AZZ Inc. Issues Fiscal Year 2027 Guidance

Core Viewpoint - AZZ Inc. has announced its financial guidance for fiscal year 2027, projecting growth in sales, adjusted EBITDA, and adjusted diluted EPS compared to fiscal year 2026 [1][2]. Financial Guidance - Sales: Projected to be between $1.725 billion and $1.775 billion for FY2027, an increase from $1.625 billion to $1.725 billion in FY2026 [2]. - Adjusted EBITDA: Expected to range from $360 million to $400 million in FY2027, consistent with the previous year's guidance of $360 million to $380 million [2]. - Adjusted Diluted EPS: Forecasted to be between $6.50 and $7.00 for FY2027, up from $5.90 to $6.20 in FY2026 [2]. Key Assumptions for FY2027 - The new Washington, Missouri plant is anticipated to positively impact earnings in FY2027 [2]. - Capital expenditures are expected to rise to approximately $80 million to $100 million, compared to $60 million to $80 million in FY2026 [2]. - Debt-to-leverage ratio is estimated to be between 1.0 to 2.0 times, with interest expenses projected at $35 million to $45 million [3]. - A debt reduction of $130 million to $170 million is planned [3]. Operational Focus - The company aims to drive sustainable market share expansion and complete the ramp-up of the Washington facility [5]. - Capital allocation priorities include investing in capacity additions, executing share repurchases, maintaining cash dividends, and pursuing a disciplined approach to M&A [5]. - EBITDA margin ranges are projected at 27% to 32% for Metal Coatings and 17% to 22% for Precoat Metals [5]. Company Overview - AZZ Inc. is recognized as the leading independent provider of hot-dip galvanizing and coil coating solutions in North America, generating industry-leading margins and free cash flow [6]. - The company emphasizes its commitment to enhancing shareholder value and sustaining operations while pursuing growth initiatives [6].