AZZ Inc. reports Q1 adjusted EPS $1.78, consensus $1.60

Reports Q1 revenue $422.0M, consensus $435.91M. CEO Tom Ferguson commented, “We are off to a great start in the fiscal year as sales grew to $422.0M, up 2.1% over the prior year, with adjusted diluted EPS of $1.78 up 21.9%. Consolidated Adjusted EBITDA grew to $106.4M, or 25.2% of sales, primarily driven by higher volume for hot-dip galvanized steel and operational productivity over the prior year…Our fiscal Q1 cash from operations of $314.8M, including proceeds from AVAIL’s sale of the Electrical Products Group, allowed us to reduce debt by $285.4M. We ended the quarter with a net leverage ratio of 1.7x. Subsequent to the quarter, we successfully closed a bolt-on acquisition within our Metal Coatings segment and announced the increase of our quarterly cash dividend to common shareholders from 17c to 20c per share…We are on track to set new profitability records in FY26 as we continue to execute on our strategic plans.”