Operating segments (Tables)

12 Months Ended

Feb. 29, 2024

for fiscal years 2024, 2023 and 2022 was as follows (in thousands):


	Year Ended February 29, 2024
	Metal Coatings(1)		Precoat Metals		Infrastructure Solutions(2)		Corporate(3)(4)		Total
Sales	$	656,189	$	881,400	$	—	$	—	$	1,537,589
Cost of sales	465,147		708,981		—		—		1,174,128
Gross margin	191,042		172,419		—		—		363,461

Selling, general and administrative	26,314		32,848		6,246		76,453		141,861

Operating income (loss) from continuing operations	164,728		139,571		(6,246)		(76,453)		221,600

Interest expense	—		—		—		(107,065)		(107,065)
Equity in earnings of unconsolidated subsidiaries	—		—		15,407		—		15,407
Other income	128		—		—		33		161
Income (loss) from continuing operations before income tax	$	164,856	$	139,571	$	9,161	(183,485)		130,103
Income tax expense							28,496		28,496
Net income (loss) from continuing operations							$	(211,981)	$	101,607

(1) For fiscal 2024, AZZ Metal Coatings included expenses related to a legal matter of $5.5 million in "Selling, general and administrative".
(2) 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, including $5.8 million related to a legal settlement.
(3) Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(4) For fiscal year 2024, amortization expense for acquired intangible assets of $24.0 million is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments. Fiscal year 2024 also includes an accrual related to a legal settlement of $5.8 million for the settlement of a litigation matter that was acquired as part of the Precoat Acquisition and relates to the business activities that were discontinued prior to our acquisition.


	Year Ended February 28, 2023
	Metal Coatings(1)		Precoat Metals(2)		Infrastructure Solutions(3)		Corporate(4)		Total
Sales	$	636,982	$	686,667	$	—	$	—	$	1,323,649
Cost of sales	462,473		565,233		—		—		1,027,706
Gross margin	174,509		121,434		—		—		295,943

Selling, general and administrative	18,556		41,925		—		61,824		122,305

Operating income (loss) from continuing operations	155,953		79,509		—		(61,824)		173,638

Interest expense	—		—		—		(88,800)		(88,800)
Equity in earnings of unconsolidated subsidiaries	—		—		2,597		—		2,597
Other income	101		765		—		374		1,240
Income (loss) from continuing operations before income tax	$	156,054	$	80,274	$	2,597	(150,250)		88,675
Income tax expense							22,336		22,336
Net income (loss) from continuing operations							$	(172,586)	$	66,339

(1) For fiscal year 2023, amortization expense for acquired intangible assets of $7.1 million and $15.5 million are included in AZZ Metal Coatings expenses in "Cost of sales" and in AZZ Precoat Metals in "Selling, general and administrative" expense, respectively.
(2) For the fiscal year 2023, AZZ Precoat Metals segment includes results from May 13, 2022 - February 28, 2023.
(3) Infrastructure Solutions segment includes the equity in earnings from our investment in the AVAIL JV.
(4) Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.


	Year Ended February 28, 2022
	Metal Coatings(1)		Precoat Metals		Infrastructure Solutions		Corporate		Total
Sales	$	525,598	$	—	$	—	$	—	$	525,598
Cost of sales	379,445		—		—		—		379,445
Gross margin	146,153		—		—		—		146,153

Selling, general and administrative	17,395		—		—		49,539		66,934

Operating income (loss) from continuing operations	128,758		—		—		(49,539)		79,219

Interest expense	—		—		—		(6,363)		(6,363)

Other income	115		—		—		60		175
Income (loss) from continuing operations before income tax	$	128,873	$	—	$	—	(55,842)		73,031
Income tax expense							23,214		23,214
Net income (loss) from continuing operations							$	(79,056)	$	49,817

(1) For fiscal year 2022, amortization expense for acquired intangible assets of $6.7 million is included in AZZ Metal Coatings expenses in "Cost of sales."

Depreciation and amortization expense by segment for fiscal years 2024, 2023 and 2022 were as follows (in thousands):


	Year Ended February 29/28,
	2024		2023		2022
Depreciation and amortization:
Metal Coatings	$	26,353	$	32,955	$	30,453
Precoat Metals	27,941		40,199		—

Corporate	25,129		1,436		1,628
Total	$	79,423	$	74,590	$	32,081

Expenditures for acquisitions, net of cash, and property, plant and equipment by segment for fiscal years 2024, 2023 and 2022 were as follows (in thousands):


	Year Ended February 29/28,
	2024		2023		2022
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Metal Coatings	$	25,484	$	23,639	$	82,736
Precoat Metals	67,809		1,315,414		—
Corporate	1,826		797		2,073
Total	$	95,119	$	1,339,850	$	84,809

Reconciliation of Assets from Segment to Consolidated

As of February 29, 2024 and February 28, 2023, total assets by segment was as follows (in thousands):


	As of February 29/28,
	2024		2023
Assets:
Metal Coatings	$	553,505	$	588,337
Precoat Metals	1,500,122		1,488,810
Infrastructure Solutions - Investment in Joint Venture	98,169		84,760
Corporate	43,709		59,572


Total assets	$	2,195,505	$	2,221,479

Revenue from External Customers by Geographic Areas

Financial information about geographical areas for the periods presented was as follows for fiscal years 2024, 2023 and 2022 (in thousands). The geographic area is based on the location of the operating facility and no customer accounted for 10 percent or more of consolidated sales.


	Year Ended February 29/28,
	2024		2023		2022
Sales:
United States	$	1,498,397	$	1,279,890	$	494,012
Canada	39,192		43,759		31,586
Total	$	1,537,589	$	1,323,649	$	525,598

Long-lived Assets by Geographic Areas


	As of February 29/28,
	2024		2023
Property, plant and equipment, net:
United States	$	522,693	$	478,722
Canada	18,959		19,781

Total	$	541,652	$	498,503