Operating Segments (Tables)

9 Months Ended

Nov. 30, 2025

he 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 Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)		Total
Sales	$	194,998	$	230,748	$	—	$	—	$	425,746
Cost of sales	136,873		186,932		—		—		323,805
Gross margin	58,125		43,816		—		—		101,941

Selling, general and administrative	6,038		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 expense							14,485		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 Coatings		Precoat 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 margin	172,046		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 expense							94,396		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 Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)		Total
Sales	$	168,599	$	235,055	$	—	$	—	$	403,654
Cost of sales	116,542		189,334		—		—		305,876
Gross margin	52,057		45,721		—		—		97,778

Selling, general and administrative	5,684		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 expense							12,114		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 Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)		Total
Sales	$	516,750	$	709,119	$	—	$	—	$	1,225,869
Cost of sales	357,471		564,436		—		—		921,907
Gross margin	159,279		144,683		—		—		303,962

Selling, general and administrative	17,286		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 expense							35,728		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.

Reconciliation of Assets from Segment to Consolidated

Asset balances by operating segment were as follows (in thousands):


	As of
Assets:	November 30, 2025		February 28, 2025
Metal Coatings	$	596,743	$	555,095
Precoat Metals	1,557,397		1,548,377
Infrastructure Solutions - Investment in Joint Venture(1)	58,570		99,379
Corporate	18,197		24,250
Total assets	$	2,230,907	$	2,227,101

(1) See Note 8 for information regarding the Investment in AVAIL joint venture.

Revenue from External Customers by Geographic 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:	2025		2024		2025		2024
United States	$	413,214	$	392,503	$	1,228,606	$	1,194,212
Canada	12,532		11,151		36,377		31,657

Total sales	$	425,746	$	403,654	$	1,264,983	$	1,225,869

Long-lived Assets by Geographic Areas


	As of
	November 30, 2025		February 28, 2025
Property, plant and equipment, net:
United States	$	584,963	$	574,332
Canada	19,128		18,609

Total property, plant and equipment, net	$	604,091	$	592,941