AZZ Inc. specializes in a comprehensive range of services and products, encompassing metal coating and galvanizing processes, welding expertise, specialized electrical equipment, ...
AZZ Inc. is a publicly traded company on the New York Stock Exchange (NYSE: AZZ) and is recognized as North America's largest independent hot-dip galvanizer and a leading provider of coil coating solutions. The company's primary business is divided into two segments: Metal Coatings and Infrastructure Solutions. The Metal Coatings ...AZZ Inc. is a publicly traded company on the New York Stock Exchange (NYSE: AZZ) and is recognized as North America's largest independent hot-dip galvanizer and a leading provider of coil coating solutions. The company's primary business is divided into two segments: Metal Coatings and Infrastructure Solutions. The Metal Coatings segment provides advanced metal finishing services such as hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to protect steel and other metals from corrosion. These services cater to steel fabricators and industrial clients whose output supports critical infrastructure like electrical and telecommunications networks, bridges, highways, petrochemical facilities, and general industrial applications. The Infrastructure Solutions segment designs and manufactures specialized electrical equipment, including switchgear, protective enclosures, medium and high voltage bus ducts, explosion-proof lighting, and tubular goods. It also offers engineering services and complete solutions to multinational corporations. AZZ serves a diverse customer base in the United States and internationally, utilizing a multi-channel sales approach with in-house sales teams, manufacturers' representatives, distributors, and independent agents. Financially, AZZ has a market cap of approximately $4.5 billion, with a trailing twelve-month revenue of around $1.7 billion, and employs over 3,700 people. The company has shown consistent profitability with a net profit margin of 11.8% and a return on equity of 14.9%. Under the leadership of CEO Thomas E. Ferguson, AZZ focuses on strategic acquisitions, such as the 2022 acquisition of Precoat Metals, to expand its metal coatings network and strengthen its market position. The company is committed to sustainable practices and innovation, aiming to protect critical infrastructure and support the growth of its clients.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.7B
+4.6%
+16.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$317.3M
+146.3%
+226.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+23.9%
-1.3%
+9.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+16.0%
+7.0%
+15.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+19.2%
+135.5%
+180.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$444.7M
+231.8%
-63.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+26.9%
+217.2%
-68.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
40.3%
-52.1%
-2.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.70x
+0.2%
+13.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Welcome to the First Quarter Results Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask a question, you may press star then 1 on a touch-tone phone. Please note this event is being recorded. I would now like to turn the conference over to Phillip Kupper, Managing Director of 3 Part Advisors. Please go ahead.
Phillip Kupper: Good morning. Thank you for joining us today to review AZZ's fiscal 27 first quarter results for the period ended 05/31/2026. Joining the call today are Tom Ferguson, President and Chief Executive Officer Jason Crawford, Chief Financial Officer and David Nark, Chief Marketing Communications and Investor Relations Officer. After today's prepared remarks, we will open the call for questions. Please note that the live webcast for today's call is available at www.azz.com. Forward slash investor dash events. Before we begin, I would like to remind everyone that our discussion today will include forward-looking statements made in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 2000. By their nature, forward-looking statements are uncertain and outside the company's control, Except for actual results, AZZ's comments containing forward-looking statements may involve risks and uncertainties. Some of which are detailed from time to time in documents filed by AZZ with the Securities and Exchange Commission. Including the latest annual report on Form 10-K and quarterly reports On Form 10 Q. These statements are not guarantees of future performance. Therefore, undue reliance should not be placed upon them. Actual results could differ materially from these expectations. In addition, today's call will discuss non-GAAP financial measures, which should be considered supplemental and not as a substitute for GAAP financial measures. We refer shareholders to our reconciliations from GAAP to non-GAAP measures contained in today's earnings press release. Would now like to turn the call over to Tom Ferguson.
Thomas E. Ferguson: Thank you, Phillip. Good morning, everyone, and thank you for joining us today. We appreciate your interest in AZZ and the opportunity to discuss our first quarter fiscal 27 results. We are off to a strong start. For the first quarter, we delivered record sales in both segments generated solid cash flow, maintained a strong balance sheet, announced raising our dividend raised our full year guidance. These results reflect the strength of our strategy, the durability of our end markets and the continued execution of our teams. Our results consistently reflect our ability to convert demand into high quality profitable growth. We continue to leverage our market leadership positions in both metal coatings and Precoat metals to expand earnings and generate robust cash flow while investing strategically to extend our competitive advantages. In Metal Coatings, we are investing in added capacity where …
