AZZ Incorporated

StockStory identifies two industrial stocks with durable competitive advantages and one facing headwinds. AZZ, a metal coating and power infrastructure provider, posted 17.3% annual revenue growth over five years and a 15.5% operating margin, while Waste Management achieved 10.8% annual revenue growth over two years and a 39% gross margin. In contrast, EnerSys, a battery manufacturer, saw flat unit sales and projects just 4.1% sales growth, with a low gross margin of 26.6%. AZZ trades at $150.34 per share, Waste Management at $232.58, and EnerSys at $201.16.

AstraZeneca tumbled 8% in premarket trading after its heart disease drug Wainua failed to meet its target in a late-stage clinical trial. PepsiCo fell 1% after reporting mixed second-quarter results, with adjusted earnings of $2.20 per share missing the $2.21 estimate from analysts polled by LSEG, while revenue of $24.18 billion topped the $23.95 billion consensus. Salesforce shed 4% following a KeyBanc downgrade to sector weight from overweight, with the firm citing difficulty finding evidence of future upside. Stellantis slid 2% after JPMorgan downgraded the Jeep parent to neutral from overweight, saying it needs 14 months to reap turnaround benefits. Levi Strauss dropped 4% after issuing third-quarter EPS guidance of 34 to 36 cents, below the 38 cents expected by FactSet, despite beating second-quarter expectations on both top and bottom lines. AZZ jumped 6% after reporting quarterly earnings of $1.85 per share, exceeding the $1.69 FactSet consensus, with revenue of $448.5 million also above the $434.6 million forecast. Cerebras Systems moved nearly 7% higher after announcing a major European expansion, bringing its first European data center capacity online by year-end and planning to expand total capacity to 2000 megawatts in 2027. Costco lost nearly 2% after reporting decelerating comparable sales growth of 8.8% in June, down from 12.5% in May.

AZZ stock climbed 8.4% after the metal coatings company reported fiscal first-quarter results that topped estimates and raised its fiscal 2027 guidance above Wall Street expectations. The company now expects sales of $1.80 billion to $1.85 billion, up from its prior outlook of $1.725 billion to $1.775 billion, and adjusted diluted earnings per share of $6.75 to $7.15, above the previous estimate of $6.50 to $7.00. For the first quarter, adjusted earnings per share were $1.85, beating analyst estimates by $0.16, while revenue increased 6.3% year-over-year to $448.5 million, exceeding consensus by $13.98 million. The Metal Coatings segment saw sales rise 12.3% to $210.3 million, while Precoat Metals sales grew 1.5% to $238.2 million. Consolidated adjusted EBITDA was $99.5 million, or 22.2% of sales, compared with $106.4 million, or 25.2% of sales, a year earlier, with the prior-year quarter including $7.7 million of equity in earnings from the AVAIL joint venture.

AZZ Inc. announced its Board authorized a first-quarter cash dividend of US$0.24 per share, payable on July 30, 2026, to shareholders of record as of July 9, 2026, while also being removed from the Russell 2000 Dynamic Index. The higher dividend reinforces AZZ's message of returning more cash to shareholders while continuing to invest in projects like the St. Louis greenfield plant and the Washington aluminum coil coating facility. The index exit may signal an evolving investor base and trading profile for the company. AZZ's narrative projects US$1.9 billion in revenue and US$215.1 million in earnings by 2029, with some analysts estimating a fair value of US$161.67 per share, representing an 8% upside.

John Wiley & Sons, AZZ, and Matson have announced dividend increases, offering potential havens for investors as market volatility returns. John Wiley & Sons declared a dividend of $0.36 per share payable on August 23, with a yield of 2.95% and a payout ratio of 34%. AZZ declared a dividend of $0.25 per share payable on August 30, yielding 0.51% with a payout ratio of 13%. Matson declared a dividend of $0.38 per share payable on September 3, yielding 0.74% with a payout ratio of 11%. The hikes come amid rising inflation and fears of a Federal Reserve rate hike, with the PCE price index jumping 4.1% year-over-year in May.

Several companies announced quarterly dividends. AZZ declared a first quarter cash dividend of $0.24 per share, payable on July 30, 2026 to shareholders of record on July 9, 2026. Lennar declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock, payable on July 24, 2026 to holders of record on July 10, 2026. Matson declared a third quarter dividend of $0.38 per common share, a two-cent or 5.6% increase over the previous quarter, payable on September 3, 2026 to shareholders of record on August 6, 2026. Marvell Technology announced a quarterly dividend of $0.06 per share of common stock, payable on July 30, 2026 to stockholders of record on July 10, 2026. Woodward declared a cash dividend of $0.32 per share for the quarter, payable on September 3, 2026 to stockholders of record on August 20, 2026.

AZZ shares rose 5.5% in morning trading after the metal coating and infrastructure solutions provider increased its quarterly dividend by 17.6%, from $0.17 to $0.20 per share. Management said the hike reflects expectations for stronger cash flows and a healthier balance sheet, building on recent record highs supported by robust demand. The stock later cooled to $159.47, up 4.3% from the previous close.

AZZ Inc. announced its Board of Directors has authorized a first quarter cash dividend of $0.24 per share, a 20.0% increase from the previous $0.20 per share. The dividend is payable on July 30, 2026, to shareholders of record as of the close of business on July 9, 2026. AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions in North America.