XML 48 R36.htm IDEA: XBRL DOCUMENT
v3.25.2

Operating Segments (Tables) | 6 Months Ended
--- | ---
Aug. 31, 2025
Segment Reporting [Abstract] |
Operations and assets by segment | three and six months ended August 31, 2025 and 2024 by segment, for the Company's corporate operations and on a consolidated basis (in thousands):
| Three Months Ended August 31, 2025
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 189,984 |  |  | $ | 227,291 |  |  | $ | — |  |  | $ | — |  |  | $ | 417,275 |
Cost of sales | 132,923 |  |  | 183,060 |  |  | — |  |  | — |  |  | 315,983 |
Gross margin | 57,061 |  |  | 44,231 |  |  | — |  |  | — |  |  | 101,292 |
Selling, general and administrative | 5,355 |  |  | 7,710 |  |  | 26 |  |  | 19,740 |  |  | 32,831 |
Operating income (loss) | 51,706 |  |  | 36,521 |  |  | (26) |  |  | (19,740) |  |  | 68,461 |
Interest expense | — |  |  | — |  |  | — |  |  | (13,665) |  |  | (13,665) |
Equity in earnings of unconsolidated subsidiaries(5) | — |  |  | — |  |  | 59,345 |  |  | — |  |  | 59,345 |
Other income | 2 |  |  | — |  |  | — |  |  | 186 |  |  | 188 |
Income (loss) before income tax | $ | 51,708 |  |  | $ | 36,521 |  |  | $ | 59,319 |  |  | (33,219) |  |  | 114,329 |
Income tax expense |  |  |  |  |  |  | 24,983 |  |  | 24,983 |
Net income (loss) |  |  |  |  |  |  | $ | (58,202) |  |  | $ | 89,346 |
Depreciation and amortization | $ | 6,830 |  |  | $ | 9,424 |  |  | $ | — |  |  | $ | 6,118 |  |  | $ | 22,372 |
See notes below tables.
| Six Months Ended August 31, 2025
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 377,199 |  |  | $ | 462,038 |  |  | $ | — |  |  | $ | — |  |  | $ | 839,237 |
Cost of sales(3) | 263,279 |  |  | 370,536 |  |  | — |  |  | — |  |  | 633,815 |
Gross margin | 113,920 |  |  | 91,502 |  |  | — |  |  | — |  |  | 205,422 |
Selling, general and administrative(4) | 11,482 |  |  | 15,627 |  |  | 106 |  |  | 40,197 |  |  | 67,412 |
Operating income (loss) | 102,438 |  |  | 75,875 |  |  | (106) |  |  | (40,197) |  |  | 138,010 |
Interest expense | — |  |  | — |  |  | — |  |  | (32,228) |  |  | (32,228) |
Equity in earnings of unconsolidated subsidiaries(5) | — |  |  | — |  |  | 232,868 |  |  | — |  |  | 232,868 |
Other income (expense) | (60) |  |  | — |  |  | — |  |  | 1,575 |  |  | 1,515 |
Income (loss) before income tax | $ | 102,378 |  |  | $ | 75,875 |  |  | $ | 232,762 |  |  | (70,850) |  |  | 340,165 |
Income tax expense |  |  |  |  |  |  | 79,911 |  |  | 79,911 |
Net income (loss) |  |  |  |  |  |  | $ | (150,761) |  |  | $ | 260,254 |
Depreciation and amortization | $ | 13,490 |  |  | $ | 18,546 |  |  | $ | — |  |  | $ | 12,163 |  |  | $ | 44,199 |
See notes below tables.
| Three Months Ended August 31, 2024
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 171,500 |  |  | $ | 237,507 |  |  | $ | — |  |  | $ | — |  |  | $ | 409,007 |
Cost of sales | 118,193 |  |  | 187,300 |  |  | — |  |  | — |  |  | 305,493 |
Gross margin | 53,307 |  |  | 50,207 |  |  | — |  |  | — |  |  | 103,514 |
Selling, general and administrative | 5,619 |  |  | 7,677 |  |  | 9 |  |  | 22,563 |  |  | 35,868 |
Operating income (loss) | 47,688 |  |  | 42,530 |  |  | (9) |  |  | (22,563) |  |  | 67,646 |
Interest expense | — |  |  | — |  |  | — |  |  | (21,909) |  |  | (21,909) |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | 1,478 |  |  | — |  |  | 1,478 |
Other income (expense) | (7) |  |  | — |  |  | — |  |  | 424 |  |  | 417 |
Income (loss) before income tax | $ | 47,681 |  |  | $ | 42,530 |  |  | $ | 1,469 |  |  | (44,048) |  |  | 47,632 |
Income tax expense |  |  |  |  |  |  | 12,213 |  |  | 12,213 |
Net income (loss) |  |  |  |  |  |  | $ | (56,261) |  |  | $ | 35,419 |
Depreciation and amortization | $ | 6,685 |  |  | $ | 7,639 |  |  | $ | — |  |  | $ | 6,105 |  |  | $ | 20,429 |
See notes below tables.
| Six Months Ended August 31, 2024
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 348,152 |  |  | $ | 474,063 |  |  | $ | — |  |  | $ | — |  |  | $ | 822,215 |
Cost of sales | 240,929 |  |  | 375,102 |  |  | — |  |  | — |  |  | 616,031 |
Gross margin | 107,223 |  |  | 98,961 |  |  | — |  |  | — |  |  | 206,184 |
Selling, general and administrative | 11,602 |  |  | 16,338 |  |  | 38 |  |  | 40,811 |  |  | 68,789 |
Operating income (loss) | 95,621 |  |  | 82,623 |  |  | (38) |  |  | (40,811) |  |  | 137,395 |
Interest expense | — |  |  | — |  |  | — |  |  | (44,683) |  |  | (44,683) |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | 5,302 |  |  | — |  |  | 5,302 |
Other income | 49 |  |  | — |  |  | — |  |  | 572 |  |  | 621 |
Income (loss) before income tax | $ | 95,670 |  |  | $ | 82,623 |  |  | $ | 5,264 |  |  | (84,922) |  |  | 98,635 |
Income tax expense |  |  |  |  |  |  | 23,614 |  |  | 23,614 |
Net income (loss) |  |  |  |  |  |  | $ | (108,536) |  |  | $ | 75,021 |
Depreciation and amortization | $ | 13,341 |  |  | $ | 15,232 |  |  | $ | — |  |  | $ | 12,177 |  |  | $ | 40,750 |
(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 19 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 18.
(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 16.
(5) | During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group ("EPG") to nVent Electric plc. The three and six months ended August 31, 2025 include $61.6 million and $227.5 million, respectively, which represents the gain related to the sale of the EPG, partially offset by an impairment loss on the AVAIL JV and an adjustment related to a change in AVAIL's transfer pricing policy. See Note 8.
Reconciliation of Assets from Segment to Consolidated | Asset balances by operating segment were as follows (in thousands):
| As of
Assets: | August 31, 2025 |  | February 28, 2025
Metal Coatings | $ | 597,430 |  |  | $ | 555,095 |
Precoat Metals | 1,548,718 |  |  | 1,548,377 |
Infrastructure Solutions - Investment in Joint Venture(1) | 60,219 |  |  | 99,379 |
Corporate | 19,616 |  |  | 24,250 |
Total assets | $ | 2,225,983 |  |  | $ | 2,227,101 |
(1) See Note 8 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 August 31, |  | Six Months Ended August 31,
Sales: | 2025 |  | 2024 |  | 2025 |  | 2024
United States | $ | 404,398 |  |  | $ | 398,658 |  |  | $ | 815,393 |  |  | $ | 801,709 |
Canada | 12,877 |  |  | 10,349 |  |  | 23,844 |  |  | 20,506 |
Total sales | $ | 417,275 |  |  | $ | 409,007 |  |  | $ | 839,237 |  |  | $ | 822,215 |
Long-lived Assets by Geographic Areas |
| As of
| August 31, 2025 |  | February 28, 2025
Property, plant and equipment, net: |  |  |
United States | $ | 583,876 |  |  | $ | 574,332 |
Canada | 19,384 |  |  | 18,609 |
Total property, plant and equipment, net | $ | 603,260 |  |  | $ | 592,941 |

X
- Definition Tabular disclosure of long-lived assets, excluding financial instruments, long-term customer relationships of a financial institution, mortgage rights, deferred policy acquisition costs, and deferred tax assets, by geographic areas located in the entity's country of domicile and foreign countries in which the entity holds assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_LongLivedAssetsByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_RevenueFromExternalCustomersByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration