AZZ Raises Fiscal 2027 Outlook After Revenue Climbs 16.7%

AZZ Inc. (AZZ) raised its fiscal 2027 outlook after reporting stronger-than-expected second-quarter revenue and adjusted earnings, while shares gained 2.2% in extended trading Tuesday.

Revenue for the quarter ended Aug. 31, 2026, reached $486.9 million, up 16.7% from $417.3 million a year earlier and above the $463.4 million consensus estimate. Adjusted earnings increased to $2.00 per share from $1.55, exceeding the $1.84 estimate.

Net income fell to $58.5 million, or $1.94 per share, from $89.3 million, or $2.95 per share. The decline reflected a large gain recognized in the year-earlier period from the sale of assets by AZZ’s AVAIL joint venture.

AZZ raised its forecast for the fiscal year ending Feb. 28, 2027. The company now expects revenue of $1.825 billion to $1.875 billion, compared with its previous range of $1.80 billion to $1.85 billion.

The adjusted earnings forecast increased to $7.00 to $7.30 per share from $6.75 to $7.15. AZZ also lifted its adjusted EBITDA forecast to $380 million to $420 million from $375 million to $415 million.

Tom Ferguson, president and CEO of AZZ, said the company benefited from organic growth, higher production at its Missouri facility and the acquisition of Seattle Galvanizing.

“I am pleased with our record-setting performance during the first half of the year and we are on track to set new sales and profitability records for fiscal year 2027,” Ferguson said.

Revenue in AZZ’s Metal Coatings segment rose 22.9% to $233.5 million, supported by higher steel-processing volumes and selling prices. Adjusted EBITDA reached $71.6 million, representing a 30.7% margin.

Precoat Metals revenue increased 11.5% to $253.4 million as coil-coating volumes and selling prices rose. The segment’s adjusted EBITDA margin improved to 21.2% from 20.2% a year earlier, although demand from heating, ventilation and air conditioning equipment makers, appliance manufacturers and transportation customers was lower.

Operating cash flow rose 76.1% to $102.8 million during the quarter. AZZ reduced debt by $15 million during the first half and completed its $57.5 million acquisition of Seattle Galvanizing.

The company repurchased $20 million of common stock during the quarter and increased its quarterly dividend by 20% to $0.24 per share. Capital expenditures are expected to total $80 million to $100 million during fiscal 2027.