AZZ Achieves Record-Breaking Quarter with Impressive Sales, EBITDA, and EPS Growth
AZZ, a leading provider of specialty metal coatings and related services, has made headlines with its exceptional performance in the first quarter of fiscal 2026. The company's record-high sales, adjusted EBITDA, and earnings per share (EPS) have set a new standard for the industry.
According to Tom Ferguson, President and Chief Executive Officer, AZZ's Metal Coatings segment has seen significant growth in infrastructure-related demand across key markets, including construction, industrial, and electrical transmission and distribution. This growth has driven the company's sales and adjusted EBITDA margins, which stand at a remarkable 32.9% for the quarter.
The Precoat Metals segment has also experienced a notable uptick in sales, with growth in both construction and aluminum container markets. Although sales were slightly lower than prior year due to lower volume, AZZ's team outperformed the market compared to the National Coil Coating Association (NCCA) standards. Precoat shipments have increased for the quarter as customers began drawing down their inventories from precoat warehouses.
One of the key highlights of the quarter was the monetization of nearly all Electrical Products businesses within AZZ's AVAIL joint venture, which generated $273 million in cash. As a reminder, AVAIL still owns and operates the WSI and lighting businesses. Jason Crawford, Chief Financial Officer, will walk through the details of this transaction during the call.
AZZ's consolidated adjusted EBITDA for the quarter was over $106 million, representing an impressive 25.2% margin. This is supported by higher EBITDA margins over the first quarter of last year in both segments. The company has also commissioned a new aluminum coating facility in Washington, Missouri, which shipped its first qualification orders during the quarter.
As AZZ ramps up sales at this new facility throughout the year, it expects operating leverage to continue improving and gross margins to turn positive in the second half of the year. The company continues to invest in systems that enable improved productivity and better support for customers with AZZ's proprietary technology, such as its Digital Galvanizing System (DGS) platform.
With these impressive results, AZZ is poised to take on new challenges and capitalize on emerging opportunities. As Ferguson noted, the company will continue to prioritize innovation and strategic growth, leveraging its expertise in specialty metal coatings to deliver exceptional value to customers. As AZZ looks ahead to future quarters, investors are likely to be eagerly watching for further signs of growth and success.
