AZZ raises annual outlook after record Q2 results beat estimates
AZZ•AZZ reported Q2 sales of $486.9 million and adjusted EPS of $2.00, beating estimates of $463.48 million and $1.85. It raised FY2027 sales, adjusted EBITDA and adjusted diluted EPS outlook.
1. Quarterly results
AZZ said Q2 sales rose 16.7% year over year to $486.9 million, while adjusted EPS increased 29% to $2.00. Adjusted EBITDA was $110.9 million. All three figures beat analyst estimates.
2. Higher annual outlook
AZZ raised its FY2027 sales guidance to $1.825 billion-$1.875 billion from $1.80 billion-$1.85 billion. It lifted adjusted EBITDA guidance to $380 million-$420 million from $375 million-$415 million, and adjusted diluted EPS guidance to $7.00-$7.30 from $6.75-$7.15.
3. Sales drivers
The company said higher steel processing volumes and selling prices drove growth in Metal Coatings, while Precoat Metals sales benefited from higher coil-coating volumes, increased selling prices and contributions from its new Washington, Missouri facility. AZZ completed its Seattle Galvanizing acquisition during Q2, which contributed to Metal Coatings growth.
