AZZ (AZZ) Investor presentation summary

Market leadership and business model

• Holds #1 market position in North America for both hot-dip galvanizing and coil coating, with 47 metal coatings sites and 14 coil plants.

• Operates two complementary segments: Metal Coatings (31% EBITDA margin, 14.1% YoY sales growth) and Precoat Metals (19.8% EBITDA margin, -2.3% YoY sales decline).

• Asset-light toll model insulates earnings from commodity price swings and supports resilience.

• End-market diversification reduces cycle exposure, with construction, infrastructure, and industrial sectors as key drivers.

Financial performance and outlook

• FY2026 sales reached $1.65B (+4.6% YoY), with adjusted EBITDA of $368M (22.3% margin) and adjusted diluted EPS of $6.19 (+19% YoY).

• Net income rose 146% to $317M, with gross margin at 23.9%.

• FY2027 guidance: sales of $1.80–$1.85B, adjusted EBITDA of $375–$415M, and EPS of $6.75–$7.15.

• Net leverage reduced to 1.4x after $385M debt reduction, supporting growth and returns.

Growth drivers and capital allocation

• Secular tailwinds include infrastructure spending, data center build-out, reshoring, and a shift to aluminum packaging.

• Washington, MO greenfield facility expands aluminum coil coating, with 75% of new capacity under multi-year contracts and accretive to FY2027 earnings.

• Disciplined capital allocation: $80–100M FY27 capex, bolt-on M&A, resumed dividend growth (+20% in June 2026), and $20M share repurchases in FY26.