AZZ (AZZ) 10-Q 12 Oct 21 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Aug. 31, 2021	Sep. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Aug. 31, 2021
Document Transition Report	false
Entity File Number	1-12777
Entity Registrant Name	AZZ Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-0948250
Entity Address, Address Line One	One Museum Place, Suite 500
Entity Address, Address Line Two	3100 West 7th Street
Entity Address, City or Town	Fort Worth,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76107
City Area Code	817
Local Phone Number	810-0095
Title of 12(b) Security	Common Stock
Trading Symbol	AZZ
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,839,567
Entity Central Index Key	0000008947
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--02-28

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2021	Feb. 28, 2021
Current assets:
Cash and cash equivalents	$ 15,488	$ 14,837
Accounts receivable (net of allowance for credit losses of $5,272 as of August 31, 2021 and $5,713 as of February 28, 2021)	133,430	128,127
Inventories:
Raw material	96,578	86,913
Work-in-process	6,533	4,453
Finished goods	1,328	1,546
Contract assets	61,355	58,056
Prepaid expenses and other	8,569	5,876
Assets held for sale	5,758	3,684
Total current assets	329,039	303,492
Property, plant and equipment, net	202,220	205,909
Operating lease right-of-use assets	46,828	37,801
Goodwill	353,637	353,881
Deferred Tax Assets	4,165	3,969
Intangibles and other assets, net	87,349	91,390
Total assets	1,023,238	996,442
Current liabilities:
Accounts payable	43,877	41,034
Income tax payable	1,699	0
Accrued salaries and wages	20,296	22,606
Other accrued liabilities	31,362	27,136
Customer deposits	861	348
Contract liabilities	13,729	16,138
Lease liability, short-term	7,167	6,588
Total current liabilities	118,991	113,850
Debt due after one year, net	182,451	178,419
Lease liability, long-term	38,978	32,629
Deferred income taxes	38,569	39,283
Other long-term liabilities	5,823	8,969
Total liabilities	384,812	373,150
Commitments and contingencies
Shareholders’ equity:
Common stock, $1 par, shares authorized 100,000; 24,840 shares issued and outstanding at August 31, 2021 and 25,108 shares issued and outstanding at February 28, 2021	24,840	25,108
Capital in excess of par value	79,908	75,979
Retained earnings	559,207	547,289
Accumulated other comprehensive loss	(25,529)	(25,084)
Total shareholders’ equity	638,426	623,292
Total liabilities and shareholders' equity	$ 1,023,238	$ 996,442

Condensed consolidated Balanc_2

Condensed consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2021	Feb. 28, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 5,272	$ 5,713
Common Stock, Par Value (usd per share)	$ 1	$ 1
Common Stock, Shares Authorized (shares)	100,000,000	100,000,000
Common Stock, Shares Issued (shares)	24,840,000	25,108,000
Common Stock, Shares, Outstanding (shares)	24,840,000	25,108,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Income Statement [Abstract]
Sales	$ 216,447	$ 203,372	$ 446,273	$ 416,664
Costs and Expenses
Cost of sales	161,332	157,278	333,231	328,363
Gross margin	55,115	46,094	113,042	88,301
Selling, general and administrative	28,587	26,749	55,802	54,639
Restructuring and impairment charges	0	18,693	0	18,693
Operating income	26,528	652	57,240	14,969
Interest expense	1,754	2,470	3,451	5,104
Other (income) expense, net	918	92	(51)	1,547
Income (loss) before income taxes	23,856	(1,910)	53,840	8,318
Income tax expense (benefit)	4,878	(120)	12,525	4,567
Net income (loss)	$ 18,978	$ (1,790)	$ 41,315	$ 3,751
Earnings Per Common Share
Basic earnings per share (usd per share)	$ 0.76	$ (0.07)	$ 1.65	$ 0.14
Diluted earnings per share (usd per share)	0.76	(0.07)	1.64	0.14
Cash dividends declared per common share (usd per share)	$ 0.17	$ 0.17	$ 0.34	$ 0.34

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 18,978	$ (1,790)	$ 41,315	$ 3,751
Other comprehensive income (loss):
Foreign currency translation adjustments, net of income tax of $0	(3,096)	4,540	(515)	3,500
Interest rate swap, net of income tax of $0, $7, $0 and $14, respectively	0	(14)		(28)
Other comprehensive income (loss)	(3,096)	4,526	(445)	3,472
Comprehensive income	$ 15,882	$ 2,736	$ 40,870	$ 7,223

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0	$ 0
Interest rate swap, income tax	$ 0	$ 7	$ 0	$ 14

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Cash Flows From Operating Activities:
Net income (loss)	$ 41,315	$ 3,751
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Bad debt expense	(521)	226
Amortization and depreciation	22,083	23,149
Deferred income taxes	(954)	(5,493)
Loss on disposal of business	0	1,198
Non-cash restructuring and impairment charges	0	17,425
Net (gain) loss on sale of property, plant and equipment	485	(113)
Amortization of deferred borrowing costs	330	269
Share-based compensation expense	4,682	4,083
Effects of changes in assets and liabilities, net of acquisitions and dispositions:
Accounts receivable	(7,910)	19,686
Inventories	(13,184)	(480)
Prepaid expenses and other	(2,723)	1,372
Other assets	(2,605)	202
Net change in contract assets and liabilities	(5,071)	(452)
Accounts payable	2,661	(15,931)
Other accrued liabilities and income taxes payable	(830)	(16,726)
Net cash provided by operating activities	37,758	32,166
Cash Flows Used For Investing Activities:
Proceeds from sale of property, plant and equipment	2,537	397
Purchase of property, plant and equipment	(13,099)	(19,269)
Proceeds from sale of subsidiaries, net	0	8,341
Net cash used in investing activities	(10,562)	(10,531)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock	1,544	1,694
Payments for taxes related to net share settlement of equity awards	(2,149)	(554)
Proceeds from revolving loan	182,000	96,000
Payments on revolving loan	(178,000)	(127,000)
Repurchase and retirement of treasury stock	(21,233)	(6,379)
Payments of dividends	(8,510)	(8,892)
Net cash used in financing activities	(26,348)	(45,131)
Effect of exchange rate changes on cash	(197)	837
Net increase (decrease) in cash and cash equivalents	651	(22,659)
Cash and cash equivalents at beginning of period	14,837	36,687
Cash and cash equivalents at end of period	15,488	14,028
Supplemental disclosures
Cash paid for interest	3,304	4,806
Cash paid for income taxes	$ 14,360	$ 9,358

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance (shares) at Feb. 29, 2020		26,148
Balance at Feb. 29, 2020	$ 634,367	$ 26,148	$ 66,703	$ 572,414	$ (30,898)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	4,083		4,083
Common stock issued under stock-based plans and related income tax expense (shares)		70
Common stock issued under stock-based plans and related income tax expense	(555)	$ 70	(625)
Common stock issued under employee stock purchase plan (shares)		58
Common stock issued under employee stock purchase plan	1,694	$ 58	1,636
Repurchase and retirement of treasury shares (shares)		(200)
Repurchase and retirement of treasury shares	(6,379)	$ (200)		(6,179)
Cash dividends paid	(8,892)			(8,892)
Net income (loss)	3,751			3,751
Foreign currency translation	3,500				3,500
Interest rate swap	(28)				(28)
Balance (shares) at Aug. 31, 2020		26,076
Balance at Aug. 31, 2020	631,541	$ 26,076	71,797	561,094	(27,426)
Balance (shares) at May. 31, 2020		26,195
Balance at May. 31, 2020	635,656	$ 26,195	67,883	573,530	(31,952)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	2,317		2,317
Common stock issued under stock-based plans and related income tax expense (shares)		23
Common stock issued under stock-based plans and related income tax expense	(16)	$ 23	(39)
Common stock issued under employee stock purchase plan (shares)		58
Common stock issued under employee stock purchase plan	1,694	$ 58	1,636
Repurchase and retirement of treasury shares (shares)		(200)
Repurchase and retirement of treasury shares	(6,379)	$ (200)		(6,179)
Cash dividends paid	(4,467)			(4,467)
Net income (loss)	(1,790)			(1,790)
Foreign currency translation	4,540				4,540
Interest rate swap	(14)				(14)
Balance (shares) at Aug. 31, 2020		26,076
Balance at Aug. 31, 2020	631,541	$ 26,076	71,797	561,094	(27,426)
Balance (shares) at Feb. 28, 2021		25,108
Balance at Feb. 28, 2021	623,292	$ 25,108	75,979	547,289	(25,084)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	4,682		4,682
Common stock issued under stock-based plans and related income tax expense (shares)		107
Common stock issued under stock-based plans and related income tax expense	(2,149)	$ 107	(2,256)
Common stock issued under employee stock purchase plan (shares)		41
Common stock issued under employee stock purchase plan	1,544	$ 41	1,503
Repurchase and retirement of treasury shares (shares)		(416)
Repurchase and retirement of treasury shares	(21,233)	$ (416)		(20,817)
Cash dividends paid	(8,510)			(8,510)
Net income (loss)	41,315			41,315
Foreign currency translation	(515)			(70)	(445)
Balance (shares) at Aug. 31, 2021		24,840
Balance at Aug. 31, 2021	638,426	$ 24,840	79,908	559,207	(25,529)
Balance (shares) at May. 31, 2021		25,071
Balance at May. 31, 2021	637,411	$ 25,071	75,600	559,173	(22,433)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	2,871		2,871
Common stock issued under stock-based plans and related income tax expense (shares)		18
Common stock issued under stock-based plans and related income tax expense	(48)	$ 18	(66)
Common stock issued under employee stock purchase plan (shares)		41
Common stock issued under employee stock purchase plan	1,544	$ 41	1,503
Repurchase and retirement of treasury shares (shares)		(290)
Repurchase and retirement of treasury shares	(14,969)	$ (290)		(14,679)
Cash dividends paid	(4,265)			(4,265)
Net income (loss)	18,978			18,978
Foreign currency translation	(3,096)				(3,096)
Interest rate swap	0
Balance (shares) at Aug. 31, 2021		24,840
Balance at Aug. 31, 2021	$ 638,426	$ 24,840	$ 79,908	$ 559,207	$ (25,529)

The Company and Basis of Presen

The Company and Basis of Presentation	6 Months Ended
	Aug. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation AZZ Inc. (“AZZ”, the “Company”, "our" or “we”) was established in 1956 and incorporated under the laws of the state of Texas. The Company is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company has two distinct operating segments: the Metal Coatings segment and the Infrastructure Solutions segment. AZZ Metal Coatings provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. AZZ Infrastructure Solutions is 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. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2021 was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended February 28, 2021, included in the Company’s Annual Report on Form 10-K covering such period. Certain previously reported amounts have been reclassified to conform to current period presentation. The Company's fiscal year ends on the last day of February and is identified as the fiscal year for the calendar year in which it ends. For example, the fiscal year ending February 28, 2022 is referred to as fiscal 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position of the Company as of August 31, 2021, the results of its operations for the three and six months ended August 31, 2021 and 2020, and cash flows for the six months ended August 31, 2021 and 2020. The interim results reported herein are not necessarily indicative of results for a full year. Certain previously reported amounts have been reclassified to conform to current period presentation. Coronavirus (COVID-19) The continued uncertainty associated with COVID-19, and any of the ongoing variants, did not have a material adverse effect on the Company's results of operations for the three months ended August 31, 2021. While the Company continues to support its customers, there remains uncertainties regarding the duration and, to what extent, if any, that the COVID-19 pandemic, or newly identified variants, or additional regulatory requirements, will ultimately have on the demand for the Company's products and services or with its supply chain or its employees. The impact of COVID-19 to the Company's personnel and operations has been limited. During the second quarter of fiscal 2022, the Company continued to see improvement in sales and operating income in both of its operating segments. However, labor market challenges have increased during the current quarter, resulting in increased operating expenses as the constrained labor market impacted the availability and cost of labor. In addition, new vaccine mandates were announced on September 9, 2021. If these mandates are implemented, the extent of the regulatory impact is unclear and could have an adverse impact on the Company's operations. The Company cannot reasonably estimate the length or severity of this pandemic, or the extent to which the disruption may materially impact its consolidated balance sheet, statements of income or statements of cash flows for fiscal year 2022. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12") . This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in the application of ASC 740. The standard was effective for the Company in the first quarter of its fiscal 2022. The Company adopted ASU 2019-12 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020 and as clarified in January 2021, the FASB issued Accounting Standards Update No. (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date between March 12, 2020 and December 31, 2022. The Company has not adopted ASU 2020-04, but will continue to evaluate the possible adoption of any such expedients or exceptions, as well as the impact on its financial condition, results of operations, and cash flows, during the effective period.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Aug. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if stock awards vested and were converted into common shares during the period. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Numerator: Net income (loss) for basic and diluted earnings per common share $ 18,978 $ (1,790) $ 41,315 $ 3,751 Denominator: Denominator for basic earnings per common share–weighted average shares 24,947 26,175 24,999 26,166 Effect of dilutive securities: Employee and director equity awards 188 — 217 32 Denominator for diluted earnings per common share 25,135 26,175 25,216 26,198 Earnings (loss) per share basic and diluted: Basic income (loss) per common share $ 0.76 $ (0.07) $ 1.65 $ 0.14 Diluted income (loss) per common share $ 0.76 $ (0.07) $ 1.64 $ 0.14 For the three and six months ended August 31, 2021, 150,171 and 130,764 shares, respectively, were excluded from the calculation of diluted EPS because the effect would be antidilutive. For the three and six months ended August 31, 2020, 28,319 and 15,863 shares, respectively, were excluded from the calculation of diluted EPS because the effect would be antidilutive. These shares could be dilutive in future periods.

Sales

Sales	6 Months Ended
	Aug. 31, 2021
Revenues [Abstract]
Sales	Sales Disaggregated Sales The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: Industrial $ 132,033 $ 67,112 $ 285,615 $ 197,220 Transmission and distribution 47,619 97,619 89,255 146,676 Power generation 36,795 38,641 71,403 72,768 Total sales $ 216,447 $ 203,372 $ 446,273 $ 416,664 See Note 4 for sales information by segment. Contract 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, primarily related to our Infrastructure Solutions segment. Amounts are billed as work progresses in accordance with agreed upon contractual terms, either at periodic intervals (e.g., weekly or monthly) or upon the achievement of contractual milestones. Billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, we sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. The following table shows the changes in contract liabilities for the six months ended August 31, 2021 and 2020, respectively (in thousands): 2021 2020 Balance at February 28/29, $ 16,138 $ 18,418 Contract liabilities added during the period 4,191 2,738 Sales recognized during the period (6,600) (7,400) Balance at August 31, $ 13,729 $ 13,756 The Company did not record any sales for the six months ended August 31, 2021 or 2020 related to performance obligations satisfied in prior periods. The Company expects to recognize sales, related to the $13.7 million balance of contract liabilities as of August 31, 2021 of approximately $6.5 million, $5.9 million, $1.1 million and $0.2 million in fiscal 2022, 2023, 2024 and 2025, respectively.

Segments

Segments	6 Months Ended
	Aug. 31, 2021
Segment Reporting [Abstract]
Segments	Operating Segments Segment Information The Company has two distinct operating segments: the Metal Coatings segment and the Infrastructure Solutions segment. The Metal Coatings segment provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. Hot dip galvanizing is a metallurgical process in which molten zinc reacts to steel. The zinc alloying provides corrosion protection to fabricated steel for extended periods of up to 50 years. The Infrastructure Solutions segment provides specialized products and services designed to support primarily industrial and electrical applications. The product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting and tubular products. The Infrastructure Solutions segment also focuses on life-cycle extension for the power generation, refining and industrial infrastructure, through providing automated weld overlay solutions for corrosion and erosion mitigation. Sales and operating income by segment for each period were as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: Metal Coatings $ 129,593 $ 117,037 $ 257,328 $ 236,027 Infrastructure Solutions 86,854 86,335 188,945 180,637 Total sales $ 216,447 $ 203,372 $ 446,273 $ 416,664 Operating income: Metal Coatings $ 31,589 $ 15,600 $ 63,165 $ 40,684 Infrastructure Solutions 7,024 (4,310) 16,648 (5,358) Corporate (12,085) (10,638) (22,573) (20,357) Total operating income $ 26,528 $ 652 $ 57,240 $ 14,969 Asset balances by segment for each period were as follows (in thousands): August 31, 2021 February 28, 2021 Total assets: Metal Coatings $ 488,301 $ 480,778 Infrastructure Solutions 505,602 489,986 Corporate 29,335 25,678 Total $ 1,023,238 $ 996,442 Financial Information About Geographical Areas The following table presents sales by geographic region for each period (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: United States $ 192,471 $ 170,651 $ 383,586 $ 359,733 International 23,976 32,721 62,687 56,931 Total $ 216,447 $ 203,372 $ 446,273 $ 416,664 The following table presents fixed assets by geographic region for each period (in thousands): August 31, 2021 February 28, 2021 Property, plant and equipment, net: United States $ 179,476 $ 180,718 Canada 12,124 15,007 Other countries 10,620 10,184 Total $ 202,220 $ 205,909

Warranty Reserves

Warranty Reserves	6 Months Ended
	Aug. 31, 2021
Product Warranties Disclosures [Abstract]
Warranty Reserves	Warranty ReservesA reserve has been established to provide for the estimated future cost of warranties on certain delivered products. The warranty accrual is included in "Other accrued liabilities" on the condensed consolidated balance sheets. Management monitors established reserves and adjusts warranty estimates based upon the progression of resolution activities with the Company's customers. Warranties typically cover non-conformance to customer specifications or defects in material and workmanship. The following table shows the changes in the warranty reserves for the six months ended August 31, 2021 (in thousands): Balance at February 28, 2021 $ 4,079 Warranty costs incurred (357) Additions charged to income 492 Balance at August 31, 2021 $ 4,214

Debt

Debt	6 Months Ended
	Aug. 31, 2021
Debt Disclosure [Abstract]
Debt	Debt The Company's debt consisted of the following for each of the periods presented (in thousands): August 31, 2021 February 28, 2021 2017 Revolving Credit Facility $ 33,000 $ 29,000 2020 Senior Notes 150,000 150,000 Total debt, gross 183,000 179,000 Unamortized debt issuance costs (549) (581) Total debt, net $ 182,451 $ 178,419 The Company's debt agreements require the Company to maintain certain financial ratios, of which the most restrictive is a debt to EBITDA leverage ratio of at least 3.25 to 1.00. As of August 31, 2021, the Company was in compliance with all covenants or other requirements set forth in the debt agreements. On July 8, 2021, the Company refinanced its current unsecured revolving credit facility, which was scheduled to mature in March 2022, with a new five-year unsecured revolving credit facility under that certain credit agreement, dated July 8, 2021 by and among the Company, borrower, Citibank, N.A., as administrative agent and the other agents and lender parties thereto (the “2021 Credit Agreement”). The 2021 Credit Agreement matures in July 2026 and includes the following significant terms; i. provides for a senior unsecured revolving credit facility with a principal amount of up to $400.0 million revolving loan commitments, and includes an additional $200.0 million uncommitted incremental accordion facility, ii. interest rate margin ranges from 87.5 bps to 175 bps for Eurodollar Rate loans, and from 0.0 bps to 75 bps for Base Rate loans, depending on leverage ratio of the Company and its consolidated subsidiaries as a group, iii. includes a letter of credit sub-facility up to $85.0 million for the issuance of standby and commercial letters of credit, iv. includes a $50.0 million sublimit for swing line loans, v. includes customary representations and warranties, affirmative covenants and negative covenants, and events of default, including restrictions on incurrence of non-ordinary course debt, investment and dividends, subject to various exceptions, carve-outs and baskets, and vi. includes a maximum leverage ratio financial covenant and an interest coverage ratio financial covenant, each to be tested at quarter end. The proceeds of the loans under the 2021 Credit Agreement are used primarily to finance working capital needs, capital improvements, dividends, future acquisitions and general corporate purposes. The foregoing summary of certain terms and provisions of the 2021 Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the 2021 Credit Agreement, a copy of which is attached hereto as Exhibit 10.3 to this Form 10-Q and is incorporated herein by reference.

Leases

Leases	6 Months Ended
	Aug. 31, 2021
Leases [Abstract]
Leases	Leases The Company is a lessee under various operating leases for facilities and equipment. Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Operating cash flows from operating leases included in lease liabilities $ 2,257 $ 2,216 $ 4,534 $ 4,335 Lease liabilities obtained from new ROU assets - operating 473 1,324 13,120 1,528 Operating and financing cash flows from financing leases included in lease liabilities 20 — 38 — Lease liabilities obtained from new ROU assets - financing 14 — 14 — August 31, 2021 February 28, 2021 Weighted-average remaining lease term - operating leases (years) 8.19 6.92 Weighted-average discount rate - operating leases 4.54 % 4.71 % Weighted-average remaining lease term - financing leases (years) 3.75 4.25 Weighted-average discount rate - financing leases 3.92 % 4.0 % The following table outlines the classification of lease expense in the statements of income (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Cost of sales $ 2,852 $ 2,563 $ 5,397 $ 5,784 Selling, general and administrative 987 1,135 2,121 2,384 Total lease expense $ 3,839 $ 3,698 $ 7,518 $ 8,168 As of August 31, 2021, maturities of the Company's lease liabilities were as follows (in thousands): Fiscal year: Operating Leases Finance Leases Total 2022 (remaining 6 months) $ 4,569 $ 40 $ 4,609 2023 8,762 80 8,842 2024 7,867 80 7,947 2025 6,771 77 6,848 2026 5,345 16 5,361 Thereafter 21,773 — 21,773 Total lease payments 55,087 293 55,380 Less imputed interest (9,215) (20) (9,235) Total $ 45,872 $ 273 $ 46,145

Income Taxes

Income Taxes	6 Months Ended
	Aug. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. With respect to the CARES Act, the Company benefited from the deferral of certain payroll taxes through the end of calendar year 2020 and the technical correction with respect to qualified improvement property. The provision for income taxes reflects an effective tax rate of 20.4% for the three months ended August 31, 2021, as compared to 6.3% for the respective prior year comparable period. The increase in the effective tax rate was primarily attributable to the impact of the restructuring and impairment charges recognized in fiscal 2021 on book earnings in the prior year quarter compared to the current quarter ended August 31, 2021. The Company recorded discrete items in the second quarter of the prior year and the current year; however, since book income was significantly lower in the prior year, the effective tax rate was impacted more significantly by the discrete items.

Equity

Equity	6 Months Ended
	Aug. 31, 2021
Equity [Abstract]
Equity	EquityOn November 10, 2020, the Company's Board of Directors authorized a $100 million share repurchase program pursuant to which the Company may repurchase its Common Stock (the “2020 Share Authorization”). Repurchases under the 2020 Share Authorization will be made through open market and/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 the Company might otherwise be precluded from doing so. During the six months ended August 31, 2021, the Company repurchased 416,279 of its common shares in the amount of $21.2 million at an average purchase price of $51.01 under the 2020 Share Authorization.

Assets Held for Sale

Assets Held for Sale	6 Months Ended
	Aug. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Assets Held for Sale	Assets Held for Sale The Company has been executing a plan to divest certain non-core businesses. The strategic decision to divest of these businesses reflects the Company's long-term strategy to become a more focused metal coatings company . The historical annual sales, operating profit and net assets of these businesses were not significant enough to qualify as discontinued operations. As of August 31, 2021, one business in our Infrastructure Solutions segment and one non-operating location in our Metal Coatings segment are classified as held for sale. The assets and liabilities of the businesses expected to be disposed of within the next twelve months are included in "Assets held for sale" in the accompanying consolidated balance sheet. Assets and liabilities allocated to the disposal group are as follows (in thousands): As of August 31, 2021 Assets Accounts receivable $ 4,580 Inventories 1,762 Contract assets 4,094 Other current assets 89 Property, plant and equipment 1,301 Other assets 126 Goodwill 1,693 Liabilities Accounts payable 879 Contract liabilities 925 Other accrued liabilities 2,543 Lease liability – long term 50 Total carrying value 9,248 Less: Impairment of carrying value of remaining assets held for sale to estimated sales price (1) (3,490) Fair value of disposal group $ 5,758 (1) Impairment charges of $3,490 were recognized for the three months ended August 31, 2020.

Restructuring and Impairment Ch

Restructuring and Impairment Charges	6 Months Ended
	Aug. 31, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Impairment Charges	Restructuring and Impairment Charges In the second quarter of fiscal 2021, the Company developed and began the implementation of a plan to divest certain non-core businesses and later, divested several non-core businesses. During the six months ended August 31, 2021, the Company did not recognize any restructuring and impairment charges. During the six months ended August 31, 2020, the Company recognized $18.7 million for impairment charges and a loss on the sale of the Galvabar business, which are included in "Restructuring and impairment charges" in the consolidated statements of operations. The restructuring and impairment charges for the six months ended August 31, 2020 are summarized in the table below (in thousands): Six Months Ended August 31, 2020 ` Metal Coatings Infrastructure Solutions Total Write down on assets held for sale to estimated sales price $ 3,161 $ 4,100 $ 7,261 Write down of assets expected to be abandoned 6,965 — 6,965 Loss on sale of subsidiaries 1,198 — 1,198 Write down of excess inventory — 2,511 2,511 Costs associated with assets held for sale — 758 758 Total charges $ 11,324 $ 7,369 $ 18,693 Infrastructure Solutions Segment During the six months ended August 31, 2020, as a result of the continued market pressures in the oil and gas services market, the Company undertook an evaluation of inventory within the tubular products business. As a result of the evaluation, the Company determined certain inventories to be in excess of their net realizable value, and recorded an inventory write down of $2.5 million to record the inventory at its current market value. Metal Coatings Segment During the six months ended August 31, 2020, the Company approved a plan to close certain locations within the Metal Coatings segment in future periods. Management performed an analysis of the assets at each location expected to be closed. For assets that will not be transferred to another location for use in operations, management wrote the assets down to reflect a decrease in the estimated useful life and lower value to the Company. The following table summarizes the charges recognized during the six months ended August 31, 2020 related to locations that have been closed (in thousands): Six Months Ended August 31, 2020 Inventory write down $ 336 Property & equipment write downs 2,999 Intangible impairment 3,258 Other 372 Total $ 6,965

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Aug. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesLegalThe Company and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business.  These proceedings include labor and employment claims, use of the Company’s intellectual property, worker’s compensation, environmental  matters, and various commercial disputes, all arising in the normal course of business. As discovery progresses on all outstanding legal matters, the Company will continue to evaluate opportunities to either settle the disputes for nuisance value or potentially enter into mediation 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 an unfavorable outcome on the pending lawsuits may change. Although the outcome of these lawsuits or other proceedings cannot be predicted with 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, management, after consultation with legal counsel believes it has strong defenses to all of these 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 Company’s financial position, results of operations or cash flows.

Subsequent Event

Subsequent Event	6 Months Ended
	Aug. 31, 2021
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn August 27, 2021, one of the Company's affiliates (the "Affiliate") entered into an agreement pursuant to which the Affiliate agreed to sell 60% of its equity interests in its Chinese subsidiary ("Chinese Target") to an unrelated Chinese entity. The Company will retain 40% interest in the Chinese Target through a joint venture arrangement. The Chinese Target will be included in the Company's Infrastructure Solutions segment and will conduct operations in China. Following the closing of the transaction, the Company anticipates that the Chinese Target will be deconsolidated and the Company's 40% joint venture investment will be accounted for under the equity method of accounting. The transaction, which is subject to certain closing conditions, is expected to close during the Company's 2022 fiscal year.

The Company and Basis of Pres_2

The Company and Basis of Presentation (Policies)	6 Months Ended
	Aug. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation AZZ Inc. (“AZZ”, the “Company”, "our" or “we”) was established in 1956 and incorporated under the laws of the state of Texas. The Company is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company has two distinct operating segments: the Metal Coatings segment and the Infrastructure Solutions segment. AZZ Metal Coatings provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. AZZ Infrastructure Solutions is 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. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2021 was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended February 28, 2021, included in the Company’s Annual Report on Form 10-K covering such period. Certain previously reported amounts have been reclassified to conform to current period presentation. The Company's fiscal year ends on the last day of February and is identified as the fiscal year for the calendar year in which it ends. For example, the fiscal year ending February 28, 2022 is referred to as fiscal 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position of the Company as of August 31, 2021, the results of its operations for the three and six months ended August 31, 2021 and 2020, and cash flows for the six months ended August 31, 2021 and 2020. The interim results reported herein are not necessarily indicative of results for a full year. Certain previously reported amounts have been reclassified to conform to current period presentation.
Recently Adopted Accounting Pronouncements And Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12") . This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in the application of ASC 740. The standard was effective for the Company in the first quarter of its fiscal 2022. The Company adopted ASU 2019-12 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020 and as clarified in January 2021, the FASB issued Accounting Standards Update No. (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date between March 12, 2020 and December 31, 2022. The Company has not adopted ASU 2020-04, but will continue to evaluate the possible adoption of any such expedients or exceptions, as well as the impact on its financial condition, results of operations, and cash flows, during the effective period.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Aug. 31, 2021
Earnings Per Share [Abstract]
Computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Numerator: Net income (loss) for basic and diluted earnings per common share $ 18,978 $ (1,790) $ 41,315 $ 3,751 Denominator: Denominator for basic earnings per common share–weighted average shares 24,947 26,175 24,999 26,166 Effect of dilutive securities: Employee and director equity awards 188 — 217 32 Denominator for diluted earnings per common share 25,135 26,175 25,216 26,198 Earnings (loss) per share basic and diluted: Basic income (loss) per common share $ 0.76 $ (0.07) $ 1.65 $ 0.14 Diluted income (loss) per common share $ 0.76 $ (0.07) $ 1.64 $ 0.14

Sales (Tables)

Sales (Tables)	6 Months Ended
	Aug. 31, 2021
Revenues [Abstract]
Disaggregation of Revenue	Disaggregated Sales The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: Industrial $ 132,033 $ 67,112 $ 285,615 $ 197,220 Transmission and distribution 47,619 97,619 89,255 146,676 Power generation 36,795 38,641 71,403 72,768 Total sales $ 216,447 $ 203,372 $ 446,273 $ 416,664
Contract with Customer, Asset and Liability	The following table shows the changes in contract liabilities for the six months ended August 31, 2021 and 2020, respectively (in thousands): 2021 2020 Balance at February 28/29, $ 16,138 $ 18,418 Contract liabilities added during the period 4,191 2,738 Sales recognized during the period (6,600) (7,400) Balance at August 31, $ 13,729 $ 13,756

Segments (Tables)

Segments (Tables)	6 Months Ended
	Aug. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Sales and operating income by segment for each period were as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: Metal Coatings $ 129,593 $ 117,037 $ 257,328 $ 236,027 Infrastructure Solutions 86,854 86,335 188,945 180,637 Total sales $ 216,447 $ 203,372 $ 446,273 $ 416,664 Operating income: Metal Coatings $ 31,589 $ 15,600 $ 63,165 $ 40,684 Infrastructure Solutions 7,024 (4,310) 16,648 (5,358) Corporate (12,085) (10,638) (22,573) (20,357) Total operating income $ 26,528 $ 652 $ 57,240 $ 14,969
Reconciliation of Assets from Segment to Consolidated	Asset balances by segment for each period were as follows (in thousands): August 31, 2021 February 28, 2021 Total assets: Metal Coatings $ 488,301 $ 480,778 Infrastructure Solutions 505,602 489,986 Corporate 29,335 25,678 Total $ 1,023,238 $ 996,442
Revenue from External Customers by Geographic Areas	The following table presents sales by geographic region for each period (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Sales: United States $ 192,471 $ 170,651 $ 383,586 $ 359,733 International 23,976 32,721 62,687 56,931 Total $ 216,447 $ 203,372 $ 446,273 $ 416,664
Long-lived Assets by Geographic Areas	The following table presents fixed assets by geographic region for each period (in thousands): August 31, 2021 February 28, 2021 Property, plant and equipment, net: United States $ 179,476 $ 180,718 Canada 12,124 15,007 Other countries 10,620 10,184 Total $ 202,220 $ 205,909

Warranty Reserves (Tables)

Warranty Reserves (Tables)	6 Months Ended
	Aug. 31, 2021
Product Warranties Disclosures [Abstract]
Changes in the warranty reserves	The following table shows the changes in the warranty reserves for the six months ended August 31, 2021 (in thousands): Balance at February 28, 2021 $ 4,079 Warranty costs incurred (357) Additions charged to income 492 Balance at August 31, 2021 $ 4,214

Debt (Tables)

Debt (Tables)	6 Months Ended
	Aug. 31, 2021
Debt Disclosure [Abstract]
Schedule of Debt	The Company's debt consisted of the following for each of the periods presented (in thousands): August 31, 2021 February 28, 2021 2017 Revolving Credit Facility $ 33,000 $ 29,000 2020 Senior Notes 150,000 150,000 Total debt, gross 183,000 179,000 Unamortized debt issuance costs (549) (581) Total debt, net $ 182,451 $ 178,419

Leases (Tables)

Leases (Tables)	6 Months Ended
	Aug. 31, 2021
Leases [Abstract]
Lease, Cost	Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Operating cash flows from operating leases included in lease liabilities $ 2,257 $ 2,216 $ 4,534 $ 4,335 Lease liabilities obtained from new ROU assets - operating 473 1,324 13,120 1,528 Operating and financing cash flows from financing leases included in lease liabilities 20 — 38 — Lease liabilities obtained from new ROU assets - financing 14 — 14 — August 31, 2021 February 28, 2021 Weighted-average remaining lease term - operating leases (years) 8.19 6.92 Weighted-average discount rate - operating leases 4.54 % 4.71 % Weighted-average remaining lease term - financing leases (years) 3.75 4.25 Weighted-average discount rate - financing leases 3.92 % 4.0 % The following table outlines the classification of lease expense in the statements of income (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2021 2020 2021 2020 Cost of sales $ 2,852 $ 2,563 $ 5,397 $ 5,784 Selling, general and administrative 987 1,135 2,121 2,384 Total lease expense $ 3,839 $ 3,698 $ 7,518 $ 8,168
Lessee, Operating Lease, Liability, Maturity	As of August 31, 2021, maturities of the Company's lease liabilities were as follows (in thousands): Fiscal year: Operating Leases Finance Leases Total 2022 (remaining 6 months) $ 4,569 $ 40 $ 4,609 2023 8,762 80 8,842 2024 7,867 80 7,947 2025 6,771 77 6,848 2026 5,345 16 5,361 Thereafter 21,773 — 21,773 Total lease payments 55,087 293 55,380 Less imputed interest (9,215) (20) (9,235) Total $ 45,872 $ 273 $ 46,145

Assets Held for Sale (Tables)

Assets Held for Sale (Tables)	6 Months Ended
	Aug. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	Assets and liabilities allocated to the disposal group are as follows (in thousands): As of August 31, 2021 Assets Accounts receivable $ 4,580 Inventories 1,762 Contract assets 4,094 Other current assets 89 Property, plant and equipment 1,301 Other assets 126 Goodwill 1,693 Liabilities Accounts payable 879 Contract liabilities 925 Other accrued liabilities 2,543 Lease liability – long term 50 Total carrying value 9,248 Less: Impairment of carrying value of remaining assets held for sale to estimated sales price (1) (3,490) Fair value of disposal group $ 5,758 (1) Impairment charges of $3,490 were recognized for the three months ended August 31, 2020.

Restructuring and Impairment _2

Restructuring and Impairment Charges (Tables)	6 Months Ended
	Aug. 31, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The restructuring and impairment charges for the six months ended August 31, 2020 are summarized in the table below (in thousands): Six Months Ended August 31, 2020 ` Metal Coatings Infrastructure Solutions Total Write down on assets held for sale to estimated sales price $ 3,161 $ 4,100 $ 7,261 Write down of assets expected to be abandoned 6,965 — 6,965 Loss on sale of subsidiaries 1,198 — 1,198 Write down of excess inventory — 2,511 2,511 Costs associated with assets held for sale — 758 758 Total charges $ 11,324 $ 7,369 $ 18,693 The following table summarizes the charges recognized during the six months ended August 31, 2020 related to locations that have been closed (in thousands): Six Months Ended August 31, 2020 Inventory write down $ 336 Property & equipment write downs 2,999 Intangible impairment 3,258 Other 372 Total $ 6,965

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Numerator:
Net income for basic and diluted earnings per common share	$ 18,978	$ (1,790)	$ 41,315	$ 3,751
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)	24,947	26,175	24,999	26,166
Effect of dilutive securities:
Employee and Director stock awards (shares)	188	0	217	32
Denominator for diluted earnings per common share (shares)	25,135	26,175	25,216	26,198
Earnings per share basic and diluted:
Basic earnings per common share (usd per share)	$ 0.76	$ (0.07)	$ 1.65	$ 0.14
Diluted earnings per common share (usd per share)	$ 0.76	$ (0.07)	$ 1.64	$ 0.14

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	150,171	28,319	130,764	15,863

Sales Disaggregated Revenues (D

Sales Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 216,447	$ 203,372	$ 446,273	$ 416,664
Industrial
Disaggregation of Revenue [Line Items]
Revenues	132,033	67,112	285,615	197,220
Transmission and distribution
Disaggregation of Revenue [Line Items]
Revenues	47,619	97,619	89,255	146,676
Power generation
Disaggregation of Revenue [Line Items]
Revenues	$ 36,795	$ 38,641	$ 71,403	$ 72,768

Sales Contract Liability (Detai

Sales Contract Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Movement In Contract With Customer, Liability [Roll Forward]
Balance at February 28/29,	$ 16,138	$ 18,418
Contract liabilities added during the period	4,191	2,738
Sales recognized during the period	(6,600)	(7,400)
Balance at August 31,	$ 13,729	$ 13,756

Sales Future Revenues (Details)

Sales Future Revenues (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Feb. 28, 2021	Aug. 31, 2020	Feb. 29, 2020
Revenues [Abstract]
Contract liabilities	$ 13,729	$ 16,138	$ 13,756	$ 18,418
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 6,500
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 5,900
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1,100
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 200
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021USD ($)	Aug. 31, 2020USD ($)	Aug. 31, 2021USD ($)segment	Aug. 31, 2020USD ($)	Feb. 28, 2021USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			2
Operations and assets by segment
Revenues	$ 216,447	$ 203,372	$ 446,273	$ 416,664
Operating income:	26,528	652	57,240	14,969
Total assets:	1,023,238		1,023,238		$ 996,442
Property, plant and equipment, net	202,220		202,220		205,909
United States
Operations and assets by segment
Revenues	192,471	170,651	383,586	359,733
Property, plant and equipment, net	179,476		179,476		180,718
International
Operations and assets by segment
Revenues	23,976	32,721	62,687	56,931
Canada
Operations and assets by segment
Property, plant and equipment, net	12,124		12,124		15,007
Other countries
Operations and assets by segment
Property, plant and equipment, net	10,620		10,620		10,184
Corporate
Operations and assets by segment
Operating income:	(12,085)	(10,638)	(22,573)	(20,357)
Total assets:	29,335		29,335		25,678
Metal Coatings | Operating Segments
Operations and assets by segment
Revenues	129,593	117,037	257,328	236,027
Operating income:	31,589	15,600	63,165	40,684
Total assets:	488,301		488,301		480,778
Infrastructure Solutions | Operating Segments
Operations and assets by segment
Revenues	86,854	86,335	188,945	180,637
Operating income:	7,024	$ (4,310)	16,648	$ (5,358)
Total assets:	$ 505,602		$ 505,602		$ 489,986

Warranty Reserves (Details)

Warranty Reserves (Details) $ in Thousands	6 Months Ended
	Aug. 31, 2021USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Opening Balance	$ 4,079
Warranty costs incurred	(357)
Additions charged to income	492
Closing Balance	$ 4,214

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Feb. 28, 2021
Debt Instrument [Line Items]
Total debt, gross	$ 183,000	$ 179,000
Unamortized debt issuance costs	(549)	(581)
Total debt, net	182,451	178,419
Senior Notes | 2020 Senior Notes
Debt Instrument [Line Items]
Total debt, gross	150,000	150,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Total debt, gross	$ 33,000	$ 29,000

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions	Jul. 08, 2021USD ($)	Aug. 31, 2021
Debt Instrument [Line Items]
Debt to EBITDA leverage ratio to be maintained, minimum		3.25
Minimum | Eurodollar
Debt Instrument [Line Items]
Line of credit facility, interest rate	0.875%
Minimum | Base Rate
Debt Instrument [Line Items]
Line of credit facility, interest rate	0.00%
Maximum | Eurodollar
Debt Instrument [Line Items]
Line of credit facility, interest rate	1.75%
Maximum | Base Rate
Debt Instrument [Line Items]
Line of credit facility, interest rate	0.75%
2021 Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 400
Accordion feature	200
2021 Credit Agreement | Standby And Commercial Letters Of Credit
Debt Instrument [Line Items]
Accordion feature	85
2021 Credit Agreement | Swing Line Loan
Debt Instrument [Line Items]
Accordion feature	$ 50

Leases - Lease Information (Det

Leases - Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020	Feb. 28, 2021
Leases [Abstract]
Operating cash flows from operating leases included in lease liabilities	$ 2,257	$ 2,216	$ 4,534	$ 4,335
Lease liabilities obtained from new ROU assets - operating	473	$ 1,324	13,120	$ 1,528
Operating and financing cash flows from financing leases included in lease liabilities	20		38
Lease liabilities obtained from new ROU assets - financing	$ 14		$ 14
Weighted-average remaining lease term - operating leases (years)	8 years 2 months 8 days		8 years 2 months 8 days		6 years 11 months 1 day
Weighted-average discount rate - operating leases	4.54%		4.54%		4.71%
Weighted-average remaining lease term - financing leases (years)	3 years 9 months		3 years 9 months		4 years 3 months
Weighted-average discount rate - financing leases	3.92%		3.92%		4.00%

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Lessee, Lease, Description [Line Items]
Total lease expense	$ 3,839	$ 3,698	$ 7,518	$ 8,168
Cost of sales
Lessee, Lease, Description [Line Items]
Total lease expense	2,852	2,563	5,397	5,784
Selling, general and administrative
Lessee, Lease, Description [Line Items]
Total lease expense	$ 987	$ 1,135	$ 2,121	$ 2,384

Leases - Lease Maturity (Detail

Leases - Lease Maturity (Details) $ in Thousands	Aug. 31, 2021USD ($)
Operating Leases
2022 (remaining 6 months)	$ 4,569
2023	8,762
2024	7,867
2025	6,771
2026	5,345
Thereafter	21,773
Total lease payments	55,087
Less imputed interest	(9,215)
Total	45,872
Finance Leases
2022 (remaining 6 months)	40
2023	80
2024	80
2025	77
2026	16
Thereafter	0
Total lease payments	293
Less imputed interest	(20)
Total	273
2022 (remaining 6 months)	4,609
2023	8,842
2024	7,947
2025	6,848
2026	5,361
Thereafter	21,773
Total lease payments	55,380
Less imputed interest	(9,235)
Total	$ 46,145

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate (percent)	20.40%	6.30%	23.30%	54.90%

Equity (Details)

Equity (Details) - 2020 Share Repurchase Program - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Aug. 31, 2021	Aug. 31, 2021	Nov. 10, 2020
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program authorized amount			$ 100
Repurchase of common stock (in shares)	416,279	416,279
Repurchase of common stock, value		$ 21.2
Shares repurchased, average price per share (in usd per share)		$ 51.01

Assets Held for Sale (Details)

Assets Held for Sale (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Liabilities
Less: Impairment of carrying value of remaining assets held for sale to estimated sales price(1)		$ (7,261)
Disposal Group, Held-for-sale, Not Discontinued Operations
Assets
Accounts receivable	$ 4,580
Inventories	1,762
Contract assets	4,094
Other current assets	89
Property, plant and equipment	1,301
Other assets	126
Goodwill	1,693
Liabilities
Accounts payable	879
Contract liabilities	925
Other accrued liabilities	2,543
Lease liability – long term	50
Total carrying value	9,248
Less: Impairment of carrying value of remaining assets held for sale to estimated sales price(1)	(3,490)
Fair value of disposal group	$ 5,758

Restructuring and Impairment _3

Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 0	$ 18,693	$ 0	$ 18,693
Write down of excess inventory				2,511
Operating Segments | Infrastructure Solutions
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges				7,369
Write down of excess inventory				$ 2,511

Restructuring and Impairment _4

Restructuring and Impairment Charges - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Restructuring Cost and Reserve [Line Items]
Write down on assets held for sale to estimated sales price				$ 7,261
Write down of assets expected to be abandoned				6,965
Loss on sale of subsidiaries			$ 0	1,198
Write down of excess inventory				2,511
Costs associated with assets held for sale				758
Total charges	$ 0	$ 18,693	$ 0	18,693
Metal Coatings
Restructuring Cost and Reserve [Line Items]
Write down on assets held for sale to estimated sales price				2,999
Write down of excess inventory				336
Metal Coatings | Operating Segments
Restructuring Cost and Reserve [Line Items]
Write down on assets held for sale to estimated sales price				3,161
Write down of assets expected to be abandoned				6,965
Loss on sale of subsidiaries				1,198
Write down of excess inventory				0
Costs associated with assets held for sale				0
Total charges				11,324
Infrastructure Solutions | Operating Segments
Restructuring Cost and Reserve [Line Items]
Write down on assets held for sale to estimated sales price				4,100
Write down of assets expected to be abandoned				0
Loss on sale of subsidiaries				0
Write down of excess inventory				2,511
Costs associated with assets held for sale				758
Total charges				$ 7,369

Restructuring and Impairment _5

Restructuring and Impairment Charges - Metal Coatings Segment Closing Of Certain Locations (Details) $ in Thousands	6 Months Ended
	Aug. 31, 2020USD ($)
Restructuring Cost and Reserve [Line Items]
Write down of excess inventory	$ 2,511
Write down on assets held for sale to estimated sales price	7,261
Metal Coatings
Restructuring Cost and Reserve [Line Items]
Write down of excess inventory	336
Write down on assets held for sale to estimated sales price	2,999
Intangible impairment	3,258
Other	372
Asset impairment charges	$ 6,965

Subsequent Events (Details)

Subsequent Events (Details)	Aug. 27, 2021
AZZ Inc.
Subsequent Event [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners	40.00%
Unrelated Chinese Entity
Subsequent Event [Line Items]
Noncontrolling interest, ownership percentage by parent	60.00%