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AZZ Inc. Financial Guidance for Fiscal Year 2026

Overview
On February 5, 2025, AZZ Inc. (NYSE: AZZ) revealed its financial guidance for the upcoming fiscal year, which spans from March 1, 2025, to February 28, 2026. As a leader in hot-dip galvanizing and coil coating, AZZ is set to enhance its market position with optimistic projections concerning its earnings and operations.

Fiscal Year 2026 Projections

AZZ Inc. projects the following financial ranges for FY2026:

• - Sales: Expected to range between $1.625 billion to $1.725 billion, a slight increase from FY2025, which was estimated at $1.550 - $1.600 billion.
• - Adjusted EBITDA: Forecasted to be between $360 million to $400 million, aligning with their efforts to enhance profitability.
• - Adjusted Diluted EPS: Predicted to be between $5.50 to $6.10, compared to the previous range of $5.00 - $5.30.

Key Assumptions for FY2026

The guidance comes with specific assumptions, including:

• - An anticipated $15-$18 million from equity income related to minority interests in an unconsolidated subsidiary.
• - The new facility in Washington, Missouri is scheduled to become operational in the first half of FY2026, contributing positively to the earnings in the latter half.
• - The organization plans for capital expenditures to total approximately $60 to $80 million, a decrease that results from the completion of the Missouri plant earlier than anticipated.
• - Debt-to-leverage ratios are expected to be maintained between 1.5 to 2.5 times, with interest expenses anticipated between $60 to $70 million.
• - The effective tax rate approximated at 25% does not account for any federal regulatory changes that might arise.
• - AZZ is also targeting a debt reduction of $140 to $180 million during this period.

Tom Ferguson, the President and CEO of AZZ, expressed confidence in the company’s ability to meet its operational objectives, noting, “Our focus next fiscal year will be to drive sustainable, profitable organic growth.” He emphasized the potential expansion in the Metal Coatings EBITDA to 27%-32%, alongside a steady performance from Precoat Metals, expected to remain between 17%-22%.

Production and Operational Insights

AZZ’s commitment to enhancing its production capabilities is evident with the introduction of a new coil coating line in Washington. The company expects this line to reach its normal operation rate during the latter half of FY2026. In addition, both segments of the business are sharpening their focus on operational productivity while ensuring excellent customer service and quality.

AZZ Inc. is recognized as the premier independent hot-dip galvanizing and coil coating firm in North America, boasting unmatched operational performance marked by high margins and returns. With access to the necessary capital, AZZ is actively pursuing future growth initiatives and aims at enhancing shareholder value—signifying a promising outlook in the sectors it serves.

Forward-Looking Statements

The company’s announcements include forward-looking statements in alignment with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The predictive nature of these statements involves various risks, including shifts in customer demand and potential increases in labor and material costs. Investors and stakeholders are encouraged to consider these factors in their evaluations.

In conclusion, the future looks bright for AZZ Inc. as it gears up for FY2026, with ambitious goals aimed at sustaining and enhancing its performance in the galvanizing and coil coating industries.