AZZ Inc. Forecasts Strong Growth and Increased Revenues for Fiscal Year 2026

AZZ Inc. Projects Strong Growth for Fiscal Year 2026

AZZ Inc. (NYSE: AZZ), a leading independent provider of hot-dip galvanizing and coil coating solutions, outlines a robust financial outlook for fiscal year 2026, which runs from March 1, 2025, to February 28, 2026. The company anticipates sales growth, projecting revenues between $1.625 billion and $1.725 billion, marking an increase from its prior forecast of $1.550 billion to $1.600 billion for fiscal year 2025. This optimistic forecast reflects AZZ's strategic initiatives aimed at enhancing productivity and market competitiveness within the metal coatings industry.

The company's projected adjusted EBITDA for fiscal year 2026 is set to rise to between $360 million and $400 million, an improvement from the anticipated $340 million to $360 million for the current fiscal year. AZZ also expects adjusted diluted earnings per share (EPS) to fall in the range of $5.50 to $6.10, compared to $5.00 to $5.30 for FY2025. This positive financial trajectory is driven in part by key operational developments, including the upcoming launch of a new plant in Washington, Missouri, which is expected to contribute significantly to earnings in the latter half of the fiscal year.

President and CEO Tom Ferguson emphasizes the company's commitment to sustainable growth and superior customer service across its Metal Coatings and Precoat Metals segments. AZZ aims to maintain an EBITDA margin of 27%-32% for Metal Coatings and 17%-22% for Precoat Metals. The company’s capital expenditures are projected to decrease to $60-$80 million, reflecting the completion of the Washington facility, while maintaining a healthy debt-to-leverage ratio between 1.5 and 2.5 times. Ferguson's confidence in AZZ's operational performance underlines the company's strategy to generate strong free cash flow while actively pursuing growth initiatives in a competitive market.

In addition to the positive financial outlook, AZZ's projections include an estimated $15-$18 million of equity income from its minority interest in an unconsolidated subsidiary. The company is also preparing for interest expenses of $60-$70 million and plans to maintain an annual effective tax rate of 25%. These financial metrics highlight AZZ's strategic planning and focus on enhancing shareholder value while addressing the evolving challenges within the metal coatings sector.

With a strong emphasis on operational efficiency and market expansion, AZZ Inc. positions itself to capitalize on growth opportunities while delivering value to customers and stakeholders alike.