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Investments in Unconsolidated Affiliates | 12 Months Ended
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May 31, 2026
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Affiliates | Note C – Investments in Unconsolidated Affiliates Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated affiliates and accounted for using the equity method. At May 31, 2026, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); SES (49%); WAVE (50%); and Workhorse (20%). On May 29, 2024, we became a noncontrolling equity partner in an unconsolidated joint venture with Hexagon Composites, a leading global manufacturer of Type 4 composite cylinders used for storing gas under high-pressure, by selling 51% of the nominal share capital of our former Sustainable Energy Solutions operating segment in Europe for cash consideration of $11,986. Pursuant to the transaction, Hexagon Composites acquired a 49% stake in the joint venture. As a result of the sale, we hold a 49%, noncontrolling interest in the SES joint venture, with the remaining 2% held by members of the existing management team of the joint venture. Immediately prior to the contribution, we evaluated the goodwill and long-lived assets. An impairment charge of $32,203 was recognized when the disposal group met the criteria as assets held for sale in the fourth quarter of fiscal 2024. Refer to “Note A – Summary of Significant Accounting Policies” for additional information. On October 16, 2025, we divested our 49% interest in the composite business of the SES joint venture, resulting in a loss of $2,950, recorded in miscellaneous expense, net in the consolidated statement of earnings for fiscal 2026. In exchange for our interest in the divested assets, we received common shares of both Hexagon Composites and Hexagon Purus. Refer to “Note R – Fair Value Measurements” for information regarding the fair value measurement of these common shares. We received distributions from unconsolidated affiliates totali ng $139,992, $153,605, and $187,258 in fiscal 2026, fiscal 2025 and fiscal 2024, respectively. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $105,349 and $103,767 at May 31, 2026 and 2025, respectively. In accordance with the applicable accounting guidance, the negative balances have been reclassified 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. If our equity balance becomes positive in the future, 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, the liability balance will be immediately recognized as income. The WAVE and ClarkDietrich joint ventures are included within the Building Products segment, while the SES and Workhorse joint ventures are reported within Other. The following table presents summarized information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31:
|  |  |  |  | 2026 |  |  | 2025 |
WAVE |  |  |  |  |  |
Current assets |  | $ | 118,169 |  |  | $ | 119,776 |
Noncurrent assets |  |  | 82,698 |  |  |  | 90,546 |
Current liabilities |  |  | 27,444 |  |  |  | 27,204 |
Noncurrent liabilities |  |  | 381,004 |  |  |  | 387,302 |
Equity (deficit) |  |  | (207,581 | ) |  |  | (204,184 | )
ClarkDietrich |  |  |  |  |  |
Current assets |  | $ | 386,619 |  |  | $ | 377,854 |
Noncurrent assets |  |  | 203,011 |  |  |  | 192,636 |
Current liabilities |  |  | 181,165 |  |  |  | 165,484 |
Noncurrent liabilities |  |  | 36,374 |  |  |  | 39,963 |
Equity |  |  | 372,091 |  |  |  | 365,042 |
Other |  |  |  |  |  |
Current assets |  | $ | 96,667 |  |  | $ | 110,518 |
Noncurrent assets |  |  | 87,527 |  |  |  | 102,097 |
Current liabilities |  |  | 61,166 |  |  |  | 52,147 |
Noncurrent liabilities |  |  | 66,023 |  |  |  | 65,593 |
Equity |  |  | 57,005 |  |  |  | 94,875 |
The following table presents summarized financial information for our unconsolidated affiliates for the fiscal years ended May 31:
|  | 2026 |  |  | 2025 |  |  | 2024 |
WAVE |  |  |  |  |  |  |  |  |
Net sales |  | $ | 518,903 |  |  | $ | 496,355 |  |  | $ | 479,153 |
Gross profit |  |  | 314,291 |  |  |  | 300,881 |  |  |  | 286,228 |
Operating income |  |  | 250,608 |  |  |  | 238,139 |  |  |  | 225,202 |
Depreciation and amortization |  |  | 5,527 |  |  |  | 5,436 |  |  |  | 4,926 |
Interest expense, net |  |  | 15,414 |  |  |  | 16,821 |  |  |  | 17,288 |
Income tax expense |  |  | 312 |  |  |  | 341 |  |  |  | 267 |
Net earnings |  |  | 235,584 |  |  |  | 221,487 |  |  |  | 205,976 |
ClarkDietrich |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,160,669 |  |  | $ | 1,167,689 |  |  | $ | 1,308,517 |
Gross profit |  |  | 180,593 |  |  |  | 243,556 |  |  |  | 326,616 |
Operating income |  |  | 86,401 |  |  |  | 157,375 |  |  |  | 236,575 |
Depreciation and amortization |  |  | 19,324 |  |  |  | 16,002 |  |  |  | 15,075 |
Interest (income) expense, net |  |  | (185 | ) |  |  | (93 | ) |  |  | 171 |
Income tax (benefit) expense |  |  | (104 | ) |  |  | 1,265 |  |  |  | 2,250 |
Net earnings |  |  | 87,506 |  |  |  | 163,182 |  |  |  | 239,309 |
Other |  |  |  |  |  |  |  |  |
Net sales |  | $ | 280,198 |  |  | $ | 329,651 |  |  | $ | 317,185 |
Gross profit |  |  | 21,680 |  |  |  | 24,745 |  |  |  | 36,648 |
Operating (loss) income |  |  | (8,404 | ) |  |  | (6,249 | ) |  |  | 26,881 |
Depreciation and amortization |  |  | 8,865 |  |  |  | 9,902 |  |  |  | 8,974 |
Interest expense, net |  |  | 946 |  |  |  | 1,041 |  |  |  | 2,417 |
Income tax expense |  |  | 395 |  |  |  | 132 |  |  |  | 744 |
Net (loss) earnings |  |  | (10,185 | ) |  |  | (5,539 | ) |  |  | 22,952 |
At May 31, 2026 and 2025, $34,773 and $33,011, respectively, of our consolidated retained earnings represented undistributed earnings of investments accounted for under the equity method.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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