AZZ Inc. has released its financial guidance for fiscal year 2026, which will run from March 1, 2025, to February 28, 2026. The company is projecting sales in the range of $1.625 to $1.725 billion, with adjusted EBITDA expected to be between $360 and $400 million. AZZ is also forecasting adjusted diluted earnings per share (EPS) of $5.50 to $6.10.

The company’s guidance for FY2026 is based on several key assumptions. AZZ is expecting to generate $15 to $18 million in equity income from its minority interest in an unconsolidated subsidiary. The company is also planning for its new plant in Washington, Missouri to be operational in the first half of the fiscal year, with the plant expected to be accretive to earnings in the second half.

In terms of capital expenditures, AZZ is projecting a decrease to $60 to $80 million, down from $100 to $120 million in FY2025. This decrease is largely due to the completion of the Washington, Missouri facility. The company is also targeting a debt-to-leverage ratio of 1.5 to 2.5 times, with interest expense expected to be in the range of $60 to $70 million. AZZ is also planning for a 25% annualized effective tax rate, excluding any potential federal regulatory changes.

In addition to its financial guidance, AZZ is also providing an update on its strategic priorities for FY2026. The company is focused on driving sustainable, profitable organic growth, as well as executing on its M&A pipeline. AZZ is also looking to generate strong free cash flow and is targeting an increase in its Metal Coatings EBITDA range to 27% to 32%. The company is also aiming to maintain its Precoat Metals EBITDA range of 17% to 22%.

“We are confident about AZZ’s operating performance as we complete fiscal year 2025 and begin fiscal year 2026 in a few weeks,” said Tom Ferguson, President and CEO of AZZ. “Our focus next fiscal year will be to drive sustainable, profitable organic growth, execute upon our robust M&A pipeline and continue to generate strong free cash flow.”

Ferguson also highlighted the company’s plans to ramp up production at its new coil coating line in Washington, Missouri. The company is expecting the new line to reach normal run-rate performance in the second half of the fiscal year.

“We are focused on ramping up production of the new coil coating line in Washington, Missouri, which will attain normal run-rate performance in the second half of the year,” said Ferguson. “Both Segments are focused on enhancing operational productivity while providing outstanding customer service and quality.”

AZZ is an independent provider of hot-dip galvanizing and coil coating solutions in North America. The company serves a broad range of end-markets and is known for its metal coating solutions.