AZZ (AZZ) investor relations material

Executive summary

• Achieved record quarterly sales of $448.5 million, up 6.3% year-over-year, with both Metal Coatings and Precoat Metals segments contributing to growth.

• Adjusted net income rose 3.6% to $55.8 million, while adjusted diluted EPS increased 3.9% to $1.85; GAAP net income and EPS declined due to prior year’s one-time AVAIL JV gain.

• Raised full-year and fiscal 2027 guidance for sales, adjusted EBITDA, and adjusted diluted EPS, reflecting strong operational momentum and robust end market demand.

• Announced a 20% increase in the quarterly cash dividend, underscoring confidence in earnings and cash flow sustainability.

• Continued strategic investments in capacity expansion, digital technologies, and customer partnerships to drive long-term growth.

Financial highlights

• Metal Coatings segment sales grew 12.3% year-over-year to $210.3 million; Precoat Metals increased 1.5% to $238.2 million.

• Gross profit was $112.2 million (25% of sales), up from $104.1 million year-over-year.

• Operating income rose to $77.0 million (17.2% of sales), a 70 basis point improvement.

• Adjusted EBITDA was $99.5 million (22.2% of sales); adjusted diluted EPS was $1.85.

• Net leverage remained low at 1.4x, with $37.1 million in operating cash flow generated.

Outlook and guidance

• Fiscal 2027 sales guidance raised to $1.80–$1.85 billion, adjusted EBITDA to $375–$415 million, and adjusted diluted EPS to $6.75–$7.15.

• Debt reduction targeted at $130–$170 million in fiscal 2027.

• Expects continued strong performance in Metal Coatings and ramp-up at the Washington, Missouri Precoat facility.

• No significant seasonality or headwinds anticipated for Q2 and Q3; Q4 outlook depends on winter severity.

• Guidance assumes a 25% effective tax rate, $80–$100 million in capital expenditures, and excludes M&A activity.