AZZ Q1 2027 Earnings Call: Complete Transcript

AZZ (NYSE: AZZ ) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

3% increase in the metal coating segment. 85 billion and adjusted EBITDA to $375-$415 million, reflecting confidence in market conditions. Strategic initiatives included expanding capacity in North Texas and exploring de-verticalization models with customers to enhance long-term partnerships. Operational highlights include the successful ramp-up of the Washington, Missouri facility, expected to contribute significantly to revenue and profitability.

Management emphasized the structural, long-term demand for infrastructure improvements, particularly in utility transmission and electrical grid projects, positioning AZZ for sustained growth. Full Transcript OPERATOR Good day and welcome to the AZZ Inc Fiscal 2027 First Quarter Results Conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Philip Cooper, Managing Director of Three Part Advisors. Please go ahead. Philip Cooper, Managing Director of Three Part Advisors Good morning. Thank you for joining us today to review AZZ's fiscal 2027 first quarter results for the period ended May 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 investor 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 1995.

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. I would now like to turn the call over to Tom Ferguson. Tom Ferguson, President & CEO Thank you, Philip.

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 2027 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, and 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 pre-coat metals to expand earnings and generate robust cash flow while investing strategically. To extend our competitive advantages in metal coatings, we're investing in added capacity where demand supports attractive returns.

In North Texas, for instance, we successfully commissioned a new large kettle to meet growing regional demand for hot-dip galvanizing, effectively doubling our capacity at Crowley, Texas. This low-risk, high-return investment supports growing customer demand and strong market fundamentals. David will discuss US end market demand in more detail in just a moment. Additionally, a key element of our growth strategy is identifying innovative ways to grow, share, and deepen customer partnerships.

One example of this is a vertically integrated manufacturer who chose to partner with AZZ to divest its non-core galvanizing operation to reduce complexity and cost. As part of this agreement, we acquired their galvanizing kettle and zinc, providing them with immediate cash liquidity while securing a long-term service agreement. We believe this de-verticalization model creates value for our customers while delivering long-term revenue streams for AZZ. We view this as a scalable blueprint for future partnerships.

At Precoat Metals, our Washington, Missouri facility continues to ramp production as planned. We remain on track to reach targeted utilization with our strategic partner while actively seeking the commercialization of the remaining capacity. The facility is approaching expected contribution margin levels for this year and performance with our partner in this beer and beverage-related container category has been very encouraging. Across both segments, our focus remains clear: incr