v3.26.1
Operating Segments (Tables)
 3 Months Ended
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 CoatingsPrecoat
Metals
Infrastructure Solutions(1)
Total
Sales$210,305 $238,225 $— $448,530 
Cost of sales147,452 188,909 — 336,361 
Selling, general and administrative6,302 7,781 — 14,083 
Operating income$56,551 $41,535 — 98,086 
Equity in earnings of unconsolidated subsidiary509 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 CoatingsPrecoat
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 income1,327 
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,
Sales20262025
United States$435,990 $410,995 
Canada12,540 10,967 
Total sales$448,530 $421,962 
Long-lived Assets by Geographic Areas
As of
Long-lived assetsMay 31, 2026February 28, 2026
United States$648,747 $647,182 
Canada21,640 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, 2026February 28, 2026
Metal Coatings(2)
$622,749 $604,107 
Precoat Metals(3)
1,589,600 1,562,994 
Infrastructure Solutions - Investment in Joint Venture18,967 19,960 
Total reportable segment assets2,231,316 2,187,061 
Corporate21,008 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 amortization20262025
Metal Coatings$7,266 $6,660 
Precoat Metals10,222 9,123 
Total reportable segment depreciation and amortization17,488 15,783 
Corporate6,031 6,044 
Consolidated depreciation and amortization$23,519 $21,827