AZZ (AZZ) 10-Q 7 Jul 23 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	May 31, 2023	Jun. 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2023
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		25,013,193
Entity Central Index Key	0000008947
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--02-28

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Income Statement [Abstract]
Sales	$ 390,873	$ 207,134
Costs and Expenses
Cost of sales	293,854	147,081
Gross margin	97,019	60,053
Selling, general and administrative	31,523	32,144
Operating income from continuing operations	65,496	27,909
Interest expense	28,706	7,472
Equity in (earnings) loss of unconsolidated subsidiaries	(1,420)	0
Other (income) expense, net	38	(27)
Income from continuing operations before income taxes	38,172	20,464
Income tax expense	9,650	5,111
Net income from continuing operations	28,522	15,353
Income from discontinued operations, net of tax	0	8,724
Net income (loss) from discontinued operations	0	8,724
Net income (loss)	28,522	24,077
Dividends on preferred stock	(3,600)	0
Net income (loss) available to common shareholders	$ 24,922	$ 24,077
Basic earnings (loss) per share
Earnings (loss) per common share from continuing operations (in dollars per share)	$ 1	$ 0.62
Earnings (loss) per common share from discontinued operations (in dollars per share)	0	0.35
Basic earnings per common share (usd per share)	1	0.97
Diluted Earnings (Loss) Per Share [Abstract]
Diluted earnings per common share (usd per share)	0.98	0.96
Earnings (loss) per common share from continuing operations (in dollars per share)	0.98	0.62
Earnings (loss) per common share from discontinued operations (in dollars per share)	$ 0	$ 0.34
Weighted average shares outstanding
Weighted average number common shares, basic (shares)	24,940,000	24,709,000
Weighted average number common shares, diluted (shares)	29,150,000	25,675,000
Cash dividends declared per common share (usd per share)	$ 0.17	$ 0.17

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss) available to common shareholders	$ 24,922	$ 24,077
Other Comprehensive Income (Loss):
Foreign currency translation	1,131	624
Unrealized gain (loss) on interest rate swap, net of tax	(4,647)	0
Amounts reclassified from accumulated other comprehensive income to earnings, net of tax	(549)	0
Other comprehensive income (loss)	(2,967)	624
Comprehensive income	$ 21,955	$ 24,701

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) $ in Thousands	3 Months Ended
	May 31, 2023 USD ($)
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on interest rate swap, tax	$ (1,488)
Amounts reclassified from accumulated other comprehensive income to earnings, tax	$ 199

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023
Current assets:
Cash and cash equivalents	$ 3,878	$ 2,820
Accounts receivable, net of allowance for credit losses of $5,751 and $5,752 at February 28, 2023 and February 28, 2022, respectively	170,460	183,412
Inventories:
Raw material	138,760	138,227
Work-in-process	2,242	1,558
Finished goods	4,120	4,135
Contract assets	78,544	79,273
Prepaid expenses and other	10,485	7,991
Total current assets	408,489	417,416
Property, plant and equipment, net	504,032	498,503
Right-of-use assets	26,262	26,392
Goodwill	705,501	702,512
Deferred tax assets	5,820	12,467
Intangibles and other assets, net	468,805	479,429
Total assets	2,205,977	2,221,479
Current liabilities:
Accounts payable	107,398	109,861
Income tax payable	178	272
Accrued salaries and wages	17,544	26,262
Other accrued liabilities	48,426	44,442
Lease liability, short-term	6,561	6,403
Total current liabilities	180,107	187,240
Long-term debt, net	1,040,841	1,058,120
Lease liability, long-term	20,427	20,704
Deferred tax liabilities	30,180	40,536
Other long-term liabilities	63,049	61,419
Total liabilities	1,334,604	1,368,019
Commitments and contingencies (Note 18)
Shareholders' Equity:
Common Stock, $1 par value; 100,000 shares authorized; 25,013 and 24,912 shares issued and outstanding at May 31, 2023 and May 31, 2022, respectively	25,013	24,912
Capital in excess of par value	326,931	326,839
Retained earnings	526,729	506,042
Accumulated other comprehensive loss	(7,540)	(4,573)
Total shareholders’ equity	871,373	853,460
Total liabilities and shareholders' equity	2,205,977	2,221,479
AIS Joint Venture
Inventories:
Investment in joint venture	87,068	84,760
Series A Preferred Stock
Shareholders' Equity:
Series A Convertible Preferred Stock, $1 par, shares authorized 240; 240 shares issued and outstanding at May 31, 2023 and 240000 shares issued and outstanding at May 31, 2022	$ 240	$ 240

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023
Accounts receivable, allowance for doubtful accounts	$ 5,751	$ 5,752
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)	25,013,000	24,912,000
Common stock, shares, outstanding (shares)	25,013,000	24,912,000
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	240,000	240,000
Preferred stock, shares issued (in shares)	240,000	240,000
Preferred stock, shares outstanding (in shares)	240,000	240,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Cash Flows From Operating Activities:
Net income (loss) available to common shareholders	$ 24,922	$ 24,077
Net income (loss) from discontinued operations	0	8,724
Dividends on preferred stock	3,600	0
Net income from continuing operations	28,522	15,353
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Bad debt expense	18	246
Depreciation and amortization	18,524	11,973
Deferred income taxes	(2,022)	(2,340)
Equity in earnings of unconsolidated entities	(1,420)	0
Net (gain) on sale of property, plant and equipment	(2)	(29)
Amortization of debt financing costs	3,029	1,541
Share-based compensation expense	1,904	1,998
Effects of changes in assets and liabilities, net of acquisitions and dispositions:
Accounts receivable	12,936	(20,941)
Inventories	(1,198)	(10,362)
Prepaid expenses and other	(2,494)	(8,374)
Other assets	43	49
Net change in contract assets and liabilities	(1,949)	(5,885)
Accounts payable	(2,665)	37,915
Other accrued liabilities and income taxes payable	(6,333)	531
Net cash provided by operating activities of continuing operations	46,893	21,675
Cash flows from investing activities
Other investing activities	9	33
Acquisition of subsidiaries, net of cash acquired	0	(1,298,514)
Purchase of property, plant and equipment	(17,036)	(6,472)
Net cash used in investing activities of continuing operations	(17,027)	(1,304,953)
Cash flows from financing activities:
Payments for taxes related to net share settlement of equity awards	(1,710)	(2,314)
Proceeds from revolving loan	92,000	39,000
Payments on revolving loan	(112,000)	(116,000)
Proceeds from long term debt	0	1,540,000
Payments of debt financing costs	0	(87,555)
Payments of dividends	(7,835)	(4,192)
Net cash provided by (used in) financing activities of continuing operations	(29,545)	1,368,939
Effect of exchange rate changes on cash	737	(49)
Net cash used in operating activities from discontinued operations	0	1,636
Net cash used in investing activities from discontinued operations	0	(1,332)
Net cash provided by financing activities from discontinued operations	0	0
Cash used in discontinued operations	0	304
Net increase in cash and cash equivalents	1,058	85,916
Cash and cash equivalents at beginning of period	2,820	15,082
Cash and cash equivalents at end of period	3,878	100,998
Cash and cash equivalents at end of period	3,878	97,998
Less: Cash and cash equivalents from discontinued operations at end of period	0	(3,000)
Supplemental disclosures of non-cash investing and financing activities
Cash paid for interest	25,866	4,161
Cash paid for income taxes	895	4,034
Accrued dividends on Series A Preferred Stock	2,400	0
Accruals for capital expenditures	$ 2,409	$ 1,136

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss	Preferred Stock Series A Preferred Stock
Balance, beginning balance (shares) at Feb. 28, 2022		24,688
Balance, beginning balance at Feb. 28, 2022	$ 667,365	$ 24,688	$ 85,847	$ 584,154	$ (27,324)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	1,998		1,998
Common stock issued under stock-based plans and related income tax expense (shares)		100
Common stock issued under stock-based plans and related income tax expense	(2,313)	$ 100	(2,413)
Cash dividends paid on common shares	(4,192)			(4,192)
Net income available to common shareholders	24,077			24,077
Foreign currency translation	624				624
Balance, ending balance (shares) at May. 31, 2022		24,788
Balance, ending balance at May. 31, 2022	687,559	$ 24,788	85,432	604,039	(26,700)
Balance, beginning balance (shares) at Feb. 28, 2023		24,912				240
Balance, beginning balance at Feb. 28, 2023	853,460	$ 24,912	326,839	506,042	(4,573)	$ 240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	1,904		1,904
Common stock issued under stock-based plans and related income tax expense (shares)		101
Accrued dividends on preferred stock	(3,600)			(3,600)
Common stock issued under stock-based plans and related income tax expense	(1,711)	$ 101	(1,812)
Cash dividends paid on common shares	(4,235)			(4,235)
Net income available to common shareholders	28,522			28,522
Foreign currency translation	1,131				1,131
Interest rate swap	(4,098)				(4,098)
Balance, ending balance (shares) at May. 31, 2023		25,013				240
Balance, ending balance at May. 31, 2023	$ 871,373	$ 25,013	$ 326,931	$ 526,729	$ (7,540)	$ 240

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
	May 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	1. 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. We are a provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets, predominantly 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. The Company's AZZ Metal Coatings segment is a leading provider of metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication 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 the United States. The AZZ Infrastructure Solutions consists of the Company's 40% interest in AIS Investment Holdings LLC (the "AVAIL JV"). AIS Investment Holdings LLC 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. AIS Investment Holdings LLC was wholly-owned by the Company until September 30, 2022, when AZZ contributed its' AZZ Infrastructure Solutions segment, excluding AZZ Crowley Tubing and excluding certain receivables retained by AZZ ("AIS"), to the AVAIL JV and sold a 60% interest in the AVAIL JV to Fernweh Group LLC ("Fernweh"). For the three months ended May 31, 2022, financial data for the AZZ Infrastructure Solutions segment is segregated and reported as discontinued operations. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2023 was derived from audited financial statements. 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, 2023, 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. See Note 3 for more information about results of operations reported in discontinued operations in the consolidated statement of operations and statement of cash flows for the three months ended May 31, 2022. 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 29, 2024 is referred to as fiscal 2024.

Acquisitions

Acquisitions	3 Months Ended
	May 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	2. Acquisitions Precoat Acquisition On May 13, 2022, the Company acquired Precoat Metals for a purchase price of approximately $1.3 billion (the "Precoat Acquisition"). Based in St. Louis, Missouri, Precoat is the leading independent provider of metal coil coating solutions in North America. The acquisition represents a continued transition of the Company to a focused provider of coating and galvanizing services for critical applications. AZZ Precoat Metals contributed revenue of $222.1 million and operating income of $37.7 million to the Company's condensed consolidated statements of operations for the three months ended May 31, 2023. The Company completed the final valuation during the first quarter of fiscal year 2024. The Company accounted for the Precoat Acquisition as a business combination under the acquisition method of accounting. Goodwill from the acquisition of $527.8 million represents the excess purchase price over the estimated value of net tangible and intangible assets and liabilities assumed, and is expected to be deductible for income tax purposes. The Company's chief operating decision maker assesses performance and allocates resources to Precoat separately from the AZZ Metal Coatings segment; therefore, Precoat is accounted for as a separate segment, the AZZ Precoat Metals segment. See Note 6 for more information about the Company's operating segments. Goodwill from the acquisition was allocated to the AZZ Precoat Metals segment. Assets acquired and liabilities assumed in the Precoat Acquisition were recorded at their estimated fair values as of the acquisition date. See Note 15 for additional information regarding certain environmental liabilities assumed as part of the Precoat Acquisition. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. The Company engaged third-party valuation experts to assist in determination of fair value of property and equipment, intangible assets, pension benefit obligation and certain other assets and liabilities. Estimates from third-party experts along with the analysis and expertise of management have formed the basis for the allocation. Management believes that the current information provides a reasonable basis for the fair values of assets acquired and liabilities assumed. As of May 31, 2023, the Company made purchase price allocation adjustments that impacted goodwill, contract assets and accrued expenses. The following table represents the summary of the assets acquired and liabilities assumed, in aggregate, related to the Precoat Acquisition, as of the date of the acquisition (in thousands): May 13, 2022 Assets Accounts receivable $ 77,422 Inventories 43,369 Contract assets 68,314 Prepaid expenses and other 2,247 Property, plant and equipment 305,503 Right-of-use asset 13,753 Goodwill 527,793 Deferred tax asset 8,660 Intangibles and other assets 446,546 Total fair value of assets acquired $ 1,493,607 Liabilities Accounts payable (99,223) Accrued expenses (31,761) Other accrued liabilities (5,330) Lease liability, short-term (2,440) Lease liability, long-term (11,313) Other long-term liabilities (60,091) Total fair value of liabilities assumed $ (210,158) Total purchase price, net of cash acquired $ 1,283,449 Intangible assets include customer relationships, tradenames and technology. Other long-term liabilities include the Company's pension obligation and certain environmental liabilities. See Notes 14 and 15 for more information about these long-term liabilities. Unaudited Pro Forma Information The following unaudited pro forma financial information for the three months ended May 31, 2023 and 2022 combines the historical results of the Company and the acquisition of Precoat Metals, assuming that the companies were combined as of March 1, 2022. The pro forma financial information includes business combination accounting effects from the Precoat Acquisition, including amortization expense from acquired intangible assets, depreciation expense from acquired property, plant and equipment, interest expense from financing transactions which occurred to fund the Precoat Acquisition, acquisition-related transaction costs and tax-related effects. The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition of Precoat Metals had taken place on March 1, 2022 or of future operating performance. Three Months Ended May 31, 2023 2022 Revenue $ 390,873 $ 400,154 Net income from continuing operations (1) $ 28,522 $ (550) (1) Net income for the three months ended May 31, 2022 includes acquisition costs of approximately $45.0 million, of which $11.5 million was incurred by AZZ and $33.5 million was incurred by Precoat Metals prior to the acquisition.

Discontinued Operations

Discontinued Operations	3 Months Ended
	May 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	3. Discontinued Operations On September 30, 2022, AZZ contributed its AZZ Infrastructure Solutions segment, excluding AZZ Crowley Tubing ("AIS") to a joint venture, AIS Investment Holdings LLC (the "AVAIL JV") and sold a 60% interest in the AVAIL JV to Fernweh Group LLC ("Fernweh"). The divestiture was part of the Company's plan to divest of non-core businesses. On September 30, 2022, the AVAIL JV was deconsolidated. Beginning October 1, 2022, the Company's retained 40% interest in the AVAIL JV is included in the AZZ Infrastructure Solutions segment and is accounted for under the equity method of accounting. The divestiture of the AZZ Infrastructure Solutions segment represents an intentional strategic shift in our operations and will allow the Company to become a focused provider of coating and galvanizing solutions for critical applications. As a result, the results of the AIS segment were classified as discontinued operations in our condensed statements of operations and excluded from both continuing operations and segment results for the three months ended May 31, 2022. The results of operations from discontinued operations for the three months ended May 31, 2022, have been reflected as discontinued operations in the consolidated statements of operations and consist of the following (in thousands): Three Months Ended May 31, 2022 Sales $ 107,264 Cost of sales 82,861 Gross margin 24,403 Selling, general and administrative 12,402 Operating income from discontinued operations 12,001 Interest expense 1 Other (income) expense, net 825 Income from discontinued operations before income tax 11,175 Income tax expense 2,451 Net income from discontinued operations $ 8,724 Earnings per common share from discontinued operations: Basic earnings per share $ 0.35 Diluted earnings per share $ 0.34 We have included the net cash provided by discontinued operations in the consolidated statements of cash flows. The depreciation, amortization, capital expenditures, and significant operating and investing non-cash items of the discontinued operations consist of the following (in thousands): Three Months Ended May 31, 2022 Depreciation and amortization $ 3,146 Purchase of property, plant and equipment 1,336 Loss on sale of property, plant and equipment 5

Earnings Per Share

Earnings Per Share	3 Months Ended
	May 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	4. Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended May 31, 2023 2022 Numerator: Net income from continuing operations $ 28,522 $ 15,353 Dividends on preferred stock (3,600) — Numerator for basic earnings per share continuing operations 24,922 15,353 After-tax interest expense for Convertible Notes — 547 Dividends on preferred stock 3,600 — Numerator for diluted earnings per share continuing operations $ 28,522 $ 15,900 Net income from discontinued operations $ — $ 8,724 Net income available to common shareholders $ 24,922 $ 24,077 After-tax interest expense for Convertible Notes — 547 Dividends on preferred stock 3,600 — Numerator for diluted earnings per share—net income available to common shareholders $ 28,522 $ 24,624 Denominator: Weighted average shares outstanding for basic earnings per share 24,940 24,709 Effect of dilutive securities: Employee and director stock awards 93 161 Convertible Notes — 805 Series A Convertible Preferred Stock 4,117 — Denominator for diluted earnings per share 29,150 25,675 Basic earnings per share Earnings per common share from continuing operations $ 1.00 $ 0.62 Earnings per common share from discontinued operations $ — $ 0.35 Earnings per common share $ 1.00 $ 0.97 Diluted earnings per share Earnings per common share from continuing operations $ 0.98 $ 0.62 Earnings per common share from discontinued operations $ — $ 0.34 Earnings per common share $ 0.98 $ 0.96

Sales

Sales	3 Months Ended
	May 31, 2023
Revenues [Abstract]
Sales	5. Sales Disaggregated Sales The following table presents disaggregated sales, for continuing operations, by customer industry (in thousands): Three Months Ended May 31, 2023 2022 Sales: Construction $ 207,162 $ 68,354 Industrial 39,087 37,284 Consumer 35,179 6,214 Transportation 35,179 31,070 Electrical/Utility 27,361 22,785 Other (1) 46,905 41,427 Total sales $ 390,873 $ 207,134 (1) Other includes less significant markets, such as agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling. See also Note 6 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, primarily related to the Company’s Precoat Metals segment. Customer billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, the Company can receive advances or deposits from its 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. Contract liabilities of $1.0 million and $1.3 million as of May 31, 2023 and February 28, 2023, respectively, are included in "Other accrued liabilities" in the consolidated balance sheets. As of May 31, 2023 and February 28, 2023, the balance for contract assets was $78.5 million and $79.3 million, respectively, primarily related to the AZZ Precoat Metals segment.

Operating Segments

Operating Segments	3 Months Ended
	May 31, 2023
Segment Reporting [Abstract]
Operating Segments	6. Operating Segments Segment Information The Company’s 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 (loss) are the primary measures used by the CODM to evaluate segment operating performance and to allocate resources to segments. Expenses related to certain centralized administration or executive functions that are not specifically related to an operating segment are included in Corporate. As presented in Note 3, the AVAIL JV operating results for the period prior to deconsolidation are included within discontinued operations, with the exception of AZZ Crowley Tubing, which was retained by the Company and merged into the AZZ Metal Coatings segment. See Note 3 for the results of operations related to the AZZ Infrastructure Solutions segment. A summary of each of the Company's 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 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 and extends the life-cycle of fabricated steel for several decades. AZZ Precoat Metals — engages in the advanced application of protective and decorative 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. AZZ Infrastructure Solutions — consists of the equity in earnings of the Company's 40% investment in the AVAIL JV, as well as other expenses directly related to AIS receivables that were retained following the divestiture of the AIS business. The AVAIL JV 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 AZZ 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. Net income from continuing operations by segment for the three months ended May 31, 2023 and 2022 was as follows (in thousands): Three Months Ended May 31, 2023 Metal Coatings Precoat Metals Infrastructure Solutions (1) Corporate (2)(3) Total Sales $ 168,794 $ 222,079 $ — $ — $ 390,873 Cost of sales 117,858 175,996 — — 293,854 Gross margin 50,936 46,083 — — 97,019 Selling, general and administrative 5,466 8,392 22 17,643 31,523 Operating income (loss) from continuing operations $ 45,470 $ 37,691 (22) (17,643) 65,496 Interest expense — 28,706 28,706 Equity in earnings of unconsolidated subsidiaries (1,420) — (1,420) Other (income) expense — 38 38 Income (loss) from continuing operations before income tax $ 1,398 (46,387) 38,172 Income tax expense 9,650 9,650 Net income (loss) from continuing operations $ (56,037) $ 28,522 Three Months Ended May 31, 2022 Metal Coatings Precoat Metals Infrastructure Solutions (1) Corporate (2)(3) Total Sales $ 163,443 $ 43,691 $ — $ — $ 207,134 Cost of sales 113,580 33,501 — — 147,081 Gross margin 49,863 10,190 — — 60,053 Selling, general and administrative 4,593 3,542 — 24,009 32,144 Operating income (loss) from continuing operations $ 45,270 $ 6,648 — (24,009) 27,909 Interest expense — 7,472 7,472 Other (income) expense — (27) (27) Income (loss) from continuing operations before income tax $ — (31,454) 20,464 Income tax expense 5,111 5,111 Net income (loss) from continuing operations $ (36,565) $ 15,353 (1) Infrastructure Solutions segment includes the Company’s equity in (earnings) loss from its investment in the AVAIL JV, as well as other expenses related to receivables that were retained by the Company following the sale of the AIS business. (2) Interest expense, Other (income) expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments. (3) For fiscal year 2024, amortization expense for acquired intangible assets is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments. Asset balances by operating segment for each period were as follows (in thousands): As of May 31, 2023 February 28, 2023 Assets: Metal Coatings $ 582,664 $ 588,337 Precoat Metals 1,489,635 1,488,810 Infrastructure Solutions - Investment in Joint Venture 87,068 84,760 Corporate 46,610 59,572 Total assets $ 2,205,977 $ 2,221,479 Financial Information About Geographical Areas Financial information about geographical areas for the periods presented was as follows (in thousands): Three Months Ended May 31, 2023 2022 Sales: United States $ 381,322 $ 194,360 Canada 9,551 12,774 Total $ 390,873 $ 207,134 As of May 31, 2023 February 28, 2023 Property, plant and equipment, net: United States $ 484,305 $ 478,722 Canada 19,727 19,781 Total $ 504,032 $ 498,503

Investments in Unconsolidated E

Investments in Unconsolidated Entity	3 Months Ended
	May 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Entity	7. Investments in Unconsolidated Entity AVAIL JV

Derivative Instruments

Derivative Instruments	3 Months Ended
	May 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	8. Derivative Instruments Interest Rate Swap Derivative As a policy, the Company does not hold, issue or trade derivative instruments for speculative purposes. The Company may periodically enter into forward sale contracts to purchase a specified volume of zinc at fixed prices. These contracts are not accounted for as derivatives because they meet the criteria for the normal purchases and normal sales scope exception in ASC 815. We manage our exposure to fluctuations in interest rates using a mix of fixed and variable-rate debt. We utilize fixed-rate interest rate swap agreements to change the variable interest rate to a fixed rate on a portion of our variable-rate debt. On September 27, 2022, the Company entered into a fixed-rate interest rate swap agreement with banks that are parties to the 2022 Credit Agreement. On October 7, 2022, the agreement was amended to change the SOFR-based component of the interest rate on a portion of our variable-rate debt to a fixed rate of 4.277%, resulting in a total fixed rate of 8.627% (the "2022 Swap"). The 2022 Swap had an initial notional amount of $550.0 million and a maturity date of September 30, 2025. The notional amount of the interest rate swap decreases by a pro-rata portion of any quarterly principal payments made on the Term Loan B, and the current notional amount is $545.9 million. The objective of the 2022 Swap is to eliminate the variability of cash flows in interest payments attributable to changes in benchmark one-month SOFR interest rates, for approximately one-half of the total amount of our variable-rate debt. The hedged risk is the interest rate risk exposure to changes in interest payments, attributable to changes in benchmark one-month SOFR interest rates over the interest rate swap term. The changes in cash flows of the interest rate swap are expected to exactly offset changes in cash flows of the variable-rate debt. We designated the 2022 Swap as a cash flow hedge at inception. Cash settlements, in the form of cash payments or cash receipts, of the 2022 Swap are recognized in interest expense. At May 31, 2023, changes in fair value attributable to the effective portion of the 2022 Swap were included on the condensed consolidated balance sheets in accumulated other comprehensive income. For derivative instruments that qualify for hedge accounting treatment, the fair value is recognized on our condensed consolidated balance sheets as derivative assets or liabilities with offsetting changes in fair value, to the extent effective, recognized in accumulated other comprehensive income until reclassified into earnings when the interest expense on the underlying debt is reflected in earnings. The portion of a cash flow hedge that does not offset the change in the fair value of the transaction being hedged, which is commonly referred to as

Debt

Debt	3 Months Ended
	May 31, 2023
Debt Disclosure [Abstract]
Debt	9. Debt The Company’s long-term debt instruments and balances outstanding for each of the periods presented (in thousands): As of May 31, 2023 February 28, 2023 Revolving Credit Facility $ 75,000 $ 95,000 Term Loan B 1,030,250 1,030,250 Total debt, gross $ 1,105,250 $ 1,125,250 Unamortized debt issuance costs (64,409) (67,130) Long-term debt, net $ 1,040,841 $ 1,058,120 2022 Credit Agreement and Term Loan B On May 13, 2022, the Company entered into a new Credit Agreement (the "2022 Credit Agreement") by and among the Company, borrower, Citibank, N.A., as administrative and collateral agent, and the other agents and lender parties thereto 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; i. 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; i. 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; i. borrowings under the Term Loan B and the Revolving Credit Facility each bear an interest rate of Secured Overnight Financing Rate ("SOFR") plus 4.25%; i. includes customary affirmative and negative covenants, and events of default; including restrictions on the incurrence of non-ordinary course debt, investment and dividends, subject to various exceptions, and; i. includes a maximum quarterly leverage ratio financial covenant with reporting requirements at each quarter-end; The Company utilizes proceeds from the Revolving Credit Facility primarily to finance working capital needs, capital improvements, dividends, acquisitions and for general corporate purposes. As defined in the credit agreement, quarterly prepayments will be made against the outstanding principal of the Term Loan B and are payable on the last business day of each May, August, November and February, beginning August 31, 2022, in a quarterly aggregate principal amount of $3.25 million, with the entire remaining principal amount due on May 13, 2029, the maturity date. Additional prepayments made against the Term Loan B contribute to these required quarterly payments. Due to a prepayment of $240.0 million that the Company made on the Term Loan B during fiscal year 2023 in connection with the sale of the AIS business, the quarterly mandatory principal payment requirement has been met, and the quarterly payments of $3.25 million are no longer required. The effective interest rate for the Revolving Credit Facility and the Term Loan B was 9.07% at May 31, 2023. The Company's credit agreement requires the Company to maintain a maximum Total Net Leverage Ratio (as defined in the loan agreement) no greater than 6.25 through November 2022. For each subsequent quarter, the maximum ratio decreases by 25 basis points through May 31, 2024, when the maximum Total Net Leverage Ratio reaches 4.5. The Company was required to maintain a Total Net Leverage Ratio as of May 31, 2023 of 5.5. As of May 31, 2023, we had $1,105.3 million of floating- and fixed-rate notes outstanding with varying maturities through fiscal 2029 and we were in compliance with all of the covenants related to these outstanding borrowings. As of May 31, 2023, we had approximately $307.1 million of additional credit available for future draws or letters of credit. The Company's debt agreements require the Company to maintain certain financial ratios. As of May 31, 2023, the Company was in compliance with all covenants or other requirements set forth in the debt agreements. Letters of Credit As of May 31, 2023, w e had total outstanding letters of credit in the amount of $17.9 million. These letters of credit are issued for a number of reasons, but are most commonly issued in lieu of customer retention withholding payments covering warranty, performance periods and insurance collateral.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	10. 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 Measurements and Disclosures ("ASC 820"), certain of the Company’s 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. • Level 3: Unobservable inputs that are not corroborated by market data and reflect the Company’s own assumptions. The carrying amount of the Company's financial instruments (cash equivalents, accounts receivable, accounts payable, accrued liabilities and the revolving credit facility) approximates the fair value of these instruments based upon either their short-term nature or their variable market rate of interest. Interest Rate Swap Agreement The Company’s derivative instrument consists of an interest rate swap contract, which is a Level 2 of the fair value hierarchy and included in "Intangibles and other assets, net" in the condensed consolidated balance sheet as of May 31, 2023. See Note 8 for more information. The Company’s financial instruments that is measured at fair value on a recurring basis as of May 31, 2023 and February 28, 2023 is as follows (dollars in thousands): Carrying Value Carrying Value May 31, Fair Value Measurements Using February 28, Fair Value Measurements Using 2023 Level 1 Level 2 Level 3 2023 Level 1 Level 2 Level 3 Assets (Liabilities): Interest Rate Swap Agreement $ (1,436) $ — $ (1,436) $ — $ 3,925 $ — $ 3,925 $ — Total Assets $ (1,436) $ 3,925 Non-recurring Fair Value Measurements Investment in Joint Venture The fair value of the AVAIL JV that is accounted for under the equity method was determined based on the transaction price. Subsequent measurement of the fair value of the AVAIL JV is determined based on the income approach. The income approach uses discounted cash flow models that require various observable and non-observable inputs, such as operating margins, revenues, product costs, operating expenses, capital expenditures, terminal-year values and risk-adjusted discount rates. These valuations resulted in Level 3 nonrecurring fair value measurements. Long-Term Debt The fair value of the Company’s Term Loan B is based on quoted market prices in active markets and is included in the Level 1 fair value hierarchy. The fair value of the Company’s revolving credit facility is estimated based on market values for debt issues with similar characteristics or rates currently available for debt with similar terms. The principal amount of our outstanding debt was $1,105.3 million and $1,125.3 million at May 31, 2023 and February 28, 2023, respectively. The estimated fair value of our outstanding debt was $1,103.9 million and $1,133.2 million at May 31, 2023 and February 28, 2023, respectively, excluding unamortized issuance costs. The estimated fair values of our outstanding debt were determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates and credit spreads. These valuations resulted in Level 2 nonrecurring fair value measurements.

Leases

Leases	3 Months Ended
	May 31, 2023
Leases [Abstract]
Leases	11. Leases The Company is a lessee under various leases for facilities and equipment. As of May 31, 2023, the Company was the lessee for 160 operating leases with terms of 12 months or more and 14 finance leases. Many of the operating leases either have renewal options of between one and five years or convert to month-to-month agreements at the end of the specified lease term. The Company’s operating leases are primarily for (i) operating facilities, (ii) vehicles and equipment used in operations, (iii) facilities used for back-office functions and (iv) equipment used for back-office functions, and (v) temporary storage. The majority of the Company’s long-term lease expenses 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 the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has a significant number of short-term leases, including month-to-month agreements. The Company's short-term lease agreements include expenses incurred hourly, daily, monthly and for other durations of time of one year or less. The Company’s future lease commitments as of May 31, 2023 do not reflect all of the Company’s short-term lease commitments. The following table outlines the classification of the Company's right-of-use asset and lease liabilities in the balance sheets as of May 31, 2023 and February 28, 2023 (in thousands): Balance Sheet Classification As of May 31, 2023 February 28, 2023 Assets Right-of-use assets Right-of-use assets $ 26,262 $ 26,392 Liabilities Operating lease liabilities ― short-term Lease liability - short-term $ 6,273 $ 6,119 Operating lease liabilities ― long-term Lease liability - long-term 19,455 19,659 Finance lease liabilities ― short-term Lease liability - short-term 288 284 Finance lease liabilities ― long-term Lease liability - long-term 972 1,045 Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands, except years and percentages): Three Months Ended May 31, 2023 2022 Operating cash flows from operating leases included in lease liabilities $ 1,825 $ 1,147 Lease liabilities obtained from new ROU assets - operating $ 1,509 $ 111 Operating and financing cash flows from financing leases included in lease liabilities $ 86 $ 45 Lease liabilities obtained from new ROU assets - financing $ — $ — As of May 31, 2023 February 28, 2023 Weighted-average remaining lease term - operating leases 4.76 years 5.04 years Weighted-average discount rate - operating leases 4.37 % 4.31 % Weighted-average remaining lease term - financing leases 4.37 years 4.61 years Weighted-average discount rate - financing leases 5.17 % 5.15 % The following table outlines the classification of lease expense related to operating leases from continuing operations, in the statements of operations (in thousands): Three Months Ended May 31, 2023 2022 Cost of sales $ 3,102 $ 2,070 Selling, general and administrative 499 374 Total lease cost $ 3,601 $ 2,444 As of May 31, 2023, maturities of the Company's lease liabilities, excluding lease liabilities associated with our discontinued operations, were as follows (in thousands): Fiscal year: Operating Leases Finance Leases Total 2024 $ 5,483 $ 258 $ 5,741 2025 6,658 344 7,002 2026 5,742 300 6,042 2027 4,565 268 4,833 2028 2,491 195 2,686 2029 1,959 43 2,002 Thereafter 1,627 — 1,627 Total lease payments $ 28,525 $ 1,408 $ 29,933 Less imputed interest (2,796) (149) (2,945) Total $ 25,729 $ 1,259 $ 26,988 The Company subleases multiple buildings in Columbia, South Carolina to multiple subtenants. The Columbia sublease agreements are by and between Precoat Metals and multiple subtenants. Sublease income is recognized over the term of the sublease on a straight-line basis and is reported in the consolidated statement of operations in "Cost of sales." The Company recognized $0.2 million of income from subleases during the three months ended May 31, 2023.

Income Taxes

Income Taxes	3 Months Ended
	May 31, 2023
Income Tax Disclosure [Abstract]
Income taxes	12. Income Taxes Continuing Operations The provision for income taxes from continuing operations reflects an effective tax rate of 25.3% for the three months ended May 31, 2023, compared to 25.0% for the three months ended May 31, 2022. Discontinued Operations The following table outlines income or loss and the related tax expense (benefit) from discontinued operations for the three months ended May 31, 2022 (in thousands): Three Months Ended May 31, 2022 Income from discontinued operations before income taxes $ 11,175 Income tax (expense) benefit (2,451) Income from discontinued operations, net of tax $ 8,724 The provision for income taxes from discontinued operations reflects an effective tax rate of 21.9% for the three months ended May 31, 2022.

Equity

Equity	3 Months Ended
	May 31, 2023
Equity [Abstract]
Equity	13. Equity Series A Convertible Preferred Stock On August 5, 2022, the Company exchanged its $240.0 million aggregate principal amount of 6.0% convertible subordinated notes due June 30, 2030 for 240,000 shares of 6.0% Series A Convertible Preferred Stock, following the receipt of shareholder approval for the issuance of preferred stock. The Series A Convertible Preferred Stock is convertible by the holder at any time into shares of the Company's common stock at a conversion price of $58.30 per common share. The preferred stock accumulates a 6.0% dividend per annum. Dividends are payable quarterly on March 31, June 30, September 30 and December 31 of each year. In addition, the preferred shares are subject to a minimum conversion threshold of 1,000 shares per conversion, and customary anti-dilution and dividend adjustments. The preferred shares have full voting rights as if converted and have a fully participating liquidation preference. As of May 31, 2023, the 240,000 shares of outstanding Series A Convertible Preferred Stock had accrued dividends of $2.4 million and could be converted into 4.1 million shares of common stock, at the option of the holder. As of May 31, 2022, there were no shares of outstanding preferred stock and no accrued dividends. Accumulated Other Comprehensive Income The components of accumulated other comprehensive gain (loss) ("AOCI"), after tax, for the three months ended May 31, 2023 and 2022 consisted of the following (in thousands): Three Months Ended May 31, 2023 Foreign Currency Translation Gain (Loss) Net Actuarial Gain (Loss), Net of Tax Interest Rate Swap, Net of Tax Total Balance at February 28, 2023 $ (7,571) $ 119 $ 2,879 $ (4,573) Other comprehensive income before reclassification 1,131 — (4,647) (3,516) Amounts reclassified from AOCI — — 549 549 Net change in AOCI 1,131 — (4,098) (2,967) Balance at May 31, 2023 $ (6,440) $ 119 $ (1,219) $ (7,540) Three Months Ended May 31, 2022 Foreign Currency Translation Gain (Loss) Net Actuarial Gain (Loss), Net of Tax Interest Rate Swap, Net of Tax Total Balance at February 28, 2022 $ (27,324) $ — $ — $ (27,324) Other comprehensive income before reclassification 624 — — 624 Net change in AOCI 624 — — 624 Balance at May 31, 2022 $ (26,700) $ — $ — $ (26,700)

Defined Benefit Pension Plan

Defined Benefit Pension Plan	3 Months Ended
	May 31, 2023
Retirement Benefits [Abstract]
Defined Benefit Pension Plan	14. Defined Benefit Pension Plan Pension and Employee Benefit Obligations The Company has a defined benefit pension plan for certain employees employed by Precoat Metals as of May 13, 2022 (the "Plan"). Prior to acquisition, benefit accruals were frozen for all participants. After the freeze, participants no longer accrued benefits under the Plan, and new hires were not eligible to participate in the Plan. As of May 31, 2023, the Plan was underfunded, and the Company has a pension liability of $31.7 million, which is included in "Other long-term liabilities" in the consolidated balance sheets and represents the underfunded portion of the Plan.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Legal The 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. Environmental The Company assumed certain environmental liabilities as part of the Precoat Acquisition described in Note 2. As of May 31, 2023, t he reserve balance for environmental liabilities was $23.2 million, of which $3.1 million is classified as current. Environmental remediation liabilities include costs directly associated with site investigation and clean up, such as materials, external contractor costs, legal and consulting expenses and incremental internal costs directly related to ongoing remediation plans. Estimates used to record environmental remediation liabilities are based on the Company's best estimate of probable future costs based on site-specific facts and circumstances known at the time of the estimate and these estimates are updated on a quarterly basis. Estimates of the cost for the potential or ongoing remediation plans are developed using internal resources and third-party environmental engineers and consultants. The Company accrues the anticipated cost of environmental remediation when the obligation is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. While any revisions to the Company's environmental remediation liabilities could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional remediation expenses to have an adverse material effect on its financial position, results of operations, or cash flows.

The Company and Basis of Pres_2

The Company and Basis of Presentation (Policies)	3 Months Ended
	May 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Consolidation	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, predominantly 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. The Company's AZZ Metal Coatings segment is a leading provider of metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication 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 the United States. The AZZ Infrastructure Solutions consists of the Company's 40% interest in AIS Investment Holdings LLC (the "AVAIL JV"). AIS Investment Holdings LLC 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. AIS Investment Holdings LLC was wholly-owned by the Company until September 30, 2022, when AZZ contributed its' AZZ Infrastructure Solutions segment, excluding AZZ Crowley Tubing and excluding certain receivables retained by AZZ ("AIS"), to the AVAIL JV and sold a 60% interest in the AVAIL JV to Fernweh Group LLC ("Fernweh"). For the three months ended May 31, 2022, financial data for the AZZ Infrastructure Solutions segment is segregated and reported as discontinued operations. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2023 was derived from audited financial statements. 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, 2023, 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. See Note 3 for more information about results of operations reported in discontinued operations in the consolidated statement of operations and statement of cash flows for the three months ended May 31, 2022. 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 29, 2024 is referred to as fiscal 2024.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	May 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of assets acquired and liabilities assumed	The following table represents the summary of the assets acquired and liabilities assumed, in aggregate, related to the Precoat Acquisition, as of the date of the acquisition (in thousands): May 13, 2022 Assets Accounts receivable $ 77,422 Inventories 43,369 Contract assets 68,314 Prepaid expenses and other 2,247 Property, plant and equipment 305,503 Right-of-use asset 13,753 Goodwill 527,793 Deferred tax asset 8,660 Intangibles and other assets 446,546 Total fair value of assets acquired $ 1,493,607 Liabilities Accounts payable (99,223) Accrued expenses (31,761) Other accrued liabilities (5,330) Lease liability, short-term (2,440) Lease liability, long-term (11,313) Other long-term liabilities (60,091) Total fair value of liabilities assumed $ (210,158) Total purchase price, net of cash acquired $ 1,283,449
Pro forma information	Three Months Ended May 31, 2023 2022 Revenue $ 390,873 $ 400,154 Net income from continuing operations (1) $ 28,522 $ (550) (1) Net income for the three months ended May 31, 2022 includes acquisition costs of approximately $45.0 million, of which $11.5 million was incurred by AZZ and $33.5 million was incurred by Precoat Metals prior to the acquisition.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	May 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	The results of operations from discontinued operations for the three months ended May 31, 2022, have been reflected as discontinued operations in the consolidated statements of operations and consist of the following (in thousands): Three Months Ended May 31, 2022 Sales $ 107,264 Cost of sales 82,861 Gross margin 24,403 Selling, general and administrative 12,402 Operating income from discontinued operations 12,001 Interest expense 1 Other (income) expense, net 825 Income from discontinued operations before income tax 11,175 Income tax expense 2,451 Net income from discontinued operations $ 8,724 Earnings per common share from discontinued operations: Basic earnings per share $ 0.35 Diluted earnings per share $ 0.34 We have included the net cash provided by discontinued operations in the consolidated statements of cash flows. The depreciation, amortization, capital expenditures, and significant operating and investing non-cash items of the discontinued operations consist of the following (in thousands): Three Months Ended May 31, 2022 Depreciation and amortization $ 3,146 Purchase of property, plant and equipment 1,336 Loss on sale of property, plant and equipment 5 The following table outlines income or loss and the related tax expense (benefit) from discontinued operations for the three months ended May 31, 2022 (in thousands): Three Months Ended May 31, 2022 Income from discontinued operations before income taxes $ 11,175 Income tax (expense) benefit (2,451) Income from discontinued operations, net of tax $ 8,724

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May 31, 2023
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 May 31, 2023 2022 Numerator: Net income from continuing operations $ 28,522 $ 15,353 Dividends on preferred stock (3,600) — Numerator for basic earnings per share continuing operations 24,922 15,353 After-tax interest expense for Convertible Notes — 547 Dividends on preferred stock 3,600 — Numerator for diluted earnings per share continuing operations $ 28,522 $ 15,900 Net income from discontinued operations $ — $ 8,724 Net income available to common shareholders $ 24,922 $ 24,077 After-tax interest expense for Convertible Notes — 547 Dividends on preferred stock 3,600 — Numerator for diluted earnings per share—net income available to common shareholders $ 28,522 $ 24,624 Denominator: Weighted average shares outstanding for basic earnings per share 24,940 24,709 Effect of dilutive securities: Employee and director stock awards 93 161 Convertible Notes — 805 Series A Convertible Preferred Stock 4,117 — Denominator for diluted earnings per share 29,150 25,675 Basic earnings per share Earnings per common share from continuing operations $ 1.00 $ 0.62 Earnings per common share from discontinued operations $ — $ 0.35 Earnings per common share $ 1.00 $ 0.97 Diluted earnings per share Earnings per common share from continuing operations $ 0.98 $ 0.62 Earnings per common share from discontinued operations $ — $ 0.34 Earnings per common share $ 0.98 $ 0.96

Sales (Tables)

Sales (Tables)	3 Months Ended
	May 31, 2023
Revenues [Abstract]
Disaggregation of Revenue	The following table presents disaggregated sales, for continuing operations, by customer industry (in thousands): Three Months Ended May 31, 2023 2022 Sales: Construction $ 207,162 $ 68,354 Industrial 39,087 37,284 Consumer 35,179 6,214 Transportation 35,179 31,070 Electrical/Utility 27,361 22,785 Other (1) 46,905 41,427 Total sales $ 390,873 $ 207,134 (1) Other includes less significant markets, such as agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling.

Operating segments (Tables)

Operating segments (Tables)	3 Months Ended
	May 31, 2023
Segment Reporting [Abstract]
Operations and assets by segment	Net income from continuing operations by segment for the three months ended May 31, 2023 and 2022 was as follows (in thousands): Three Months Ended May 31, 2023 Metal Coatings Precoat Metals Infrastructure Solutions (1) Corporate (2)(3) Total Sales $ 168,794 $ 222,079 $ — $ — $ 390,873 Cost of sales 117,858 175,996 — — 293,854 Gross margin 50,936 46,083 — — 97,019 Selling, general and administrative 5,466 8,392 22 17,643 31,523 Operating income (loss) from continuing operations $ 45,470 $ 37,691 (22) (17,643) 65,496 Interest expense — 28,706 28,706 Equity in earnings of unconsolidated subsidiaries (1,420) — (1,420) Other (income) expense — 38 38 Income (loss) from continuing operations before income tax $ 1,398 (46,387) 38,172 Income tax expense 9,650 9,650 Net income (loss) from continuing operations $ (56,037) $ 28,522 Three Months Ended May 31, 2022 Metal Coatings Precoat Metals Infrastructure Solutions (1) Corporate (2)(3) Total Sales $ 163,443 $ 43,691 $ — $ — $ 207,134 Cost of sales 113,580 33,501 — — 147,081 Gross margin 49,863 10,190 — — 60,053 Selling, general and administrative 4,593 3,542 — 24,009 32,144 Operating income (loss) from continuing operations $ 45,270 $ 6,648 — (24,009) 27,909 Interest expense — 7,472 7,472 Other (income) expense — (27) (27) Income (loss) from continuing operations before income tax $ — (31,454) 20,464 Income tax expense 5,111 5,111 Net income (loss) from continuing operations $ (36,565) $ 15,353 (1) Infrastructure Solutions segment includes the Company’s equity in (earnings) loss from its investment in the AVAIL JV, as well as other expenses related to receivables that were retained by the Company following the sale of the AIS business. (2) Interest expense, Other (income) expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments. (3) For fiscal year 2024, amortization expense for acquired intangible assets is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments.
Reconciliation of Assets from Segment to Consolidated	Asset balances by operating segment for each period were as follows (in thousands): As of May 31, 2023 February 28, 2023 Assets: Metal Coatings $ 582,664 $ 588,337 Precoat Metals 1,489,635 1,488,810 Infrastructure Solutions - Investment in Joint Venture 87,068 84,760 Corporate 46,610 59,572 Total assets $ 2,205,977 $ 2,221,479
Revenue from External Customers by Geographic Areas	Financial information about geographical areas for the periods presented was as follows (in thousands): Three Months Ended May 31, 2023 2022 Sales: United States $ 381,322 $ 194,360 Canada 9,551 12,774 Total $ 390,873 $ 207,134
Long-lived Assets by Geographic Areas	As of May 31, 2023 February 28, 2023 Property, plant and equipment, net: United States $ 484,305 $ 478,722 Canada 19,727 19,781 Total $ 504,032 $ 498,503

Debt (Tables)

Debt (Tables)	3 Months Ended
	May 31, 2023
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s long-term debt instruments and balances outstanding for each of the periods presented (in thousands): As of May 31, 2023 February 28, 2023 Revolving Credit Facility $ 75,000 $ 95,000 Term Loan B 1,030,250 1,030,250 Total debt, gross $ 1,105,250 $ 1,125,250 Unamortized debt issuance costs (64,409) (67,130) Long-term debt, net $ 1,040,841 $ 1,058,120

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The Company’s financial instruments that is measured at fair value on a recurring basis as of May 31, 2023 and February 28, 2023 is as follows (dollars in thousands): Carrying Value Carrying Value May 31, Fair Value Measurements Using February 28, Fair Value Measurements Using 2023 Level 1 Level 2 Level 3 2023 Level 1 Level 2 Level 3 Assets (Liabilities): Interest Rate Swap Agreement $ (1,436) $ — $ (1,436) $ — $ 3,925 $ — $ 3,925 $ — Total Assets $ (1,436) $ 3,925

Leases (Tables)

Leases (Tables)	3 Months Ended
	May 31, 2023
Leases [Abstract]
Lease, Cost	The following table outlines the classification of the Company's right-of-use asset and lease liabilities in the balance sheets as of May 31, 2023 and February 28, 2023 (in thousands): Balance Sheet Classification As of May 31, 2023 February 28, 2023 Assets Right-of-use assets Right-of-use assets $ 26,262 $ 26,392 Liabilities Operating lease liabilities ― short-term Lease liability - short-term $ 6,273 $ 6,119 Operating lease liabilities ― long-term Lease liability - long-term 19,455 19,659 Finance lease liabilities ― short-term Lease liability - short-term 288 284 Finance lease liabilities ― long-term Lease liability - long-term 972 1,045
Lessee, Operating Lease, Liability, Maturity	The following table outlines the classification of the Company's right-of-use asset and lease liabilities in the balance sheets as of May 31, 2023 and February 28, 2023 (in thousands): Balance Sheet Classification As of May 31, 2023 February 28, 2023 Assets Right-of-use assets Right-of-use assets $ 26,262 $ 26,392 Liabilities Operating lease liabilities ― short-term Lease liability - short-term $ 6,273 $ 6,119 Operating lease liabilities ― long-term Lease liability - long-term 19,455 19,659 Finance lease liabilities ― short-term Lease liability - short-term 288 284 Finance lease liabilities ― long-term Lease liability - long-term 972 1,045 Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands, except years and percentages): Three Months Ended May 31, 2023 2022 Operating cash flows from operating leases included in lease liabilities $ 1,825 $ 1,147 Lease liabilities obtained from new ROU assets - operating $ 1,509 $ 111 Operating and financing cash flows from financing leases included in lease liabilities $ 86 $ 45 Lease liabilities obtained from new ROU assets - financing $ — $ — As of May 31, 2023 February 28, 2023 Weighted-average remaining lease term - operating leases 4.76 years 5.04 years Weighted-average discount rate - operating leases 4.37 % 4.31 % Weighted-average remaining lease term - financing leases 4.37 years 4.61 years Weighted-average discount rate - financing leases 5.17 % 5.15 % The following table outlines the classification of lease expense related to operating leases from continuing operations, in the statements of operations (in thousands): Three Months Ended May 31, 2023 2022 Cost of sales $ 3,102 $ 2,070 Selling, general and administrative 499 374 Total lease cost $ 3,601 $ 2,444
Finance Lease, Liability, Maturity	As of May 31, 2023, maturities of the Company's lease liabilities, excluding lease liabilities associated with our discontinued operations, were as follows (in thousands): Fiscal year: Operating Leases Finance Leases Total 2024 $ 5,483 $ 258 $ 5,741 2025 6,658 344 7,002 2026 5,742 300 6,042 2027 4,565 268 4,833 2028 2,491 195 2,686 2029 1,959 43 2,002 Thereafter 1,627 — 1,627 Total lease payments $ 28,525 $ 1,408 $ 29,933 Less imputed interest (2,796) (149) (2,945) Total $ 25,729 $ 1,259 $ 26,988

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	May 31, 2023
Income Tax Disclosure [Abstract]
Disposal Groups, Including Discontinued Operations	The results of operations from discontinued operations for the three months ended May 31, 2022, have been reflected as discontinued operations in the consolidated statements of operations and consist of the following (in thousands): Three Months Ended May 31, 2022 Sales $ 107,264 Cost of sales 82,861 Gross margin 24,403 Selling, general and administrative 12,402 Operating income from discontinued operations 12,001 Interest expense 1 Other (income) expense, net 825 Income from discontinued operations before income tax 11,175 Income tax expense 2,451 Net income from discontinued operations $ 8,724 Earnings per common share from discontinued operations: Basic earnings per share $ 0.35 Diluted earnings per share $ 0.34 We have included the net cash provided by discontinued operations in the consolidated statements of cash flows. The depreciation, amortization, capital expenditures, and significant operating and investing non-cash items of the discontinued operations consist of the following (in thousands): Three Months Ended May 31, 2022 Depreciation and amortization $ 3,146 Purchase of property, plant and equipment 1,336 Loss on sale of property, plant and equipment 5 The following table outlines income or loss and the related tax expense (benefit) from discontinued operations for the three months ended May 31, 2022 (in thousands): Three Months Ended May 31, 2022 Income from discontinued operations before income taxes $ 11,175 Income tax (expense) benefit (2,451) Income from discontinued operations, net of tax $ 8,724

Equity (Tables)

Equity (Tables)	3 Months Ended
	May 31, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive gain (loss) ("AOCI"), after tax, for the three months ended May 31, 2023 and 2022 consisted of the following (in thousands): Three Months Ended May 31, 2023 Foreign Currency Translation Gain (Loss) Net Actuarial Gain (Loss), Net of Tax Interest Rate Swap, Net of Tax Total Balance at February 28, 2023 $ (7,571) $ 119 $ 2,879 $ (4,573) Other comprehensive income before reclassification 1,131 — (4,647) (3,516) Amounts reclassified from AOCI — — 549 549 Net change in AOCI 1,131 — (4,098) (2,967) Balance at May 31, 2023 $ (6,440) $ 119 $ (1,219) $ (7,540) Three Months Ended May 31, 2022 Foreign Currency Translation Gain (Loss) Net Actuarial Gain (Loss), Net of Tax Interest Rate Swap, Net of Tax Total Balance at February 28, 2022 $ (27,324) $ — $ — $ (27,324) Other comprehensive income before reclassification 624 — — 624 Net change in AOCI 624 — — 624 Balance at May 31, 2022 $ (26,700) $ — $ — $ (26,700)

The Company and Basis of Pres_3

The Company and Basis of Presentation (Details)	3 Months Ended
	May 31, 2023 operating_segments	Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of operating segments	3
AIS Joint Venture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage of investment		40%
Discontinued Operations, Disposed of by Sale | AZZ Infrastructure Solutions | AIS Joint Venture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of investment sold		0.60

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended
	May 13, 2022	May 31, 2022	May 31, 2023	Feb. 28, 2023
Business Acquisition [Line Items]
Goodwill			$ 705,501	$ 702,512
Precoat Metals Business Division
Business Acquisition [Line Items]
Consideration transferred	$ 1,300,000
Contributed revenue		$ 222,100
Operating income		$ 37,700
Goodwill	$ 527,793

Acquisitions - Assets Acquired

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023	May 13, 2022
Assets
Goodwill	$ 705,501	$ 702,512
Precoat Metals Business Division
Assets
Accounts receivable			$ 77,422
Inventories			43,369
Contract assets			68,314
Prepaid expenses and other			2,247
Property, plant and equipment			305,503
Right-of-use asset			13,753
Goodwill			527,793
Deferred tax asset			8,660
Intangibles			446,546
Total fair value of assets acquired			1,493,607
Liabilities
Accounts payable and other accrued liabilities			(99,223)
Accrued expenses			(31,761)
Other accrued liabilities			(5,330)
Lease liability, short-term			(2,440)
Lease liability, long-term			(11,313)
Other long-term liabilities			(60,091)
Total fair value of liabilities assumed			(210,158)
Total purchase price, net of cash acquired			$ 1,283,449

Acquisitions - Pro Forma Inform

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Business Acquisition [Line Items]
Revenue	$ 390,873	$ 400,154
Net income from continuing operations	28,522	$ (550)
Acquisition costs	45,000
Azz Inc.
Business Acquisition [Line Items]
Acquisition costs	11,500
Precoat Metals
Business Acquisition [Line Items]
Acquisition costs	$ 33,500

Discontinued Operations and Dis

Discontinued Operations and Disposal Groups - Narrative (Q) (Details) - AIS Joint Venture	Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage of investment	40%
Discontinued Operations, Disposed of by Sale | AZZ Infrastructure Solutions
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of investment sold	0.60

Discontinued Operations - Disco

Discontinued Operations - Discontinued Operations in Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net income (loss) from discontinued operations	$ 0	$ 8,724
Earnings per common share from discontinued operations:
Earnings (loss) per common share from discontinued operations (in dollars per share)	$ 0	$ 0.35
Earnings (loss) per common share from discontinued operations (in dollars per share)	$ 0	$ 0.34
Discontinued Operations, Disposed of by Sale | AZZ Infrastructure Solutions
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales		$ 107,264
Cost of sales		82,861
Gross margin		24,403
Selling, general and administrative		12,402
Operating income (loss) from discontinued operations		12,001
Interest expense		1
Other (income) expense, net		825
Income (loss) from discontinued operations before income tax		11,175
Income tax (benefit) expense		2,451
Net income (loss) from discontinued operations		$ 8,724
Earnings per common share from discontinued operations:
Earnings (loss) per common share from discontinued operations (in dollars per share)		$ 0.35
Earnings (loss) per common share from discontinued operations (in dollars per share)		$ 0.34

Discontinued Operations - Depre

Discontinued Operations - Depreciation, Amortization, Capital Expenditures, and Significant Operating and Investing Noncash Items of the Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale of property, plant and equipment	$ 2	$ 29
Discontinued Operations, Disposed of by Sale | AZZ Infrastructure Solutions
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amortization and depreciation		3,146
Purchase of property, plant and equipment		1,336
Loss on sale of property, plant and equipment		$ 5

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Numerator:
Net income from continuing operations	$ 28,522	$ 15,353
Dividends on preferred stock	3,600	0
Numerator for diluted earnings per share—net income (loss) available to common shareholders	28,522	24,624
Net income from continuing operations available to common shareholders	24,922	15,353
After-tax interest expense for Convertible Notes	0	547
Numerator for diluted earnings per share continuing operations	28,522	15,900
Net income (loss) from discontinued operations	0	8,724
Net income (loss) available to common shareholders	$ 24,922	$ 24,077
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)	24,940,000	24,709,000
Effect of dilutive securities:
Employee and director stock awards	93,000	161,000
Convertible notes (shares)	0	805,000
Series A convertible preferred stock (shares)	4,117,000	0
Denominator for diluted earnings per common share (shares)	29,150,000	25,675,000
Earnings per common share from continuing operations
Earnings (loss) per common share from continuing operations (in dollars per share)	$ 1	$ 0.62
Earnings (loss) per common share from continuing operations (in dollars per share)	0.98	0.62
Earnings per common share from discontinued operations:
Earnings (loss) per common share from discontinued operations (in dollars per share)	0	0.35
Earnings (loss) per common share from discontinued operations (in dollars per share)	0	0.34
Computation of basic and diluted earnings per share
Basic earnings per common share (usd per share)	1	0.97
Diluted earnings per common share (usd per share)	$ 0.98	$ 0.96

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended
	May 31, 2023	May 31, 2022
Share-based Payment Arrangement
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	121,509	81,647

Sales Disaggregated Revenues (D

Sales Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Disaggregation of Revenue [Line Items]
Sales	$ 390,873	$ 207,134
Industrial
Disaggregation of Revenue [Line Items]
Sales	39,087	37,284
Consumer
Disaggregation of Revenue [Line Items]
Sales	35,179	6,214
Transportation
Disaggregation of Revenue [Line Items]
Sales	35,179	31,070
Electrical/Utility
Disaggregation of Revenue [Line Items]
Sales	27,361	22,785
Other
Disaggregation of Revenue [Line Items]
Sales	46,905	41,427
Construction
Disaggregation of Revenue [Line Items]
Sales	$ 207,162	$ 68,354

Sales - Narrative (Details)

Sales - Narrative (Details) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 1,000	$ 1,300
Contract assets	$ 78,544	$ 79,273

Operating segments (Details)

Operating segments (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022	Feb. 28, 2023
Operations and assets by segment
Sales	$ 390,873	$ 207,134
Cost of sales	293,854	147,081
Gross margin	97,019	60,053
Selling, general and administrative	31,523	32,144
Operating income (loss)	65,496	27,909
Interest expense	28,706	7,472
Equity in (earnings) loss of unconsolidated subsidiaries	(1,420)	0
Other (income) expense	38	(27)
Income taxes	9,650	5,111
Net income from continuing operations	28,522	15,353
Income (loss) from continuing operations before income tax	38,172	20,464
Assets:	2,205,977		$ 2,221,479
Property, plant and equipment, net	504,032		498,503
United States
Operations and assets by segment
Sales	381,322	194,360
Property, plant and equipment, net	484,305		478,722
Canada
Operations and assets by segment
Sales	9,551	12,774
Property, plant and equipment, net	19,727		19,781
Corporate
Operations and assets by segment
Sales	0	0
Cost of sales	0	0
Gross margin	0	0
Selling, general and administrative	17,643	24,009
Operating income (loss)	(17,643)	(24,009)
Interest expense	28,706	7,472
Equity in (earnings) loss of unconsolidated subsidiaries	0
Other (income) expense	38	(27)
Income taxes	9,650	5,111
Net income from continuing operations	(56,037)	(36,565)
Income (loss) from continuing operations before income tax	(46,387)	(31,454)
Assets:	46,610		59,572
Metal Coatings | Operating Segments
Operations and assets by segment
Sales	168,794	163,443
Cost of sales	117,858	113,580
Gross margin	50,936	49,863
Selling, general and administrative	5,466	4,593
Operating income (loss)	45,470	45,270
Assets:	582,664		588,337
Precoat Metals | Operating Segments
Operations and assets by segment
Sales	222,079	43,691
Cost of sales	175,996	33,501
Gross margin	46,083	10,190
Selling, general and administrative	8,392	3,542
Operating income (loss)	37,691	6,648
Assets:	1,489,635		1,488,810
Infrastructure Solutions | Operating Segments
Operations and assets by segment
Sales	0	0
Cost of sales	0	0
Gross margin	0	0
Selling, general and administrative	22	0
Operating income (loss)	(22)	0
Interest expense	0	0
Equity in (earnings) loss of unconsolidated subsidiaries	(1,420)
Other (income) expense	0	0
Income (loss) from continuing operations before income tax	1,398	$ 0
Assets:	$ 87,068		$ 84,760

Investments in Unconsolidated_2

Investments in Unconsolidated Entity - Narrative (Details) $ in Thousands	3 Months Ended
	May 31, 2023 USD ($)	May 31, 2022 USD ($)	Feb. 28, 2023 USD ($)	Sep. 30, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Period of amortization (in years)	7 years
Equity in (earnings) loss of unconsolidated subsidiaries	$ (1,420)	$ 0
AIS Joint Venture
Schedule of Equity Method Investments [Line Items]
Ownership percentage of investment				40%
Investment in joint venture	87,068		$ 84,760
Excess of equity method investment from carrying amount	6,300
AIS Joint Venture | AZZ Infrastructure Solutions
Schedule of Equity Method Investments [Line Items]
Equity in (earnings) loss of unconsolidated subsidiaries	(1,400)
Amortization amount	$ (700)
AIS Joint Venture | AZZ Infrastructure Solutions | Discontinued Operations, Disposed of by Sale
Schedule of Equity Method Investments [Line Items]
Percentage of investment sold				0.60
Investment in joint venture				$ 87,100

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	May 31, 2023	Sep. 27, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification of AOCI	$ (0.7)
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fixed interest rate on swap agreement		8.627%
Notional amount on swap agreement	$ 545.9	$ 550
Interest Rate Swap, Portion Of Variable Rate Debt
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fixed interest rate on swap agreement		4.277%

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023	May 31, 2022
Debt Instrument [Line Items]
Total debt, gross	$ 1,105,250	$ 1,125,250	$ 1,125,300
Unamortized debt issuance costs	(64,409)	(67,130)
Long-term debt, net	1,040,841	1,058,120
Term Loan B
Debt Instrument [Line Items]
Total debt, gross	1,030,250	1,030,250
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt, gross	$ 75,000	$ 95,000

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended	9 Months Ended
	May 31, 2024	Aug. 31, 2022	May 31, 2023	Nov. 30, 2022	May 13, 2022
Debt Instrument [Line Items]
Letters of credit outstanding			$ 17,900
2022 Credit Agreement And Term Loan B
Debt Instrument [Line Items]
Periodic payments		$ 3,250
Total net leverage ratio maximum			550%	625%
2022 Credit Agreement And Term Loan B | Subsequent Event
Debt Instrument [Line Items]
Total net leverage ratio maximum	450%
Note Payable, Floating And Fixed Rate, Maturing Through Fiscal Year 2029
Debt Instrument [Line Items]
Fair value of outstanding debt			$ 1,105,300
Senior Notes | Line of Credit
Debt Instrument [Line Items]
Remaining borrowing capacity on line of credit			$ 307,100
Loans Payable | Term Loan B
Debt Instrument [Line Items]
Debt instrument, face amount					$ 1,300,000
Convertible Debt
Debt Instrument [Line Items]
Debt instrument, face amount					240,000
Revolving Credit Facility | 2021 Credit Agreement
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage			9.07%
Revolving Credit Facility | 2022 Credit Agreement And Term Loan B
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 400,000
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2022 Credit Agreement And Term Loan B
Debt Instrument [Line Items]
Debt instrument, stated percentage					4.25%
Standby And Commercial Letters Of Credit | 2022 Credit Agreement And Term Loan B
Debt Instrument [Line Items]
Accordion feature					$ 100,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	$ 1,436	$ 3,925
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1,436	(3,925)
Interest Rate Swap | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Interest Rate Swap | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1,436	(3,925)
Interest Rate Swap | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	May 31, 2023	Feb. 28, 2023	May 31, 2022
Fair Value Disclosures [Abstract]
Total debt, gross	$ 1,105,250	$ 1,125,250	$ 1,125,300
Fair value of outstanding debt	$ 1,103,900		$ 1,133,200

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	3 Months Ended
	May 31, 2023 USD ($) lease
Leases [Abstract]
Number of operating leases	160
Number of finance leases	14
Sublease income | $	$ 0.2

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022	Feb. 28, 2023
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 26,262		$ 26,392
Operating lease liabilities ― short-term	$ 6,273		$ 6,119
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease liability, short-term		Lease liability, short-term
Operating lease liabilities ― long-term	$ 19,455		$ 19,659
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease liability, long-term		Lease liability, long-term
Finance lease liabilities ― short-term	$ 288		$ 284
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Lease liability, short-term		Lease liability, short-term
Finance lease liabilities ― long-term	$ 972		$ 1,045
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Lease liability, long-term		Lease liability, long-term
Total lease cost	$ 3,601	$ 2,444
Cost of sales
Lessee, Lease, Description [Line Items]
Total lease cost	3,102	2,070
Selling, general and administrative
Lessee, Lease, Description [Line Items]
Total lease cost	$ 499	$ 374

Leases - Lease Details (Details

Leases - Lease Details (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022	Feb. 28, 2023
Lease, Cost [Abstract]
Operating cash flows from operating leases included in lease liabilities	$ 1,825	$ 1,147
Lease liabilities obtained from new ROU assets - operating	$ 1,509	111
Weighted-average remaining lease term - operating leases	4 years 9 months 3 days		5 years 14 days
Weighted-average discount rate - operating leases	4.37%		4.31%
Operating and financing cash flows from financing leases included in lease liabilities	$ 86	45
Lease liabilities obtained from new ROU assets - financing	$ 0	$ 0
Weighted-average remaining lease term - financing leases	4 years 4 months 13 days		4 years 7 months 9 days
Weighted-average discount rate - financing leases	5.17%		5.15%

Leases - Lease Maturity (Detail

Leases - Lease Maturity (Details) $ in Thousands	May 31, 2023 USD ($)
Operating Leases
2024	$ 5,483
2025	6,658
2026	5,742
2027	4,565
2028	2,491
2029	1,959
Thereafter	1,627
Total lease payments	28,525
Less imputed interest	(2,796)
Total	25,729
Finance Leases
2024	258
2025	344
2026	300
2027	268
2028	195
2029	43
Total lease payments	1,408
Less imputed interest	(149)
Total	1,259
2024	5,741
2025	7,002
2026	6,042
2027	4,833
2028	2,686
2029	2,002
Thereafter	0
Total lease payments	29,933
Less imputed interest	(2,945)
Total	$ 26,988

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
Income Tax Disclosure [Abstract]
Income (loss) from discontinued operations before income tax		$ 11,175
Income tax (benefit) expense		(2,451)
Income from discontinued operations, net of tax	$ 0	$ 8,724

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	3 Months Ended
	May 31, 2023	May 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate, continuing operations (percent)	25.30%	25%
Effective income tax rate, discontinuing operations (percent)		21.90%

Equity - Series A Convertible P

Equity - Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 05, 2022	May 31, 2023	Feb. 28, 2023
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)		240,000	240,000
Dividend rate (as a percent)	6%
Conversion price (in dollars per share)	$ 58.30
Minimum conversion threshold (in shares)	1,000
Dividends payable		$ 2.4
Preferred stock, shares issued (in shares)		4,100,000
Convertible Debt
Class of Stock [Line Items]
Aggregate debt amount	$ 240
Converted instrument rate (as a percent)	6%

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2023	May 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning balance	$ 853,460	$ 667,365
Other comprehensive income (loss) before reclassification	(3,516)	624
Amounts reclassified from AOCI	549
Net change in AOCI	(2,967)	624
Balance, ending balance	871,373	687,559
Accumulated Foreign Currency Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning balance	(7,571)	(27,324)
Other comprehensive income (loss) before reclassification	1,131	624
Amounts reclassified from AOCI	0
Net change in AOCI	1,131	624
Balance, ending balance	(6,440)	(26,700)
Accummulated Net Actuarial Gain (Loss), Net Of Tax Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning balance	119	0
Other comprehensive income (loss) before reclassification	0	0
Amounts reclassified from AOCI	0
Net change in AOCI	0	0
Balance, ending balance	119	0
Accumulated Interest Rate Swap, Net of Tax Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning balance	2,879	0
Other comprehensive income (loss) before reclassification	(4,647)	0
Amounts reclassified from AOCI	549
Net change in AOCI	(4,098)	0
Balance, ending balance	(1,219)	0
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning balance	(4,573)	(27,324)
Balance, ending balance	$ (7,540)	$ (26,700)

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Details) $ in Millions	May 31, 2023 USD ($)
Precoat Metals Business Division
Business Acquisition [Line Items]
Accumulated benefit obligation in excess of plan assets	$ 31.7

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	May 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Environmental liability, current	$ 3.1
Environment liability	$ 23.2