AZZ Inc. (NYSE: AZZ) shares tumbled 5.09% in after-hours trading on Wednesday following the release of its fiscal year 2026 second quarter results, which fell short of analyst expectations. The metal coating and coil coating solutions provider reported adjusted earnings per share of $1.55, missing the consensus estimate of $1.57, and revenue of $417.3 million, below the expected $426.2 million.

While the company's total sales increased by 2.0% compared to the same period last year, the performance was mixed across its segments. The Metal Coatings segment showed strength with a 10.8% increase in sales to $190.0 million, driven by higher infrastructure-related spending in construction, industrial, and electrical transmission markets. However, this growth was offset by a 4.3% decline in the Precoat Metals segment, which saw sales drop to $227.3 million due to weaker demand in several end markets, including building construction, HVAC, and appliance sectors.

Despite maintaining its fiscal year 2026 guidance for adjusted EPS between $5.75 and $6.25 and sales between $1.63 billion and $1.73 billion, investors appeared concerned about the company's ability to meet these targets given the current market conditions. The miss on adjusted EBITDA, which came in at $88.7 million versus the estimated $94.9 million, further contributed to the negative sentiment. As AZZ faces challenges in its Precoat Metals segment and overall market uncertainties, the after-hours stock plunge reflects investor apprehension about the company's near-term growth prospects.