WEBULL

AZZ (AZZ) Valuation Check After Mixed Quarter, 2026 Outlook Reaffirmation and Earnings-Accretive Acquisition

Simply Wall St · 3d ago

AZZ (AZZ) just delivered a mixed quarter, with revenue edging up about 2% year on year while missing expectations and EBITDA also coming in light, yet management still reaffirmed its 2026 targets.

See our latest analysis for AZZ.

The mixed quarter comes after a strong run, with the share price at $109.03 and a robust year to date share price return of around 32%, even though the 3 year total shareholder return above 170% shows some of that momentum is now cooling.

If this kind of niche industrial story has your attention, it could be a good moment to explore other construction exposed and capital goods names through aerospace and defense stocks as potential next ideas.

With the shares now near analyst targets and only a sliver of modeled intrinsic discount left, is AZZ still flying under the radar for value focused investors, or has the market already priced in the 2026 growth story?

Most Popular Narrative Narrative: 13.4% Undervalued

With the most followed narrative pointing to a value meaningfully above the last close, AZZ's long term upside case hinges on a few big swings.

AZZ is actively pursuing bolt on acquisitions and expanding market share, which are expected to drive revenue growth and operational synergies. This inorganic growth strategy, alongside organic expansion, positions the company to enhance long term shareholder value and improve net margins.

Read the complete narrative.

Curious how a slow revenue ramp, thinner future margins and a richer earnings multiple can still add up to a higher fair value? The full narrative lays out the step by step math behind that tension.

Result: Fair Value of $125.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weather disruptions and execution hiccups at new facilities could pressure margins and undermine the upbeat valuation narrative that investors are leaning on.

Find out about the key risks to this AZZ narrative.

Build Your Own AZZ Narrative

If this perspective does not quite match your own view, or you would rather dig into the numbers yourself, you can build a custom narrative in just a few minutes by starting with Do it your way.

A great starting point for your AZZ research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for your next investment edge?

Before you move on, you may want to lock in your next watchlist candidates by using targeted screeners that surface opportunities you are unlikely to spot by chance alone.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.