Income Taxes

6 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The provision for income taxes reflects an effective tax rate of 21.9% for the three months ended August 31, 2025, compared to 25.6% for the three months ended August 31, 2024. The decrease in the effective tax rate is primarily attributable

to higher R&D tax credits related to the R&D efforts in the construction of the new aluminum coil coating facility in Washington, Missouri, which became operational during the first quarter of fiscal 2026.

The provision for income taxes reflects an effective tax rate of 23.5% for the six months ended August 31, 2025, compared to 23.9% for the prior year comparable period. The decrease in the effective tax rate is primarily attributable to higher R&D tax credits related to the construction of the new aluminum coil coating facility in Washington, Missouri, which became operational during the first quarter of fiscal 2026.

On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act ("the Act") that includes several U.S. corporate tax provisions, including the restoration of 100% bonus depreciation on qualified property and the current deductibility of domestic research and experimental expenditures. The provisions of the Act did not have a material impact to our income tax expense or effective tax rate. We expect the provisions of the Act to result in a reduction in our fiscal 2026 cash tax payments.