AZZ Raises Outlook After Record Coatings Sales
Image courtesy of AZZ Inc.
AZZ Inc. reported record fiscal 2027 first-quarter sales in both its Metal Coatings and Precoat Metals segments and raised its full-year financial guidance.
Total sales for the quarter ended May 31, 2026, increased 6.3% to $448.5 million, compared with $422.0 million during the prior-year period.
Metal Coatings sales rose 12.3% to $210.3 million, driven primarily by higher volumes supported by project spending in the construction, industrial and infrastructure markets.
The segment generated adjusted EBITDA of $63.8 million and an adjusted EBITDA margin of 30.3%. The margin decreased 260 basis points from the prior-year quarter, which included a land sale, and reflected a greater mix of large projects during the current quarter.
Precoat Metals sales increased 1.5% to $238.2 million. AZZ attributed the growth to increased production at its Washington, Missouri, facility and price increases implemented to offset higher paint and other input costs.
Those gains were partially offset by lower volumes in the construction, infrastructure, HVAC and appliance markets.
Precoat Metals generated EBITDA of $51.8 million and an EBITDA margin of 21.7%, an increase of 100 basis points from the prior-year quarter.
“We are off to a great start in the fiscal year as sales grew to $448.5 million, up 6.3% over the prior-year quarter,” said Tom Ferguson, president and CEO of AZZ. “Metal Coatings achieved strong, double-digit sales gains on higher volume of galvanized steel. Meanwhile, Precoat Metals reached record first-quarter sales.”
Ferguson said the Precoat Metals results were supported by pricing actions and the continued production ramp-up at the Washington facility.
AZZ raised its fiscal 2027 sales guidance to between $1.80 billion and $1.85 billion, up from its previous range of $1.725 billion to $1.775 billion.
The company also increased its adjusted EBITDA guidance to between $375 million and $415 million and its adjusted diluted earnings-per-share guidance to between $6.75 and $7.15.
AZZ expects fiscal 2027 capital expenditures of approximately $80 million to $100 million. Planned investments include hot-dip galvanizing capacity expansions and technology improvements across its Metal Coatings and Precoat Metals operations.
AZZ, headquartered in Fort Worth, Texas, provides hot-dip galvanizing, coil coating and other metal-finishing services throughout North America.
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