AZZ Inc. (AZZ) Reports Record Q1 Sales and Raises Fiscal 2027 Guidance
Key Takeaways
- Total sales reached a record $448.5 million, up 6.3% year over year.
- Metal Coatings sales rose 12.3% to $210.3 million on higher volumes.
- Precoat Metals sales increased 1.5% to $238.2 million, hitting a first-quarter record.
- Adjusted diluted EPS grew 3.9% to $1.85, while adjusted net income rose 3.6% to $55.8 million.
- The company raised full-year fiscal 2027 guidance for sales, adjusted EBITDA, and adjusted EPS.
- Net leverage remained low at 1.4x, supporting operational flexibility.
Putting the Quarter in Context
AZZ Inc. reports results on a fiscal year ending February 28 or 29, with quarters aligned accordingly. The first quarter of fiscal 2027 ended May 31, 2026. This report provides the first look at performance in the new fiscal year following strong full-year 2026 results. Investors watch these figures closely for signs of sustained demand in construction, industrial, and infrastructure markets, as well as the company’s ability to manage input costs and expand capacity at its new Washington, Missouri facility.
What the Numbers Show
AZZ Inc. reported total sales of $448.5 million for the first quarter of fiscal 2027, a 6.3% increase from $422.0 million in the prior-year period. Metal Coatings segment sales grew 12.3% to $210.3 million, driven by higher galvanized steel volumes across construction, industrial, and infrastructure end markets. Precoat Metals segment sales rose 1.5% to a first-quarter record of $238.2 million, supported by price increases and ramp-up at the new facility, partially offset by softer volumes in certain markets.
Adjusted net income increased 3.6% to $55.8 million. Adjusted diluted EPS rose 3.9% to $1.85. GAAP diluted EPS was $1.72, down from the prior year due to a one-time equity gain in the comparable period. Consolidated adjusted EBITDA reached $99.5 million, or 22.2% of sales. The company also raised its fiscal 2027 full-year guidance for sales, adjusted EBITDA, and adjusted EPS, citing strong momentum and operational execution.
How the Market Is Responding
The earnings release, issued after market close on July 8, 2026, highlighted record quarterly sales and an upward revision to full-year guidance. These positive developments, combined with maintained low leverage and cash generation, are expected to support constructive investor sentiment heading into the earnings conference call on July 9. Focus remains on execution against the raised targets and progress on capacity expansions.
Looking Ahead: Guidance and Key Factors to Monitor
AZZ raised its fiscal 2027 guidance, now projecting sales of $1.80 billion to $1.85 billion, adjusted EBITDA of $375 million to $415 million, and adjusted diluted EPS of $6.75 to $7.15. The updated outlook reflects confidence in continued sales momentum and operational improvements.
Investors should monitor volume trends in Metal Coatings across key end markets and the contribution from the Washington, Missouri facility in Precoat Metals. Input cost inflation for zinc, paint, and energy remains a factor, as does the company’s ability to pass through price increases.
Capital expenditures are expected to total $80 million to $100 million for the full year, focused on capacity expansions and technology upgrades. Debt reduction targets of $130 million to $170 million and a net leverage ratio near current levels will also be watched. The company continues to pursue M&A opportunities while maintaining a strong balance sheet.
Using AI Tools to Cross-Check the Setup
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Visit the AI Screener to explore opportunities across sectors.
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Momentum Indicator for AZZ turns negative, indicating new downward trend
AZZ saw its Momentum Indicator move below the 0 level on July 01, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AZZ moved out of overbought territory on June 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for AZZ turned negative on July 01, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
AZZ moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AZZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for AZZ crossed bullishly above the 50-day moving average on June 12, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 21 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AZZ advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
AZZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 275 cases where AZZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.224) is normal, around the industry mean (15.812). P/E Ratio (13.676) is within average values for comparable stocks, (72.710). Projected Growth (PEG Ratio) (1.199) is also within normal values, averaging (1.442). Dividend Yield (0.006) settles around the average of (0.022) among similar stocks. P/S Ratio (2.629) is also within normal values, averaging (8.525).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AZZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of galvanizing services, welding solutions, specialty electrical equipment and engineered services
Industry OfficeEquipmentSupplies
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