(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: | July 8, 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 | $1.725 - $1.775 billion | $1.80 - $1.85 billion | |||||||||
| Adjusted EBITDA | $360 - $400 million | $375 - $415 million | |||||||||
| Adjusted Diluted EPS | $6.50 - $7.00 | $6.75 - $7.15 | |||||||||
| AZZ Inc. | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (dollars in thousands, except per share data) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended May 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales | $ | 448,530 | $ | 421,962 | |||||||
| Cost of sales | 336,361 | 317,832 | |||||||||
| Gross margin | 112,169 | 104,130 | |||||||||
| Selling, general and administrative | 35,136 | 34,581 | |||||||||
| Operating income | 77,033 | 69,549 | |||||||||
| Interest expense, net | (11,264) | (18,563) | |||||||||
| Equity in earnings of unconsolidated subsidiary | 509 | 173,523 | |||||||||
| Other income (expense), net | (260) | 1,327 | |||||||||
| Income before income taxes | 66,018 | 225,836 | |||||||||
| Income tax expense | 14,012 | 54,928 | |||||||||
| Net income | $ | 52,006 | $ | 170,908 | |||||||
| Basic earnings per common share | $ | 1.74 | $ | 5.71 | |||||||
| Diluted earnings per common share | $ | 1.72 | $ | 5.66 | |||||||
| Weighted average shares outstanding - Basic | 29,932 | 29,941 | |||||||||
| Weighted average shares outstanding - Diluted | 30,159 | 30,217 | |||||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.17 | |||||||
| AZZ Inc. | |||||||||||
| Segment Reporting | |||||||||||
| (dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended May 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales: | |||||||||||
| Metal Coatings | $ | 210,305 | $ | 187,215 | |||||||
Precoat Metals | 238,225 | 234,747 | |||||||||
| Total Sales | $ | 448,530 | $ | 421,962 | |||||||
| Adjusted EBITDA: | |||||||||||
| Metal Coatings | $ | 63,815 | $ | 61,516 | |||||||
Precoat Metals | 51,757 | 48,477 | |||||||||
| Infrastructure Solutions | (839) | 7,617 | |||||||||
Total Segment Adjusted EBITDA(1) | $ | 114,733 | $ | 117,610 | |||||||
(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 | ||||||||||||||
| May 31, 2026 | February 28, 2026 | |||||||||||||
| Assets: | ||||||||||||||
| Current assets | $ | 440,054 | $ | 395,368 | ||||||||||
| Property, plant and equipment, net | 609,463 | 609,305 | ||||||||||||
| Other non-current assets, net | 1,202,807 | 1,208,801 | ||||||||||||
| Total Assets | $ | 2,252,324 | $ | 2,213,474 | ||||||||||
| Liabilities and Shareholders’ equity: | ||||||||||||||
| Current liabilities | $ | 228,847 | $ | 232,274 | ||||||||||
| Long-term debt, net | 480,604 | 477,738 | ||||||||||||
| Other non-current liabilities | 166,829 | 166,431 | ||||||||||||
| Shareholders' equity | 1,376,044 | 1,337,031 | ||||||||||||
| Total Liabilities and Shareholders' equity | $ | 2,252,324 | $ | 2,213,474 | ||||||||||
| AZZ Inc. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended May 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net cash provided by operating activities(1) | $ | 37,149 | $ | 314,782 | |||||||
| Net cash used in investing activities | (18,698) | (17,122) | |||||||||
| Net cash used in financing activities | (18,174) | (295,512) | |||||||||
| Effect of exchange rate changes on cash | 77 | (593) | |||||||||
| Net decrease in cash and cash equivalents | 354 | 1,555 | |||||||||
| Cash and cash equivalents at beginning of period | 705 | 1,488 | |||||||||
| Cash and cash equivalents at end of period | $ | 1,059 | $ | 3,043 | |||||||
(1) | For the three months ended May 31, 2025, net cash provided by operating activities includes distributions from AVAIL of $273.2 million. Refer to footnote 4 on page 9. | |||||||
| Three Months Ended May 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Amount | Per Diluted Share(1) | Amount | Per Diluted Share(1) | ||||||||||||||||||||
| Net income | $ | 52,006 | 1.72 | $ | 170,908 | 5.66 | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Amortization of intangible assets | 5,726 | 0.19 | 5,734 | 0.19 | |||||||||||||||||||
Restructuring charges(2) | — | — | 3,827 | 0.13 | |||||||||||||||||||
Executive retiree long-term incentive program(3) | — | — | 2,185 | 0.07 | |||||||||||||||||||
AVAIL JV equity in earnings adjustment(4) | (1,348) | (0.04) | (165,826) | (5.49) | |||||||||||||||||||
Write-off of debt financing costs(5) | 572 | 0.02 | — | — | |||||||||||||||||||
| Subtotal | 4,950 | 0.16 | (154,080) | (5.10) | |||||||||||||||||||
Tax impact(6) | (1,188) | (0.04) | 36,979 | 1.22 | |||||||||||||||||||
| Total adjustments | 3,762 | 0.12 | (117,101) | (3.88) | |||||||||||||||||||
| Adjusted net income and adjusted earnings per share (non-GAAP) | $ | 55,768 | $ | 1.85 | $ | 53,807 | $ | 1.78 | |||||||||||||||
| Weighted average shares outstanding—Diluted for Adjusted earnings per share | 30,159 | 30,217 | |||||||||||||||||||||
| Three Months Ended May 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 52,006 | $ | 170,908 | |||||||
| Interest expense | 11,264 | 18,563 | |||||||||
| Income tax expense | 14,012 | 54,928 | |||||||||
| Depreciation and amortization | 23,519 | 21,827 | |||||||||
| Adjustments: | |||||||||||
Restructuring charges(2) | — | 3,827 | |||||||||
Executive retiree long-term incentive program(3) | — | 2,185 | |||||||||
AVAIL JV equity in earnings adjustment(4) | (1,348) | (165,826) | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 99,453 | $ | 106,412 | |||||||
| Three Months Ended May 31, 2026 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 56,549 | $ | 41,535 | $ | 509 | $ | (46,587) | $ | 52,006 | |||||||||||||||||||
| Interest expense | — | — | — | 11,264 | 11,264 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 14,012 | 14,012 | ||||||||||||||||||||||||
| Depreciation and amortization | 7,266 | 10,222 | — | 6,031 | 23,519 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(4) | — | — | (1,348) | — | (1,348) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 63,815 | $ | 51,757 | $ | (839) | $ | (15,280) | $ | 99,453 | |||||||||||||||||||
| Three Months Ended May 31, 2025 | |||||||||||||||||||||||||||||
| Metal Coatings | Precoat Metals | Infra- structure Solutions | Corporate | Total | |||||||||||||||||||||||||
| Net income (loss) | $ | 50,671 | $ | 39,354 | $ | 173,443 | $ | (92,560) | $ | 170,908 | |||||||||||||||||||
| Interest expense | — | — | — | 18,563 | 18,563 | ||||||||||||||||||||||||
| Income tax expense | — | — | — | 54,928 | 54,928 | ||||||||||||||||||||||||
| Depreciation and amortization | 6,660 | 9,123 | — | 6,044 | 21,827 | ||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Restructuring charges(2) | 3,827 | — | — | — | 3,827 | ||||||||||||||||||||||||
Executive retiree long-term incentive program(3) | 358 | — | — | 1,827 | 2,185 | ||||||||||||||||||||||||
AVAIL JV equity in earnings adjustment(4) | — | — | (165,826) | — | (165,826) | ||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 61,516 | $ | 48,477 | $ | 7,617 | $ | (11,198) | $ | 106,412 | |||||||||||||||||||
| Trailing Twelve Months Ended | |||||||||||
| May 31, 2026 | February 28, 2026 | ||||||||||
| Gross debt | $ | 515,000 | $ | 515,000 | |||||||
| Less: Cash per bank statement | (5,500) | (13,227) | |||||||||
| Add: Finance lease liability | 15,256 | 13,746 | |||||||||
| Consolidated indebtedness | $ | 524,756 | $ | 515,519 | |||||||
| Net income | $ | 198,357 | $ | 317,260 | |||||||
| Depreciation and amortization | 91,747 | 90,056 | |||||||||
| Interest expense | 48,350 | 55,650 | |||||||||
| Income tax expense | 62,140 | 103,055 | |||||||||
| EBITDA | 400,594 | 566,021 | |||||||||
Cash items(7) | 349 | 5,426 | |||||||||
Non-cash items(8) | 13,530 | 14,832 | |||||||||
| Equity in earnings, net of distributions | (36,720) | (209,733) | |||||||||
| Adjusted EBITDA per Credit Agreement | $ | 377,753 | $ | 376,546 | |||||||
| Net leverage ratio | 1.4x | 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) | For the three months ended May 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 first quarter of fiscal year 2027. | |||||||
(3) | During the three months ended May 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 first quarter of fiscal year 2027. | |||||||
(4) | For the three months ended May 31, 2026, represents adjustments related to the loss recognized in fiscal year 2026 for the sale of AVAIL's Welding Services Business. During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group to nVent Electric plc. Following the completion of the sale, we received a distribution of $273.2 million during the three months ended May 31, 2025, exceeding the investment in the AVAIL JV of $107.4 million as of May 31, 2025. The excess distribution of $165.8 million was recorded as equity in earnings of unconsolidated subsidiary during the three months ended May 31, 2025. See "Item 8. Financial Statements—Note 8" in the Company's Form 10-Q for the first quarter of fiscal year 2027. | |||||||
(5) | 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 first quarter of fiscal year 2027. | |||||||
(6) | The non-GAAP effective tax rate for each of the periods presented is estimated at 24.0%. | |||||||
(7) | Cash items include restructuring charges associated with the AZZ Metal Coatings segment and other accruals. | |||||||
(8) | Non-cash items include stock-based compensation expense. | |||||||
Document and Entity Information Document and Entity Information |
Jul. 08, 2026 |
|---|---|
| Document & Entity Information [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Jul. 08, 2026 |
| Entity Registrant Name | AZZ Inc. |
| Entity File Number | 1-12777 |
| Entity Tax Identification Number | 75-0948250 |
| Entity Address, Address Line One | One Museum Place, Suite 500 |
| Entity Address, Address Line Two | 3100 West 7th Street |
| Entity Address, City or Town | Fort Worth |
| Entity Address, State or Province | TX |
| Entity Address, Postal Zip Code | 76107 |
| City Area Code | 817 |
| Local Phone Number | 810-0095 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock |
| Trading Symbol | AZZ |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0000008947 |
| Amendment Flag | false |
| Entity Incorporation, State or Country Code | TX |
| Document Information [Line Items] | |
| Document Period End Date | Jul. 08, 2026 |
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