Overview

* AZZ fiscal Q1 sales rise 2.1% but missed analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q1 beats consensus, reflecting strong operational performance, per LSEG data

* The provider of hot-dip galvanizing and coil coating solutions reduces debt by $285 mln and raises quarterly dividend to $0.20

Outlook

* AZZ sees FY2026 sales of $1.625 - $1.725 bln

* Company expects FY2026 adjusted EBITDA of $360 - $400 mln

* AZZ projects FY2026 adjusted diluted EPS of $5.75 - $6.25

Result Drivers

* SALES MISS - Total sales rose 2.1% to $422 million, missing analyst expectations of $435.9 million

* METAL COATINGS GROWTH - Sales in Metal Coatings increased 6.0%, driven by infrastructure project spending

* PRECOAT METALS DECLINE - Precoat Metals sales fell 0.8% due to decreased volume in construction, HVAC, and appliance markets

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Miss $421.96 $435.90

mln mln (7

Analysts

)

Q1 Beat $1.78 $1.58 (8

Adjusted Analysts

EPS )

Q1 Net $170.91

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the iron & steel peer group is "buy"

* Wall Street's median 12-month price target for AZZ Inc ( AZZ ) is $108.00, about 8.5% above its July 8 closing price of $98.81

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)