AZZ Raises Fiscal-Year Outlook Amid Strong Demand for Grid and Data Center Infrastructure
AZZ Inc. (NYSE: AZZ) has raised its fiscal-year outlook, now targeting sales of $1.8 billion to $1.85 billion, adjusted EBITDA between $375 million and $415 million, and adjusted EPS from $6.75 to $7.15. The company cited strong demand for grid modernization, power infrastructure, data centers, reshoring efforts, and aluminum beverage packaging as key drivers of growth. AZZ's Metal Coatings segment saw a 14% year-over-year increase in sales, reaching $758 million with adjusted EBITDA of $238 million. The company has also strengthened its balance sheet by reducing net leverage to 1.4 times debt-to-EBITDA and investing in new capacity such as the $125 million Missouri coil-coating plant. AZZ operates primarily as a toll coater, processing steel and aluminum owned by customers, which limits direct exposure to metal price fluctuations but exposes it more to zinc, paint, natural gas, labor, and freight costs. The company's updated guidance reflects confidence in continued growth across its segments.
Tickers: $AZZ
Topics: AZZ data centers grid modernization growth strategy outlook update