AZZ issues fiscal 2027 guidance with higher sales and earnings targets

AZZ Inc. (NYSE: AZZ) announced financial guidance for fiscal year 2027, projecting sales between $1.725 billion and $1.775 billion, according to a company press release. The Fort Worth, Texas-based hot-dip galvanizing and coil coating provider expects fiscal 2027 to span from March 1, 2026, to February 28, 2027.

The company forecasts adjusted EBITDA of $360 million to $400 million and adjusted diluted earnings per share of $6.50 to $7.00 for fiscal 2027. These projections compare to fiscal 2026 guidance of $1.625 billion to $1.725 billion in sales, $360 million to $380 million in adjusted EBITDA, and $5.90 to $6.20 in adjusted diluted EPS.

AZZ expects its newly built Washington, Missouri plant to contribute positively to earnings in fiscal 2027. The company projects capital expenditures of $80 million to $100 million, an increase from the $60 million to $80 million expected in fiscal 2026.

The guidance assumes a debt-to-leverage ratio between 1.0 to 2.0 times, interest expense of $35 million to $45 million, and an effective tax rate of 25%. AZZ plans debt reduction in the range of $130 million to $170 million and excludes potential merger and acquisition activities from its projections.

"In fiscal 2027, our focus will be on driving sustainable market share expansion, completing the full ramp-up of our Washington, Missouri facility, providing outstanding customer service and maintaining operational excellence," said Tom Ferguson, president and chief executive officer.

The guidance reflects EBITDA margin ranges of 27% to 32% for Metal Coatings and 17% to 22% for Precoat Metals segments.

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