AZZ: Tailwinds From Reshoring And Infrastructure Spending

Summary

• AZZ Inc. reported strong Q3'25 results with revenue growth of 5.8% and significant margin expansion, making it a compelling buy at current levels.
• The company’s Metal Coatings and Precoat Metals segments both showed improved profitability, with EBITDA margins exceeding targets and contributing to overall financial strength.
• AZZ is well-positioned for long-term growth, supported by infrastructure spending, data center expansion, and the shift from plastic to aluminum in the beverage industry.
• Trading at a discount to historical and peer valuations, AZZ offers good value with double-digit EPS growth potential and a favorable macroeconomic environment.