AZZ earnings analysis
What we found in AZZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AZZ reported Q1 FY2027 earnings of $422 million in revenue, slightly below estimates but significantly above the $1.68 EPS consensus, reporting EPS of $5.66. Operating cash flow was strong at $37.1 million, despite a significant drop in net income due to prior year adjustments. Guidance for FY2027 remains stable, with total revenue projected between $1.725 billion and $1.775 billion.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS Exceeds Expectations
- AZZ reported EPS at $5.66, significantly surpassing the expected $1.68.
- Strong Operating Cash Flow
- Cash flow from operations generated $37.1 million, showing resilience despite lower net income.
- Improved Gross Margin
- Gross margin improved to 24.7%, compared to 24.2% in the prior quarter.
- Segment Growth in Metal Coatings
- Metal Coatings segment sales increased by $23.1 million, or 12.3%, due to higher steel processing volumes.
- Stable Revenue Guidance
- FY2027 revenue projected at $1.725B-$1.775B, reflecting stable demand.
- Debt Interest Expense Reduced
- Interest expense decreased by $7.3 million due to a decline in debt and interest rates.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Net Income
- Net income dropped to $52.0 million from $170.9 million year-over-year due to prior year adjustments.
- Equity Earnings Decline
- Equity in earnings from unconsolidated subsidiary fell to $0.5 million, down $173 million from prior year.
- Commodity Costs Risk
- Increased labor and materials costs, especially for zinc, impacting overall profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.66
- Gross margin
- 24.7%
- Operating margin
- 16.5%
- Segment
- AZZ Metal Coatings
- Segment
- AZZ Precoat Metals
- Segment
- AZZ Infrastructure Solutions
What they said about what is next.
Revenue guidance for FY2027 stable at $1.725B-$1.775B and EPS guidance at $6.50 to $7.00.
The filing reads better than the one before it.
What came before.
- 10-K · April 22, 2026
- AZZ’s 10-K frames the company as North America’s leading independent post‑fabrication hot‑dip galvanizing and coil‑coating provider, with a stated strategy to drive profitable growth in Metal Coatings and Precoat Metals…
- 10-Q · January 7, 2026
- AZZ reported Q3 sales of $425,746 (thousands), up $22,092 (5.5%) versus the prior-year quarter, with gross margin of $101,941 (23.9%) and operating income of $69,479 (16.3%). Diluted EPS was $1.36, above last year’s…
- 10-Q · October 8, 2025
- AZZ reported quarter revenues of $417.3M, up $8.3M (+2.0%) versus the prior-year quarter, with gross margin of $101.3M (≈24.3%) and operating income of $68.5M (≈16.4%). Net income of $89.3M and diluted EPS of $2.95…
- 10-Q · July 9, 2025
- AZZ reported Q1 sales of $421.962M and diluted EPS of $5.66, driven by a $273.2M distribution from the AVAIL JV that produced $173.523M of equity earnings (including a $165.8M excess distribution gain). Revenue was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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