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Operating Segments
 12 Months Ended
Feb. 28, 2025
Segment Reporting [Abstract]  
Operating Segments
18. Operating Segments
Segment Information
Our Chief Executive Officer, who is the chief operating decision maker ("CODM"), reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. Sales and operating income are the primary measures used by the CODM to evaluate segment operating performance and to allocate resources to the AZZ Metal Coatings and the AZZ Precoat Metals segments. The CODM uses net income as the primary measure to evaluate performance and allocate resources to the AZZ Infrastructure Solutions segment. The CODM assesses these metrics and compares actuals to budgeted and forecasted values to evaluate segment operating performance and allocate resources to the operating segments. Expenses related to certain centralized administration or executive functions that are not specifically related to an operating segment are included in Corporate. The AVAIL JV operating results for the period prior to deconsolidation are included within discontinued operations, except for AZZ Crowley Tubing, which was retained and merged into the AZZ Metal Coatings segment. See Note 9 for the results of operations related to the AZZ Infrastructure Solutions segment that is reported as discontinued operations.
A summary of each of our operating segments is as follows:
AZZ Metal Coatings — provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication industry and other industries through facilities located throughout North America. Hot-dip galvanizing is a metallurgical manufacturing process in which molten zinc reacts with steel, which provides corrosion protection and extends the lifecycle of fabricated steel for several decades.
AZZ Precoat Metals — provides coil coating application of protective and decorative coatings and related value-added downstream processing for steel and aluminum coils. Primarily serving the construction, appliance, heating, ventilation, and air conditioning (HVAC), container, transportation, and other end markets, the coil coating process emphasizes sustainability and enhanced product lifecycles. It involves cleaning, treating, painting, and curing metal coils as a flat material before they are cut, formed, and fabricated into finished products. This highly efficient method optimizes waste through tight film control and improves final product performance by painting and curing the substrates under conditions unmatched by other application processes.
AZZ Infrastructure Solutions — consists of the equity in earnings of our 40% investment in the AVAIL JV, as well as other expenses directly related to AIS receivables and liabilities that were retained following the divestiture of the AIS business. The AVAIL JV is a global provider of application-critical equipment, highly engineered technologies, and specialized services to the power generation, transmission, distribution, oil and gas, and industrial markets.
The following tables contain operating segment data for fiscal years 2025, 2024 and 2023 was as follows (in thousands):
Year Ended February 28, 2025
Metal Coatings(1)
Precoat Metals(2)
Infrastructure Solutions(3)
Corporate(4)(5)
Total
Sales$665,107 $912,637 $— $— $1,577,744 
Cost of sales(6)
464,260 730,804 — — 1,195,064 
Gross margin200,847 181,833 — — 382,680 
Selling, general and administrative(7)
22,372 34,005 6,737 83,202 146,316 
Operating income (loss) from continuing operations178,475 147,828 (6,737)(83,202)236,364 
Interest expense— — — (81,282)(81,282)
Equity in earnings of unconsolidated subsidiaries— — 16,163 — 16,163 
Other income (expense)247 — — (809)(562)
Income (loss) from continuing operations before income tax$178,722 $147,828 $9,426 (165,293)170,683 
Income tax expense41,850 41,850 
Net income (loss) from continuing operations$(207,143)$128,833 
See notes on page 81.
Year Ended February 29, 2024
Metal Coatings(1)
Precoat Metals(2)
Infrastructure Solutions(3)
Corporate(4)(5)
Total
Sales$656,189 $881,400 $— $— $1,537,589 
Cost of sales(6)
465,147 708,981 — — 1,174,128 
Gross margin191,042 172,419 — — 363,461 
Selling, general and administrative(7)
26,314 32,848 6,246 76,453 141,861 
Operating income (loss) from continuing operations164,728 139,571 (6,246)(76,453)221,600 
Interest expense— — — (107,065)(107,065)
Equity in earnings of unconsolidated subsidiaries— — 15,407 — 15,407 
Other income128 — — 33 161 
Income (loss) from continuing operations before income tax$164,856 $139,571 $9,161 (183,485)130,103 
Income tax expense28,496 28,496 
Net income (loss) from continuing operations$(211,981)$101,607 
See notes on page 81.
Year Ended February 28, 2023
Metal Coatings(1)
Precoat Metals(2)
Infrastructure Solutions(3)
Corporate(4)(5)
Total
Sales$636,982 $686,667 $— $— $1,323,649 
Cost of sales(6)
462,473 565,233 — — 1,027,706 
Gross margin174,509 121,434 — — 295,943 
Selling, general and administrative(7)
18,556 41,925 — 61,824 122,305 
Operating income (loss) from continuing operations155,953 79,509 — (61,824)173,638 
Interest expense— — — (88,800)(88,800)
Equity in earnings of unconsolidated subsidiaries— — 2,597 — 2,597 
Other income101 765 — 374 1,240 
Income (loss) from continuing operations before income tax$156,054 $80,274 $2,597 (150,250)88,675 
Income tax expense22,336 22,336 
Net income (loss) from continuing operations$(172,586)$66,339 
(1)
For fiscal year 2024, AZZ Metal Costings included expenses related to a legal matter of $5.5 million in "Selling, general and administrative".
For fiscal year 2023, amortization expense for acquired intangible assets of $7.1 million is included in AZZ Metal Coatings expenses in "Cost of sales."
(2)
For the fiscal year 2023, AZZ Precoat Metals segment includes results from May 13, 2022 - February 28, 2023. For fiscal year 2023, amortization expense for acquired intangible assets of $15.5 million is included in AZZ Precoat Metals expenses in "Selling, general and administrative."
(3)
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. Fiscal year 2025 and 2024 include $6.5 million and $5.8 million, respectively, related to legal matters.
(4)
Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(5)
For fiscal year 2025, amortization expense for acquired intangible assets of $23.1 million is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments. Fiscal year 2025 also includes an accrual related to a legal settlement and accrual related to a non-operating entity of $3.5 million, as well as retirement and other severance expenses of $3.7 million. 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.
(6)
Cost of sales includes direct labor, materials, depreciation, amortization and overhead expenses directly related to providing our metal coatings solutions.
(7)
Selling, general and administrative includes compensation and benefits costs, professional expenses, insurance, computer, depreciation, amortization and other selling, general and administrative expenses.
Depreciation and amortization expense by segment for fiscal years 2025, 2024 and 2023 were as follows (in thousands):
Year Ended
Depreciation and amortization:February 28, 2025February 29, 2024February 28, 2023
Metal Coatings$26,640 $26,353 $32,955 
Precoat Metals31,185 27,940 40,199 
Corporate24,380 25,130 1,436 
Total$82,205 $79,423 $74,590 
Expenditures for acquisitions, net of cash, and property, plant and equipment by segment for fiscal years 2025, 2024 and 2023 were as follows (in thousands):
Year Ended
Expenditures for acquisitions, net of cash, and property, plant and equipment:February 28, 2025February 29, 2024February 28, 2023
Metal Coatings$29,958 $25,484 $23,639 
Precoat Metals84,537 67,809 1,315,414 
Corporate1,388 1,826 797 
Total$115,883 $95,119 $1,339,850 
Asset balances by operating segment for each period were as follows (in thousands):
As of
Assets:February 28, 2025February 29, 2024
Metal Coatings$555,095 $553,505 
Precoat Metals1,548,377 1,500,122 
Infrastructure Solutions - Investment in Joint Venture99,379 98,169 
Corporate24,250 43,709 
Total assets$2,227,101 $2,195,505 
Financial Information About Geographical Areas
Financial information about geographical areas for the periods presented was as follows for fiscal years 2025, 2024 and 2023 (in thousands). The geographic area is based on the location of the operating facility and no customer accounted for 10% or more of consolidated sales.
Year Ended
Sales:February 28, 2025February 29, 2024February 28, 2023
United States$1,537,215 $1,498,397 $1,279,890 
Canada40,529 39,192 43,759 
Total$1,577,744 $1,537,589 $1,323,649 

As of
Property, plant and equipment, net:February 28, 2025February 29, 2024
United States$574,332 $522,693 
Canada18,609 18,959 
Total$592,941 $541,652