AZZ (NYSE:AZZ) Announces FY 2027 Earnings Guidance

Key Points

• AZZ issued FY 2027 guidance for EPS of $7.00–$7.30 and revenue of $1.8–$1.9 billion, broadly in line with analyst expectations.
• The company’s latest quarter exceeded estimates, with EPS of $2.00 versus $1.86 expected and revenue of $486.9 million versus $463.4 million expected. Adjusted EBITDA rose 22.8% year over year to $110.9 million.
• AZZ declared a quarterly dividend of $0.24 per share, representing a 0.7% yield, while analysts maintained a “Moderate Buy” consensus and an average price target of $155.25.

AZZ (NYSE:AZZ - Get Free Report) issued an update on its FY 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 7.000-7.300 for the period, compared to the consensus EPS estimate of 7.070. The company issued revenue guidance of $1.8 billion-$1.9 billion, compared to the consensus revenue estimate of $1.8 billion.

AZZ Stock Performance

Shares of NYSE:AZZ traded down $0.46 during trading on Tuesday, hitting $137.30. 439,911 shares of the stock were exchanged, compared to its average volume of 232,397. AZZ has a 1-year low of $94.61 and a 1-year high of $162.20. The company has a market capitalization of $4.13 billion, a price-to-earnings ratio of 20.93 and a beta of 1.13. The company's fifty day simple moving average is $140.49 and its 200-day simple moving average is $141.92. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.39 and a current ratio of 1.92.

AZZ (NYSE:AZZ - Get Free Report) last issued its earnings results on Tuesday, October 13th. The industrial products company reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.86 by $0.14. The business had revenue of $486.89 million during the quarter, compared to analyst estimates of $463.44 million. AZZ had a return on equity of 14.18% and a net margin of 11.83%. AZZ has set its FY 2027 guidance at 7.000-7.300 EPS. Sell-side analysts expect that AZZ will post 7.06 EPS for the current fiscal year.

AZZ Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 5th. Shareholders of record on Monday, October 19th will be issued a $0.24 dividend. This represents a $0.96 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, October 19th. AZZ's payout ratio is 14.63%.

Wall Street Analyst Weigh In

AZZ has been the subject of a number of analyst reports. Wells Fargo & Company raised their price objective on shares of AZZ from $138.00 to $144.00 and gave the stock an "equal weight" rating in a report on Friday, July 10th. Weiss Ratings reissued a "buy (b)" rating on shares of AZZ in a research note on Tuesday, October 6th. B. Riley Financial increased their price target on shares of AZZ from $169.00 to $170.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Finally, Wall Street Zen lowered shares of AZZ from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $155.25.

Insider Buying and Selling at AZZ

In other news, COO Bryan Lee Stovall sold 2,677 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $150.07, for a total value of $401,737.39. Following the sale, the chief operating officer owned 35,000 shares of the company's stock, valued at approximately $5,252,450. This represents a 7.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jeffrey Vellines sold 4,220 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $153.55, for a total transaction of $647,981.00. Following the sale, the chief operating officer owned 1,834 shares of the company's stock, valued at $281,610.70. This trade represents a 69.71% decrease in their position. The SEC filing for this sale provides additional information. 1.70% of the stock is currently owned by insiders.

AZZ News Summary

Here are the key news stories impacting AZZ this week:

• Positive Sentiment: Results exceeded expectations: Adjusted earnings were $2.00 per share, ahead of consensus estimates ranging from $1.82 to $1.87, while revenue rose 16.7% year over year to $486.9 million, above estimates of approximately $463 million to $468 million. AZZ Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Broad-based operating growth: Metal Coatings sales increased 22.9% to $233.5 million and Precoat Metals sales grew 11.5% to $253.4 million. Adjusted EBITDA rose 22.8% to $110.9 million, with the margin expanding to 22.8% from 21.3%. AZZ Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Improved cash generation and outlook: Operating cash flow jumped 76.1% to $102.8 million, and management raised fiscal 2027 guidance. AZZ also completed its Seattle Galvanizing acquisition and repurchased $20 million of stock, signaling confidence in cash flow and shareholder value.
• Positive Sentiment: Analyst upside remains: Recent analyst price targets have a median of $155, with a range of $152 to $169, above the stock’s recent trading level. AZZ Consensus Price Target
• Neutral Sentiment: AZZ paid its regular $0.24-per-share dividend during the quarter. The company’s net leverage ratio remained moderate at 1.3 times trailing-twelve-month adjusted EBITDA.
• Negative Sentiment: GAAP net income declined 34.6% and GAAP diluted EPS fell to $1.94 because the prior-year period benefited from a one-time gain related to AZZ’s AVAIL joint venture. This comparison could temper the headline strength, although adjusted net income increased 28.1%.
• Negative Sentiment: Recent insider activity cited by Quiver Quantitative included two executive stock sales and no insider purchases in the past six months, a modest cautionary signal.

AZZ Company Profile

AZZ Inc is a provider of metal coating solutions serving customers primarily in North America. The company operates through its Metal Coatings and Precoat Metals segments, helping protect and enhance the performance, appearance, and durability of steel and other metal products used across a range of industries.

Through its Metal Coatings segment, AZZ provides hot-dip galvanizing, powder coating, anodizing, plating, and related coating services. These treatments are used for corrosion protection and finishing applications involving infrastructure, construction, industrial, transportation, and other metal products.

Precoat Metals provides coil coating services for steel and aluminum products before they are fabricated.

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