06:16 AM EDT, 10/09/2025 (MT Newswires) -- AZZ (AZZ) shares fell early Thursday as the metal and coil coatings company's fiscal second-quarter results came in short of market estimates, while it maintained its full-year outlook.
The company reported adjusted earnings of $1.55 per share for the quarter ended August, up from $1.37 the year before, it said late Wednesday. The consensus on FactSet was for non-GAAP EPS of $1.57. Sales rose 2% to $417.3 million, but trailed the Street's view for $426.6 million.
The stock fell 6.2% in the most recent premarket activity.
Sales in the metal coatings segment advanced 11% to $190 million, buoyed by increased volume gains and infrastructure project-related spending in several end markets, including construction and industrial, the company said. The precoat metals business declined 4.3% to $227.3 million, mainly due to weakness in certain markets, such as construction and heating, ventilation, and air conditioning.
"Metal Coatings delivered strong, double-digit sales gains on volume increases, while precoat metals experienced weaker demand in several end markets," Chief Executive Tom Ferguson said in a statement. "Precoat metals' sales results were pressured by building construction, HVAC and appliance end-markets."
For the 2026 fiscal year, AZZ continues to project adjusted EPS to be in a range of $5.75 to $6.25 and sales to come in between $1.63 billion and $1.73 billion. The Street is looking for non-GAAP EPS of $6.04 and sales of $1.66 billion.
"We continue to have confidence that our full-year 2026 financial guidance is achievable, as we carefully monitor customer trends in key markets," according to Ferguson. "We will continue to closely manage working capital, capital expenditures, and debt as we progress through the second half of our fiscal year."