Overview

• US metal coatings provider's fiscal Q1 revenue rose 6.3%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations, rising 3.9% year-over-year

• Company raised fiscal 2027 sales, adjusted EBITDA, and adjusted EPS guidance

Outlook

• AZZ raises FY2027 sales guidance to $1.80-$1.85 bln from $1.725-$1.775 bln

• Company expects FY2027 adjusted EBITDA of $375-$415 mln, up from $360-$400 mln

• AZZ forecasts FY2027 adjusted diluted EPS of $6.75-$7.15, up from $6.50-$7.00

Result Drivers

• METAL COATINGS VOLUME - Co said Metal Coatings sales rose 12.3% due to increased volume and project spending in construction, industrial, and infrastructure end markets

• PRECOAT METALS PRICING AND FACILITY - Co said Precoat Metals sales grew 1.5% due to higher sales from Washington, Missouri facility and price increases to offset input cost inflation, partially offset by lower volume in several end markets

• OPERATIONAL DISCIPLINE - Co said sales momentum and disciplined operational execution contributed to improved adjusted EPS and cash flow

Company press release: ID:nPn2WVRV6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$448.5 mln	$434.52 mln (9 Analysts)
Q1 Adjusted EPS	Beat	$1.85	$1.69 (10 Analysts)
Q1 EPS		$1.72
Q1 Adjusted Net Income	Beat	$55.8 mln	$51 mln (4 Analysts)
Q1 Adjusted EBITDA	Beat	$99.5 mln	$97.29 mln (10 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for AZZ Inc is $160.00, about 11.1% above its July 7 closing price of $144.05

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

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