AZZ Inc. (AZZ) Q2 FY2027 earnings

Reported results

• Total sales of $486.9 million, up 16.7% compared to prior year second quarter
• Operating income of $83.8 million, up 22.4%
• GAAP diluted EPS of $1.94 per share, down 34.2%; Adjusted diluted EPS (non-GAAP) of $2.00 per share, up 29.0%
• Consolidated Adjusted EBITDA (non-GAAP) of $110.9 million, or 22.8% of sales, versus prior year of $88.7 million, or 21.3% of sales
• Cash flow from operations for the quarter of $102.8 million, up 76.1%
• Metal Coatings sales of $233.5 million, up 22.9%; Precoat Metals sales of $253.4 million, up 11.5%

Guidance

• Fiscal year 2027 sales guidance raised to $1.825 - $1.875 billion (prior guidance: $1.80 - $1.85 billion)
• Fiscal year 2027 Adjusted EBITDA (non-GAAP) guidance raised to $380 - $420 million (prior guidance: $375 - $415 million)
• Fiscal year 2027 Adjusted diluted EPS (non-GAAP) guidance raised to $7.00 - $7.30 (prior guidance: $6.75 - $7.15)
• Capital expenditures expected to be approximately $80 - $100 million for full fiscal year 2027
• Interest expense expected to be $35 - $45 million
• Debt reduction in the range of $100 - $140 million
• Annualized effective tax rate of 25%

Notes

GAAP net income declined 34.6% to $58.5 million due to lower equity in earnings from the AVAIL unconsolidated joint venture; the prior year included a significant gain from AVAIL’s sale of the Electrical Products Group. Adjusted net income (non-GAAP), which excludes AVAIL JV equity earnings adjustments and other items, increased 28.1% to $60.1 million. Net leverage ratio improved to 1.3x on trailing twelve months Adjusted EBITDA. Company completed Seattle Galvanizing acquisition for $57.5 million during the quarter.

Price and volatility reaction

The stock moved +0.7% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -7.5 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-13 (8-K, Item 2.02). Read the original filing on sec.gov.