AZZ Inc. Reports 16.7% Sales Growth in Q2 2027

By Bobby Samwell • Wednesday, October 14 02:00 • Permanent Link

AZZ Inc. reported second-quarter fiscal 2027 sales of $486.9 million, up 16.7% from a year earlier, with growth in both of its operating segments.

Metal coatings sales rose 22.9% to $233.5 million, while precoat metals sales increased 11.5% to $253.4 million. Operating income climbed 22.4% to $83.8 million.

Adjusted net income increased 28.1% to $60.1 million, and adjusted diluted earnings per share rose 29.0% to $2.00. Adjusted EBITDA reached $110.9 million, up from $88.7 million a year ago, and the margin expanded to 22.8% from 21.3%.

Cash from operations jumped 76.1% to $102.8 million in the quarter. For the first half of fiscal 2027, AZZ generated $140.0 million in operating cash.

Within metal coatings, adjusted EBITDA was $71.6 million, with a margin of 30.7%. In precoat metals, adjusted EBITDA was $53.8 million, and the margin improved to 21.2% from 20.2% a year earlier.

On capital allocation, AZZ bought back 136,303 shares for $20.0 million at an average price of $146.71, paid a quarterly dividend of $0.24 per share, and reduced debt by $15.0 million. Net leverage stood at 1.3x trailing 12-month adjusted EBITDA.

The company also completed the acquisition of Seattle Galvanizing in Arlington, Washington, for $57.5 million.

AZZ raised its full-year fiscal 2027 outlook. Sales guidance moved to $1.825 billion to $1.875 billion from $1.80 billion to $1.85 billion. Adjusted EBITDA guidance increased to $380 million to $420 million from $375 million to $415 million. Adjusted diluted EPS guidance rose to $7.00 to $7.30 from $6.75 to $7.15. The market has reacted to these announcements by moving the company's shares 0.67% to a price of $137.76. For the full picture, make sure to review AZZ INC's 8-K report.

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