EL7.AI
StocksMedium•19 October 2026•
4 min read

AZZ Sales Rise 16.7% in Second Quarter as Company Raises Annual Outlook

Key Facts

1Quarterly sales rose 16.7% year on year to $486.9 million.
2The company raised its annual revenue forecast to $1.825–$1.875 billion, from $1.80–$1.85 billion previously.
3Adjusted earnings per share were $2.00, beating analysts' estimate of $1.85 by $0.15.
4Quarterly reported net income fell to $58.5 million from $89.3 million in the corresponding prior-year period.

AZZ announced on October 13, 2026, that quarterly sales rose 16.7% year on year to $486.9 million, while raising its annual revenue outlook. According to its earnings filing with the U.S. Securities and Exchange Commission, the sales were for the second quarter of fiscal 2027. The reporting period ended on August 31, 2026, with sales growth in both the Metal Coatings and Precoat Metals segments. Sales exceeded first-quarter revenue of $448.5 million for the same fiscal year, according to Investing.com coverage. The annual outlook update came amid continued demand in construction, industrial and infrastructure markets, Chief Executive Tom Ferguson said on the earnings call.

Adjusted earnings per share were $2.00 in the fiscal second quarter, according to Investing.com's coverage of the company's announcement. Analysts' estimates cited by the website called for adjusted earnings of $1.85 per share, putting the actual result $0.15 above that estimate. By contrast, the company's quarterly report filed with the U.S. regulator showed reported net income fell to $58.5 million. Net income in the corresponding quarter of the previous fiscal year was $89.3 million, putting the reported earnings comparison on a different trajectory from the adjusted earnings beat. The company attributed the decline in net income primarily to a higher earnings contribution from the Avail joint venture in the prior-year comparison period.

Business details in the earnings filing showed Metal Coatings segment sales reached $233.5 million in the quarter ended in August. The segment posted year-on-year growth of 22.9%, outpacing the company's overall sales growth. The Precoat Metals segment generated sales of $253.4 million in the same fiscal period, according to the filing. Sales in that segment rose 11.5% from the corresponding quarter of the previous fiscal year, a slower pace of expansion than Metal Coatings. Precoat Metals remained the larger of the two segments by quarterly sales, while Metal Coatings recorded the higher year-on-year growth rate.

Discussing operating conditions, Ferguson said on the earnings call: "We continue to see healthy demand across our core construction, industrial and infrastructure markets." The chief executive linked the company's demand to power grid modernization and electrification, according to the call transcript published by Investing.com. He also cited manufacturing expansion and domestic infrastructure investment among the factors supporting the markets the company serves. Geographically, the acquisition of Seattle Galvanizing expanded AZZ's presence in the U.S. Pacific Northwest, according to coverage published by the website ahead of the results. The integration of the acquired business adds to the backdrop of the company's expansion, alongside the demand Ferguson described in its core markets.

AZZ shares rose 3.8% following the earnings announcement on the evening of October 13, 2026, according to Investing.com's coverage published at the time. The move followed a release combining quarterly sales growth, adjusted earnings per share above analysts' estimates and an increase in the fiscal-year revenue forecast range. In the next trading session, on October 14, 2026, the stock closed at $137.66, according to historical prices published by the website. The daily gain at that close was 0.69%, as the market continued to assess the results announced the previous day. The gain at the close of the following session was smaller than the jump immediately after the announcement, while the results included a decline in reported earnings from a year earlier.

For fiscal 2027, the company raised its revenue forecast range to between $1.825 billion and $1.875 billion, according to Investing.com's earnings coverage. The previous annual revenue forecast range was $1.80 billion to $1.85 billion, before the update announced with the second-quarter results. Management expects adjusted earnings per share of $7.00 to $7.30 for the same fiscal year. The analyst consensus of $7.07 per share, as cited by the website, falls within the company's adjusted earnings guidance range. Management retained winter weather among the reasons for caution in its outlook for the remainder of fiscal 2027. Responding to analysts' questions, Ferguson said: "When we experience severe freezes and difficult storms, we lose working days."