We account for our 40% interest in the AVAIL JV under the equity method of accounting and include our equity in earnings as part of the AZZ Infrastructure Solutions segment. We record our equity in earnings in the AVAIL JV on a one-month lag.

As of August 31, 2026, our investment in the AVAIL JV was $11.5 million. For the three and six months ended August 31, 2026, we recorded $6.8 million and $7.3 million of equity in earnings, respectively. The majority of the equity in earnings related to the recognition of our proportionate share of the gain on the sale of Rig-A-Lite. During both the three and six months ended August 31, 2026, our proportionate share of equity in earnings (loss) from AVAIL JV operations was not significant.


Summarized Balance Sheet(1)
	As of
	August 31, 2026		February 28, 2026
Current assets	$	179,876	$	225,298
Long-term assets	15,810		19,330
Total assets	$	195,686	$	244,628

Current liabilities	$	52,251	$	59,724
Long-term liabilities	10,982		12,732
Total liabilities	63,233		72,456
Total partners' capital	132,453		172,172
Total liabilities and partners' capital	$	195,686	$	244,628


Summarized Operating Data(1)
	Three Months Ended August 31,				Six Months Ended August 31,
	2026(2)		2025		2026(2)		2025
Sales	$	3,272	$	43,463	$	10,744	$	211,703
Gross profit	$	960	$	7,328	$	3,599	$	52,453
Income before income taxes	$	16,521	$	693,712	$	18,146	$	711,186
Net income(3)	$	16,472	$	693,133	$	17,929	$	710,757



(1)			We report our equity in earnings on a one-month lag basis; therefore, amounts in the summarized financials above are as of and for the three and six months ended July 31, 2026 and 2025 and as of January 31, 2026.
(2)			Amounts in the table above exclude certain adjustments made by us to record equity in earnings of the AVAIL JV under U.S. GAAP for public companies, primarily to reverse the amortization of goodwill. The three and six months ended August 31, 2026 reflects operations from AVAIL's Rig-A-Lite business and WSI Brazil business.
(3)			AVAIL's net income for the three and six months ended August 31, 2026 includes a net gain of $25.7 million on the sale of the Rig-A-Lite business. Our proportionate share of this gain includes adjustments for the prior reversal of goodwill amortization related to the Rig-A-Lite business.

We classify cash flows from distributions using the cumulative earnings method. Cash received is classified as a return on investment and included in operating cash flows to the extent that cumulative earnings exceed cumulative distributions, less distributions received in prior periods that were deemed returns of investment. During the six months ended August 31, 2026, we received $15.7 million in distributions, which were deemed to be a return of investment and reflected in cash flows from investing activities. During the six months ended August 31, 2025, we received $273.2 million in distributions, which were deemed to be a return on investment and reflected in cash flows from operating activities.