AZZ Inc. released its fiscal 2027 outlook, projecting full‑year sales of $1.725 billion to $1.775 billion, adjusted EBITDA of $360 million to $400 million, and adjusted diluted earnings per share of $6.50 to $7.00. The guidance lifts the upper end of the sales range by $50 million and the upper end of the EBITDA range by $20 million compared with the FY 2026 targets of $1.625 billion to $1.725 billion in sales and $360 million to $380 million in EBITDA, while keeping the lower bounds unchanged. The company’s FY 2025 actuals—$1.578 billion in sales and a Q3 FY 2025 EPS of $1.52—provide a baseline that shows the FY 2027 guidance represents a 9–10% sales growth and a 30–35% EPS increase over the prior year’s results.
Segment‑level detail shows that the Metal Coatings division is expected to deliver an EBITDA margin of 27% to 32%, while the Precoat Metals segment is projected to achieve 17% to 22%. In FY 2025, Metal Coatings posted a 30.9% margin and Precoat Metals a 17.8% margin, indicating that the company anticipates maintaining or slightly improving its high‑margin core while keeping the lower‑margin segment stable. The guidance therefore signals confidence that the mix of high‑margin coatings will continue to drive profitability even as the company expands capacity.
Capital expenditures for FY 2027 are forecast at $80 million to $100 million, up from the $60 million to $80 million range in FY 2026. The increase is driven by the ramp‑up of the newly built Washington, Missouri plant, which management expects to become accretive to earnings as it reaches full production capacity. The plant’s expansion is part of a broader strategy to meet growing demand in infrastructure and data‑center markets, where the company has seen robust order flow and higher pricing power.
AZZ plans to reduce net debt by $130 million to $170 million in FY 2027, targeting a debt‑to‑leverage ratio of 1.0 to 2.0 and an interest expense of $35 million to $45 million. The deleveraging plan builds on the company’s FY 2026 guidance, which already called for a $60 million to $80 million debt reduction. By tightening its balance sheet, AZZ aims to improve financial flexibility and free cash flow for future investments and shareholder returns.
President and CEO Tom Ferguson emphasized that the company’s focus for FY 2027 will be “driving sustainable market‑share expansion, completing the full ramp‑up of our Washington, Missouri facility, providing outstanding customer service and maintaining operational excellence.” Ferguson highlighted that the new plant will enhance operational efficiency and broaden market reach, while the company’s continued investment in high‑margin segments is expected to support the projected earnings growth. He also noted that the company remains vigilant about headwinds such as raw‑material cost volatility and competitive pressure, but believes that the strong demand in infrastructure and data‑center markets will offset these risks.
The guidance reflects a broader industry backdrop of increased U.S. infrastructure spending and a reshoring trend that benefits AZZ’s core businesses. While the company acknowledges potential cost inflation and labor availability challenges, it maintains confidence that its pricing power, scale, and strategic investments will sustain margin expansion and support the projected growth trajectory.
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