AZZ Q2 FY2027 Earnings Call: Record Sales and Raised Outlook
Source Tradingkey
Key takeaways
- AZZ reported record fiscal Q2 2027 sales of $486.9 million, up 16.7% year over year, with double-digit growth in both operating segments.
- Adjusted diluted EPS rose 29% to $2.00. Operating income increased to $83.8 million, while the operating margin expanded 80 basis points to 17.2%.
- Metal Coatings sales grew 22.9%, supported by higher construction, industrial, infrastructure and transportation volumes. Segment adjusted EBITDA margin was 30.7%.
- Precoat Metals sales increased 11.5%, driven by higher coil-coating volume, the Washington, Missouri facility ramp and pricing actions. Adjusted EBITDA margin expanded 100 basis points to 21.2%.
- Operating cash flow reached $102.8 million. AZZ ended the quarter with $376.4 million of liquidity and net leverage of 1.3 times trailing 12-month adjusted EBITDA.
- Management raised fiscal 2027 guidance to sales of $1.825 billion-$1.875 billion, adjusted EBITDA of $380 million-$420 million and adjusted diluted EPS of $7.00-$7.30.
Key financial data
| Metric | Fiscal Q2 2027 result | Year-over-year change or context |
|---|---|---|
| Sales | $486.9 million | Up 16.7% |
| Gross profit | $122.1 million | 25.1% of sales; margin up 80 basis points |
| SG&A expense | $38.3 million | 7.9% of sales; included $2.8 million of acquisition-related costs |
| Operating income | $83.8 million | 17.2% margin; up 80 basis points |
| GAAP net income | $58.5 million | — |
| Adjusted diluted EPS | $2.00 | Up 29% |
| Consolidated adjusted EBITDA | $110.9 million | 22.8% of sales |
| Operating cash flow | $102.8 million | — |
| Interest expense | $10.8 million | Down $0.9 million |
| Capital expenditures | $18.5 million | Increasing focus on high-return organic projects |
| Available liquidity | $376.4 million | As of August 31, 2026 |
| Net leverage | 1.3x | Trailing 12-month adjusted EBITDA |
Business and operating performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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