AZZ Inc. is an independent provider of hot-dip galvanizing and coil coating solutions, serving various industries in North America. For the first quarter of fiscal year 2026, AZZ reported total sales of $422 million, a 2.1% increase from $413.2 million in the same quarter of the previous year. This growth was primarily driven by a 6% increase in sales from its Metal Coatings segment, which reached $187.2 million, while its Precoat Metals segment experienced a slight decline of 0.8%, resulting in sales of $234.7 million.

Adjusted EBITDA for the quarter totaled $106.4 million, which corresponds to a 25.2% margin, an increase from 22.8% in the prior year. The company’s net income surged by 331.6% to $170.9 million, while adjusted net income rose by 22.3% to $53.8 million, or $1.78 per share, compared to $44 million or $1.46 per share a year ago.

AZZ reported an adjusted EBITDA margin of 32.9% for the Metal Coatings segment and a 20.7% margin for Precoat Metals, reflecting operational improvements despite lower volume in the latter. Cost pressures and inventory adjustments affected Precoat Metals, but the company noted a revival in customer demand as inventory drawdowns increased.

The first quarter also saw significant cash flow from operations, amounting to $314.8 million, bolstered by a $273.2 million cash distribution from the company’s joint venture, AVAIL, following the sale of its Electrical Products Group. AZZ paid down $285.4 million in debt during the quarter, lowering its net leverage ratio to 1.7x.

For fiscal year 2026, AZZ reaffirmed its guidance, expecting sales between $1.625 billion and $1.725 billion and adjusted EBITDA ranging from $360 million to $400 million. Adjusted diluted EPS guidance was raised to a new range of $5.75 to $6.25, representing a projected growth of 10% to 20% over fiscal year 2025.