AZZ INCAZZ

AZZ INC Goodwill & Intangibles Disclosure

10-KFiled Apr 22, 20262 min read
3. Goodwill and Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but are subject to annual impairment tests. Other intangible assets are amortized on a straight-line basis over the estimated useful lives.
Changes in goodwill by segment for fiscal years 2026 and 2025 were as follows (in thousands):
As of February 28, 2026
Beginning
Balance		AcquisitionsOtherCurrency Translation AdjustmentEnding
Balance
Metal Coatings$176,070 $9,585 $(123)$1,428 $186,960 
Precoat Metals527,793 — — — 527,793 
Total$703,863 $9,585 $(123)$1,428 $714,753 
As of February 28, 2025
Beginning
Balance
Acquisitions(1)
OtherCurrency Translation AdjustmentEnding
Balance
Metal Coatings$177,675 $— $— $(1,605)$176,070 
Precoat Metals527,793 — — — 527,793 
Total$705,468 $— $— $(1,605)$703,863 
Amortizable intangible assets consisted of the following as of February 28, 2026 and 2025 (in thousands):
Weighted-Average Life (Years)As of
February 28, 2026February 28, 2025
Customer related intangibles25$483,709 $474,234 
Non-compete agreements156,772 6,698 
Trademarks / Tradenames3435,774 35,774 
Technology1536,000 36,000 
Gross intangible assets562,255 552,706 
Less accumulated amortization(154,022)(132,361)
Total amortizable intangible assets, net$408,233 $420,345 
See Note 21 for a description of the impairment of intangible assets during fiscal 2026.
In addition to its amortizable intangible assets, we have recorded indefinite-lived intangible assets of $1.5 million on the consolidated balance sheets as of February 28, 2026 and 2025, related to certain trade names acquired as part of prior business acquisitions.
The following table outlines the classification of amortization expense, which is included in selling, general and administrative expense, in the consolidated statements of income for fiscal 2026, 2025, and 2024 (in thousands):
Year Ended
February 28, 2026February 28, 2025February 29, 2024
Total amortization expense$23,083 $23,111 $23,960 
The following table summarizes the estimated amortization expense for the next five fiscal years and beyond (in thousands):
Fiscal Year:Amortization Expense
2027$22,795 
202822,109 
202921,960 
203021,960 
203121,588 
Thereafter297,821 
Total$408,233 

Historical Timeline

Fiscal YearFiled
2026Apr 22, 2026Showing above
2025Apr 21, 2025
2024Apr 22, 2024
2023Apr 25, 2023
2022Apr 22, 2022
2021Apr 23, 2021
2020Apr 29, 2020
2019May 17, 2019
2018May 15, 2018
2017Apr 20, 2017
2016Apr 21, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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