AZZ reported fiscal 2027 second-quarter revenue of $486.9 million, up 16.7% year on year, and raised its full-year revenue, adjusted EBITDA and EPS outlook. Both the Metal Coatings and Precoat Metals segments performed strongly.
In the second quarter of fiscal 2027, AZZ posted record revenue of $486.9 million, up 16.7% year on year, driven by double-digit growth in both business segments. Adjusted diluted EPS rose 29% to $2.00, while operating income was $83.8 million and the operating margin expanded to 17.2%.
The Metal Coatings segment achieved 22.9% revenue growth on higher shipment volumes and price increases, while maintaining an adjusted EBITDA margin of 30.7%. The Precoat Metals segment posted 11.5% revenue growth, supported by increased operations at the Washington plant and the effects of price increases, and its adjusted EBITDA margin improved to 21.2%.
In terms of cash generation and financial health, quarterly operating cash flow was $120.8 million, liquidity was $376.4 million, and adjusted EBITDA to net leverage for the trailing 12 months was 1.3x. Full-year guidance was raised to revenue of $1.825 billion-$1.875 billion, adjusted EBITDA of $380 million-$420 million, and adjusted diluted EPS of $7.00-$7.30. The debt reduction target was set at $100 million-$140 million.
Operational improvements, including productivity gains through the use of AI, are also progressing. At its fiscal 2027 earnings briefing, the company emphasized its continued acquisition strategy and share repurchases and dividend payments. Risks cited for the future included difficulty sourcing steel substrate, higher interest rates and seasonal fluctuations caused by weather conditions.