AZZ Inc.

Fair Value Summary

Current Price	$108.84
5Y Range	100.00 – 162.86
5Y Selected	131.43
(-) Safety Margin	82.70%
5Y Buy Price	$22.74
Upside (to Buy Price)	-79.11%
10Y Range	128.91 – 203.86
10Y Selected	166.38
(-) Safety Margin	82.70%
10Y Buy Price	$28.78
Upside (to Buy Price)	-73.55%

Company Predictability & Safety

Metric	Value
Revenue R2 (5Y)	0.7889
Revenue R2 (10Y)	0.4046
Net Income R2 (5Y)	0.2121
Net Income R2 (10Y)	0.0971
EBITDA R2 (5Y)	0.8752
EBITDA R2 (10Y)	0.7237
FCF R2 (5Y)	0.5378
FCF R2 (10Y)	0.1443

Safety Score	0.1730

DA 10-Year Projection

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035
% Growth	16.66%	15.25%	13.84%	12.44%	11.03%	9.63%	8.22%	6.81%	5.41%	4.00%
Revenue	1,840.55	2,121.24	2,414.91	2,715.28	3,014.82	3,305.00	3,576.64	3,820.31	4,026.84	4,187.92
EBITDA	372.36	429.14	488.55	549.32	609.92	668.63	723.58	772.88	814.66	847.25
D&A	-105.62	-121.73	-138.58	-155.82	-173.00	-189.66	-205.24	-219.23	-231.08	-240.32
EBIT	266.74	307.42	349.98	393.51	436.92	478.97	518.34	553.65	583.58	606.92
Pro forma Taxes	-60.56	-69.80	-79.46	-89.35	-99.20	-108.75	-117.69	-125.71	-132.51	-137.81
NOPAT	206.17	237.62	270.51	304.16	337.71	370.22	400.65	427.94	451.08	469.12
Capital Expenditures	-92.92	-107.09	-121.91	-137.08	-152.20	-166.85	-180.56	-192.86	-203.29	-211.42
NWC Investment	-26.10	-27.88	-29.17	-29.83	-29.75	-28.82	-26.98	-24.20	-20.51	-16.00
(+) D&A	105.62	121.73	138.58	155.82	173.00	189.66	205.24	219.23	231.08	240.32
Free Cash Flow	192.77	224.37	258.01	293.06	328.76	364.20	398.35	430.10	458.35	482.02
Diluted Shares Outstanding	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00	30,187,000.00

Discounting Periods

Metric	Feb-26	Feb-27	Feb-28	Feb-29	Feb-30	Feb-31	Feb-32	Feb-33	Feb-34	Feb-35
Period Start	8/31/25	3/1/26	3/1/27	2/29/28	3/1/29	3/1/30	3/1/31	2/29/32	3/1/33	3/1/34
Period End	2/28/26	2/28/27	2/28/28	2/28/29	2/28/30	2/28/31	2/28/32	2/28/33	2/28/34	2/28/35
Mid-Point	11/29/25	8/30/26	8/30/27	8/29/28	8/30/29	8/30/30	8/30/31	8/29/32	8/30/33	8/30/34
Time (t)	0.10	0.62	1.62	2.62	3.62	4.62	5.62	6.62	7.62	8.62
Valuation Date	1/17/26

Base Case Projected Flows

WACC: 9.10%Terminal Growth: 2.20%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.95	0.87	0.80	0.73	0.67	0.61	0.56	0.52	0.47
PV UFCF	191.10	212.58	224.06	233.28	239.88	243.57	244.19	241.67	236.07	227.55	Raw: 4,872.65 3,403.77	Raw: 7,144.09 3,228.92

Base Case Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	4,504.67	5,522.87
(-) Net Debt	743.49	743.49
Equity Value	3,761.18	4,779.39
(/) Shares Out	30.19	30.19
Fair Value	$124.60	$158.33
(-) Safety Margin	82.70%	82.70%
Buy Price	$21.56	$27.39
Current Price	$108.84	$108.84
Upside (to Buy Price)	-80.20%	-74.83%

Conservative Projected Flows

WACC: 10.10%Terminal Growth: 1.70%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.94	0.86	0.78	0.71	0.64	0.58	0.53	0.48	0.44
PV UFCF	190.92	211.38	220.77	227.77	232.08	233.52	231.98	227.50	220.21	210.34	Raw: 3,982.51 2,679.33	Raw: 5,839.00 2,428.34

Conservative Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	3,762.26	4,634.83
(-) Net Debt	743.49	743.49
Equity Value	3,018.78	3,891.35
(/) Shares Out	30.19	30.19
Fair Value	$100.00	$128.91
(-) Safety Margin	82.70%	82.70%
Buy Price	$17.30	$22.30
Current Price	$108.84	$108.84
Upside (to Buy Price)	-84.10%	-79.51%

Aggressive Projected Flows

WACC: 8.10%Terminal Growth: 2.70%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.95	0.88	0.82	0.75	0.70	0.65	0.60	0.55	0.51
PV UFCF	191.28	213.80	227.43	238.98	248.01	254.16	257.16	256.86	253.22	246.35	Raw: 6,257.71 4,540.32	Raw: 9,174.80 4,510.03

Aggressive Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	5,659.81	6,897.27
(-) Net Debt	743.49	743.49
Equity Value	4,916.33	6,153.79
(/) Shares Out	30.19	30.19
Fair Value	$162.86	$203.86
(-) Safety Margin	82.70%	82.70%
Buy Price	$28.18	$35.27
Current Price	$108.84	$108.84
Upside (to Buy Price)	-74.11%	-67.60%

Reverse DCF: Market Implied Growth

Current Price$108.84

WACC Used9.1%

IMPLIED REVENUE GROWTH125.98%

Metric	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
Implied Revenue	3,603.89	8,144.18	18,404.43	41,590.82	93,988.04	212,396.69	479,979.69	1,084,670.91	2,451,168.23	5,539,215.32
Constant Implied Growth	125.98%	125.98%	125.98%	125.98%	125.98%	125.98%	125.98%	125.98%	125.98%	125.98%
Implied Free Cash Flow	0.36	0.81	1.84	4.16	9.40	21.24	48.00	108.47	245.12	553.92
Discount Factor	0.97	0.87	0.80	0.73	0.67	0.61	0.56	0.52	0.47	0.43
Present Value of Implied FCF	0.35	0.71	1.47	3.03	6.29	13.02	26.97	55.86	115.72	239.69

Rolling Historical DCF (Backtest)

Valuation based on actual realized growth.

Year	Valuation Date	Actual Price	Realized Growth (5Y)	Calculated Fair Value	Valuation Delta
2020	2020-02-28	$36.89	32.11%	$218.75	492.97%
2019	2019-02-28	$46.02	18.86%	$102.90	123.59%
2018	2018-02-28	$40.85	1.53%	$19.79	-51.57%
2017	2017-02-28	$58.65	-14.32%	$10.74	-81.69%
2016	2016-02-28	$50.50	-8.98%	$29.08	-42.41%
2015	2015-02-28	$45.42	3.65%	$48.78	7.40%
2014	2014-02-28	$44.37	1.13%	$24.78	-44.16%
2013	2013-02-28	$44.66	1.53%	$37.02	-17.10%
2012	2012-02-28	$25.28	9.41%	$36.46	44.21%
2011	2011-02-28	$21.33	16.05%	$27.00	26.59%
2010	2010-02-28	$15.84	19.23%	$96.61	509.90%
2009	2009-02-28	$10.12	18.06%	$50.79	401.83%
2008	2008-02-28	$18.45	8.18%	$25.94	40.62%
2007	2007-02-28	$10.13	5.68%	$-4.54	-144.85%
2006	2006-02-28	$5.70	7.06%	$4.83	-15.27%
2005	2005-02-28	$4.05	15.14%	$-1.66	-140.97%
2004	2004-02-28	$4.00	22.37%	$18.68	366.98%
2003	2003-02-28	$2.86	19.42%	$28.25	887.84%
2002	2002-02-28	$4.20	7.86%	$-1.60	-138.20%
2001	2001-02-28	$4.45	0.09%	$4.29	-3.52%
2000	2000-02-28	$2.52	0.82%	$6.15	144.10%
1999	1999-02-28	$2.06	8.80%	$0.76	-63.26%
1998	1998-02-28	$3.47	21.85%	$-1.61	-146.29%
1997	1997-02-28	$2.33	22.61%	$7.82	235.60%
1996	1996-02-28	$1.13	22.33%	$9.87	773.59%

Monte Carlo Simulation (1,000 Iterations)

Mean Fair Value
$163.56

Median
$158.96

10th Percentile
$129.35

90th Percentile
$205.69

Fair Value Distribution

$95.00 - $105.73	4
$105.73 - $116.46	19
$116.46 - $127.18	64
$127.18 - $137.91	120
$137.91 - $148.64	172
$148.64 - $159.37	130
$159.37 - $170.10	137
$170.10 - $180.82	118
$180.82 - $191.55	71
$191.55 - $202.28	50
$202.28 - $213.01	41
$213.01 - $223.74	29
$223.74 - $234.46	17
$234.46 - $245.19	9
$245.19 - $255.92	4
$255.92 - $266.65	1
$266.65 - $277.38	4
$277.38 - $288.10	4
$288.10 - $298.83	3
$298.83 - $309.56	3

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Fundamentals

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