AZZ has become a delevered industrial compounder, pairing a dominant galvanizing franchise with a toll-processing coil coating platform leveraged to infrastructure, grid investment, and aluminum packaging growth.
Overview
AZZ Inc. has completed a major transformation from a diversified infrastructure component manufacturer into a more focused industrial services platform centered on hot-dip galvanizing and continuous coil coating. The pivot was driven by the divestiture of a 60% majority interest in the Infrastructure Solutions business into the AVAIL joint venture and the **$1.28 billion acquisition of Precoat Metals in 2022**, creating a scaled North American leader in two attractive processing niches. The result is a business mix with stronger recurring demand characteristics, lower direct commodity risk, and better margin resilience.
The latest operating evidence supports the strategy. In fiscal 1Q27, net sales increased 6.3% year over year to **$448.5 million**, adjusted EBITDA reached **$99.5 million**, or 22.2% of sales, and adjusted diluted EPS rose to **$1.85**, beating consensus by $0.16. Management then raised full-year FY2027 guidance to $1.80 billion-$1.85 billion of sales, $375 million-$415 million of adjusted EBITDA, and $6.75-$7.15 of adjusted EPS.
The most important financial catalyst is balance sheet repair. Backed by a **$273.2 million cash distribution from the AVAIL joint venture**, AZZ repaid $385.3 million of debt in FY2026 and reduced net leverage from 2.5x to 1.4x in twelve months. With the Washington, Missouri aluminum line now profitable and commercialized under long-term contracts, AZZ enters its next phase as a delevered, higher-quality compounder with clear exposure to grid, infrastructure, and sustainable packaging demand.