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Operating Segments
 12 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
Operating Segments
17. 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 before taxes 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 — represents our 40% non-controlling interest 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 18 for a description of AVAIL's sale of its Electrical Products Group and Welding Services Business during the year ended February 28, 2026.
The following tables contain operating segment data for fiscal years 2026, 2025 and 2024 was as follows (in thousands):
Year Ended February 28, 2026
Metal Coatings(1)
Precoat
Metals
Infrastructure Solutions(2)
Total
Sales$758,709 $891,371 $— $1,650,080 
Cost of sales531,089 724,036 — 1,255,125 
Selling, general and administrative(3)
23,982 29,251 130 53,363 
Operating income (loss)$203,638 $138,084 (130)341,592 
Equity in earnings of unconsolidated subsidiaries(4)
209,733 209,733 
Income before income taxes$209,603 551,325 
Reconciliation to consolidated income before income taxes
Corporate selling, general and administrative expenses(76,975)
Interest expense(55,650)
Other income1,615 
Consolidated income before income taxes$420,315 
See notes on page 74.
Year Ended February 28, 2025
Metal CoatingsPrecoat
Metals
Infrastructure Solutions(2)
Total
Sales$665,107 $912,637 $— $1,577,744 
Cost of sales464,260 730,804 — 1,195,064 
Selling, general and administrative22,372 34,005 6,737 63,114 
Operating income (loss)$178,475 $147,828 (6,737)319,566 
Equity in earnings of unconsolidated subsidiaries16,163 16,163 
Income before income taxes$9,426 335,729 
Reconciliation to consolidated income before income taxes
Corporate selling, general and administrative expenses(83,202)
Interest expense(81,282)
Other expense(562)
Consolidated income before income tax$170,683 
See notes on page 74.
Year Ended February 29, 2024
Metal Coatings(1)
Precoat
Metals
Infrastructure Solutions(2)
Total
Sales$656,189 $881,400 $— $1,537,589 
Cost of sales465,147 708,981 — 1,174,128 
Selling, general and administrative26,314 32,848 6,246 65,408 
Operating income (loss)$164,728 $139,571 (6,246)298,053 
Equity in earnings of unconsolidated subsidiaries15,407 15,407 
Income before income taxes$9,161 313,460 
Reconciliation to consolidated income before income taxes
Corporate selling, general and administrative expenses(76,453)
Interest expense(107,065)
Other income161 
Consolidated income before income tax$130,103 
(1)
For fiscal year 2026, AZZ Metal Coatings segment includes restructuring charges of $3.8 million in "Selling, general and administrative". See Note 21.
For fiscal year 2024, AZZ Metal Costings segment included expenses related to a legal matter of $5.5 million in "Selling, general and administrative". See Note 22.
(2)
For the AZZ Infrastructure Solutions segment, the CODM uses only net income before taxes as the measure to allocate resources and assess segment performance. 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. Fiscal year 2025 and 2024 include $6.5 million and $5.8 million, respectively, related to legal matters. See Note 22 for further discussion of the receivables and liabilities.
(3)
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.
(4)
During the first quarter of fiscal 2026, AVAIL completed the sale of the Electrical Products Group ("EPG"). During the fourth quarter of fiscal 2026, AVAIL completed the sale of the majority of its Welding Services Business ("WSI"). Equity in earnings for the year ended February 28, 2026 includes $204.5 million, consisting of a net gain related to the sale of the EPG and WSI, partially offset by the recognition of an impairment loss on the AVAIL JV, a prior period adjustment for accounting errors within the Brazil operations of the AVAIL JV, and an adjustment related to a change in AVAIL's transfer pricing policy. For further information about the AVAIL JV, see Note 18.
Depreciation and amortization expense by segment for fiscal years 2026, 2025 and 2024 were as follows (in thousands):
Year Ended
Depreciation and amortizationFebruary 28, 2026February 28, 2025February 29, 2024
Metal Coatings$27,723 $26,640 $26,353 
Precoat Metals38,059 31,185 27,940 
Total reportable segment depreciation and amortization65,782 57,825 54,293 
Corporate24,274 24,380 25,130 
Consolidated depreciation and amortization$90,056 $82,205 $79,423 
Expenditures for acquisitions, net of cash, and property, plant and equipment by segment for fiscal years 2026, 2025 and 2024 were as follows (in thousands):
Year Ended
Expenditures for acquisitions, net of cash, and property, plant and equipmentFebruary 28, 2026February 28, 2025February 29, 2024
Metal Coatings$30,937 $29,958 $25,484 
Precoat Metals48,053 84,537 67,809 
Total reportable segment expenditures for acquisitions, net of cash, and property, plant and equipment78,990 114,495 93,293 
Corporate1,786 1,388 1,826 
Consolidated expenditures for acquisitions, net of cash, and property, plant and equipment$80,776 $115,883 $95,119 
Asset balances by operating segment for each period were as follows (in thousands):
As of
Segment Assets(1)
February 28, 2026February 28, 2025
Metal Coatings(2)
$604,107 $555,095 
Precoat Metals(3)
1,562,994 1,548,377 
Infrastructure Solutions - Investment in Joint Venture19,960 99,379 
Total reportable segment assets2,187,061 2,202,851 
Corporate26,413 24,250 
Consolidated assets$2,213,474 $2,227,101 
(1)
Segment assets include identifiable intangible assets associated with each reportable segment. The related amortization expense for intangible assets are not allocated to the segments.
(2)
Identifiable intangible assets related to Metal Coatings of $35.0 million and $28.5 million, net of accumulated amortization, as of February 28, 2026 and February 28, 2025, respectively, are included in segment assets. The associated amortization expense is not allocated to the segment.
(3)
Identifiable intangible assets related to Precoat Metals of $374.8 million and $393.3 million, net of accumulated amortization, as of February 28, 2026 and February 28, 2025, respectively, are included in segment assets. The associated amortization expense is not allocated to the segment.
Financial Information About Geographical Areas
Financial information about geographical areas for the periods presented was as follows for fiscal years 2026, 2025 and 2024 (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.
Year Ended
SalesFebruary 28, 2026February 28, 2025February 29, 2024
United States$1,603,851 $1,537,215 $1,498,397 
Canada46,229 40,529 39,192 
Total$1,650,080 $1,577,744 $1,537,589 
As of
Long-lived assetsFebruary 28, 2026February 28, 2025
United States$1,758,060 $1,792,337 
Canada58,663 55,700 
Total$1,816,723 $1,848,037