AZZ Inc. on Wednesday outlined its growth trajectory and financial position during the 17th Annual Midwest IDEAS Conference, reporting a 146% year-over-year increase in net income for fiscal 2026 and raising its outlook for the current fiscal year.
The Fort Worth-based company posted total revenue of $1.65 billion in the year ended February 2026, alongside adjusted EBITDA of $368 million and an adjusted diluted EPS of $6.19. Gross margin reached 23%, while operating income rose 12% from the prior year. Net income growth was driven in part by a $273 million divestiture of a joint venture, the company said.
AZZ’s debt-to-EBITDA leverage ratio improved to 1.4 times from 3.6 times four years ago, with $385 million in debt reduction over the past year. Interest expense now runs between $35 million and $45 million annually, down from over $100 million at the time of the 2022 Precoat Metals acquisition. The current ratio stood at 1.92 as of the end of FY26.
The company operates 61 facilities across North America, including 33 hot-dip galvanizing sites and 14 coil coating lines. AZZ holds a 27% market share in hot-dip galvanizing and a 23% share in coil coating, making it roughly twice the size of its nearest competitors in the former segment. Approximately 59% of revenue is tied to construction, with residential construction accounting for 15% to 18% of total sales.
Capital allocation priorities include organic growth investments, disciplined bolt-on acquisitions, dividend increases, and share repurchases. AZZ raised its dividend by 20% earlier this year and has maintained payments for 17 consecutive years. The company repurchased $20 million of shares in FY26 and retains a $130 million authorization.
For fiscal 2027, AZZ guided revenue to $1.8 billion to $1.85 billion, adjusted EBITDA to $375 million to $415 million, and adjusted diluted EPS to $6.75 to $7.15. Management expects to reduce debt by $130 million to $170 million and plans capital expenditures of $80 million to $100 million, with about 80% allocated to maintenance and 20% to growth.
The company’s valuation metrics include a trailing twelve-month EV/EBITDA multiple of 12.85 times, a P/E ratio of 21.21, and a consensus price target of $164. AZZ’s shares were trading around $139.51 on Wednesday, near the midpoint of a 52-week range of $92.98 to $162.20.
