Investments in Unconsolidated Entity

6 Months Ended

Aug. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entity

7. Investments in Unconsolidated Entity

AVAIL JV

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, and we recorded $5.3 million in equity in earnings for the six months ended August 31, 2024. As of August 31, 2024, our investment in the AVAIL JV was $97.8 million, which includes an excess of $10.2 million over the underlying value of the net assets of the AVAIL JV. The excess is accounted for as equity method goodwill.

Summarized Balance Sheet
	As of
	August 31, 2024(1)
Current assets	$	281,937
Long-term assets	177,926
Total assets	$	459,863
Current liabilities	139,333
Long-term liabilities	124,359
Total liabilities	$	263,692
Total partners' capital	196,171
Total liabilities and partners' capital	$	459,863

Summarized Operating Data
	Three Months Ended		Six Months Ended
	August 31, 2024(1)		August 31, 2024(1)
Sales	$	119,584	$	249,300
Gross profit	27,569		59,086
Net income	2,780		10,955
(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, 2024. 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.