Financial Analysis

"7. Acquisitions Canton Galvanizing On July 1, 2025, we completed the acquisition of all the assets of Canton Galvanizing, LLC (""Canton Galvanizing""), a privately held hot-dip galvanizing company based in Canton, Ohio, for approximately $30.1 million. The acquisition expanded our geographical coverage in metal coatings capacity and further strengthens our network of facilities in the Midwest region of the United States. The business is included in the AZZ Metal Coatings segment. The goodwill arising from this acquisition was allocated to the AZZ Metal Coatings segment and is expected to be deductible for income tax purposes. The allocation of purchase price to the identifiable assets acquired and liabilities assumed for this acquisition is preliminary and subject to revisions during the measurement period, up to one year from the date the acquisition closed. These determinations include the use of estimates based on information that was available at the time these consolidated financial statements were prepared. During the third and fourth quarters of fiscal 2026, we made purchase price allocation adjustments that increased the fair value of intangible assets and other accrued liabilities by $1.4 million, offset by a decrease in goodwill and accounts receivable of $1.3 million and $0.1 million, respectively. We believe that the estimates used are reasonable; however, the estimates are subject to change as additional information becomes available. Intangible assets subject t …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"22. Commitments and Contingencies Legal AZZ and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business. These proceedings include labor and employment claims, various commercial disputes, workers compensation and environmental matters, all arising in the normal course of business. As discovery progresses on all outstanding legal matters, we continuously evaluate opportunities to either mediate the cases or settle the disputes for nuisance value or the cost of litigation as a way to resolve the disputes prior to trial. As the pending cases progress through additional discovery and potential mediation, our assessment of the likelihood of a favorable or an unfavorable outcome on the pending lawsuits may change. The actual outcome of these lawsuits or other proceedings cannot be predicted with any certainty, and the amount of any potential liability that could arise with respect to such lawsuits or other matters cannot be predicted at this time. Therefore, management, after consultation with legal counsel believes it has strong claims or defenses to all of its legal matters and does not expect liabilities, if any, from these claims or proceedings, either individually or in the aggregate, to have a material effect on the Companys financial position, results of operations or cash flows. Our prior-owned affiliate The Calvert Company entered into a series of commercial contracts in 2011 and 2015 to provide equipment and services t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated Sales Sales by segment and geography is disclosed in Note 17. In addition, the following table presents disaggregated sales, by customer industry for fiscal years 2026, 2025 and 2024 (in thousands): Year Ended February 28, 2026 February 28, 2025 February 29, 2024 Sales: Construction $ 923,971 $ 893,147 $ 841,557 Industrial 149,079 129,542 153,686 Consumer 130,548 123,124 128,658 Transportation 158,451 163,965 168,631 Electrical 149,562 127,542 100,236 Other (1) 138,470 140,424 144,821 Total sales $ 1,650,080 $ 1,577,744 $ 1,537,589 (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.

DisaggregationOfRevenueTableTextBlock

"16. Share-based Compensation AZZ has two share-based compensation plans, the 2014 Long Term Incentive Plan, as amended (the ""2014 Plan"") and the 2023 Long Term Incentive Plan (the ""2023 Plan"" and, together with the 2014 Plan, the ""LTI Plans""). The 2023 Plan was approved by our shareholders on July 11, 2023, at which time the 2014 Plan was terminated other than with respect to then outstanding awards under the 2014 Plan. No future grants may be made under the 2014 Plan. The LTI Plans provide our directors, officers and certain key employees with stock options, restricted stock units, performance share units, stock appreciation rights and other stock-based awards. The maximum number of shares that may be issued under the 2023 Plan is 1.45 million shares and, as of February 28, 2026, we have approximately 1.17 million shares reserved for future issuance under the 2023 Plan. We account for our share-based employee compensation plans in accordance with ASC 718, CompensationStock Compensation . Compensation expense is recognized over the requisite service period, which is in line with the applicable vesting period for each share-based award. Forfeitures are recognized when they occur. Restricted Stock Unit Awards Restricted stock unit (""RSU"") awards are valued at the market price of AZZ's common stock on the grant date. Awards generally vest ratably over a period of three years, but these awards may vest earlier in accordance with the Plans accelerated vesting provisions. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"20. Fair Value Measurement Recurring Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In accordance with ASC 820, Fair Value Measurement (""ASC 820""), certain of our assets and liabilities, which are carried at fair value, are classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities; Level 2: Observable market-based inputs, other than Level 1, or unobservable inputs corroborated by market data; or, Level 3: Unobservable inputs that are not corroborated by market data and reflect the Companys own assumptions. The carrying amount of our financial instruments (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities) approximates the fair value of these instruments based upon either their short-term nature or their variable market rate of interest. We have not made an option to elect fair value accounting for any of our financial instruments. Interest Rate Swap Agreement Our derivative instruments consist of the 2025 Swap and the 2022 Swap, both of which are considered Level 2 of the fair value hierarchy. The 2025 Swap and the 2022 Swap are included in ""Other long-term liabilities"" and ""Other accrued liabilities"" as of February 28, 2026, and February 28, 2025, respectively, in the consolidated balance sheets. The valuations of the 2025 Swa …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

3. Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized but are subject to annual impairment tests. Other intangible assets are amortized on a straight-line basis over the estimated useful lives. Changes in goodwill by segment for fiscal years 2026 and 2025 were as follows (in thousands): As of February 28, 2026 Beginning Balance Acquisitions Other Currency Translation Adjustment Ending Balance Metal Coatings $ 176,070 $ 9,585 $ (123) $ 1,428 $ 186,960 Precoat Metals 527,793 527,793 Total $ 703,863 $ 9,585 $ (123) $ 1,428 $ 714,753 As of February 28, 2025 Beginning Balance Acquisitions (1) Other Currency Translation Adjustment Ending Balance Metal Coatings $ 177,675 $ $ $ (1,605) $ 176,070 Precoat Metals 527,793 527,793 Total $ 705,468 $ $ $ (1,605) $ 703,863 Amortizable intangible assets consisted of the following as of February 28, 2026 and 2025 (in thousands): Weighted-Average Life (Years) As of February 28, 2026 February 28, 2025 Customer related intangibles 25 $ 483,709 $ 474,234 Non-compete agreements 15 6,772 6,698 Trademarks / Tradenames 34 35,774 35,774 Technology 15 36,000 36,000 Gross intangible assets 562,255 552,706 Less accumulated amortization (154,022) (132,361) Total amortizable intangible assets, net $ 408,233 $ 420,345 See Note 21 for a description of the impairment of intangible assets during fiscal 2026. In addition to its amortizable intangible assets, we have recorded indefinite-lived intangible assets of $1.5 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"11. Income Taxes The provision for income taxes for fiscal year 2026, 2025 and 2024 consisted of the following (in thousands): Year Ended February 28, 2026 February 28, 2025 February 29, 2024 Income before income taxes: Domestic $ 412,281 $ 165,822 $ 123,955 Foreign 8,034 4,861 6,148 Income before income taxes 420,315 170,683 130,103 Current provision: Federal 55,957 28,660 19,839 Foreign 2,206 1,738 2,189 State and local 12,104 3,350 1,716 Total current provision for income taxes 70,267 33,748 23,744 Deferred provision (benefit): Federal 27,094 7,123 3,920 Foreign 494 (340) (316) State and local 5,200 1,319 1,148 Total deferred provision for income taxes 32,788 8,102 4,752 Total provision for income taxes $ 103,055 $ 41,850 $ 28,496 A reconciliation from the federal statutory income tax amount and federal statutory income tax rate to the effective income tax amount and effective income tax rate is as follows for fiscal year 2026: Year Ended February 28, 2026 Amount Percent U.S. Federal Statutory Income Tax Rate $ 88,266 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effect (1) 15,107 3.6 % Foreign Tax Effects 472 0.1 % Effect of Cross-Border Tax Laws 22 % Tax Credits Research and development tax credits (4,588) (1.1) % Nontaxable or Nondeductible Items 1,587 0.4 % Changes in Unrecognized Tax Benefits 1,169 0.3 % Other Adjustments 1,020 0.2 % Effective Tax $ 103,055 24.5 % (1) Fiscal year 2026 State taxes in Illinois, Wisconsin, Massachusetts, Tennessee, Miss …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"9. Leases We are a lessee under various leases for facilities and equipment. See Note 1 for a description of our accounting policy for leases. As of February 28, 2026, we were the lessee for 145 operating leases and 139 finance leases with terms of 12 months or more. These leases are reflected in ""Right-of-use assets,"" ""Lease liabilityshort-term"" and ""Lease liabilitylong-term"" in our consolidated balance sheets. Our leases are primarily for (i) operating facilities, (ii) vehicles and equipment used in operations, (iii) facilities used for back-office functions, (iv) equipment used for back-office functions, and (v) temporary storage. The majority of our vehicle and equipment leases have both a fixed and variable component. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. We have a significant number of short-term leases, including month-to-month agreements. Our short-term lease agreements include expenses incurred hourly, daily, monthly and for other durations of time of one year or less. Our future lease commitments as of February 28, 2026 do not reflect all of our short-term lease commitments. In January 2026, we executed a 20-year extension of a leased facility in Columbia, South Carolina, which resulted in a remeasurement of the related lease liability and right-of-use asset in accordance with ASC 842, Lease Accounting . …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"10. Debt Our long-term debt instruments and balances outstanding as of February 28, 2026 and February 28, 2025 were as follows (in thousands): As of February 28, 2026 February 28, 2025 Revolving Credit Facility $ 50,000 $ 30,000 Term Loan B 335,000 870,250 Receivables Securitization Facility 130,000 Total debt, gross 515,000 900,250 Unamortized debt issuance costs (37,262) (47,885) Long-term debt, net $ 477,738 $ 852,365 2022 Credit Agreement and Term Loan B We have a credit agreement with a syndicate of financial institutions as lenders that was entered into on May 13, 2022 and was subsequently amended on August 17, 2023, December 20, 2023, March 20, 2024, September 24, 2024, February 27, 2025, and August 5, 2025 (collectively referred to herein as the ""2022 Credit Agreement""). The 2022 Credit Agreement includes the following significant terms: i. provides for a senior secured initial term loan in the aggregate principal amount of $1.3 billion (the ""Term Loan B""), due May 13, 2029, which is secured by substantially all of the assets of the Company; as of February 28, 2026, the outstanding balance of the Term Loan B was $335.0 million; ii. provides for a maximum senior secured Revolving Credit Facility in the aggregate principal amount of $400.0 million (the ""Revolving Credit Facility""), due May 13, 2027; iii. includes a letter of credit sub-facility of up to $100.0 million, which is part of, and not in addition to, the Revolving Credit Facility; iv. borrowings under t …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (""ASU 2023-09""), which expands disclosures in an entity's income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We adopted ASU 2023-09 on a prospective basis for the annual period ending February 28, 2026, and the adoption does not affect our financial position or results of operations, but has resulted in additional disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (""ASU 2023-07""), which expands disclosures about a public entity's reportable segments and requires more enhanced information about a reportable segment's expenses, interim segment profit or loss, and how a public entity's chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 for the fiscal year ending February 28, 2025, which was applied retrospectively for all periods presented. Accounting Pronounc …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"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 Me …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"1. The Company, Basis of Presentation and Significant Accounting Policies Organization AZZ Inc. (""AZZ"", the ""Company"", ""our"" or ""we"") was established in 1956 and incorporated under the laws of the state of Texas. We are a provider of hot-dip galvanizing and coil coating solutions to a broad range of end markets in North America. We have three distinct operating segments: the AZZ Metal Coatings segment, the AZZ Precoat Metals segment, and the AZZ Infrastructure Solutions segment. Our AZZ Metal Coatings segment is a leading provider of metal coating solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication industry and other industries. The AZZ Precoat Metals segment provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil, primarily serving the construction; appliance; heating, ventilation, and air conditioning (HVAC); container; transportation and other end markets in North America. The AZZ Infrastructure Solutions segment (""AIS"") represents our 40% non-controlling interest in the AIS Investment Holdings LLC (the ""AVAIL JV""). AIS Investment Holdings LLC is primarily dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in markets worldwide. See Note 18 f …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"12. Mezzanine Equity Series A Convertible Preferred Stock On May 9, 2024, we fully redeemed our 240,000 shares of 6.0% Series A Convertible Preferred Stock for $308.9 million. The payment was calculated as the face value of the Series A Preferred Stock of $240.0 million, multiplied by the Return Factor of 1.4, less dividends paid to date of $27.1 million. The redemption premium of $75.2 million, which was calculated as the difference between the redemption amount and the book value of $233.7 million, was recorded as a deemed dividend, and reduced net income available to common shareholders. The Series A Preferred Stock was redeemed using proceeds from the April 2024 Secondary Public Offering. See Note 13. Dividends The Series A Preferred Stock accumulated a 6.0% dividend per annum, or $15.00 per share per quarter. Dividends were payable in cash or in kind, by accreting and increasing the Series A Base Amount (""PIK Dividends""). Dividends were payable on the sum of (i) the aggregate liquidation preference amount of $240.0 million plus (ii) any PIK Dividends. Dividends were accrued daily and paid quarterly in arrears, on March 31, June 30, September 30 and December 31 of each year. Following the calendar quarter ending June 30, 2027, we were not able to elect PIK Dividends and dividends on the Series A Preferred Stock were required to be paid in cash. All dividends were paid in cash through May 9, 2024, at which time the Series A Preferred Stock was redeemed. The dividend wou …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"23. Subsequent Events As of February 28, 2026, we have a defined benefit pension plan for certain employees and former employees of Precoat Metals (the ""Plan""). Benefit accruals are frozen for all participants; participants do not accrue any future benefits under the Plan, and any new hires are not eligible to participate in the Plan. On April 8, 2026, our Board of Directors approved a plan to terminate the Plan. The termination is intended to reduce balance sheet volatility, administrative complexity, and long-term pension risk. See Note 15 for more information related to the Plan. The termination remains subject to customary regulatory approvals, satisfaction of plan funding requirements, and completion of benefit settlement activities. An estimate of the impact to the financial statements cannot be made at this time."

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"2. Acquisitions Canton Galvanizing On July 1, 2025, we completed the acquisition of all the assets of Canton Galvanizing, LLC (""Canton Galvanizing""), a privately held hot-dip galvanizing company based in Canton, Ohio, for approximately $30.1 million. The acquisition expanded our geographical coverage in metal coatings capacity and further strengthens our network of facilities in the Midwest region of the United States. The business is included in the AZZ Metal Coatings segment. The goodwill arising from this acquisition was allocated to the AZZ Metal Coatings segment and is expected to be deductible for income tax purposes. The allocation of purchase price to the identifiable assets acquired and liabilities assumed for this acquisition has been finalized. Intangible assets subject to amortization from the acquisition consist of customer relationships. The total weighted-average amortization period for these assets is 15 years, and the assets have no residual value. The following table summarizes the fair values of the allocation of assets acquired and liabilities assumed, in aggregate, related to the Canton Galvanizing acquisition, as of the date of the acquisition (in thousands): July 1, 2025 Assets Accounts receivable $ 1,409 Inventories 1,049 Property, plant and equipment 4,759 Goodwill 9,585 Intangibles and other assets 13,810 Total fair value of assets acquired $ 30,612 Liabilities Accounts payable (237) Other accrued liabilities (231) Total fair value of liabilities …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"18. Commitments and Contingencies Legal AZZ and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business. These proceedings include labor and employment claims, various commercial disputes, workers compensation and environmental matters, all arising in the normal course of business. As discovery progresses on all outstanding legal matters, we continuously evaluate opportunities to either mediate the cases or settle the disputes for nuisance value or the cost of litigation as a way to resolve the disputes prior to trial. As the pending cases progress through additional discovery and potential mediation, our assessment of the likelihood of a favorable or an unfavorable outcome on the pending lawsuits may change. The actual outcome of these lawsuits or other proceedings cannot be predicted with any certainty, and the amount of any potential liability that could arise with respect to such lawsuits or other matters cannot be predicted at this time. Therefore, management, after consultation with legal counsel believes it has strong claims or defenses to all of its legal matters and does not expect liabilities, if any, from these claims or proceedings, either individually or in the aggregate, to have a material effect on the Companys financial position, results of operations or cash flows. In 2017, Southeast Texas Industries, Inc. (""STI"") filed a breach of contract lawsuit against the Company in the 1st District Court of Jasper C …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended May 31, 2026 2025 Sales: Construction $ 258,002 $ 248,417 Industrial 40,590 37,670 Infrastructure 55,970 56,443 Transportation 27,392 27,738 HVAC & Appliances 22,772 23,341 Container 20,776 7,046 Other (1) 23,028 21,307 Total sales $ 448,530 $ 421,962 (1) Other includes less significant markets, such as recreation, sales from recycling and other miscellaneous customer industries.

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"15. Share-based Compensation Effective April 18, 2025, the Compensation Committee of the Board of Directors (the ""Compensation Committee"") adopted the Executive Retiree LTI Program (the ""ERP"") to continue the vesting of annual equity awards to certain executive officers and other senior members of the management team as designated by the Compensation Committee, including the Company's named executive officers (a ""Covered Executive"" or collectively, the ""Covered Executives""), upon qualified Retirement (as such term is defined in the Company's 2023 Long-Term Incentive Plan). The ERP is applicable to both annual restricted share unit awards and annual performance share unit awards granted to the Covered Executives pursuant to newly adopted Restricted Share Unit (""RSU"") Award Agreements and Performance Share Unit (""PSU"") Award Agreements for the Covered Executives (collectively, the ""Award Agreements"") containing such provisions for the fiscal year 2026 long-term incentive equity awards. Upon adoption of the ERP, the service requirement for executives that are currently eligible for retirement has been met. As a result, we recognized additional stock-based compensation for the three months ended May 31, 2025, of $2.2 million upon the adoption of the ERP related to the RSUs for Covered Executives that have achieved qualified retirement status."

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock

"11. Fair Value Measurements Recurring Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In accordance with ASC 820, Fair Value Measurement (""ASC 820""), certain of our assets and liabilities, which are carried at fair value, are classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities; Level 2: Observable market-based inputs, other than Level 1, or unobservable inputs corroborated by market data; or, Level 3: Unobservable inputs that are not corroborated by market data and reflect the Companys own assumptions. The carrying amount of our financial instruments (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities) approximates the fair value of these instruments based upon either their short-term nature or their variable market rate of interest. We have not made an option to elect fair value accounting for any of our financial instruments. Interest Rate Swap Agreement Our derivative instrument consists of the 2025 Swap, which is considered Level 2 of the fair value hierarchy. The 2025 Swap is included in ""Other assets"" and ""Other long-term liabilities"" as of May 31, 2026 and February 28, 2026, respectively, in the consolidated balance sheets. The valuation of the 2025 Swap is determined using widely accepted valuation techniques includ …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

13. Income Taxes The provision for income taxes reflects an effective tax rate of 21.2% for the three months ended May 31, 2026, compared to 24.3% for the three months ended May 31, 2025. The decrease in the effective tax rate is driven by higher tax deductions for stock compensation in the current year, coupled with higher tax expense in the prior year related to equity in earnings from the AVAIL JV.

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"12. Leases We are a lessee under various leases for facilities and equipment. As of May 31, 2026, we were the lessee for 161 operating leases and 158 finance leases with terms of 12 months or more. These leases are reflected in ""Right-of-use assets,"" ""Lease liabilityshort-term"" and ""Lease liabilitylong-term"" in our consolidated balance sheets. Our leases are primarily for (i) operating facilities, (ii) vehicles and equipment used in operations, (iii) facilities used for back-office functions, (iv) equipment used for back-office functions, and (v) temporary storage. The majority of our vehicle and equipment leases have both a fixed and variable component. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. We have a significant number of short-term leases, including month-to-month agreements. Our short-term lease agreements include expenses incurred hourly, daily, monthly and for other durations of time of one year or less. Our future lease commitments as of May 31, 2026, do not reflect all of our short-term lease commitments. The following table outlines the classification of right-of-use (""ROU"") assets and lease liabilities in the consolidated balance sheets as of May 31, 2026 and February 28, 2026 (in thousands): As of May 31, 2026 February 28, 2026 Assets Balance Sheet Classification Operating right-of-use assets Right-of-u …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"10. Debt Our long-term debt instruments and balances outstanding as of May 31, 2026 and February 28, 2026 were as follows (in thousands): As of May 31, 2026 February 28, 2026 Revolving Credit Facility $ 30,000 $ 50,000 Term Loan B 335,000 335,000 Receivables Securitization Facility 150,000 130,000 Total debt, gross 515,000 515,000 Unamortized debt issuance costs (34,396) (37,262) Long-term debt, net $ 480,604 $ 477,738 2022 Credit Agreement and Term Loan B We have a credit agreement with a syndicate of financial institutions as lenders, entered into on May 13, 2022 and amended from time to time (collectively referred to herein as the ""2022 Credit Agreement""). The 2022 Credit Agreement includes the following significant terms: i. provides for a senior secured initial term loan in the aggregate principal amount of $1.3 billion (the ""Term Loan B""), due May 13, 2029, which is secured by substantially all of the assets of the Company; as of May 31, 2026, the outstanding balance of the Term Loan B was $335.0 million; ii. provides for a maximum senior secured Revolving Credit Facility in the aggregate principal amount of $400.0 million (the ""Revolving Credit Facility""), due May 13, 2027; iii. includes a letter of credit sub-facility of up to $100.0 million, which is part of, and not in addition to, the Revolving Credit Facility; iv. borrowings under the Term Loan B bear an interest rate of Secured Overnight Financing Rate (""SOFR"") plus 1.75% and the Revolving Credit Facilit …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In July 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (""ASU 2025-05""). ASU 2025-05 provides a practical expedient that permits entities, when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers, to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company adopted ASU 2025-05 effective March 1, 2026, and the adoption of ASU 2025-05 did not have a material impact on the Companys condensed consolidated financial statements. Accounting Pronouncements Not Yet Adopted In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (""ASU 2025-11""), which clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP. The amendment does not intend to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements, but rather to provide clarity and improve the navigability of the existing interim reporting guidance. ASU 2025-11 is effective for interim periods w …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"5. Disaggregated Sales The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended May 31, 2026 2025 Sales: Construction $ 258,002 $ 248,417 Industrial 40,590 37,670 Infrastructure 55,970 56,443 Transportation 27,392 27,738 HVAC & Appliances 22,772 23,341 Container 20,776 7,046 Other (1) 23,028 21,307 Total sales $ 448,530 $ 421,962 (1) Other includes less significant markets, such as recreation, sales from recycling and other miscellaneous customer industries. During the three months ended May 31, 2026, the Company revised its disaggregated sales categories to better reflect its current business operations. For the three months ended May 31, 2025, customer industry categories have been reclassified to conform to the current period presentation. This reclassification had no impact on total sales. See 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 ass …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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 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 Met …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"14. Equity Share Repurchase Program On November 10, 2020, our Board of Directors authorized a $100 million share repurchase program pursuant to which we may repurchase our common stock (the ""2020 Authorization""). Repurchases under the 2020 Authorization will be made through open market or private transactions, in accordance with applicable federal securities laws, and could include repurchases pursuant to Rule 10b5-1 trading plans, which allows stock repurchases when we might otherwise be precluded from doing so. Currently, share repurchases may not exceed 6% of our market capitalization per fiscal year. On January 22, 2026, our Board of Directors authorized a $100 million share repurchase program (the ""2026 Share Repurchase Program"") pursuant to which we may repurchase our common stock. Repurchases under the 2026 Share Repurchase Program will be made through open market or private transactions, in accordance with applicable federal securities laws, and could include repurchases pursuant to Rule 10b5-1 trading plans, which allows stock repurchases when we might otherwise be precluded from doing so. Currently, share repurchases may not exceed 6% of our market capitalization per fiscal year. During the three months ended May 31, 2026, we did not repurchase any shares of common stock under the 2020 Share Authorization or the 2026 Share Repurchase Program. As of May 31, 2026, there was $33.2 million and $100.0 million remaining to repurchase shares under the 2020 Authorizati …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing