Investments in Unconsolidated Entity

9 Months Ended

Nov. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

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 $12.5 million in equity in earnings for the nine months ended November 30, 2024. As of November 30, 2024, our investment in the AVAIL JV was $102.1 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
	November 30, 2024(1)
Current assets	$	321,035
Long-term assets	180,001
Total assets	$	501,036

Current liabilities	166,201
Long-term liabilities	123,173
Total liabilities	$	289,374
Total partners' capital	211,662
Total liabilities and partners' capital	$	501,036


Summarized Operating Data
	Three Months Ended		Nine Months Ended
	November 30, 2024(1)		November 30, 2024(1)
Sales	$	150,998	$	400,298
Gross profit	42,842		101,928
Net income	21,015		32,036

(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 nine months ended October 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.