AZZ beats top-line and bottom-line estimates; raises FY27 outlook

• AZZ press release (AZZ): Q2 Non-GAAP EPS of $2.00 beats by $0.15.
• Revenue of $486.9M (+16.7% Y/Y) beats by $13.28M.
• Metal Coatings sales of $233.5 million, up 22.9%
• Precoat Metals sales of $253.4 million, up 11.5%
• Consolidated Adjusted EBITDA of $110.9 million, or 22.8% of sales, versus prior year of $88.7 million, or 21.3% of sales
• Segment Adjusted EBITDA margin of 30.7% for Metal Coatings and 21.2% for Precoat Metals
• Cash flow from operations for the quarter of $102.8 million, up 76.1%
• Cash dividend of $0.24 per share to common shareholders paid during the quarter
• Net leverage ratio was 1.3x on the trailing twelve months Adjusted EBITDA

• Financial Outlook — Raising Fiscal Year 2027 Guidance

  We are raising our fiscal year guidance for the year ending February 28, 2027, which reflects our confidence in the Company's strategic execution, operational resilience, and market positioning. Fiscal year 2027 guidance reflects our best estimates given expected market conditions for the full year, lower interest expense, an annualized effective tax rate of 25% and excludes M&A activity and any federal regulatory changes that may emerge.

  	Prior FY2027 Guidance(1)		Revised FY2027 Guidance(1)
  Sales	$1.80 - $1.85 billion		$1.825 - $1.875 billion (vs. consensus of $1.82B)
  Adjusted EBITDA	$375 - $415 million		$380 - $420 million
  Adjusted Diluted EPS	$6.75 - $7.15		$7.00 - $7.30 (vs. consensus of $7.07)

Recommended For You

Create Your Free Account to Keep Reading

Get the confidence to navigate an uncertain market with free breaking news and stock alerts.