ | 84,869 | $ | 7,298 | $ | (102,363) | $ | 110,457 | |||||||||||||||||||
| Interest expense | — | — | — | 22,071 | 22,071 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 35,351 | 35,351 | ||||||||||||||||||||||||
| Depreciation and amortization | 14,738 | 20,709 | — | 12,240 | 47,687 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Acquisition costs(3) | — | — | — | 2,771 | 2,771 | ||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | — | — | (8,011) | — | (8,011) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 135,391 | $ | 105,578 | $ | (713) | $ | (29,930) | $ | 210,326 | |||||||||||||||||||
| Six Months Ended August 31, 2025 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 102,378 | $ | 75,875 | $ | 232,762 | $ | (150,761) | $ | 260,254 | |||||||||||||||||||
| Interest expense | — | — | — | 32,228 | 32,228 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 79,911 | 79,911 | ||||||||||||||||||||||||
| Depreciation and amortization | 13,490 | 18,546 | — | 12,163 | 44,199 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Restructuring charges(2) | 3,827 | — | — | — | 3,827 | ||||||||||||||||||||||||
Executive retiree long-term incentive program(4) | 358 | — | — | 1,827 | 2,185 | ||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(5) | — | — | (227,465) | — | (227,465) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 120,053 | $ | 94,421 | $ | 5,297 | $ | (24,632) | $ | 195,139 | |||||||||||||||||||
| Trailing Twelve Months Ended | |||||||||||
| August 31, 2026 | February 28, 2026 | ||||||||||
| Gross debt | $ | 500,000 | $ | 515,000 | |||||||
| Less: Cash per bank statement | (6,800) | (13,227) | |||||||||
| Add: Finance lease liability | 45,650 | 13,746 | |||||||||
| Consolidated indebtedness | $ | 538,850 | $ | 515,519 | |||||||
| Net income | $ | 167,463 | $ | 317,260 | |||||||
| Depreciation and amortization | 93,543 | 90,056 | |||||||||
| Interest expense | 45,493 | 55,650 | |||||||||
| Income tax expense | 58,495 | 103,055 | |||||||||
| EBITDA | 364,994 | 566,021 | |||||||||
Cash items(8) | 8,200 | 5,426 | |||||||||
Non-cash items(9) | 14,057 | 14,832 | |||||||||
| Equity in earnings, net of distributions | 15,836 | (209,733) | |||||||||
| Adjusted EBITDA per Credit Agreement | $ | 403,087 | $ | 376,546 | |||||||
| Net leverage ratio | 1.3x | 1.4x | |||||||||
(1) | Earnings per share amounts included in the "Adjusted Net Income and Adjusted Earnings Per Share" table above may not sum due to rounding differences. | |||||||
(2) | The six months ended August 31, 2025 includes restructuring charges related to the closure of two surface technology facilities in our AZZ Metal Coatings segment. See "Item 8. Financial Statements—Note 17" in the Company's Form 10-Q for the second quarter of fiscal year 2027. | |||||||
(3) | The three and six months ended August 31, 2026 include expenses related to the Seattle Galvanizing acquisition. For further information about the Seattle Galvanizing acquisition, see "Item 1. Financial Statements—Note 2" in the Company's Form 10-Q for the second quarter of fiscal year 2027. | |||||||
(4) | During the six months ended August 31, 2025, we recognized additional stock-based compensation expense of $2.2 million upon the adoption of the Executive Retiree Long-term Incentive Program. For further information regarding the adoption of the ERP, see "Item 8. Financial Statements—Note 15" in the Company's Form 10-Q for the second quarter of fiscal year 2027. | |||||||
(5) | On May 14, 2026, AVAIL completed the sale of Rig-A-Lite. The three and six months ended August 31, 2026 include $8.0 million, which represents the gain related to the sale of Rig-A-Lite. During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group. The three and six months ended August 31, 2025 include $61.6 million and $227.5 million, respectively, which represent the gain related to the sale of the EPG, partially offset by an impairment loss on the AVAIL JV and an adjustment related to a change in AVAIL's transfer pricing policy. For additional information about the AVAIL JV, see "Item 8. Financial Statements—Note 8" in the Company's Form 10-Q for the second quarter of fiscal year 2027. | |||||||
(6) | The write-off of $0.6 million of unamortized debt financing costs relates to the refinancing of our Revolving Credit Facility on May 7, 2026, which resulted in a partial extinguishment at the lender level. For further information, see "Item 1. Financial Statements—Note 10" in the Company's Form 10-Q for the second quarter of fiscal year 2027. | |||||||
(7) | For the three and six months ended August 31, 2026, the tax impact includes a non-GAAP effective tax rate of 24.0% for amortization of intangible assets, acquisition costs, and the write-off of debt financing costs, and non-GAAP effective tax rates of 25.9% and 25.6%, respectively, for the AVAIL JV equity in earnings adjustment. For the three and six months ended August 31, 2025, the non-GAAP effective tax rate is estimated at 24.0%. | |||||||
(8) | Cash items include certain legal settlements, retirement and other severance expenses, restructuring charges associated with the AZZ Metal Coatings segment, acquisition costs, and other accruals. | |||||||
(9) | Non-cash items include stock-based compensation expense. | |||||||
"X9>U1:.^44^NG*^T>/TB*7EN;43 F44:*1D$S\/B/\/^3FV9A4BPUY: P8
M>@JMBF/6JR-U>,M]-6C9EO7W@N[:/I(C"B+J"A2BY' ]7^NK=X9K@)M)\ _TD<_NE%:T8AF7=Y#9
M/FW?ZK6F?0,F200A
M,3WLRMN$^C]0]^!D;MV\Q^Z&SP&G1_/I]FOCZ='?4$L#!!0 ( !*B35UC
MA+]FLPL )!O 4 87IZ+3(P,C8Q,#$S7VQA8BYX;6S-G6UOV[H5Q]_W
M4W 9,&Q &8MZ5M?VHDO;NV!I&C0N;K9B"/BD1+BV%,A*D]Q//TJV8\FB9)*R
ME;UI79L^__.G]=.1#B7U[2^/\QGXR?-%DJ7OCM"Q=01X2C.6I#?OCKY//\/P
MZ)?WKUZ]_1.$5__X=@8^9O1^SM,"G.0<%YR!AZ2X!<4M![]E^>_)3PPN9KB(
MLWP.X?OJ:R?9W5.>W-P6P+9L?SUL_6G^QD+8XHP1:#,GA$'H!I#X'H*1$_$H
M
0ZZ[A<^!/Y!R58\6VSQZ)("$A#8,/1P0ZD=N
MX 0J/"JIC07F7_#\[N_@N6]=VV37F2B"JC:'_<3N?68,T1UY4MAJ1/7N>)/3
MD!UWDI3W=UJFESL^\95JUX8LY%2[-[48H^SGM.RL=WAZ7S(_ 'E^/L)'7+0O
ML0M<& 86@G;H8M\*4$1[BEJ-A0&2AE]0\[FO.B?LQA[-9PKZ5J
MU.A@0VIFT)%&,^+HAQE20[)C#/E /)/F'HQJEF,&.
L';%]IZXW&(O5XK2N%L.
M;3$=N=PMG.#+R:G2GS'EB\WU:&/5P,2%9:1 98*5"W&55G,EJU&U95^E.XSB
M ZP,[+W"WL.ZSO1KE7V$'O!0'ZT+16;>D2QT720]_RB0AY'9W^'^1->N_L]*
M4HJE8Q[=%*/%;?[2B>@NW/$+>HQE6I%T.
7M[6_G[BEZCJI?[[5+AJY/X1L5]%-IF>3(I9!!M!NE,*>SQA6D%C8H2
MN+>8%%A@IE^^2,K]@&E4;39+&Q#LO+) *=H_\#[8.X$% (H^QV"+PL+ D:
M&\Q5*@3L\T\,L1HO[=D 29X%B0#>QKT?FG7E>]&J6'12I7O:M6]8Y:IU W=I
M-V+A 9A:F;\U1^4=Q2P>AM7F%::8SZ51+',//#@A(=D 7L5+&Q??B1G[5T:B
MK.\LE,5>Z39('T]84/I@3GTJ65300P*\1K/1S[:'9)_
@($<
MEE2(*1(*M5;93\:_[E+QFR,)TF*S-;Q;45.H*@"NN[_$ [I"W/ PQRC0=4H6
M"=3NL \8#2"';4$\;@)XKLBR#;._%6&(_P89BOV<^_@(SF#&OTA2EGI7<@>P
MC]0/Y0)