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Operating Segments (Tables) | 3 Months Ended
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May 31, 2025
Segment Reporting [Abstract] |
Operations and assets by segment | three months ended May 31, 2025 and 2024 by segment, for the Company's corporate operations and on a consolidated basis (in thousands):
| Three Months Ended May 31, 2025
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 187,215 |  |  | $ | 234,747 |  |  | $ | — |  |  | $ | — |  |  | $ | 421,962 |
Cost of sales(3) | 130,356 |  |  | 187,476 |  |  | — |  |  | — |  |  | 317,832 |
Gross margin | 56,859 |  |  | 47,271 |  |  | — |  |  | — |  |  | 104,130 |
Selling, general and administrative(4) | 6,127 |  |  | 7,917 |  |  | 80 |  |  | 20,457 |  |  | 34,581 |
Operating income (loss) | 50,732 |  |  | 39,354 |  |  | (80) |  |  | (20,457) |  |  | 69,549 |
Interest expense | — |  |  | — |  |  | — |  |  | (18,563) |  |  | (18,563) |
Equity in earnings of unconsolidated subsidiaries(5) | — |  |  | — |  |  | 173,523 |  |  | — |  |  | 173,523 |
Other income (expense) | (61) |  |  | — |  |  | — |  |  | 1,388 |  |  | 1,327 |
Income (loss) before income tax | $ | 50,671 |  |  | $ | 39,354 |  |  | $ | 173,443 |  |  | (37,632) |  |  | 225,836 |
Income tax expense |  |  |  |  |  |  | 54,928 |  |  | 54,928 |
Net income (loss) |  |  |  |  |  |  | $ | (92,560) |  |  | $ | 170,908 |
Depreciation and amortization | $ | 6,660 |  |  | $ | 9,123 |  |  | $ | — |  |  | $ | 6,044 |  |  | $ | 21,827 |
See notes below tables. |  |  |  |  |  |  |  |  |
| Three Months Ended May 31, 2024
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 176,651 |  |  | $ | 236,557 |  |  | $ | — |  |  | $ | — |  |  | $ | 413,208 |
Cost of sales | 122,735 |  |  | 187,803 |  |  | — |  |  | — |  |  | 310,538 |
Gross margin | 53,916 |  |  | 48,754 |  |  | — |  |  | — |  |  | 102,670 |
Selling, general and administrative | 5,984 |  |  | 8,660 |  |  | 29 |  |  | 18,248 |  |  | 32,921 |
Operating income (loss) | 47,932 |  |  | 40,094 |  |  | (29) |  |  | (18,248) |  |  | 69,749 |
Interest expense | — |  |  | — |  |  | — |  |  | (22,774) |  |  | (22,774) |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | 3,824 |  |  | — |  |  | 3,824 |
Other income | 56 |  |  | — |  |  | — |  |  | 148 |  |  | 204 |
Income (loss) before income tax | $ | 47,988 |  |  | $ | 40,094 |  |  | $ | 3,795 |  |  | (40,874) |  |  | 51,003 |
Income tax expense |  |  |  |  |  |  | 11,401 |  |  | 11,401 |
Net income (loss) |  |  |  |  |  |  | $ | (52,275) |  |  | $ | 39,602 |
Depreciation and amortization | $ | 6,657 |  |  | $ | 7,593 |  |  | $ | — |  |  | $ | 6,073 |  |  | $ | 20,323 |
(1) | Infrastructure Solutions segment includes the equity in earnings from our investment in the AVAIL JV, as well as other expenses related to receivables and liabilities that were retained following the sale of the AIS business. See Note 18 for further discussion of the receivables and liabilities.
(2) | Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(3) | Metal Coatings segment includes restructuring charges of $3.8 million. See Note 17.
(4) | Includes stock-based compensation expense of $2.2 million, of which $0.4 million and $1.8 million are included in Metal Coatings and Corporate, respectively. See Note 15.
(5) | During the three months ended May 31, 2025, AVAIL completed the sale of the Electrical Products Group business to nVent Electric plc. Following the completion of the sale, we received a distribution of $273.2 million during the three months ended May 31, 2025, which is in excess of the investment in the AVAIL JV, which was $107.4 million as of May 31, 2025. The excess distribution of $165.8 million was recorded as equity in earnings of unconsolidated entities during the three months ended May 31, 2025. See Note 7.
Reconciliation of Assets from Segment to Consolidated | Asset balances by operating segment for each period were as follows (in thousands):
| As of
Assets: | May 31, 2025 |  | February 28, 2025
Metal Coatings | $ | 569,103 |  |  | $ | 555,095 |
Precoat Metals | 1,567,108 |  |  | 1,548,377 |
Infrastructure Solutions - Investment in Joint Venture(1) | — |  |  | 99,379 |
Corporate | 22,974 |  |  | 24,250 |
Total assets | $ | 2,159,185 |  |  | $ | 2,227,101 |
(1) See Note 7 for information regarding the Investment in AVAIL joint venture.
Revenue from External Customers by Geographic Areas | Financial information about geographical areas for the periods presented was as follows (in thousands). The geographic area is based on the location of the operating facility and no customer accounted for 10% or more of consolidated sales.
| Three Months Ended May 31, |  |
Sales: | 2025 |  | 2024 |  |  |  |
United States | $ | 410,995 |  |  | $ | 403,051 |  |  |  |  |
Canada | 10,967 |  |  | 10,157 |  |  |  |  |
Total sales | $ | 421,962 |  |  | $ | 413,208 |  |  |  |  |
Long-lived Assets by Geographic Areas |
| As of
| May 31, 2025 |  | February 28, 2025
Property, plant and equipment, net: |  |  |
United States | $ | 578,505 |  |  | $ | 574,332 |
Canada | 19,387 |  |  | 18,609 |
Total property, plant and equipment, net | $ | 597,892 |  |  | $ | 592,941 |

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