AZZ Inc. (AZZ (AZZ)) is having a good week. The specialty coatings and metal finishing company reported stronger-than-expected first-quarter results on Wednesday and raised its outlook for the full fiscal year 2027. Shares jumped more than 8% in premarket trading Thursday, approaching their 52-week high.

Earnings Results

Revenue for the quarter ended May 31 came in at $448.5 million, up 6.3% from a year ago and well above the $434.5 million analysts were looking for. Adjusted earnings per share of $1.85 also topped the $1.69 consensus estimate.

Adjusted EBITDA, however, slipped to $99.5 million from $106.4 million in the prior-year quarter. The decline was largely due to a $7.7 million contribution from the AVAIL joint venture in the year-ago period that didn't repeat this time around.

Operating cash flow was a solid $37.1 million, helped by better earnings and disciplined working capital management. The company returned $6.0 million to shareholders via dividends and spent $18.7 million on capital expenditures during the quarter.

Segment Performance

The Metal Coatings segment was the star, with sales jumping 12.3% year-over-year, driven by higher volumes across construction, industrial, and infrastructure markets. Its adjusted EBITDA margin came in at 30.3%, down 260 basis points from a year ago, but that was due to prior-year land sale gains and a shift toward larger projects this quarter.

The Precoat Metal segment, which applies coatings to steel and aluminum coils, saw sales rise 1.5% to $238.2 million. The increase was aided by stronger contributions from the Washington, Missouri facility and the recovery of higher paint and input costs. Segment EBITDA margins improved by 100 basis points to 21.7%, thanks to the higher sales volume.

Fiscal Year 2027 Outlook

AZZ raised its adjusted EPS guidance for the full year to $6.75-$7.15, up from the previous range of $6.50-$7.00. The new midpoint of $6.95 is above the consensus estimate of $6.84. Revenue guidance was also lifted, to $1.80 billion-$1.85 billion from $1.725 billion-$1.775 billion, easily topping the analyst estimate of $1.75 billion.

The company also said it expects capital expenditures of roughly $80 million to $100 million for the year.

AZZ shares were trading at $155.59 in premarket action Thursday, up 8.53%. The stock is now within striking distance of its 52-week high of $162.19.