Investments in Unconsolidated Affiliates

3 Months Ended

Aug. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Affiliates

Note B – Investments in Unconsolidated Affiliates

Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated and accounted for using the equity method. At August 31, 2025, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); Sustainable Energy Solutions (49%); WAVE (50%); and Workhorse (20%).

We received distributions from unconsolidated affiliates totaling $36,476 during the three months ended August 31, 2025. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $103,166 and $103,767 at August 31, 2025 and May 31, 2025, respectively. In accordance with the applicable accounting guidance, we have reclassified the negative balances to distributions in excess of investment in unconsolidated affiliate within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will immediately recognize any balance classified as a liability as income.

We use the cumulative earnings approach to determine the cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities unless the cumulative distributions exceed our share of the cumulative equity in the net earnings of the joint venture. In such cases, the excess distributions are considered returns of investment and are classified as investing activities in our consolidated statements of cash flows.

WAVE and ClarkDietrich are included within the Building Products segment, while the Sustainable Energy Solutions and Workhorse joint ventures are reported within Other. The following tables present summarized financial information for our unconsolidated affiliates for three months ended August 31, 2025 and 2024:


	Three Months Ended
	August 31,
	2025			2024
WAVE
Net sales	$	134,717		$	125,905
Operating income		67,683			60,065
Depreciation and amortization		1,638			1,470
Interest expense, net		3,960			4,409
Income tax expense		134			64
Net earnings		63,597			56,209

ClarkDietrich
Net sales	$	289,991		$	301,855
Operating income		22,789			34,081
Depreciation and amortization		4,495			3,873
Interest expense (income), net		80			(142	)
Income tax expense		13			537
Net earnings		23,735			34,976

Other
Net sales	$	72,485		$	87,913
Operating income (loss)		(3,257	)		200
Depreciation and amortization		2,214			2,663
Interest expense, net		295			491
Income tax expense		59			44
Net earnings (loss)		(3,623	)		(503	)