v3.26.3
Segment Operations
 3 Months Ended
Aug. 31, 2026
Segment Reporting [Abstract]  
Segment Operations

Note L – Segment Operations

 

On September 15, 2026, we announced new names for our two operating segments that better reflect the markets they serve, the value they provide to customers and the evolution of our product portfolio. The Building Products segment is now Building Performance Solutions and the Consumer Products segment is now Trade & Specialty Solutions. The changes are to the segment names only and do not affect the composition of our operating segments, the financial information regularly reviewed by our CODM, or our historical financial results.

 

Our segment structure reflects the manner in which internally reported financial information is regularly reviewed by our CODM, who is our President and CEO, to evaluate the performance and allocate resources. Operating segments are identified based on the nature of the products and services offered, the management reporting structure, similarity of economic characteristics and certain quantitative measures as prescribed by authoritative accounting guidance. The CODM evaluates segment performance and makes resource allocation decisions based on adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure, as described in the “Use of Non-GAAP Financial Measures and Definitions” section preceding Part I, Item 1 of this Form 10-Q. At the operating segment level, adjusted EBITDA excludes public company and other governance-related costs.

 

Activity outside of our two operating segments is presented within “Other” and “Unallocated Corporate” as described below.

 

Other includes our share of the equity income of two of our unconsolidated joint ventures, heiserTEC and Workhorse, and the related investments in these businesses.

Unallocated Corporate includes certain assets and liabilities (e.g., cash and cash equivalents and public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole.

 

The following tables summarize financial information for our reportable operating segments and Unallocated Corporate and Other for the periods indicated. A reconciliation from the GAAP financial measure of earnings (loss) before income taxes to the non-GAAP financial measure of adjusted EBITDA is provided directly following the summarized information below.

 

 

Three Months Ended August 31, 2026

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Building

 

 

Trade &

 

 

Reportable

 

 

 

 

 

 

 

 

 

 

 

Performance

 

 

Specialty

 

 

Operating

 

 

 

 

 

Unallocated

 

 

 

 

 

Solutions

 

 

Solutions

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

215,087

 

 

$

128,799

 

 

$

343,886

 

 

$

-

 

 

$

-

 

 

$

343,886

 

Cost of goods sold

 

171,388

 

 

 

81,545

 

 

 

252,933

 

 

 

-

 

 

 

55

 

 

 

252,988

 

SG&A

 

38,787

 

 

 

27,804

 

 

 

66,591

 

 

 

-

 

 

 

10,567

 

 

 

77,158

 

Restructuring and other expense, net

 

-

 

 

 

125

 

 

 

125

 

 

 

-

 

 

 

592

 

 

 

717

 

Other segment items (1)

 

(95

)

 

 

(252

)

 

 

(347

)

 

 

-

 

 

 

(1,637

)

 

 

(1,984

)

Equity in net income of unconsolidated affiliates

 

42,433

 

 

 

-

 

 

 

42,433

 

 

 

(1,839

)

 

 

-

 

 

 

40,594

 

Earnings (loss) before income taxes

 

47,440

 

 

 

19,577

 

 

 

67,017

 

 

 

(1,839

)

 

 

(9,577

)

 

 

55,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

11,540

 

 

 

3,885

 

 

 

15,425

 

 

 

-

 

 

 

203

 

 

 

15,628

 

Interest (income) expense

 

(27

)

 

 

(276

)

 

 

(303

)

 

 

-

 

 

 

2,400

 

 

 

2,097

 

Stock-based compensation

 

829

 

 

 

703

 

 

 

1,532

 

 

 

-

 

 

 

2,464

 

 

 

3,996

 

Restructuring and other expense, net

 

-

 

 

 

125

 

 

 

125

 

 

 

-

 

 

 

592

 

 

 

717

 

Non-cash gains in miscellaneous income, net (3)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,020

)

 

 

(4,020

)

Adjusted EBITDA

$

59,782

 

 

$

24,014

 

 

$

83,796

 

 

$

(1,839

)

 

$

(7,938

)

 

$

74,019

 

 

 

Three Months Ended August 31, 2025

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Building

 

 

Trade &

 

 

Reportable

 

 

 

 

 

 

 

 

 

 

 

Performance

 

 

Specialty

 

 

Operating

 

 

 

 

 

Unallocated

 

 

 

 

 

Solutions

 

 

Solutions

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

184,769

 

 

$

118,938

 

 

$

303,707

 

 

$

-

 

 

$

-

 

 

$

303,707

 

Cost of goods sold

 

141,399

 

 

 

79,972

 

 

 

221,371

 

 

 

-

 

 

 

52

 

 

 

221,423

 

SG&A

 

33,636

 

 

 

27,710

 

 

 

61,346

 

 

 

-

 

 

 

9,219

 

 

 

70,565

 

Restructuring and other expense, net

 

296

 

 

 

13

 

 

 

309

 

 

 

-

 

 

 

2,167

 

 

 

2,476

 

Other segment items (1)

 

98

 

 

 

18

 

 

 

116

 

 

 

-

 

 

 

103

 

 

 

219

 

Equity in net income of unconsolidated affiliates

 

38,320

 

 

 

-

 

 

 

38,320

 

 

 

(1,663

)

 

 

-

 

 

 

36,657

 

Earnings (loss) before income taxes

 

47,660

 

 

 

11,225

 

 

 

58,885

 

 

 

(1,663

)

 

 

(11,541

)

 

 

45,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

 

2,151

 

 

 

-

 

 

 

2,151

 

 

 

-

 

 

 

-

 

 

 

2,151

 

Depreciation and amortization

 

9,036

 

 

 

3,858

 

 

 

12,894

 

 

 

-

 

 

 

192

 

 

 

13,086

 

Interest (income) expense

 

(18

)

 

 

(2

)

 

 

(20

)

 

 

-

 

 

 

83

 

 

 

63

 

Stock-based compensation

 

819

 

 

 

727

 

 

 

1,546

 

 

 

-

 

 

 

1,881

 

 

 

3,427

 

Restructuring and other expense, net

 

296

 

 

 

13

 

 

 

309

 

 

 

-

 

 

 

2,167

 

 

 

2,476

 

Net loss attributable to noncontrolling interest

 

-

 

 

 

327

 

 

 

327

 

 

 

-

 

 

 

-

 

 

 

327

 

Adjusted EBITDA

$

59,944

 

 

$

16,148

 

 

$

76,092

 

 

$

(1,663

)

 

$

(7,218

)

 

$

67,211

 

 

 

 

(1)
Other segment items consist of non-operating activity included in adjusted EBITDA, except as noted in footnote (3) below.
(2)
See “Use of Non-GAAP Financial Measures and Definitions” for additional information.
(3)
Consists of a $4,000 pre-tax gain realized from an earnout arrangement associated with the sale of our former oil and gas products business, which was divested in January 2021, as well as an unrealized gain on the common shares of Hexagon Composites and Hexagon Purus.

 

Total assets for each of our reportable operating segments at the dates indicated were as follows:

 

 

August 31,

 

 

May 31,

 

 

2026

 

 

2026

 

Building Performance Solutions

$

1,145,546

 

 

$

1,170,522

 

Trade & Specialty Solutions

 

529,924

 

 

 

535,693

 

Total reportable operating segments

 

1,675,470

 

 

 

1,706,215

 

Unallocated Corporate and Other

 

165,280

 

 

 

141,849

 

Total assets

$

1,840,750

 

 

$

1,848,064

 

 

The following table presents capital expenditures for each of our reportable operating segments for the periods presented:

 

 

Three Months Ended

 

 

August 31,

 

 

2026

 

 

2025

 

Building Performance Solutions

$

6,674

 

 

$

3,509

 

Trade & Specialty Solutions

 

4,552

 

 

 

9,041

 

Total reportable operating segments

 

11,226

 

 

 

12,550

 

Unallocated Corporate

 

1,528

 

 

 

645

 

Total

$

12,754

 

 

$

13,195