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Operating Segments
 9 Months Ended
Nov. 30, 2025
Segment Reporting [Abstract]  
Operating Segments
7. 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.
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. See Note 8 for a description of AVAIL's sale of its Electrical Products Group during the nine months ended November 30, 2025.
The following tables contain operating segment data for the three and nine months ended November 30, 2025 and 2024 by segment, for the Company's corporate operations and on a consolidated basis (in thousands):
Three Months Ended November 30, 2025
Metal CoatingsPrecoat Metals
Infrastructure Solutions(1)
Corporate(2)
Total
Sales$194,998 $230,748 $— $— $425,746 
Cost of sales136,873 186,932 — — 323,805 
Gross margin58,125 43,816 — — 101,941 
Selling, general and administrative6,038 7,932 21 18,471 32,462 
Operating income (loss)52,087 35,884 (21)(18,471)69,479 
Interest expense— — — (12,206)(12,206)
Equity in earnings of unconsolidated subsidiaries— — (1,437)— (1,437)
Other income (expense)15 — — (291)(276)
Income (loss) before income tax$52,102 $35,884 $(1,458)(30,968)55,560 
Income tax expense14,485 14,485 
Net income (loss)$(45,453)$41,075 
Depreciation and amortization$7,070 $9,617 $— $6,090 $22,777 
See notes below tables.
Nine Months Ended November 30, 2025
Metal CoatingsPrecoat Metals
Infrastructure Solutions(1)
Corporate(2)
Total
Sales$572,197 $692,786 $— $— $1,264,983 
Cost of sales(3)
400,151 557,469 — — 957,620 
Gross margin172,046 135,317 — — 307,363 
Selling, general and administrative(4)
17,521 23,559 126 58,668 99,874 
Operating income (loss)154,525 111,758 (126)(58,668)207,489 
Interest expense— — — (44,434)(44,434)
Equity in earnings of unconsolidated subsidiaries(5)
— — 231,431 — 231,431 
Other income (expense)(46)— — 1,285 1,239 
Income (loss) before income tax$154,479 $111,758 $231,305 (101,817)395,725 
Income tax expense94,396 94,396 
Net income (loss)$(196,213)$301,329 
Depreciation and amortization$20,560 $28,163 $— $18,253 $66,976 
See notes below tables.
Three Months Ended November 30, 2024
Metal CoatingsPrecoat Metals
Infrastructure Solutions(1)
Corporate(2)
Total
Sales$168,599 $235,055 $— $— $403,654 
Cost of sales116,542 189,334 — — 305,876 
Gross margin52,057 45,721 — — 97,778 
Selling, general and administrative5,684 8,641 29 24,889 39,243 
Operating income (loss)46,373 37,080 (29)(24,889)58,535 
Interest expense— — — (19,223)(19,223)
Equity in earnings of unconsolidated subsidiaries— — 7,168 — 7,168 
Other income (expense)116 — — (879)(763)
Income (loss) before income tax$46,489 $37,080 $7,139 (44,991)45,717 
Income tax expense12,114 12,114 
Net income (loss)$(57,105)$33,603 
Depreciation and amortization$6,614 $7,903 $— $6,116 $20,633 
See notes below tables.
Nine Months Ended November 30, 2024
Metal CoatingsPrecoat Metals
Infrastructure Solutions(1)
Corporate(2)
Total
Sales$516,750 $709,119 $— $— $1,225,869 
Cost of sales357,471 564,436 — — 921,907 
Gross margin159,279 144,683 — — 303,962 
Selling, general and administrative17,286 24,980 67 65,699 108,032 
Operating income (loss)141,993 119,703 (67)(65,699)195,930 
Interest expense— — — (63,906)(63,906)
Equity in earnings of unconsolidated subsidiaries— — 12,470 — 12,470 
Other income (expense)165 — — (307)(142)
Income (loss) before income tax$142,158 $119,703 $12,403 (129,912)144,352 
Income tax expense35,728 35,728 
Net income (loss)$(165,640)$108,624 
Depreciation and amortization$19,955 $23,134 $— $18,294 $61,383 
(1)
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. See Note 19 for further discussion of the receivables and liabilities.
(2)
Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(3)
Metal Coatings segment includes restructuring charges of $3.8 million. See Note 18.
(4)
Includes stock-based compensation expense recognized upon the adoption of the Executive Retiree LTI Program of $2.2 million, of which $0.4 million and $1.8 million are included in Metal Coatings and Corporate, respectively. See Note 16.
(5)
During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group ("EPG") to nVent Electric plc. The three months ended November 30, 2025 includes an adjustment to the gain related to the sale of the EPG of $(0.6) million. The nine months ended November 30, 2025 includes $226.8 million, which represents the gain related to the sale of the EPG, offset by the recognition of an impairment loss on the AVAIL JV and an adjustment related to a change in AVAIL's transfer pricing policy. See Note 8.
Asset balances by operating segment were as follows (in thousands):
As of
Assets:November 30, 2025February 28, 2025
Metal Coatings$596,743 $555,095 
Precoat Metals1,557,397 1,548,377 
Infrastructure Solutions - Investment in Joint Venture(1)
58,570 99,379 
Corporate18,197 24,250 
Total assets$2,230,907 $2,227,101 
(1) See Note 8 for information regarding the Investment in AVAIL joint venture.
Financial Information About Geographical Areas
Financial information about geographical areas for the periods presented was as follows (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.
Three Months Ended November 30,Nine Months Ended November 30,
Sales:2025202420252024
United States$413,214 $392,503 $1,228,606 $1,194,212 
Canada12,532 11,151 36,377 31,657 
Total sales$425,746 $403,654 $1,264,983 $1,225,869 
As of
November 30, 2025February 28, 2025
Property, plant and equipment, net:
United States$584,963 $574,332 
Canada19,128 18,609 
Total property, plant and equipment, net$604,091 $592,941