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v3.26.1

Operating Segments (Tables) | 3 Months Ended
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May 31, 2026
Segment Reporting [Abstract] |
Operations and assets by segment | The following tables contain operating segment data for the three months ended May 31, 2026 and 2025 was as follows (in thousands):
| Three Months Ended May 31, 2026
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Total
Sales | $ | 210,305 |  |  | $ | 238,225 |  |  | $ | — |  |  | $ | 448,530 |
Cost of sales | 147,452 |  |  | 188,909 |  |  | — |  |  | 336,361 |
Selling, general and administrative | 6,302 |  |  | 7,781 |  |  | — |  |  | 14,083 |
Operating income | $ | 56,551 |  |  | $ | 41,535 |  |  | — |  |  | 98,086 |
Equity in earnings of unconsolidated subsidiary |  |  |  |  | 509 |  |  | 509 |
Income before income taxes |  |  |  |  | $ | 509 |  |  | 98,595 |
Reconciliation to consolidated income before income taxes |  |  |  |  |  |
Corporate selling, general and administrative expenses |  |  |  |  |  |  | (21,053) |
Interest expense |  |  |  |  |  |  | (11,264) |
Other expense |  |  |  |  |  |  | (260) |
Consolidated income before income taxes |  |  |  |  |  |  | $ | 66,018 |
See notes below tables.
| Three Months Ended May 31, 2025
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Total
Sales | $ | 187,215 |  |  | $ | 234,747 |  |  | $ | — |  |  | $ | 421,962 |
Cost of sales(2) | 130,356 |  |  | 187,476 |  |  | — |  |  | 317,832 |
Selling, general and administrative(3) | 6,127 |  |  | 7,917 |  |  | 80 |  |  | 14,124 |
Operating income (loss) | $ | 50,732 |  |  | $ | 39,354 |  |  | (80) |  |  | 90,006 |
Equity in earnings of unconsolidated subsidiary(4) |  |  |  |  | 173,523 |  |  | 173,523 |
Income before income taxes |  |  |  |  | $ | 173,443 |  |  | 263,529 |
Reconciliation to consolidated income before income taxes |  |  |  |  |  |
Corporate selling, general and administrative expenses |  |  |  |  |  |  | (20,457) |
Interest expense |  |  |  |  |  |  | (18,563) |
Other income |  |  |  |  |  |  | 1,327 |
Consolidated income before income taxes |  |  |  |  |  |  | $ | 225,836 |
See notes below tables.
(1) | For the AZZ Infrastructure Solutions segment, the CODM uses only net income before taxes as the measure to allocate resources and assess segment performance. 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.
(2) | For the three months ended May 31, 2025, the AZZ Metal Coatings segment includes restructuring charges of $3.8 million. See Note 17.
(3) | Includes stock-based compensation expense recognized during the three months ended May 31, 2025 upon the adoption of the Executive Retiree LTI Program of $2.2 million, of which $0.4 million and $1.8 million are included in the AZZ Metal Coatings segment and the Corporate segment, respectively. See Note 15.
(4) | During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group ("EPG") 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 subsidiary during the three months ended May 31, 2025. See Note 8.
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue | 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 | 2026 |  | 2025 |  |  |  |
United States | $ | 435,990 |  |  | $ | 410,995 |  |  |  |  |
Canada | 12,540 |  |  | 10,967 |  |  |  |  |
Total sales | $ | 448,530 |  |  | $ | 421,962 |  |  |  |  |
Long-lived Assets by Geographic Areas |
| As of
Long-lived assets | May 31, 2026 |  | February 28, 2026
United States | $ | 648,747 |  |  | $ | 647,182 |
Canada | 21,640 |  |  | 21,687 |
Total | $ | 670,387 |  |  | $ | 668,869 |
Segment Reporting, Reconciliation of Asset by Segment to Consolidated | Asset balances by operating segment were as follows (in thousands):
| As of
Segment Assets(1) | May 31, 2026 |  | February 28, 2026
Metal Coatings(2) | $ | 622,749 |  |  | $ | 604,107 |
Precoat Metals(3) | 1,589,600 |  |  | 1,562,994 |
Infrastructure Solutions - Investment in Joint Venture | 18,967 |  |  | 19,960 |
Total reportable segment assets | 2,231,316 |  |  | 2,187,061 |
Corporate | 21,008 |  |  | 26,413 |
Consolidated assets | $ | 2,252,324 |  |  | $ | 2,213,474 |
(1) | Segment assets include identifiable intangible assets associated with each reportable segment. The related amortization expense for intangible assets is not allocated to the segments.
(2) | Identifiable intangible assets related to AZZ Metal Coatings of $33.8 million and $35.0 million, net of accumulated amortization, as of May 31, 2026 and February 28, 2026, respectively, are included in segment assets. The associated amortization expense is not allocated to the segment.
(3) | Identifiable intangible assets related to AZZ Precoat Metals of $370.1 million and $374.8 million, net of accumulated amortization, as of May 31, 2026 and February 28, 2026, respectively, are included in segment assets. The associated amortization expense is not allocated to the segment.
Depreciation and amortization expense by segment for the three months ended May 31, 2026 and 2025 was as follows (in thousands):
| Three Months Ended May 31, |  |
Depreciation and amortization | 2026 |  | 2025 |  |  |  |
Metal Coatings | $ | 7,266 |  |  | $ | 6,660 |  |  |  |  |
Precoat Metals | 10,222 |  |  | 9,123 |  |  |  |  |
Total reportable segment depreciation and amortization | 17,488 |  |  | 15,783 |  |  |  |  |
Corporate | 6,031 |  |  | 6,044 |  |  |  |  |
Consolidated depreciation and amortization | $ | 23,519 |  |  | $ | 21,827 |  |  |  |  |

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