AZZ Inc. Issues Fiscal Year 2027 Guidance

Rhea-AI Summary

AZZ (NYSE: AZZ) issued fiscal year 2027 guidance for the 12 months ending Feb. 28, 2027, forecasting sales $1.725–$1.775B, Adjusted EBITDA $360–$400M, and Adjusted diluted EPS $6.50–$7.00. FY2027 assumes the new Washington, Missouri plant is accretive, capex of $80–$100M, and debt reduction of $130–$170M.

The company projects segment EBITDA margins of 27%–32% for Metal Coatings and 17%–22% for Precoat Metals, estimates interest expense of $35–$45M, and expects a 25% effective tax rate (annualized).

Positive

• Adjusted diluted EPS guided to $6.50–$7.00 for FY2027
• Debt reduction targeted at $130–$170 million
• Projected Metal Coatings EBITDA margin of 27%–32%
• Washington, Missouri plant expected to be accretive in FY2027

Negative

• Capital expenditures rising to $80–$100 million in FY2027
• Interest expense expected to increase to $35–$45 million
• Adjusted EBITDA guidance lower bound unchanged at $360 million

Key Figures

FY2026 Sales Guidance: $1.625–$1.725 billion FY2027 Sales Guidance: $1.725–$1.775 billion FY2026 Adjusted EBITDA: $360–$380 million +5 more

8 metrics

FY2026 Sales Guidance $1.625–$1.725 billion Fiscal year 2026 guidance range

FY2027 Sales Guidance $1.725–$1.775 billion Fiscal year 2027 guidance range

FY2026 Adjusted EBITDA $360–$380 million Fiscal year 2026 guidance range

FY2027 Adjusted EBITDA $360–$400 million Fiscal year 2027 guidance range

FY2026 Adjusted Diluted EPS $5.90–$6.20 Fiscal year 2026 guidance range

FY2027 Adjusted Diluted EPS $6.50–$7.00 Fiscal year 2027 guidance range

FY2027 Capex $80–$100 million Expected capital expenditures FY2027

Debt Reduction Target $130–$170 million Planned debt reduction range in FY2027

Market Reality Check

Price: $126.54 Vol: Volume 200,176 is 1.22x t...

normal vol

$126.54 Last Close

Volume Volume 200,176 is 1.22x the 20-day average of 164,079 shares. normal

Technical Price at $127.58 is trading above the $104.46 200-day moving average and 2.38% below the 52-week high of $130.69.

Peers on Argus

AZZ slipped 0.10% while peers like UNF (-1.59%), CBZ (-7.04%), ABM (-1.15%), FA ...

AZZ slipped 0.10% while peers like UNF (-1.59%), CBZ (-7.04%), ABM (-1.15%), FA (-6.39%), and MMS (-0.88%) saw broader declines, indicating a more company-specific setup pre-guidance.

Common Catalyst Among peers, ABM had an acquisition-related headline, but there is no broad, shared news theme across the group today.

Historical Context

5 past events · Latest: Jan 30 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 30	Share repurchase plan	Positive	+2.8%	Authorized new $100M 2026 share repurchase on top of prior program.
Jan 28	Investor conferences	Neutral	+1.5%	Announced participation in two February 2026 investor conferences.
Jan 07	Quarterly dividend	Neutral	-0.5%	Declared $0.20 per share FY2026 third-quarter cash dividend.
Jan 07	Q3 2026 results	Positive	-0.5%	Reported Q3 sales, EPS, and cash flow growth with narrowed FY2026 guidance.
Dec 08	Earnings call notice	Neutral	+1.6%	Scheduled call to review FY2026 Q3 results and provided access details.

Pattern Detected

Recent AZZ news often produced modest moves, with positive catalysts sometimes met by flat-to-negative reactions, suggesting occasionally muted responses even to favorable updates.

Recent Company History

Over the last few months, AZZ has highlighted several shareholder-focused actions. A new $100M share repurchase program and regular $0.20 quarterly dividends underscore capital return. Fiscal 2026 Q3 results showed higher sales, earnings, and substantial debt paydown, alongside narrowed FY2026 guidance. Conference participation and earnings calls aimed to deepen investor engagement. Today’s fiscal 2027 guidance follows this sequence of operational execution, deleveraging, and capital return communication.

Market Pulse Summary

This announcement provides detailed fiscal 2027 guidance, including higher sales and adjusted EPS ra...

Analysis

This announcement provides detailed fiscal 2027 guidance, including higher sales and adjusted EPS ranges plus targeted debt reduction of $130–$170 million. It follows recent updates on strong Q3 results, a regular $0.20 dividend, and a new $100M repurchase program. Investors may track delivery on margin targets for Metal Coatings and Precoat Metals, ramp-up of the Washington, Missouri plant, and how inflation or demand shifts affect these goals.

Key Terms

adjusted ebitda, adjusted diluted eps, capital expenditures, effective tax rate, +3 more

7 terms

adjusted ebitda financial

"Sales | $1.625 - $1.725 billion | $1.725 - $1.775 billion Adjusted EBITDA |"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted diluted eps financial

"Adjusted Diluted EPS | $5.90 - $6.20 | $6.50 - $7.00"

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

capital expenditures financial

"Capital expenditures are expected to be approximately $80 to $100 million"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

effective tax rate financial

"the annualized effective tax rate of 25% excludes federal regulatory changes"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

free cash flow financial

"while continuing to generate strong free cash flow."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

safe harbor statement regulatory

"Safe Harbor Statement Certain statements herein about our expectations"

A safe harbor statement is a disclaimer that companies include in their public disclosures to limit legal liability if future results differ from what was forecasted or expected. It acts like a protective shield, helping companies avoid lawsuits if their predictions don’t come true, and gives investors a clearer understanding that certain statements are forward-looking and involve risks.

non-gaap financial measures financial

"Non-GAAP Financial Measures Information reconciling forward-looking Adjusted EBITDA"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. Not financial advice.

FORT WORTH, Texas, Feb. 4, 2026 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced financial guidance for fiscal year 2027. Fiscal year 2027 refers to the 12-month period beginning on March 1, 2026, and ending on February 28, 2027.

	FY2026 Guidance	FY2027 Guidance (1)
Sales	$1.625 - $1.725 billion	$1.725 - $1.775 billion
Adjusted EBITDA	$360 - $380 million	$360 - $400 million
Adjusted Diluted EPS	$5.90 - $6.20	$6.50 - $7.00

(1) FY2027 Guidance Assumptions:

a. The newly built Washington, Missouri plant is expected to be accretive to earnings in FY2027.
b. Capital expenditures are expected to be approximately $80 to $100 million, an increase from $60 to $80 million in FY2026 reflecting an increase in growth capital.
c. Debt-to-leverage ratio is estimated to be between 1.0 to 2.0 times, interest expense is expected to be $35 to $45 million, and the annualized effective tax rate of 25% excludes federal regulatory changes that may emerge.
d. Debt reduction in the range of $130 to $170 million.
e. Adjusted Diluted EPS guidance includes adding back amortization related to the Company's intangible assets.
f. Excludes all potential M&A activities.
g. Excludes the potential for equity in income (or loss) and cash distributions from AZZ's minority interest in its unconsolidated subsidiary.

Tom Ferguson, President and Chief Executive Officer of AZZ, said, "As we conclude fiscal year 2026 and prepare to enter fiscal year 2027 in the coming weeks, we remain confident in AZZ's operating performance. In fiscal 2027, our focus will be on driving sustainable market share expansion, completing the full ramp-up of our Washington, Missouri facility, providing outstanding customer service and maintaining operational excellence. Our capital allocation priorities will include investing in capacity additions to drive organic growth, executing share repurchases, maintaining our cash dividend, and pursuing a disciplined approach to M&A, while continuing to generate strong free cash flow. Fiscal 2027 guidance reflects EBITDA margin ranges of 27% to 32% for Metal Coatings and 17% to 22% for Precoat Metals.

AZZ is the leading independent hot-dip galvanizing and coil coating company in North America with irreplaceable footprints in our served markets. We generate industry-leading margins, returns and free cash flow. We have access to the capital necessary to sustain our operations, while actively pursuing initiatives to drive future growth and enhance shareholder value. We are excited about the opportunities ahead," Ferguson concluded.

About AZZ Inc.

AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.

Safe Harbor Statement

Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as "may," "could," "should," "expects," "plans," "will," "might," "would," "projects," "currently," "intends," "outlook," "forecasts," "targets," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases in production costs,, due to inflation, in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process and the paint used in our coil coating process; customer requested delays of our manufactured solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ's growth strategy; a downturn in market conditions in any industry relating to the manufactured solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as more inflation or changes in the political stability in the United States and other foreign markets in which we operate; tariffs, acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business, including in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov.You are urged to consider these factors carefully when evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Information reconciling forward-looking Adjusted EBITDA from continuing operations and Adjusted Diluted Earnings from continuing operations to their respective most directly comparable GAAP financial measures, net income from continuing operations and diluted EPS, is unavailable to AZZ without unreasonable effort because management cannot predict with reasonable certainty all of the necessary components of GAAP net income from continuing operations (such as income taxes, interest expense, unusual or significant gains and losses, acquisition-related expenses, net gains or losses on investments in equity securities and potential future asset impairments). These items are uncertain, depend on various factors, and could have a material impact on net income from continuing operations and diluted EPS from continuing operations for the relevant periods. We, therefore, do not present a guidance range for, or a reconciliation to, the nearest GAAP financial measures of net income from continuing operations or diluted EPS from continuing operations. 

Company Contact:
David Nark, Chief Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com

Investor Contact:
Sandy Martin, Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com

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SOURCE AZZ, Inc.

FAQ

What is AZZ (AZZ) fiscal year 2027 sales and EPS guidance?

AZZ guided FY2027 sales of $1.725–$1.775 billion and adjusted diluted EPS of $6.50–$7.00. According to the company, guidance covers March 1, 2026 to February 28, 2027 and excludes potential M&A and certain minority income items.

How will the Washington, Missouri plant affect AZZ (AZZ) FY2027 results?

The company says the Washington, Missouri plant is expected to be accretive to earnings in FY2027. According to the company, that assumption is included in adjusted EBITDA and EPS guidance ranges and supports capacity expansion plans.

What capital spending and debt plans did AZZ (AZZ) announce for FY2027?

AZZ expects capital expenditures of $80–$100 million and plans debt reduction of $130–$170 million in FY2027. According to the company, higher growth capex reflects capacity investments tied to new facilities.

What margin outlook did AZZ (AZZ) provide for its business segments in FY2027?

AZZ projected EBITDA margins of 27%–32% for Metal Coatings and 17%–22% for Precoat Metals. According to the company, these ranges reflect expected operating performance and ramp-up of new capacity.