Disaggregated Sales

9 Months Ended

Nov. 30, 2025

Revenues [Abstract]

Disaggregated Sales

5. Disaggregated Sales

The following table presents disaggregated sales by customer industry (in thousands):

	Three Months Ended November 30,				Nine Months Ended November 30,
	2025		2024		2025		2024
Sales:
Construction	$	240,228	$	233,653	$	707,961	$	695,344
Industrial	37,906		37,551		112,636		114,318
Consumer	32,736		29,464		96,641		94,633
Transportation	35,139		35,047		105,493		109,959
Utilities	39,860		29,599		114,381		88,944
Other(1)	39,877		38,340		127,871		122,671
Total sales	$	425,746	$	403,654	$	1,264,983	$	1,225,869

(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.

See also Note 7 for sales information by operating segment.

Contract Assets and Liabilities

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer advances and deposits) on the consolidated balance sheets. Our contract assets and contract liabilities are primarily related to the AZZ Precoat Metals segment. Customer billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, we can receive advances from our customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

The increases in contract assets and contract liabilities during the nine months ended November 30, 2025 were primarily due to normal timing differences between AZZ's performance and invoicing. As of November 30, 2025 and February 28, 2025, the balance for contract assets was $110.4 million and $106.5 million, respectively, primarily related to the AZZ Precoat Metals segment. The increase was primarily due to the timing differences noted above. Contract liabilities of $0.7 million and $0.5 million as of November 30, 2025 and February 28, 2025, respectively, are included in "Other accrued liabilities" in the consolidated balance sheets. During the nine months ended November 30, 2025, we recognized $0.5 million of revenue for amounts that were included in contract liabilities as of February 28, 2025.

As of November 30, 2024 and February 29, 2024, the balance for contract assets was $99.2 million and $79.3 million, respectively, primarily related to the AZZ Precoat Metals segment. Contract liabilities were $0.7 million and $1.0 million as of November 30, 2024 and February 29, 2024, respectively.