Operating Segments (Tables)

12 Months Ended

Feb. 28, 2025

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 margin	200,847		181,833		—		—		382,680

Selling, general and administrative(7)	22,372		34,005		6,737		83,202		146,316

Operating income (loss) from continuing operations	178,475		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 expense							41,850		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 margin	191,042		172,419		—		—		363,461

Selling, general and administrative(7)	26,314		32,848		6,246		76,453		141,861

Operating income (loss) from continuing 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

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 margin	174,509		121,434		—		—		295,943

Selling, general and administrative(7)	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 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, 2025		February 29, 2024		February 28, 2023
Metal Coatings	$	26,640	$	26,353	$	32,955
Precoat Metals	31,185		27,940		40,199

Corporate	24,380		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, 2025		February 29, 2024		February 28, 2023
Metal Coatings	$	29,958	$	25,484	$	23,639
Precoat Metals	84,537		67,809		1,315,414

Corporate	1,388		1,826		797
Total	$	115,883	$	95,119	$	1,339,850

Revenue from External Customers by Geographic 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, 2025		February 29, 2024		February 28, 2023
United States	$	1,537,215	$	1,498,397	$	1,279,890
Canada	40,529		39,192		43,759

Total	$	1,577,744	$	1,537,589	$	1,323,649


	As of
Property, plant and equipment, net:	February 28, 2025		February 29, 2024
United States	$	574,332	$	522,693
Canada	18,609		18,959

Total	$	592,941	$	541,652