v3.26.3
Revenue Recognition
 3 Months Ended
Aug. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 – Revenue Recognition

The Company recognizes revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration it expects to receive for those goods or services, including any variable consideration.

 

The Company generates revenue primarily by processing flat-rolled steel coils into the precise type, thickness, length, width, shape, and surface quality required by customer specifications, and by distributing steel and other metal products and providing related processing services to customers primarily in North America and Europe, sourcing material from a global network of steel mills and other producers. The Company generates a substantial percentage of its revenue from selling steel on a direct basis, whereby it is exposed to the risks and rewards of ownership of the material while in its possession. Additionally, the Company toll processes steel under fee-for-service arrangements on customer-owned material. Toll processing revenue is recognized over time. All other revenue is recognized at a point in time, generally upon shipment to the customer.

The following table summarizes net sales by product class for the periods presented:

 

Three Months Ended

 

 

August 31,

 

 

August 31,

 

(In millions)

2026

 

 

2025

 

Product class

 

 

 

 

 

Direct

$

2,684.5

 

 

$

839.5

 

Toll

 

42.1

 

 

 

33.4

 

Total

$

2,726.6

 

 

$

872.9

 

 

The following table summarizes the unbilled receivables and contract assets at the dates indicated:

 

 

 

August 31,

 

 

May 31,

 

(In millions)

Balance Sheet Classification

 

2026

 

 

2026

 

Unbilled receivables

Receivables

 

$

4.5

 

 

$

4.2

 

Contract assets

Prepaid expenses and other current assets

 

$

93.1

 

 

$

12.7

 

 

The following table summarizes the changes in contract liabilities for the periods presented:

(In millions)

 

 

 

Balance at May 31, 2026

 

$

7.0

 

Contract liabilities assumed in acquisition

 

 

16.5

 

Additions to contract liabilities during the period

 

 

7.2

 

Revenue recognized related to contract liability balance

 

 

(5.8

)

Balance at August 31, 2026

 

$

24.9