AZZ Inc. reported fiscal 2026 revenue of $1.65 billion, a 22% adjusted EBITDA margin and adjusted diluted EPS of $6.19, as the North American coatings provider outlined its scale and cash-flow trajectory at the 17th Midwest IDEAS Conference on Wednesday.
Net income rose 146% year-over-year, while consolidated adjusted EBITDA reached $368 million. Gross margin stood at 23%, with operating income up 12%. The company reduced debt by $385 million over the past year, lowering leverage to 1.4 times EBITDA from 3.6 times four years prior. Run-rate annual interest expense fell to $35 million–$45 million, down from over $100 million at the time of its FY2022 acquisition.
AZZ operates 47 Metal Coatings units across North America, including 33 hot-dip galvanizing facilities, and 14 coil coating lines. The Metal Coatings segment generated $758 million in revenue with a 31% EBITDA margin, up 14% year-over-year, while Precoat Metals posted $891 million in revenue with an EBITDA margin near 20%. Hot-dip galvanizing market share reached 27%, and coil coating market share stood at 23%.
Construction accounted for 59% of total revenue, with residential construction representing roughly 15%–18%. Container revenue contributed about 3% of sales and was cited as a rapid growth area. AZZ has no direct exposure to steel or aluminum, focusing instead on zinc and paint inputs.
Capital expenditures are expected to range between $80 million and $100 million annually, with roughly 80% allocated to maintenance and 20% to growth. The company repurchased $20 million of shares in FY2026 and maintains $130 million in remaining authorization. It also raised its dividend by 20%.
For fiscal 2027, AZZ guided revenue to $1.8 billion–$1.85 billion, adjusted EBITDA to $375 million–$415 million, and adjusted diluted EPS to $6.75–$7.15. Debt reduction is projected at $130 million–$170 million, with interest expense expected to remain in the $35 million–$45 million range. Guidance excludes any potential mergers and acquisitions or additional revenue from the Avail joint venture.
David Nark, director of marketing, communications and investor relations, highlighted the company’s strengthened balance sheet and national footprint. “We are the largest national provider of hot-dip galvanizing and coil coating solutions in North America,” he said. “We operate 47 Metal Coatings units, 33 of which are hot-dip galvanizing facilities.”
AZZ’s shares were trading near $147, within a 52-week range of $92.98–$162.20. The company’s enterprise value to EBITDA multiple was estimated at roughly 11 times, in line with peer valuations. Analysts tracked 10 firms covering the stock, with six Buy ratings and four Hold ratings. The consensus price target was $164, with a high of $200.
