AZZ (AZZ) Earnings Date & Reports

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.

Earnings Context and Why It Matters

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.

Reported Results

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.

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Market Reaction and Investor Sentiment

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.

Forward Outlook 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.

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