AZZ beats Q1 adjusted EPS estimates, raises dividend

Overview

• AZZ fiscal Q1 sales rise 2.1% but missed analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q1 beats consensus, reflecting strong operational performance, per LSEG data

• The provider of hot-dip galvanizing and coil coating solutions reduces debt by $285 mln and raises quarterly dividend to $0.20

Outlook

• AZZ sees FY2026 sales of $1.625 - $1.725 bln

• Company expects FY2026 adjusted EBITDA of $360 - $400 mln

• AZZ projects FY2026 adjusted diluted EPS of $5.75 - $6.25

Result Drivers

• SALES MISS - Total sales rose 2.1% to $422 million, missing analyst expectations of $435.9 million

• METAL COATINGS GROWTH - Sales in Metal Coatings increased 6.0%, driven by infrastructure project spending

• PRECOAT METALS DECLINE - Precoat Metals sales fell 0.8% due to decreased volume in construction, HVAC, and appliance markets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for AZZ Inc is $108.00, about 8.5% above its July 8 closing price of $98.81

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn4BPYtga