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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AZZ's RSI Oscillator climbs out of oversold territory
The RSI Oscillator for AZZ moved out of oversold territory on September 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In 17 of the 20 cases the stock moved higher. This puts the odds of a move higher at 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 24, 2026. You may want to consider a long position or call options on AZZ as a result. In 57 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
The Moving Average Convergence Divergence (MACD) for AZZ just turned positive on September 22, 2026. Looking at past instances where AZZ's MACD turned positive, the stock continued to rise in 32 of 47 cases over the following month. The odds of a continued upward trend are 68%.
Following a +3.72% 3-day Advance, the price is estimated to grow further. Considering data from situations where AZZ advanced for three days, in 236 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
AZZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for AZZ entered a downward trend on September 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 10 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Price Growth Rating for this company is 46 (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 Valuation Rating of 50 (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 (2.951) is normal, around the industry mean (8.137). P/E Ratio (20.599) is within average values for comparable stocks, (60.108). Projected Growth (PEG Ratio) (1.199) is also within normal values, averaging (1.946). Dividend Yield (0.006) settles around the average of (0.013) among similar stocks. P/S Ratio (2.389) is also within normal values, averaging (9.694).
The Tickeron SMR rating for this company is 55 (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 Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued 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.
Industry description
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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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