Segments

6 Months Ended

Aug. 31, 2022

Segment Reporting [Abstract]

Segments

Segment Information

The Company has three distinct operating segments: the AZZ Metal Coatings segment, the AZZ Precoat Metals segment and the AZZ Infrastructure Solutions segment. The AIS Joint Venture agreement discussed in Note 3 resulted in our AZZ Infrastructure Solutions segment being classified within discontinued operations, with the exception of AZZ Crowley Tubing. See Note 3 for the results of operations related to the AZZ Infrastructure Solutions segment.

The AZZ Metal Coatings segment provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. Hot-dip galvanizing is a metallurgical process in which molten zinc reacts to steel. The zinc alloying provides corrosion protection and extends the life-cycle of fabricated steel for several decades.

The AZZ Precoat Metals segment provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil, primarily serving the construction; appliance; heating, ventilation, and air conditioning (HVAC); container; transportation and other end markets in the United States.

The AZZ Infrastructure Solutions segment provides specialized products and services designed to support primarily industrial and electrical applications. The product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting and tubular products. The AZZ Infrastructure Solutions segment also focuses on life-cycle extension for the power generation, refining and industrial infrastructure, through providing automated weld overlay solutions for corrosion and erosion mitigation.

Sales and operating income from continuing operations by segment for each period were as follows (in thousands):

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Sales:
Metal Coatings	$	165,849	$	131,434	$	329,293	$	260,650
Precoat Metals	240,861		—		284,551		—
Total sales	$	406,710	$	131,434	$	613,844	$	260,650
Operating income:
Metal Coatings	$	44,996	$	32,047	$	90,266	$	63,961
Precoat Metals	36,213		—		42,861		—
Corporate(1)	(17,068)		(12,085)		(41,077)		(22,573)
Total operating income from continuing operations	$	64,141	$	19,962	$	92,050	$	41,388
(1) Includes expenditures of $2.7 million and $15.2 million for the three and six months ended August 31, 2022, related to the Precoat Acquisition and the divestiture of the AZZ Infrastructure Solutions segment.

Asset balances by segment for each period were as follows (in thousands):

	August 31, 2022		February 28, 2022
Total assets:
Metal Coatings	$	594,116	$	578,885
Precoat Metals	1,528,250		—
Corporate	60,805		46,266
Discontinued operations:
Infrastructure Solutions	401,576		507,876
Total	$	2,584,747	$	1,133,027

Financial Information About Geographical Areas

The following table presents sales by geographic region for each period (in thousands):

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Sales:
United States	$	393,835	$	122,871	$	588,195	$	243,449
International	12,875		8,563		25,649		17,201
Total	$	406,710	$	131,434	$	613,844	$	260,650

The following table presents fixed assets by geographic region for each period (in thousands):

	August 31, 2022		February 28, 2022
Property, plant and equipment, net:
United States	$	472,001	$	167,634
Canada	24,124		25,724
Total	$	496,125	$	193,358