AZZ Q2 EPS $1.94 Beats, But Net Income Falls 35% on Prior-Year JV Gain
AZZ sits 45% above its 52-week low of $94.61.
Summary
AZZ beat Q2 EPS expectations at $1.94, but net income fell 35% year-over-year due to a prior-year one-time gain from the AVAIL JV's EPG sale. Core galvanizing and coil coating operations grew strongly, with sales up 16.7% and operating income up 22.4%. The company raised its fiscal 2027 guidance for sales, adjusted EBITDA, and adjusted diluted EPS.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — AZZ raised FY2027 guidance: sales $1.825B-$1.875B, adjusted EBITDA $380M-$420M, adjusted diluted EPS $7.00-$7.30.
Key Events · Earnings and Guidance · AZZ
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New · · SEC 8-K
FY2027 Guidance Raised
AZZ raised its fiscal 2027 guidance to sales of $1.825 billion to $1.875 billion, adjusted EBITDA of $380 million to $420 million, and adjusted diluted EPS of $7.00 to $7.30.
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Q2 EPS Beats at $1.94
Diluted EPS of $1.94 exceeded market expectations, but declined 34.2% from $2.95 in the prior-year quarter due to a one-time $61.6M gain on the AVAIL JV's EPG sale in the prior period.
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Core Operations Grow Strongly
Sales rose 16.7% to $486.9M and operating income grew 22.4% to $83.8M. Metal Coatings sales increased 22.9% and Precoat Metals sales increased 11.5%, both driven by higher volumes and pricing.
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Seattle Galvanizing Acquisition Closed
Completed July 30, 2026 for $57.5M, expanding geographic coverage into the Pacific Northwest. Preliminary allocation includes $25.9M goodwill and $20.0M intangibles.
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$20M Share Repurchase Executed
Repurchased 136,303 shares at an average price of $146.71 under the 2020 Authorization. $13.2M remains under that program and $100.0M remains under the 2026 program.
Analysis · AZZ · Manufacturing
AZZ's second-quarter diluted EPS of $1.94 exceeded market expectations, but the headline masks a 34.6% year-over-year decline in net income to $58.5 million. The drop stems almost entirely from a $52.6 million reduction in equity earnings from the AVAIL joint venture, which booked a one-time $61.6 million gain on the Electrical Products Group sale in the prior-year quarter. Core operations were strong: sales rose 16.7% to $486.9 million, operating income grew 22.4% to $83.8 million, and both the Metal Coatings and Precoat Metals segments expanded margins. The company also completed the $57.5 million Seattle Galvanizing acquisition, repurchased $20 million of stock at $146.71 per share, and disclosed a pending pension plan termination with a $12.8 million underfunded obligation. The Kaiser Aluminum lawsuit response deadline is October 14, 2026 — one day after this filing. Following the quarter, AZZ raised its fiscal 2027 guidance to sales of $1.825 billion to $1.875 billion, adjusted EBITDA of $380 million to $420 million, and adjusted diluted EPS of $7.00 to $7.30.
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At the time of this filing, AZZ was trading at $137.27 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.1B. The 52-week trading range was $94.61 to $162.20. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.