AZZ Inc. reported record first-quarter fiscal year 2026 financial results, with sales growing 2.1% year-over-year to $422.0 million and Adjusted diluted EPS increasing 21.9% to $1.78. Consolidated Adjusted EBITDA reached $106.4 million, representing a strong 25.2% of sales, driven by higher volumes in hot-dip galvanized steel and operational productivity.
The Metal Coatings segment's sales increased 6.0% to $187.2 million, achieving an Adjusted EBITDA margin of 32.9% due to improved zinc utilization. The Precoat Metals segment's sales were slightly lower by 0.8% at $234.7 million, but its EBITDA margin improved to 20.7% from favorable mix and operational performance.
A significant event in the quarter was the $273.2 million cash distribution from the AVAIL JV, following the sale of its Electrical Products Group. This enabled AZZ to reduce debt by $285.4 million, bringing its net leverage ratio down to a healthy 1.7x. The company raised its fiscal year 2026 Adjusted Diluted EPS guidance to $5.75 to $6.25, while reiterating sales and Adjusted EBITDA guidance.
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