NYSE:AZZ

AZZ Stock Rises 6.7% Premarket After Strong Q1 Earnings, Raises Fiscal 2027 Guidance

AZZ Inc. (NYSE: AZZ) stock rose 6.7% in premarket trading on Thursday after the company reported strong fiscal first-quarter 2027 results and raised its full-year financial guidance. Record quarterly sales, higher adjusted earnings, and an improved outlook reinforced investor confidence despite a challenging industrial market backdrop.

Why Is AZZ Stock Rising Today?

The primary catalyst behind AZZ stock's premarket rally was management's decision to raise fiscal 2027 guidance following a solid start to the year.

The company now expects fiscal 2027 sales of $1.80 billion to $1.85 billion, up from its previous forecast of $1.725 billion to $1.775 billion. AZZ also increased its adjusted EBITDA outlook to $375 million-$415 million from $360 million-$400 million and lifted adjusted diluted EPS guidance to $6.75-$7.15 from $6.50-$7.00.

The higher guidance signals management's confidence in continued demand across its core businesses and stronger profitability through the remainder of the fiscal year.

AZZ Reports Strong Fiscal Q1 2027 Earnings

For the quarter ended May 31, 2026, AZZ reported revenue of $448.5 million, a 6.3% increase from a year earlier. Adjusted diluted earnings per share rose 3.9% year over year to $1.85, while adjusted net income increased 3.6% to $55.8 million.

The company also generated $37.1 million in operating cash flow during the quarter, maintaining a healthy balance sheet with a net leverage ratio of just 1.4x.

CEO Tom Ferguson said the company remains on track to deliver record sales and profitability during fiscal 2027, supported by strong execution, favorable market visibility, and disciplined capital allocation.

Metal Coatings Business Continues to Drive Growth

AZZ's Metal Coatings segment remained the company's strongest performer, with sales increasing 12.3% to $210.3 million. Growth was driven by higher galvanized steel volumes and continued spending across construction, industrial, and infrastructure projects.

Meanwhile, the Precoat Metals segment delivered record first-quarter sales of $238.2 million, up 1.5% year over year. Revenue benefited from pricing actions to offset raw material inflation and continued production ramp-up at the company's Washington, Missouri facility.

What Investors Are Watching Next

Beyond its stronger quarterly performance, AZZ recently increased its quarterly dividend by 20%, highlighting management's confidence in future cash generation.

Investors will now be watching whether demand in construction, infrastructure, and industrial markets remains resilient enough for AZZ to achieve its higher fiscal 2027 targets. With record first-quarter sales, solid cash flow generation, and improved full-year guidance, earnings report provides a positive catalyst for AZZ stock heading into the remainder of the fiscal year.
AZZ Inc. (NYSE: AZZ) reported fiscal Q2 2026 results showing steady growth in sales, earnings, and cash flow. Quarterly sales rose 2% year over year to $417.3 million, driven by strong performance in Metal Coatings, which grew 10.8% to $190 million, offsetting a 4.3% decline in Precoat Metals to $227.3 million. Net income surged 152% to $89.3 million, with adjusted EPS up 13.1% to $1.55, while adjusted EBITDA came in at $88.7 million, or 21.3% of sales. Operating cash flow increased 23% to $58.4 million, and the company maintained net leverage of 1.7x.

CEO Tom Ferguson credited the results to infrastructure-driven growth in galvanizing operations and disciplined financial management, including debt reduction, repricing its Term Loan B, and introducing an accounts receivable securitization program. During the quarter, AZZ acquired a galvanizing facility in Canton, Ohio for $30.1 million and paid a $0.20 per share dividend. The company reaffirmed its fiscal 2026 guidance, citing confidence in demand from construction, industrial, and electrical transmission markets, while noting softness in building and appliance sectors.
AZZ Inc. Secures $150 Million Receivables-Based Credit Facility with Wells Fargo

AZZ Inc. announced it has entered into a three-year, $150 million accounts receivable securitization facility with Wells Fargo Bank. The facility, set to mature in July 2028, enables AZZ SPE-1 LLC, a special-purpose subsidiary, to borrow up to $150 million based on eligible receivables.

Proceeds will be used to reduce existing debt, lowering interest costs. The facility is part of the company’s broader capital structure strategy and qualifies as a permitted receivables financing under AZZ’s existing credit agreement.

AZZ SPE-1's assets are ring-fenced from AZZ and its subsidiaries, and the facility includes customary covenants and conditions.
AZZ Inc. - Presentation Materials Filing

Summary: AZZ Inc. filed a Current Report on Form 8-K to disclose the Presentation Materials intended for use in presentations to investors, lenders, creditors, vendors, customers, employees, and other stakeholders. The materials provide summary information and are furnished as Exhibit 99.1.

Context: The Presentation Materials provide a snapshot of the company's business, and while they may be updated in the future, the company disclaims any obligation to do so.

Note: The information provided is furnished under Regulation FD, and it is not deemed "filed" for liability purposes. The materials are not incorporated into any filings under the Securities Act.
AZZ Inc. Fiscal Year 2025 Summary

AZZ Inc. achieved record full-year results in fiscal 2025, with total sales rising 2.6% to $1.58 billion. Adjusted net income grew 18.1% to $156.8 million, while GAAP net income was $128.8 million. Adjusted EPS increased to $5.20, despite a GAAP EPS decline to $1.79 due to a $75.2 million preferred stock redemption charge. The company reported $347.9 million in adjusted EBITDA, reflecting solid margins across both segments: Metal Coatings at 30.9% and Precoat Metals at 19.6%.

Fourth-quarter performance was impacted by weather, leading to a 4% sales decline, but net income rose 41.7% to $20.2 million. AZZ generated $250 million in operating cash flow, reduced debt by $110 million, and lowered net leverage below 2.5x.

The company reaffirmed fiscal 2026 guidance: revenue of $1.625–$1.725 billion, adjusted EBITDA of $360–$400 million, and adjusted EPS of $5.50–$6.10. AZZ plans to use proceeds from the upcoming AVAIL joint venture transaction to further strengthen its balance sheet and support growth initiatives.
AZZ Inc. Declares $0.17 Per Share Dividend for Q4 FY2025

FORT WORTH, TX – AZZ Inc. (NYSE: AZZ), a leading provider of hot-dip galvanizing and coil coating solutions, announced that its Board of Directors has approved a fourth quarter cash dividend of $0.17 per share on the company’s outstanding common stock.

The dividend will be payable on May 15, 2025, to shareholders of record as of the close of business on April 24, 2025.

While the company plans to continue issuing regular quarterly dividends, AZZ emphasized that all future dividend declarations remain at the discretion of the Board and will be evaluated based on business performance, financial condition, and future outlook.

About AZZ Inc.
AZZ Inc. delivers industry-leading metal coating solutions through its galvanizing and coil coating operations, serving infrastructure, construction, and industrial markets. The company is recognized for enhancing the durability and aesthetic of essential structures and products.
AZZ Inc. announced that on February 27, 2025, it entered into the Fifth Amendment to its existing Credit Agreement with Citibank, N.A. and its lenders. The amendment lowers the interest rate margin for Revolving Credit Loans, reduces the commitment fee, and decreases the Letter of Credit Fees, all subject to leverage ratio step-downs. The changes aim to improve the company’s financing terms.

The agreement, originally established on May 13, 2022, remains in effect with the modifications outlined in the amendment. A copy of the amendment was filed as an exhibit. The company also issued a press release on March 3, 2025, regarding the changes.
AZZ Inc. filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) on February 5, 2025. The filing includes an update on the company's presentation materials, which management will use in presentations to various stakeholders, including investors, lenders, creditors, vendors, customers, employees, and others interested in the company.

Key points from the filing:

- The company prepared presentation materials (Exhibit 99.1) for use in various meetings, starting on February 5, 2025.
- The presentation materials are meant to provide summary information that should be considered in the context of AZZ Inc.'s other filings with the SEC and public announcements.
- The company disclaims any obligation to update the materials, although it may do so to reflect future strategic events or sustainability initiatives.
- The filing clarifies that the information is being furnished, not filed, for purposes of the Securities Exchange Act of 1934 and will not be incorporated by reference into any registration statements.

The report was signed by Tara D. Mackey, Chief Legal Officer and Secretary of AZZ Inc.
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01-09-26WS Investor