AZZ raises annual outlook after record Q2 results beat estimates

AZZ

13/10/2026 21:27

Overview
U.S. metal coatings provider's Q2 sales rose 16.7% yr/yr, beating analyst expectations
Q2 adjusted EPS grew 29%, beating analyst expectations
Company completed Seattle Galvanizing acquisition in Q2

Outlook
AZZ raises FY2027 sales guidance to $1.825-$1.875 bln from $1.80-$1.85 bln
Company lifts FY2027 adjusted EBITDA outlook to $380-$420 mln from $375-$415 mln
AZZ increases FY2027 adjusted diluted EPS forecast to $7.00-$7.30 from $6.75-$7.15

Result Drivers
METAL COATINGS DEMAND - Co said higher sales in Metal Coatings segment were driven by increased steel processing volumes across construction, industrial, infrastructure, and transportation markets, as well as higher selling prices
PRECOAT METALS VOLUME - Co said Precoat Metals segment sales rose due to higher coil-coating volumes, increased selling prices, and contributions from new Washington, Missouri facility
ACQUISITION IMPACT - Co said Seattle Galvanizing acquisition contributed to Metal Coatings segment growth

Company press release: ID:nPn6RB6XZa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$486.90 mln
$463.48 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$2.00
$1.85 (10 Analysts)
Q2 EPS
 
$1.94
 
Q2 Adjusted EBITDA
Beat
$110.90 mln
$103.71 mln (10 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for AZZ Inc is $162.44, about 17.9% above its October 12 closing price of $137.76
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Oct 12 - World Steel cuts 2026 demand outlook, now sees slight contraction
Oct 11 - India unveils steel policy aiming for 604 million tons capacity by 2047

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)