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AZZ Inc. Reports Fiscal Year 2027 Second Quarter Results

On October 13, 2026, AZZ Inc. (NYSE: AZZ), a leader in hot-dip galvanizing and coil coating solutions, announced its dynamic financial performance for the second quarter ending August 31, 2026. The company realized a significant growth in sales and earnings across its diverse segments.

Fiscal Year 2027 Highlights

AZZ recorded total sales of $486.9 million, marking a 16.7% increase from the previous fiscal year. Specifically, Metal Coatings sales reached $233.5 million (up 22.9%) and Precoat Metals sales were $253.4 million (up 11.5%). Operating income also rose substantially to $83.8 million, equating to a growth of 22.4% over the prior year.

However, net income experienced a notable dip, reported at $58.5 million, which is 34.6% lower than the previous year. This decline was attributed to significant earnings recognized last year from a joint venture. Adjusted net income was recorded at $60.1 million, indicating a solid 28.1% activity compared to the previous year.

Earnings Performance

The diluted earnings per share (EPS) was $1.94, showing a decrease of 34.2% compared to the prior year, while adjusted diluted EPS grew by 29.0% to $2.00. Consolidated Adjusted EBITDA was $110.9 million, or 22.8% of sales, compared to $88.7 million (21.3% of sales) from the previous year.

Operational Cash Flow and Strategic Moves

The company generated an impressive operating cash flow of $102.8 million for the quarter, representing a 76.1% increase year-on-year. AZZ successfully completed the acquisition of Seattle Galvanizing, further strengthening its operational capacity. The company also repurchased 136,303 shares of common stock for $20 million, demonstrating its commitment to returning value to shareholders. The quarterly cash dividend was increased by 20% to $0.24 per share, reinforcing shareholder confidence.

Segment Insights

In the Metal Coatings segment, second-quarter sales growth was primarily driven by heightened demand across various sectors, including construction and transportation, alongside inflationary pressures boosting average selling prices. The segment achieved an Adjusted EBITDA of $71.6 million, reflecting a robust margin of 30.7%.

For the Precoat Metals segment, sales grew due to higher coil-coating volumes and increased prices, yielding an Adjusted EBITDA of $53.8 million with a margin of 21.2%.

Financial Outlook and Increased Guidance

AZZ Inc. is optimistic about the future, raising its fiscal year 2027 financial guidance to $1.825 - $1.875 billion in sales and an Adjusted EBITDA range of $380 - $420 million. They attribute their confidence to robust market conditions, ongoing investments in operational enhancements, and strategic acquisitions. CEO Tom Ferguson emphasized the integral role of their workforce's dedication in achieving these results.

Ferguson stated, "We are on track to set new sales and profitability records for fiscal year 2027. Our continued focus on operational excellence and targeted growth initiatives positions us as leaders in the market, ensuring long-term value for our shareholders and customers alike."

Conclusion

AZZ Inc.'s strong performance in Q2 demonstrates resilience and strategic foresight as the company navigates market dynamics. Stakeholders can look forward to enhanced operational capabilities and sustained growth as fiscal year 2027 unfolds. Investing in both advanced solutions and valued personnel, AZZ is poised for ongoing success in the galvanizing and coil coating sectors.