AZZ Posts $21.7M JV Loss, Acquires Canton Galvanizing Facility
AZZ expects Precoat Metals sales to remain flat in Q4 2026 due to weakness in construction markets, while interest expense declined to $11.2 million. The Avail joint venture posted a $21.7 million net loss on the Welding Services sale as AZZ expanded Metal Coatings with a Canton, Ohio galvanizing acquisition.
1. Precoat Metals Segment Outlook
AZZ anticipates flat sales in its Precoat Metals segment for Q4 2026 due to continued softness in both commercial and residential construction markets, constraining revenue growth despite stable backlog levels.
2. Interest Expense Improvement
Interest expense for the quarter declined to $11.2 million, reflecting improved debt management and reduced borrowing costs compared with the prior year period.
3. Avail Joint Venture Loss
The Avail joint venture reported a $21.7 million net loss in Q4 2026, driven primarily by the loss on sale of its Welding Services businesses, representing a significant drag on segment profitability.
4. Canton Facility Acquisition
AZZ strengthened its Metal Coatings platform by acquiring a galvanizing facility in Canton, Ohio, aiming to broaden service offerings and capture additional market share in protective coatings.