A provider of metal protection and finishing services, AZZ coats steel and aluminum with corrosion-resistant and decorative finishes — hot-dip galvanizing, powder coating, and coil coating — for construction, appliance, and HVAC customers across North America. The company began in 1956 as Aztec Manufacturing in Fort Worth, Texas, making electrical enclosures, and renamed itself AZZ in 2000. Its name is a shortened echo of "Aztec," the original company it grew out of.
Q1 FY2027 net income fell 69.6% to $52.0M as the prior-year AVAIL JV gain did not repeat
The year-ago AVAIL JV distribution gain did not repeat this quarter. rose 6.3% to $448.5M and fell 69.6% to $1.72 as the absence of a $165.8M non-cash JV gain drove the drop, while rose 10.8% to $77.0M on volume. Underlying business grew, but the one-off JV boost that lifted last year is gone.
Key takeaways
fell 69.6% to $52.0M and fell to $1.72 from $5.66, driven by the absence of a prior-year $165.8M non-cash excess distribution gain from the AVAIL JV.
rose 6.3% to $448.5M, with Metal Coatings up 12.3% on higher steel volumes and Precoat Metals up 1.5% on higher coil coating prices and the Washington, Missouri facility ramp-up.
rose 10.8% to $77.0M as Metal Coatings volume growth offset higher zinc and labor costs and Precoat Metals improved margin from pricing.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 net income fell to $52.0M from $170.9M, driven by the absence of a prior-year $165.8M excess distribution from the AVAIL JV.
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Consolidated sales rose 6.3% to $448.5M, with Metal Coatings up 12.3% on higher steel volumes in construction and industrial markets, while Precoat Metals grew 1.5% on higher coil coating prices and the Washington, Missouri facility ramp-up.
dropped $7.3M to $11.3M from a $364.2M reduction in weighted average debt and a 1.54 percentage point lower weighted average rate.
was $37.1M, down 88.2% from a year ago, because the prior period included a $273.2M AVAIL JV distribution; total liquidity stood at $360.5M and net held at 1.4x.
What changed
Precoat Metals volume: FY2026 fell 2.3% and Q1 FY2026 fell 0.8%; this quarter rose 1.5% on pricing and Washington, Missouri ramp, reversing the decline.
AVAIL JV equity earnings: FY2026 included $209.7M gain and Q3 FY2026 swung to a $1.4M loss; this quarter shows no JV gain, confirming the reduced earnings stream after divestitures.
was $477.7M at FY2026 year-end and $480.6M this quarter, up 0.6% sequentially from $477.7M, with paydowns continuing under the repriced SOFR + 2.50% margin.
Washington, Missouri plant: FY2026 startup costs cut Precoat 6.6%; this quarter Precoat margin improved from pricing as the facility ramped.
Risk factors and legal proceedings restated no material changes from the FY2026 10-K and prior quarters.
What to watch
Precoat Metals coil coating volume next quarter to confirm the Q1 1.5% rise holds as Washington, Missouri ramps
AVAIL JV equity earnings run rate from the remaining Industrial Lighting business after the Q1 gain absence
trajectory from $480.6M as Term Loan B paydowns continue under the repriced SOFR + 2.50% margin
increased 10.8% to $77.0M, as Metal Coatings benefited from volume growth despite higher zinc and labor costs, and Precoat Metals saw margin improvement from pricing.
dropped $7.3M to $11.3M due to a $364.2M reduction in weighted average debt and a 1.54 percentage point lower weighted average interest rate.
was $37.1M, down $277.6M , primarily because the prior period included a $273.2M distribution from the AVAIL JV.
Total liquidity stood at $360.5M, with $359.4M available under the , and the net remained at 1.4x.
Management expects modestly higher selling prices in both segments, normal seasonal demand patterns, and continued support from normal customer levels.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to our market risk disclosures during the three months ended May 31, 2026. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth in "Part II. Item 7A. Quantitative and Qualitative Disclosures About Mar…
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There have been no material changes to our market risk disclosures during the three months ended May 31, 2026. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth in "Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk," of our Annual Report on Form 10-K for the year ended February 28, 2026.
AZZ and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business. These proceedings include labor and employment claims, various commercial disputes, worker’s compensation and environmental matters, all arising in the normal cou…
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AZZ and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business. These proceedings include labor and employment claims, various commercial disputes, worker’s compensation and environmental matters, all arising in the normal course of business. As discovery progresses on all outstanding legal matters, we continuously evaluate opportunities to either mediate the cases or settle the disputes for nuisance value or the cost of litigation as a way to resolve the disputes prior to trial. As the pending cases progress through additional discovery and potential mediation, our assessment of the likelihood of a favorable or an unfavorable outcome on the pending lawsuits may change. The actual outcome of these lawsuits or other proceedings cannot be predicted with any certainty, and the amount of any potential liability that could arise with respect to such lawsuits or other matters cannot be predicted at this time. Therefore, management, after consultation with legal counsel believes it has strong claims or defenses to all of its legal matters and does not expect liabilities, if any, from these claims or proceedings, either individually or in the aggregate, to have a material effect on the Company’s financial position, results of operations or cash flows. For further discussion of the Company's legal proceedings, see "Part 1. Item 1. Financial Statements—Note 18."
There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussion of the Company’s risk factors under "Part I. Item 1A. Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal y…
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There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussion of the Company’s risk factors under "Part I. Item 1A. Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2026.