Q1 2026 AZZ Inc Earnings Call Transcript
Key Points
- AZZ Inc (AZZ) reported record-high sales, adjusted EBITDA, and EPS for the quarter ended May 31, 2025.
- The Metal Coatings segment achieved industry-leading adjusted EBITDA margins of 32.9%, driven by infrastructure-related demand.
- The company successfully monetized nearly all of its electrical products businesses within the AVAIL joint venture, receiving $273 million in cash.
- AZZ Inc (AZZ) announced the acquisition of Canton Galvanizing, which is expected to be immediately accretive and expand their galvanizing business.
- The company increased its quarterly cash dividend by 17.6%, reflecting confidence in its financial position and future prospects.
- Precoat Metals segment experienced a slight decline in sales due to lower volume, despite outperforming the market.
- The company incurred a $3.8 million restructuring charge related to the closure and divestiture of certain facilities.
- Interest expense for the first quarter was $18.6 million, although it was down from the prior year.
- The new Washington, Missouri coil coating facility created a slight drag on margins as it began production.
- Tariff uncertainties continue to pose challenges, impacting sales forecasts and causing cautious outlooks.
Good morning and welcome to the AZZ's first-quarter fiscal 2026 results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Sandy Martin of Three Part Advisors. Please go ahead.
Good morning, everyone, and thank you for joining us today to review AZZ's first-quarter fiscal 2026 results for the period ended May 31, 2025. 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 can be found at www.azz.com/investor-events.
Before we begin, I want to remind everyone that our discussion today will include forward-looking statements made under the Safe Harbor provisions of the Private
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