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Investments in Unconsolidated Entity
 9 Months Ended
Nov. 30, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entity
8. Investments in Unconsolidated Entity
AVAIL JV
We account for our 40% interest in the AVAIL JV under the equity method of accounting and include our equity in earnings as part of the AZZ Infrastructure Solutions segment. We record our equity in earnings in the AVAIL JV on a one-month lag. In May 2025, Avail Infrastructure Solutions ("AVAIL"), in which we have an unconsolidated investment through the AVAIL JV, completed the sale of its electrical enclosures, switchgear, and bus systems businesses (the "Electrical Products Group") to nVent Electric plc for a purchase price of $975.0 million.
During the first quarter of fiscal 2026, we received a distribution of cash from the AVAIL JV of $273.2 million, which exceeded our investment in the AVAIL JV of $107.4 million. Since we are not liable for the obligations of the AVAIL JV nor otherwise committed to provide financial support, after reducing our investment in the AVAIL JV to zero, we recognized $165.8 million as a gain during the first quarter of fiscal 2026. Due to the timing of the receipt of cash and the recognition of equity in earnings, we suspended the recognition of equity in earnings of the AVAIL JV as of May 31, 2025, until our proportionate share of earnings exceeded the excess distribution previously recognized in earnings. During the second quarter of fiscal 2026, we recognized the equity in earnings from AVAIL related to our proportionate share of the gain on the sale of the Electrical Products Group. The equity in earnings was in excess of the amount we recorded in the first quarter of fiscal 2026. Therefore, we resumed the recognition of equity in earnings of the AVAIL JV in the second quarter of fiscal 2026.
Following the recognition of our proportionate share of the gain on the sale of the Electrical Products Group and equity in earnings during the second quarter of fiscal 2026, management identified events and circumstances indicating that the fair value of the Company's investment in the AVAIL JV may have fallen below its carrying value on an other-than-temporary basis. These indicators arose principally from the significant business divestiture by AVAIL and a corresponding reduction in AVAIL's projected future earnings. In response, management performed a recoverability analysis of our investment in the AVAIL JV. Management estimated the fair value of our 40% interest in the AVAIL JV and concluded that the decline in fair value was other-than-temporary. Accordingly, we recorded an impairment charge of $45.9 million during the second quarter of fiscal 2026 to write down the carrying value of our investment in the AVAIL JV. After recognizing the impairment loss, management believes the carrying value of the investment in the AVAIL JV is recoverable based on AVAIL's current financial position. We will continue to monitor the AVAIL JV for any indicators of impairment, and if further declines in the fair value occur and are deemed other-than-temporary, additional write-downs will be recorded.
As of November 30, 2025, our investment in the AVAIL JV was $58.6 million. For the nine months ended November 30, 2025, we recorded $231.4 million in equity in earnings, which consists of 1) $2.8 million of equity in earnings
from the AVAIL JV's operations for the nine months ended November 30, 2025, 2) $274.5 million of a net gain from the sale of the Electrical Products Group recognized during the second quarter of fiscal 2026, offset by 3) an impairment loss of $45.9 million on the AVAIL JV recognized during the second quarter of fiscal 2026.
The following tables summarize balance sheet and income statement information for the AVAIL JV:
Summarized Balance Sheet
As of
November 30, 2025(1)
February 28, 2025(1)
Current assets$255,145 $300,404 
Long-term assets75,771 194,528 
Total assets$330,916 $494,932 
Current liabilities$82,755 $155,585 
Long-term liabilities20,004 134,517 
Total liabilities102,759 290,102 
Total partners' capital228,157 204,830 
Total liabilities and partners' capital$330,916 $494,932 
Summarized Operating Data
Three Months Ended November 30,Nine Months Ended November 30,
2025(1)
2024(1)
2025(1)
2024(1)
Sales$34,137 $150,998 $245,840 $400,298 
Gross profit5,283 42,842 57,736 101,928 
Income (loss) before income taxes(6,279)19,826 704,907 30,025 
Net income (loss)(6,055)21,015 704,702 32,036