Investing.com -- AZZ Incorporated (NYSE: AZZ) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $2.00 beating the consensus estimate of $1.85 by $0.15. Revenue reached $486.9 million, up 16.7% YoY and surpassing the analyst consensus of $463.19 million. Shares rose 3.8% following the announcement.

The hot-dip galvanizing and coil coating solutions provider raised its fiscal year 2027 guidance, now projecting adjusted EPS of $7.00-$7.30, compared to the prior range of $6.75-$7.15. The midpoint of $7.15 exceeds the analyst consensus of $7.07. The company also increased its revenue outlook to $1.825-$1.875 billion from $1.80-$1.85 billion, with the midpoint of $1.85 billion above the consensus of $1.818 billion.

Metal Coatings sales climbed 22.9% to $233.5 million, driven by higher steel processing volumes across construction, industrial, infrastructure, and transportation end markets. Precoat Metals sales increased 11.5% to $253.4 million, reflecting higher coil-coating volumes and contributions from the Washington, Missouri facility. Consolidated adjusted EBITDA reached $110.9 million, or 22.8% of sales, compared to $88.7 million, or 21.3% of sales, in the prior year period.

"Our record second-quarter sales of $486.9 million, up 16.7%, reflects not only strong execution but also the strength of our long-term strategy and the durability of our business model," said Tom Ferguson, President and Chief Executive Officer.

The company generated operating cash flow of $102.8 million during the quarter, up 76.1% YoY. AZZ completed the acquisition of Seattle Galvanizing for $57.5 million, repurchased $20.0 million of common stock, and reduced debt by $15.0 million. The net leverage ratio improved to 1.3x trailing twelve months adjusted EBITDA.

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