Wells Fargo analyst Timna Tanners has maintained an Equal-Weight rating on AZZ while adjusting the stock's price target. The firm increased the target to $144, up from the previous $138.

The revised outlook reflects an updated valuation perspective on the company. AZZ is listed on the NYSE under the ticker symbol AZZ.

AZZ Inc. reported record first-quarter sales of $448.530 million, an increase of 6.29% year-over-year, driven by strong performance in both the Metal Coatings and Precoat Metals segments. The company raised its fiscal year 2027 guidance for sales and Adjusted Diluted EPS, reflecting confidence in its strategic execution and market positioning. For the quarter ended May 31, 2026, Adjusted diluted EPS rose 3.93% to $1.85, beating analyst estimates, while GAAP diluted EPS was $1.72.

Tom Ferguson, President and Chief Executive Officer, attributed the sales momentum to disciplined operational execution and higher volume in galvanized steel. Metal Coatings sales grew 12.3% to $210.3 million, and Precoat Metals sales increased 1.5% to $238.2 million, reaching a record for the first quarter. Adjusted EBITDA was $99.5 million, representing 22.2% of sales.

Fiscal Year 2027 Outlook

AZZ increased its annual guidance range for the year ending February 28, 2027. The company now expects sales between $1.80 billion and $1.85 billion, compared to the prior range of $1.725 billion to $1.775 billion. Adjusted EBITDA guidance was raised to $375 million to $415 million, and Adjusted Diluted EPS guidance is now $6.75 to $7.15.

Balance Sheet and Capital Allocation

The company generated $37.1 million in cash from operations during the quarter and maintained a net leverage ratio of 1.4x. Capital expenditures for the first three months were $18.7 million, with full-year expectations of approximately $80 million to $100 million. AZZ paid a cash dividend of $0.20 per share during the quarter and recently announced a 20% increase to $0.24 per share.