AZZ Inc. (NYSE: AZZ) reported record fiscal 2026 sales of $1.65 billion, a 4.6% year‑over‑year increase, and a full‑year adjusted diluted earnings per share of $6.19, surpassing analyst estimates of $6.15. The fourth‑quarter adjusted diluted EPS of $1.34 beat consensus estimates of $1.19 to $1.23, driven by higher volumes in hot‑dip galvanizing and coil coating and disciplined cost management that preserved margin stability.
The Metal Coatings segment generated $758.7 million in sales, up 14.1% from the prior year, and delivered a 31.0% EBITDA margin. The growth was largely fueled by robust demand from infrastructure, data‑center, and energy‑transition projects, which lifted hot‑dip galvanizing volumes. In contrast, the Precoat Metals segment posted $891.4 million in sales, a 2.3% decline, and maintained a 19.8% EBITDA margin; the dip was attributed to lower volumes in construction, transportation, and HVAC end markets.
Operating cash flow reached $525.4 million, and the company’s free‑cash‑flow yield was reported at 8.4%. Net debt fell to $534.7 million, reflecting a 1.4× net leverage ratio after paying down $385.3 million of debt and repurchasing $20 million of shares. A $100 million share‑repurchase program approved in March 2026 was partially executed, with $20 million repurchased during FY2026.
Management reiterated its FY2027 guidance, projecting sales of $1.725 billion to $1.775 billion and adjusted EBITDA of $360 million to $400 million. The guidance signals confidence in continued demand, especially from infrastructure and energy‑transition projects, and the expected accretion from the Washington, Missouri facility as it reaches full profitability. While the Precoat segment faces headwinds, overall margin stability and strong cash generation underpin the outlook.
Analysts noted a positive reaction to the earnings beat and record sales, highlighting AZZ’s disciplined execution and robust cash generation as key drivers of the favorable market response.
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