AZZ growth plan centers on new Washington, Missouri galvanizing plant
- AZZ plans to open a hot-dip galvanizing plant in Washington, Missouri, to expand capacity and boost market share.
- AZZ expects the Missouri plant to be earnings-accretive in FY2027 and improve Metal Coatings and Precoat Metals margins.
- AZZ targets $1.725–$1.775B sales, $360–$400M adjusted EBITDA, and $6.50–$7.00 adjusted EPS for FY2027.
AZZ outlines growth plan centered on new Missouri galvanizing plant
AZZ Inc. is rolling out a fiscal 2027 operational plan that centers on the commercial ramp of a newly built hot-dip galvanizing plant in Washington, Missouri, positioning the company to expand capacity and drive margins across its metal finishing businesses. Management frames the facility as immediately accretive to earnings in FY2027 and a key enabler of sustainable market-share gains in North America’s coil coating and galvanizing markets.
The company is executing a staged ramp of the Washington plant to absorb incremental demand and relieve capacity constraints, with capital spending rising to about $80–$100 million to support that build and other growth investments. AZZ expects the plant to contribute to segment profitability as it scales output, with FY2027 guidance embedding stronger operational leverage that bolsters Metal Coatings and Precoat Metals margins. Management signals a disciplined approach to commissioning — prioritizing process stability, quality control and customer service to convert added capacity into durable contracts rather than short-term volume spikes.
Operational targets for FY2027 include driving higher throughput and efficiency at the new facility while sustaining service footprints that AZZ describes as “irreplaceable” in served markets. The company outlines segment EBITDA margin ranges of 27%–32% for Metal Coatings and 17%–22% for Precoat Metals, reflecting expectations that the Washington plant and other capacity investments materially lift overall margins. AZZ emphasizes continuous operational excellence initiatives across its network to capture synergies from the plant ramp, including workforce training, logistics alignment and production sequencing.
Financial guidance and exclusions
AZZ projects FY2027 sales of $1.725–$1.775 billion, adjusted EBITDA of $360–$400 million and adjusted diluted EPS of $6.50–$7.00. The company notes its EPS guidance adds back amortization related to intangible assets and explicitly excludes the impact of any potential mergers and acquisitions, equity-in-income from its unconsolidated minority interest, and related cash distributions.
Capital allocation and strategic priorities
Management targets $130–$170 million of debt reduction and estimates debt-to-leverage of about 1.0–2.0x, with interest expense of $35–$45 million and an annualized effective tax rate of 25% excluding federal regulatory changes. AZZ plans to balance investment in growth with share repurchases, a maintained cash dividend, disciplined M&A pursuit and continued strong free cash flow generation as it scales the Washington facility and seeks to strengthen its leadership in North American galvanizing and coil coating. CEO Tom Ferguson reiterates the company’s focus on operational execution and customer service as central to long-term value creation.