Disaggregated Sales

9 Months Ended

Nov. 30, 2024

Revenues [Abstract]

Disaggregated Sales

4. Disaggregated Sales

The following table presents disaggregated sales by customer industry (in thousands):

	Three Months Ended November 30,				Nine Months Ended November 30,
	2024		2023		2024		2023
Sales:
Construction	$	233,653	$	214,081	$	695,344	$	637,035
Industrial	37,551		35,489		114,318		118,273
Transportation	35,047		35,871		109,959		107,734
Consumer	29,464		29,384		94,633		99,537
Utilities	29,599		24,804		88,944		76,116
Other (1)	38,340		41,976		122,671		132,325
Total Sales	$	403,654	$	381,605	$	1,225,869	$	1,171,020
(1) Other includes less significant markets, such as agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling.

See also Note 6 for sales information by operating segment.

Contract Assets and Liabilities

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer advances and deposits) on the consolidated balance sheets. Our contract assets and contract liabilities are primarily related to the AZZ Precoat Metals segment. Customer billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, we can receive advances from our customers, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

The increases or decreases in contract assets and contract liabilities during the nine months ended November 30, 2024 were primarily due to normal timing differences between AZZ's performance and customer payments. As of November 30, 2024 and February 29, 2024, the balance for contract assets was $99.2 million and $79.3 million, respectively, primarily related to the AZZ Precoat Metals segment. The increase was primarily due to the timing differences noted above, as well as the increase in the volume of coil coated for the nine months ended November 30, 2024. Contract liabilities of $0.7 million and $1.0 million as of November 30, 2024 and February 29, 2024, respectively, are included in "Other accrued liabilities" in the consolidated balance sheets.

As of November 30, 2023 and February 28, 2023, the balance for contract assets was $75.7 million and $79.3 million, respectively, primarily related to the AZZ Precoat Metals segment. Contract liabilities were $1.0 million and $1.3 million as of November 30, 2023 and February 28, 2023, respectively.