AZZ projects FY2027 growth: $1.725–1.775B sales, Washington plant ramp, higher capex, debt reduction
- AZZ FY2027 guidance: sales $1.725–1.775B; adjusted EBITDA $360–400M; adjusted EPS $6.50–7.00.
- Washington, Missouri galvanizing and coil‑coating plant ramp expected accretive to AZZ’s FY2027 earnings and expand capacity.
- AZZ plans $80–100M capex, targets $130–170M debt reduction, and will continue buybacks and dividends.
AZZ lays out FY2027 growth and capacity plan
New fiscal 2027 guidance positions AZZ Inc. to expand capacity and lift margins as it completes a major plant ramp, the company says. For the year running March 1, 2026–Feb. 28, 2027, AZZ projects sales of $1.725 billion to $1.775 billion, adjusted EBITDA of $360 million to $400 million and adjusted diluted EPS of $6.50 to $7.00. Management frames the guidance around the start-up of its Washington, Missouri galvanizing and coil-coating facility, which it expects to be accretive to earnings in FY2027.
The company signals a step-up in capital deployment to support that facility and broader organic growth, planning capital expenditures of approximately $80 million to $100 million versus $60 million to $80 million in FY2026. AZZ also sets a targeted debt reduction of $130 million to $170 million and estimates leverage of 1.0–2.0x by the end of the fiscal year, with interest expense expected in the $35 million to $45 million range. Management assumes an annualized effective tax rate of 25%, excluding potential federal regulatory changes.
Guidance includes margin expectations for AZZ’s end markets, with EBITDA margins of 27%–32% for Metal Coatings and 17%–22% for Precoat Metals, and explicitly excludes potential M&A activity and results from the company’s minority interest in an unconsolidated subsidiary. AZZ says its adjusted EPS metric adds back amortization related to intangible assets, and that FY2027 results reflect continued emphasis on operational excellence at existing footprint locations.
Capital allocation and balance-sheet discipline
AZZ is balancing increased growth investment with disciplined capital allocation, saying it intends to execute share repurchases, maintain its cash dividend and continue to generate strong free cash flow. Management notes the Washington plant ramp and capacity investments are central to driving sustainable market-share expansion while preserving access to capital and reducing leverage.
Industry position and management priorities
CEO Tom Ferguson reiterates AZZ’s role as the leading independent hot‑dip galvanizing and coil‑coating company in North America, highlighting “irreplaceable footprints” in served markets and industry-leading margins. Management lists priorities for FY2027 as completing the Washington facility ramp, investing to support organic growth, pursuing disciplined M&A, and sustaining shareholder returns.