Company Announcements
April 22, 2026
AZZ posts record sales on surging volumes, ramps up galvanizing investment
Written by Laura Miller
AZZ Inc.
| Three months ended Feb. 28 | 2026 | 2025 | Change |
|---|---|---|---|
| Net sales | $385.1 | $351.9 | 9.4% |
| Net earnings (loss) | $15.9 | $20.2 | -21.3% |
| Per diluted share | $0.53 | $0.67 | -20.9% |
| Twelve months ended Feb. 28 | |||
| Net sales | $1,650.1 | $1,577.7 | 4.6% |
| Net earnings (loss) | $317.3 | $52.4 | 505.5% |
| Per diluted share | $10.50 | $1.79 | 486.6% |
AZZ Inc. closed its fiscal 2026 with record sales and sharply higher profitability, driven by strong demand for hot-dip galvanizing and steady execution across its Metal Coatings network. Its Precoat Metals segment, however, continued to face weaker volumes in construction-related markets.
In earnings released after market close on Wednesday, the Fort Worth, Texas-based galvanizer and coil coater reported sales of $1.65 billion for the fiscal year ended February 28, 2026, up 4.6% from fiscal 2025. Net income available to common shareholders jumped 506% year over year (y/y) to $317.3 million.
Metal Coatings
Metal Coatings remained AZZ’s growth engine.
Segment sales for the year rose 14.1% y/y to $758.7 million. Construction, electrical transmission and distribution, and industrial projects drove galvanized volumes higher.
The company said higher steel throughput and operational efficiencies were key contributors to a 14.7% increase in the segment’s adjusted EBITDA to $235.5 million. Margins of 31% were at the top end of AZZ’s targeted range.
AZZ highlighted its new galvanizing plant in Washington, Mo., which reached profitability in the fiscal fourth quarter.
In Q4 alone, Metal Coatings sales climbed 25.7% y/y to $186.5 million, supported by infrastructure-related demand. Segment income rose 30.1% y/y to $56.3 million. Margins improved to 30.2%.
Precoat Metals
AZZ’s Precoat Metals segment saw softer demand throughout the year.
In fiscal 2026, Precoat sales fell 2.3% y/y to $891.4 million, reflecting materially lower shipments into residential construction, HVAC, and transportation, the company said.
Segment income slipped 1.6% y/y to $176.2 million. But the company noted that margins held at 19.8%, supported by higher average selling prices.
Fourth-quarter sales declined 2.4% to $198.6 million on lower volume, while segment income was essentially flat at $36.2 million.
Expanding galvanizing footprint
AZZ signaled that capital expenditures are set to rise as the company leans into expanding its galvanizing footprint.
After spending $80.8 million in fiscal 2026, AZZ expects capital expenditures of $80 million to $100 million for fiscal 2027. The company noted a heavier tilt toward hot-dip galvanizing capacity additions and technology upgrades.
The company believes it can capture more throughput with sustained infrastructure-driven demand and higher steel volumes moving through its Metal Coatings network.
Market conditions and outlook
CEO Tom Ferguson said fiscal 2026 marked AZZ’s 39th consecutive year of profitability. He highlighted resilient demand for galvanized services and steady execution across the company’s platform. He also pointed to continued strength in non-residential construction and electrical infrastructure as key drivers for Metal Coatings volume.
Looking ahead, AZZ expects US infrastructure spending to remain a tailwind for galvanizing demand, while Precoat Metals continues to navigate softer residential and HVAC markets.
“Looking forward, we remain focused on disciplined execution of our organic growth strategies while capitalizing on strong U.S. infrastructure investment across our key end markets,” said Ferguson.
“The company is well-positioned to capitalize on a growing pipeline of M&A opportunities to augment organic growth in the new fiscal year,” he added.
The company reiterated its fiscal 2027 outlook, citing confidence in its market positioning and organic growth strategy. It expects sales of $1.725 billion to $1.775 billion and adjusted EBITDA of $360 million to $400 million.
