FORT WORTH, Texas, April 22, 2026 /PRNewswire/ -- AZZ Inc. (NYSE:AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today issued its audited consolidated financial statements contained in the Company's Fiscal Year 2026 Annual Report on Form 10-K for the year ended February 28, 2026.
Fiscal Year 2026 Overview (as compared to prior fiscal year 2025(1)):
Total Sales of $1.65 billion, up 4.6%
Metal Coatings sales of $758.7 million, up 14.1%
Precoat Metals sales of $891.4 million, down 2.3%
Net Income of $317.3 million, up 146.3%; Adjusted net income of $187.1 million, up 19.3%
GAAP diluted EPS of $10.50 per share, up 486.6%; fiscal 2026 was meaningfully impacted by the equity in earnings from the AVAIL joint venture divestitures, while fiscal 2025 included full redemption of Series A Preferred Stock. Adjusted diluted EPS was $6.19, up 19.0%, primarily due to organic growth
Consolidated Adjusted EBITDA of $367.6 million, or 22.3% of sales, versus prior year of $347.9 million, or 22.0% of sales
Segment Adjusted EBITDA margin of 31.0% for Metal Coatings and 19.8% for Precoat Metals
Cash flow from operations of $525.4 million, included $273.2 million from AVAIL JV cash distributions
Repurchased 201,416 shares of common stock, or approximately $20.0 million at an average price of $99.28
Cash dividend payments totaling $23.1 million
Net leverage ratio of 1.4x, down from prior year of 2.5x; debt reduction of $385.3 million
Fourth Quarter 2026 Overview (as compared to prior fiscal year fourth quarter(1)):
Total Sales of $385.1 million, up 9.4%
Metal Coatings sales of $186.5 million, up 25.7%, primarily due to increased volume
Precoat Metals sales of $198.6 million, down 2.4%, primarily due to lower volume
Net Income of $15.9 million, down 21.2%; Adjusted net income of $40.4 million, up 36.4%
GAAP diluted EPS of $0.53 per share, down 20.9%, and Adjusted diluted EPS of $1.34, up 36.7%
Consolidated Adjusted EBITDA of $81.3 million, or 21.1% of sales, versus prior year of $71.2 million, or 20.2% of sales
Segment Adjusted EBITDA margins of 30.2% for Metal Coatings and 18.2% for Precoat Metals
(1) Adjusted Net Income, Adjusted EPS, Adjusted EBITDA and net leverage ratio are non-GAAP financial measures as defined and reconciled in the tables below.
Tom Ferguson, President, and Chief Executive Officer of AZZ, commented, "Fiscal year 2026 represents record full year sales and profitability, and AZZ's 39th consecutive year of profitability from continuing operations, as we continued to execute upon our growth strategy. We are pleased with full-year sales of $1.65 billion, up 4.6%, based primarily on organic growth and strong execution. For the year, our Metal Coatings segment delivered sales of $758.7 million, and 31.0% EBITDA margin, and Precoat Metals delivered sales of $891.4 million and 19.8% EBITDA margin. We are encouraged by the performance of our new Washington facility, which reached profitability in the fourth quarter, underscoring the success of our strategic investment.
"Looking forward, we remain focused on disciplined execution of our organic growth strategies while capitalizing on strong U.S. infrastructure investment across our key end markets. The Company is well-positioned to capitalize on a growing pipeline of M&A opportunities to augment organic growth in the new fiscal year. Finally, I want to thank our dedicated AZZ employees for their hard work, disciplined focus, and pride and passion for delivering quality and service to our customers," Ferguson concluded.
Segment PerformanceFull Year 2026 Metal CoatingsStrong sales of $758.7 million, up 14.1% from prior year. Improved sales were driven by an increase in volume for hot-dip galvanizing, supported by continued strength within construction, electrical transmission and distribution, and industrial end markets. Segment Adjusted EBITDA of $235.5 million was up 14.7% versus the prior year. Adjusted EBITDA margin of 31.0% was at the upper end of stated range of 27%-32%, and increased 10 basis points due to a higher volume of steel processed and operational efficiencies.
Full Year 2026 Precoat MetalsSales of $891.4 million, down 2.3% from prior year. Segment EBITDA of $176.2 million or 19.8% of sales, was down 1.6%, driven by materially lower volume within residential construction, HVAC and transportation end markets, and partially offset by higher average selling price.
Fourth Quarter 2026 Metal CoatingsSales increased 25.7% to $186.5 million and EBITDA increased 30.1% to $56.3 million versus the prior quarter in fiscal 2025. Sales were higher this year due to increased infrastructure-related demand, and unfavorable weather conditions in last year's quarter. Segment EBITDA margin increased to 30.2% of sales, or 100 basis points higher than the prior year fourth quarter EBITDA margin.
Fourth Quarter 2026 Precoat MetalsSales decreased 2.4% to $198.6 million and EBITDA increased 0.2% to $36.2 million, versus the prior quarter in fiscal 2025. Sales were lower as a result of decreased volume due to lower end market demand in construction, transportation, and HVAC. Segment EBITDA margin increased to 18.2% of sales, or 40 basis points higher than the prior year fourth quarter EBITDA margin.
Balance Sheet, Liquidity and Capital AllocationThe Company generated significant operating cash flow of $525.4 million for fiscal 2026 through improved earnings, as well as cash distributions during the year totaling $273.2 million from the AVAIL JV following the sale of its Electrical Products Group ("EPG") and welding services businesses ("WSI"), coupled with a continued focus on working capital management. At the end of the fourth quarter, the Company's net leverage was 1.4x for the trailing twelve months ended February 28, 2026. Consistent with the capital allocation strategy, the Company paid down debt of $385.3 million, repurchased $20.0 million of common shares, completed an acquisition in the Metal Coatings segment of $30.1 million, and returned cash to common shareholders through cash dividend payments totaling $23.1 million. Capital expenditures were $80.8 million during the year, which included $7.8 million for the greenfield facility in Washington, Missouri. Fiscal 2027 capital expenditures are expected to be approximately $80 - $100 million, reflecting an increase in growth capital for hot-dip galvanizing capacity expansions and technology improvements. In fiscal 2027, we will continue to allocate our strong cash flow generated from operations to support our capital allocation strategy, which includes strategic M&A, managing leverage and returning capital to shareholders through share repurchases and dividends.
Financial Outlook, Reiterating Fiscal Year 2027 GuidanceWe are reiterating our fiscal year guidance for the year ending February 28, 2027, which reflects our confidence in the Company's strategic execution, operational resilience, and market positioning. Fiscal year 2027 guidance reflects our best estimates given expected market conditions for the full year, lower interest expense, an annualized effective tax rate of 25% and excludes M&A activity and any federal regulatory changes that may emerge.
FY2027 Guidance(1)
Sales
$1.725 - $1.775 billion
Adjusted EBITDA
$360 - $400 million
Adjusted Diluted EPS
$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, reflecting an increase in growth capital for hot-dip galvanizing capacity expansions and technology improvements for both Metal Coatings and Precoat Metals.
c.
Interest expense is expected to be $35 to $45 million.
d.
The annualized effective tax rate of 25% excludes federal regulatory changes that may emerge.
e.
Debt reduction in the range of $130 to $170 million.
f.
Adjusted Diluted EPS guidance includes adding back amortization related to the Company's intangible assets.
g.
Excludes all potential M&A activities.
h.
Excludes the potential for equity in income (or loss) and cash distributions from AZZ's minority interest in its unconsolidated subsidiary.
Conference Call DetailsAZZ Inc. will conduct a live conference call with Tom Ferguson, Chief Executive Officer, Jason Crawford, Chief Financial Officer, and David Nark, Chief Marketing, Communications, and Investor Relations Officer to discuss financial results for the fourth quarter of the fiscal year 2026, Thursday, April 23, 2026, at 11:00 A.M. ET. Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). A webcast of the call will be available on the Company's Investor Relations page at http://www.azz.com/investor-relations.
A replay of the call will be available at (855) 669-9658 or (412) 317-0088 (international), replay access code: 5871094 through April 30, 2026, or by visiting http://www.azz.com/investor-relations for the next 12 months.
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 in North America. 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 StatementCertain 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, including increases due to inflation, in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process, 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 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, 2026, 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.
Company Contact: David Nark, Chief Marketing, Communications, and Investor Relations OfficerAZZ Inc.(817) 810-0095www.azz.com
Investor Contact:Sandy Martin / Phillip KupperThree Part Advisors(214) 616-2207 or (817) 368-2556www.threepa.com
---Financial tables on the following page---
AZZ Inc.
Condensed Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
Three Months Ended February 28,
Year Ended February 28,
2026
2025
2026
2025
Sales
$ 385,097
$ 351,875
$ 1,650,080
$ 1,577,744
Cost of sales
297,505
273,157
1,255,125
1,195,064
Gross margin
87,592
78,718
394,955
382,680
Selling, general and administrative
30,464
38,284
130,338
146,316
Operating income
57,128
40,434
264,617
236,364
Interest expense, net
(11,216)
(17,375)
(55,650)
(81,282)
Equity in earnings (loss) of unconsolidated subsidiaries
(21,698)
3,693
209,733
16,163
Other income (expense), net
376
(420)
1,615
(562)
Income before income taxes
24,590
26,332
420,315
170,683
Income tax expense
8,659
6,122
103,055
41,850
Net income
15,931
20,210
317,260
128,833
Series A Preferred Stock Dividends
—
—
—
(1,200)
Redemption premium on Series A Preferred Stock
—
—
—
(75,198)
Net income available to common shareholders
$ 15,931
$ 20,210
$ 317,260
$ 52,435
Basic earnings per common share
$ 0.53
$ 0.68
$ 10.59
$ 1.80
Diluted earnings per common share
$ 0.53
$ 0.67
$ 10.50
$ 1.79
Weighted average shares outstanding - Basic
29,872
29,898
29,955
29,086
Weighted average shares outstanding - Diluted
30,138
30,169
30,211
29,344
Cash dividends declared per common share
$ 0.20
$ 0.17
$ 0.77
$ 0.68
AZZ Inc.
Segment Reporting
(dollars in thousands)
(unaudited)
Three Months Ended February 28,
Year Ended February 28,
