Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 28, 2025

Financing Receivable, Allowance for Credit Loss

The following table shows the changes in the allowance for credit losses for fiscal 2025, 2024 and 2023 (in thousands):


	Year Ended
	February 28, 2025		February 29, 2024		February 28, 2023

Balance at beginning of year	$	2,347	$	5,752	$	5,395
Adjustment based on aged receivables analysis	5,058		(67)		(58)
Charge-offs, net of recoveries(1)	(5,287)		338		83
Other(2)	(1,700)		(3,676)		327
Effect of exchange rate changes	1		—		5
Balance at end of year(3)	$	419	$	2,347	$	5,752



(1)			Includes a charge-off of $5.2 million following the unfavorable resolution of a litigation matter that was retained following the AIS divestiture.
(2)			For fiscal 2025 and 2024, "Other" includes the write off of $1.7 million and $3.7 million of reserves, respectively, following the settlement of a litigation matter. The reserves related to the AZZ Infrastructure Solutions segment and were retained following the AIS divestiture.
(3)			For fiscal 2024 and 2023, the allowance for credit losses includes $1.7 million, and $5.4 million, respectively, related to the AZZ Infrastructure Solutions segment that were retained following the AIS divestiture.

Disaggregation of Revenue

Disaggregated Sales

Sales by segment and geography is disclosed in Note 18. In addition, the following table presents disaggregated sales, from continuing operations, by customer industry for fiscal years 2025, 2024 and 2023 (in thousands):


	Year Ended
	February 28, 2025		February 29, 2024		February 28, 2023
Sales:
Construction	$	893,147	$	841,557	$	667,852
Industrial	129,542		153,686		152,731
Consumer	123,124		128,658		105,587
Transportation	140,570		141,237		135,319
Utilities	127,542		100,236		94,188
Other (1)	163,819		172,215		167,972
Total sales	$	1,577,744	$	1,537,589	$	1,323,649

(1) Other includes less significant markets, such as non-construction agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling and other miscellaneous customer industries.

Property, Plant and Equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Leasehold improvements, buildings and structures			10-27 years
Machinery and equipment			3-15 years
Furniture and fixtures			3-15 years
Automotive equipment			3-5 years
Computers and software			3-7 years

Property, plant and equipment consisted of the following as of February 28, 2025 and February 29, 2024 (in thousands):


	As of
	February 28, 2025		February 29, 2024
Land	$	52,033	$	52,318
Building and structures	313,036		301,189
Machinery and equipment	424,342		408,641
Furniture, fixtures, software and computers	29,900		30,026
Automotive equipment	2,688		2,677
Construction in progress	153,145		86,062
	975,144		880,913
Less accumulated depreciation	(382,203)		(339,261)
Property, plant, and equipment, net	$	592,941	$	541,652

The following table outlines the classification of depreciation expense from continuing operations in the consolidated statements of income for fiscal 2025, 2024, and 2023 (in thousands):


	Year Ended
	February 28, 2025		February 29, 2024		February 28, 2023
Cost of sales	$	56,849	$	53,035	$	49,414
Selling, general and administrative	2,245		2,428		2,563
Total depreciation expense	$	59,094	$	55,463	$	51,977