AZZ (AZZ) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 sales of $422M, adjusted EBITDA of $106.4M, and EPS, with strong margins in Metal Coatings (32.9%) and Precoat Metals (20.7%).

• Net income surged to $170.9M, driven by a $165.8M gain from the AVAIL JV distribution.

• Growth fueled by infrastructure demand in construction, industrial, and electrical markets; Precoat Metals saw growth in construction and aluminum container sectors.

• Restructured Metal Coatings by closing/divesting two facilities, incurring $3.8M in charges to improve profitability.

• Monetized nearly all electrical products in the AVAIL JV, receiving $273.2M in cash.

Financial highlights

• Q1 sales were $422M, up 2.1% year-over-year from $413.2M.

• Adjusted net income was $53.8M ($1.78 EPS), up 22.2% from $44M ($1.46 EPS) last year.

• Adjusted EBITDA was $106.4M (25.2% margin), up from $94.1M (22.8%).

• Net income was $170.9M, including $165.8M from AVAIL JV divestiture.

• Operating cash flow increased to $314.8M, mainly due to the AVAIL JV distribution.

Outlook and guidance

• Fiscal 2026 sales guidance raised to $1.625B–$1.725B; adjusted EBITDA $360M–$400M.

• Adjusted diluted EPS guidance raised to $5.75–$6.25, reflecting 10–20% growth over FY25.

• Assumes Metal Coatings EBITDA margin of 27–32% and Precoat Metals margin of 17–22%.

• Guidance excludes future M&A and AVAIL JV earnings.

• Strong liquidity and balance sheet support continued investment and M&A.