AZZ reported record second quarter 2027 sales that surged 16.7% year-over-year, significantly outperforming analyst estimates. The company achieved record quarterly sales and earnings in both operating segments, supported by strong organic growth and the successful ramp-up of new facility capacity.
Key Highlights
- Total sales grew to $486.9 million, exceeding the $435.2 million consensus estimate by 11.9%.
- Adjusted diluted EPS reached $2.00, beating the $1.82 estimate and representing 29.0% growth over the adjusted prior-year period.
- Metal Coatings segment revenue surged 22.9% to $233.5 million, driven by increased steel processing volumes in the construction and infrastructure end markets.
- Precoat Metals sales increased 11.5% to $253.4 million, benefiting from higher coil-coating volumes and contributions from the new Washington, Missouri facility.
- Management raised FY2027 Adjusted EPS guidance to a range of $7.00–$7.30 (from $6.75–$7.15) and sales guidance to $1.825–$1.875 billion.
- Quarterly cash flow from operations rose 76.1% to $102.8 million, helping improve the net leverage ratio to 1.3x Adjusted EBITDA.