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May 31
Azz Q1 2026 Earnings Report
AZZ reported increased revenue and record EPS in Q1 2026, driven by strong segment performance and a significant distribution gain.
Key Takeaways
AZZ delivered strong Q1 2026 results with record EPS and adjusted EBITDA. Metal Coatings saw increased volume, while Precoat Metals improved margins despite lower sales. A major cash distribution from the AVAIL JV boosted net income.
GAAP EPS rose to $5.66, driven by a $273.2M AVAIL JV distribution
Revenue increased to $422.0M, up from $413.2M last year
Adjusted EBITDA rose to $106.4M, with Metal Coatings leading performance
Debt reduced by $285M, net leverage lowered to 1.7x
Azz
Azz
Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.comPrecoat Metals Revenue
CapyFin.com Forward Guidance
AZZ raised FY2026 guidance, reflecting confidence in segment performance, lower interest expenses, and improved operational leverage.
Positive Outlook
- FY2026 adjusted EPS guidance of $5.75–$6.25
- Sales expected between $1.625B–$1.725B
- EBITDA margin forecasted at 27–32% for Metal Coatings
- Improved demand outlook for Precoat Metals
- Successful bolt-on acquisition closed post-quarter
Challenges Ahead
- Precoat Metals volumes slightly down in some end markets
- Full year excludes future acquisitions or AVAIL JV earnings
- Interest rate exposure remains a macro risk
- Construction and HVAC markets still present uncertainties
- Ongoing inflationary pressures in materials like zinc and gas
Revenue & Expenses
Visualization of income flow from segment revenue to net income