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AZZ Inc. Reports Significant Sales Growth and Profitability in Fiscal Year 2026

AZZ Inc. (NYSE: AZZ), a prominent provider of hot-dip galvanizing and coil coating solutions, recently revealed its financial performance for the fiscal year 2026, concluding on February 28, 2026. The results displayed striking growth in sales and profitability, cementing the company’s position as a leader in its field.

Financial Highlights

The company reported total sales of $1.65 billion, reflecting a 4.6% increase compared to the previous fiscal year. Notably, the Metal Coatings segment achieved sales of $758.7 million, up 14.1%, while the Precoat Metals segment saw sales of $891.4 million, marking a slight decrease of 2.3%.

In terms of profitability, AZZ's net income surged to $317.3 million, representing an impressive climb of 146.3% year-over-year. Additionally, the adjusted net income rose by 19.3% to reach $187.1 million. The diluted earnings per share (EPS) showed significant growth as well, soaring 486.6% to settle at $10.50, with an adjusted diluted EPS of $6.19, indicating a 19.0% increase.

The consolidated adjusted EBITDA for the fiscal year also demonstrated positive results, amounting to $367.6 million, or 22.3% of sales, a slight improvement from the previous year’s 22.0%. The company's ability to generate robust cash flow was evident as operational cash flow amounted to $525.4 million, which included distributions from joint ventures totaling $273.2 million.

Segment Performance

Metal Coatings

The Metal Coatings segment showcased remarkable strength, driven by heightened demand across various industries, particularly construction and electrical transmission. This segment achieved an adjusted EBITDA margin of 31.0%, bolstered by operational efficiencies and increased steel processing volume.

Precoat Metals

In contrast, the Precoat Metals segment struggled, with sales declining primarily due to reduced market demand in residential construction and HVAC industries. Despite this, adjusted EBITDA margin remained stable at 19.8%, supported by a modest increase in average selling prices.

Fourth Quarter Insights

The fourth quarter of FY 2026 recorded sales of $385.1 million, which is a 9.4% increase relative to the same period in the prior year. The Metal Coatings segment reported a sales escalation of 25.7% to $186.5 million, while the Precoat Metals segment experienced a slight decline of 2.4% with sales reaching $198.6 million.

While net income for the quarter saw a decrease of 21.2% to $15.9 million, adjusted net income marked a 36.4% increase to $40.4 million. The adjusted EBITDA for the fourth quarter also improved, climbing to $81.3 million or 21.1% of sales.

Looking Ahead

Tom Ferguson, the President and CEO of AZZ, expressed optimism about the future, emphasizing the company's commitment to executing its growth strategies while navigating the evolving market landscape. He stated, "Fiscal year 2026 represents record full-year sales and profitability, and AZZ's 39th consecutive year of profitability from continuing operations. We're enthusiastic about the successful performance of our new facility in Washington, which became profitable in the fourth quarter."

The outlook for FY 2027 remains promising as AZZ aims for increased sales projections between $1.725 billion and $1.775 billion, while maintaining an adjusted EBITDA of $360 to $400 million. As the company strategically positions itself to take advantage of continued U.S. infrastructure investment, it is expected to uphold its trajectory of organic growth and market expansion.

Conclusion

In summary, AZZ Inc.'s financial outcomes for FY 2026 reflect a strong performance highlighted by significant sales growth and enhanced profitability. The company remains focused on leveraging its capabilities while adjusting to market dynamics, ensuring a solid foundation for future endeavors.