AZZ Inc. Reports Fiscal Year 2026 First Quarter Results

AZZ Inc., a leading independent provider of hot-dip galvanizing and coil coating solutions, has released its financial results for the first quarter of fiscal year 2026, ending May 31, 2025. The company reported record quarterly sales, adjusted EBITDA, and adjusted EPS compared to the prior year, and has raised its fiscal year 2026 guidance based on strong earnings.

Financial Highlights

For the first quarter of fiscal year 2026, AZZ Inc. reported total sales of $422.0 million, a 2.1% increase from the prior year. The Metal Coatings segment saw a 6.0% rise in sales to $187.2 million, while Precoat Metals experienced a slight decline of 0.8% to $234.7 million. The company achieved a net income of $170.9 million, a significant 331.6% increase, and an adjusted net income of $53.8 million, up 22.3% from the previous year. GAAP diluted EPS was $5.66, a 510.1% increase, and adjusted diluted EPS was $1.78, up 21.9%.

Business and Operational Highlights

AZZ Inc. reported an adjusted EBITDA of $106.4 million, representing 25.2% of sales, compared to $94.1 million or 22.8% of sales in the prior year. The Metal Coatings segment achieved an adjusted EBITDA margin of 32.9%, while Precoat Metals improved to 20.7%. The company also received $273.2 million in cash from its minority interest in AVAIL related to the sale of the Electrical Products Group to nVent Electric plc.

Strategic Initiatives and Corporate Developments

During the quarter, AZZ Inc. reduced its debt by $285 million, resulting in a net leverage ratio of 1.7x. The company also paid a cash dividend of $0.17 per share to common shareholders. Subsequent to the quarter, AZZ Inc. closed a bolt-on acquisition within its Metal Coatings segment and announced an increase in its quarterly cash dividend to $0.20 per share.

Management's Perspective

Tom Ferguson, President and CEO of AZZ Inc., expressed satisfaction with the company's performance, highlighting the growth in sales and adjusted EPS. He attributed the success to higher volumes of hot-dip galvanized steel and improved operational productivity. Ferguson also noted the company's strong cash flow, which facilitated significant debt reduction and supported strategic acquisitions and dividend increases.

Future Outlook

AZZ Inc. has raised its fiscal year 2026 guidance, projecting sales between $1.625 billion and $1.725 billion, adjusted EBITDA between $360 million and $400 million, and adjusted diluted EPS between $5.75 and $6.25. The guidance reflects the company's confidence in its strategic execution, operational resilience, and market positioning.

SEC Filing: AZZ INC [ AZZ ] - 8-K - Jul. 09, 2025