Azz Stock Earnings Reports

AZZ reported a strong start to FY2026 with record quarterly sales, adjusted EBITDA and EPS. Consolidated Q1 sales were $422M (+2.1% YoY) with adjusted EBITDA of $106.4M (25.2% margin) and adjusted diluted EPS of $1.78 (up 22.2% YoY). Metal Coatings drove the outperformance (segment margins: 32.9% Metal Coatings, 20.7% Precoat Metals) due to infrastructure-related demand, improved zinc utilization and productivity gains. Key corporate actions: AZZ received $273.2M cash from the Avail JV divestiture (recorded a $165.8M one-time excess income), used proceeds plus free cash flow to pay down $285.4M of debt (net leverage improved to 1.7x), and announced a bolt-on acquisition (Canton Galvanizing). Management commissioned a new Washington, Missouri aluminum coating facility (ramping; gross margins expected to turn positive in H2) and closed/divested two small Surface Technologies sites to improve margins. Capital allocation priorities: continued debt paydown, opportunistic M&A, regular/opportunistic share repurchases (existing buyback program), and a higher quarterly dividend ($0.20 from $0.17, +17.6%). Management reiterated sales and EBITDA guidance ($1.625B–$1.725B sales; $360M–$400M adjusted EBITDA) and raised adjusted EPS guidance to $5.75–$6.25 for FY2026. Main near-term risks/uncertainties: tariff-related demand volatility and inventory dynamics in Precoat Metals, potential macro/policy impacts (recent legislation and tariff actions) that could shift project timing. Overall, AZZ emphasizes operating discipline, margin expansion via operational excellence and digital tools, and continued shareholder-friendly capital deployment.