AZZ Beats Q1, Raises Guidance, Shares +7%

AZZ Beats Q1, Raises Guidance, Shares +7%

AZZ Inc., a metal coatings company listed on the NYSE, reported first‑quarter 2026 results that exceeded analyst expectations, leading to a share price increase of roughly 7% after the announcement.

Adjusted earnings per share for the quarter were $1.85, compared with the consensus estimate of $1.69. Revenue reached $448.5 million, surpassing the $434.53 million forecast and representing a 6.3% year‑over‑year increase.

Segment performance showed Metal Coatings sales climbing 12.3% to $210.3 million, driven by higher galvanized steel volumes and project spending in construction, industrial and infrastructure markets. Precoat Metals recorded a first‑quarter revenue of $238.2 million, a modest 1.5% increase YoY, supported by a production ramp‑up at the Washington, Missouri facility and price hikes that offset input‑cost inflation.

Adjusted EBITDA for the quarter was $99.5 million, equal to 22.2% of sales. Operating cash flow amounted to $37.1 million and the company maintained a net leverage ratio of 1.4 times. Capital expenditures were $18.7 million, with full‑year capex now projected at $80‑$100 million.

The board declared a quarterly dividend of $0.20 per share and subsequently announced a 20% increase to $0.24 per share.

Management updated its fiscal 2027 outlook, raising the adjusted EPS target to a range of $6.75‑$7.15, with a midpoint of $6.95, above the analyst consensus of $6.83. The revenue guidance was also lifted to $1.80‑$1.85 billion, with a midpoint of $1.825 billion, exceeding the consensus estimate of $1.75 billion.

The comments were made by Tom Ferguson, President and Chief Executive Officer, who said the company is “off to a great start” and highlighted sales momentum and disciplined operational execution.