EAGLE MATERIALS INC (EXP)

CIK: 0000918646. SIC: 3241 Cement, Hydraulic. Latest 10-K as of: 2026-05-19.

SIC breadcrumb: Manufacturing > SIC Major Group 32 > SIC 3241 Cement, Hydraulic

SEC company page: https://www.sec.gov/edgar/browse/?CIK=918646. Latest filing source: 0001193125-26-230979.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918646.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918646.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001193125-26-029491.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-01-29. Report date: 2025-12-31.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

EXECUTIVE SUMMARY

We are a leading U.S. manufacturer of heavy construction products and light building materials. Our primary products, portland cement and gypsum wallboard, are essential for building, expanding, and repairing roads, highways, and residential, commercial, and industrial structures across America. Headquartered in Dallas, Texas, Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. General economic downturns or localized downturns in the regions where we have operations may have a material adverse effect on our business, financial condition, and results of operations.

Our business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. Financial results and other information for the three and nine months ended December 31, 2025, and 2024, are presented on a consolidated basis and by business segment.

We conduct one of our cement operations through a joint venture, Texas Lehigh Cement Company LP, which is located in Buda, Texas (the Joint Venture). We own a 50% interest in the Joint Venture and account for our interest under the equity method of accounting. We proportionately consolidate our 50% share of the Joint Venture’s Revenue and Operating Earnings in the presentation of our Cement segment, which is the way management organizes financial information with respect to the segments within the Company for making operating decisions and assessing performance.

All our business activities are conducted in the United States. These activities include the mining of limestone for the manufacture, production, distribution, and sale of portland cement, including portland limestone cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).

On August 9, 2024, we finalized the acquisition of an aggregates business in Northern Kentucky. The purchase price of the acquisition was approximately $24.9 million. This business is included in our Heavy Materials sector, and its results of operations are reported in the Concrete and Aggregates business segment from the date of purchase.

On January 7, 2025, we acquired Bullskin Stone & Lime LLC in Western Pennsylvania. The purchase price of this acquisition was approximately $149.9 million. This acquisition is included in our Heavy Materials sector, and its results of operations are reported in the Concrete and Aggregates business segment from the date of purchase. See Note (C) in the Notes to Unaudited Consolidated Financial Statements for more information regarding this acquisition.

The above acquisitions are collectively referred to as the Aggregates Acquisitions in the following discussion of our Results of Operations.

MARKET CONDITIONS AND OUTLOOK

In the first nine months of fiscal year 2026, conditions in our markets were mixed, with a favorable environment for our Heavy Materials business and a more challenging Light Materials environment. Federal, state, and local budgets for public infrastructure projects remained strong, and spending across certain non-residential end markets continued to be elevated, driving demand for cement. In this environment, our Cement sales volume was up approximately 7% during the first nine months of our fiscal year. The outlook for cement demand in our markets continues to be favorable, as a significant amount of the funds from the trillion-dollar Infrastructure

29

Investment and Jobs Act (IIJA) remains to be spent, and state Department of Transportation (DOT) budgets remain strong.

The backdrop for residential construction activity remained challenging in the first nine months of our fiscal 2026, primarily because of housing affordability concerns driven by persistently elevated mortgage interest rates, as well as other macroeconomic uncertainties. At the same time, the national supply of homes remains constrained by years of underbuilding. Recently, new home construction has slowed as builders have pulled back on production because of mixed demand signals and higher levels of new home inventory in certain markets. This recent pullback affected our wallboard sales volume, which was down approximately 8% in the first nine months of our fiscal year. The path ahead for mortgage rates, and the corresponding effect on residential construction activity, is unclear, and thus the timing of a recovery in new-home construction remains uncertain.

Cost Outlook

We believe we are well-positioned to manage our cost structure and meet our customers’ needs. Our major costs include raw materials, energy, freight, labor, and maintenance.

Our substantial raw material reserves for our Cement, Aggregates, and Gypsum Wallboard businesses, and their proximity to our respective manufacturing facilities support our low-cost producer position across all our business segments.

Paper is a significant cost component in our Recycled Paperboard and Gypsum Wallboard businesses. The primary raw material used to produce paperboard is old corrugated containers (OCC). Recently, OCC prices have been declining; however, recycled fiber prices are subject to change on short notice due to several factors, including supply of OCC and demand for OCC from both domestic and international companies. Our current customer contracts for gypsum liner include price adjustments that partially compensate for changes in the cost of raw materials, such as recycled fiber, and energy, including natural gas and electricity. However, because these price adjustments are not realized until future quarters, changes to material costs in our Gypsum Wallboard segment could be delayed until the effects of these price adjustments are realized.

Energy costs decreased slightly in the third quarter of our fiscal year 2026, and are expected to remain relatively stable over the near future.

Freight costs for our Gypsum Wallboard segment increased during the third quarter of fiscal 2026 and are expected to remain at similar levels for the rest of the fiscal year. Freight costs for our Cement segment, which relies mostly on rail delivery, increased slightly in the third quarter, and are also expected to remain stable over the remainder of the fiscal year.

Labor shortages, primarily of truck drivers, can adversely affect our Concrete business. Any worsening of labor constraints could cause delays and inefficiencies in this business.

Maintenance costs are a significant part of our total operating expenses, and we expect a low single-digit increase in inflation for maintenance in the remainder of our fiscal 2026, as equipment and contractor costs remain elevated.

30

RESULTS OF OPERATIONS

THREE MONTHS ENDED December 31, 2025, Compared WITH THREE MONTHS ENDED December 31, 2024

For the Three Months Ended December 31,

2025

2024

Percentage

Change

(in thousands, except per share)

Revenue

$

555,956

$

558,025

—

Cost of Goods Sold

(395,050

)

(380,212

)

4

%

Gross Profit

160,906

177,813

(10

)%

Equity in Earnings of Unconsolidated Joint Venture

4,420

4,987

(11

)%

Corporate General and Administrative Expense

(24,010

)

(20,818

)

15

%

Other Non-Operating Income

1,644

1,381

19

%

Interest Expense, net

(13,712

)

(9,061

)

51

%

Earnings Before Income Taxes

129,248

154,302

(16

)%

Income Tax Expense

(26,345

)

(34,728

)

(24

)%

Net Earnings

$

102,903

$

119,574

(14

)%

Diluted Earnings per Share

$

3.22

$

3.56

(10

)%

Revenue

Revenue decreased by $2.0 million to $556.0 million for the three months ended December 31, 2025. Excluding the $7.6 million related to the Aggregates Acquisition, Revenue decreased $9.6 million. Lower gross sales prices and Sales Volume adversely affected Revenue by approximately $7.3 million and $2.3 million. The lower Sales Volume was mostly related to our Gypsum Wallboard segment.

Cost of Goods Sold

Cost of Goods Sold increased by $14.9 million, or 4%, to $395.1 million for the three months ended December 31, 2025. Excluding the $6.5 million related to the Aggregates Acquisition, Cost of Goods Sold increased $8.4 million, or 2%. The increase was due to higher operating costs of $6.8 million and higher Sales Volume of $1.6 million.

Gross Profit

Gross Profit decreased 10% to $160.9 million during the three months ended December 31, 2025. Excluding the $1.1 million of Gross Profit related to the Aggregates Acquisition, Gross Profit decreased $18.0 million, or 10%. The decrease was primarily related to lower gross sales prices and Sales Volume of $7.3 million and $3.9 million, respectively, as well as increased operating costs of $6.8 million. The gross margin declined to 29%, primarily because of lower gross sales prices and higher operating costs.

31

Equity in Earnings of Unconsolidated Joint Venture

Equity in Earnings of our Unconsolidated Joint Venture decreased by $0.6 million, or 11%, for the three months ended December 31, 2025. The decrease was due to lower gross sales prices of $2.7 million, which were offset by higher Sales Volume of $1.1 million and lower operating costs of $1.0 million. Decreased operating costs were primarily a result of lower maintenance and other fixed costs of $2.1 million and $1.3 million, respectively, which were partially offset by higher raw materials and freight costs of $1.5 million and $0.7 million, respectively.

Corporate General and Administrative

Corporate General and Administrative expenses increased by approximately $3.2 million, or 15%, for the three months ended December 31, 2025. The increase was due primarily to business-development and professional services and information technology costs of $1.4 million and $1.2 million, respectively.

Other Non-Operating Income

Other Non-Operating Income consists of a variety of items that are unrelated to segment operations and include non-inventoried Aggregates income, asset sales, and other miscellaneous income and cost items.

Interest Expense, Net

Interest Expense, net increased by approximately $4.7 million, or 51%, during the three months ended December 31, 2025. This increase was mainly due to increased interest expense of approximately $4.7 million on our 5.000% Senior Unsecured Notes due May 2036, which were issued on November 13, 2025, and $1.0 million of higher interest on our Term Loan, which was increased to $300.0 million in February 2025. This was partially offset by higher Interest Capitalized of approximately $1.4 million. The increase in Interest Capitalized was due primarily to capital spending for the expansion and modernization of our cement plant in Laramie, Wyoming and our gypsum wallboard plant in Oklahoma.

Earnings Before Income Taxes

Earnings Before Income Taxes decreased to $129.2 million during the three months ended December 31, 2025, primarily as a result of lower Gross Profit and Equity in Earnings of Unconsolidated Joint Venture, and higher Corporate General and Administrative expense and Interest Expense, net.

Income Tax Expense

Income Tax Expense was $26.3 million for the three months ended December 31, 2025, compared with $34.7 million for the three months ended December 31, 2024. The effective tax rate declined to 20% from 23% in the prior-year period. The decline in the effective tax rate was primarily due to a benefit recognized in the current year related to certain income tax credits.

Net

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-05-19. Report date: 2026-03-31.

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

executive summary

We are a leading U.S. manufacturer of heavy construction products and light building materials. Our primary products, cement and gypsum wallboard, are essential for building, expanding, and repairing roads, highways, and residential, commercial, and industrial structures across America. Headquartered in Dallas, Texas, Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. General economic downturns or localized downturns in the regions where we have operations may have a material adverse effect on our business, financial condition, and results of operations.

Our business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments; and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. Financial results and other information for the fiscal years ended March 31, 2026, and 2025, are presented on a consolidated basis and by business segment. The relative contribution to fiscal 2026 earnings by segment is shown below.

We conduct one of our cement operations through a Joint Venture, Texas Lehigh Cement Company LP, which is located in Buda, Texas. We own a 50% interest in the Joint Venture and account for our interest under the equity method of accounting. We proportionately consolidate our 50% share of the Joint Venture’s Revenue and Operating Earnings in the presentation of our Cement segment, which is the way management organizes financial information with respect to the segments within the Company for making operating decisions and assessing performance.

50

All our business activities are conducted in the United States. These activities include:

•
the mining of limestone for the manufacture, production, distribution, and sale of cement, including limestone cement (a basic construction material that is the essential binding ingredient in concrete)

•
the grinding and sale of slag

•
the mining of gypsum for the manufacture and sale of gypsum wallboard

•
the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters

•
the sale of readymix concrete

•
the mining and sale of aggregates (crushed stone, sand, and gravel).

On August 9, 2024, we finalized the Northern Kentucky Acquisition at a purchase price of approximately $24.9 million. The Northern Kentucky Acquisition is included in our Heavy Materials sector, and its results of operations are reported in the Concrete and Aggregates business segment beginning on August 9, 2024.

On January 7, 2025, we completed the Western Pennsylvania Acquisition at a purchase price of approximately $150.0 million, subject to customary post-closing adjustments. The Western Pennsylvania Acquisition is included in our Heavy Materials sector, and its results of operations are reported in the Concrete and Aggregates business segment beginning in the fourth quarter of fiscal 2025.

See Footnote (B) in the Audited Consolidated Financial Statements for more information regarding the Northern Kentucky and Western Pennsylvania Acquisitions (collectively, the Aggregates Acquisitions).

MARKET CONDITIONS AND OUTLOOK

Our fiscal 2026 results were generally strong, with record Revenue of $2.3 billion, Net Earnings of $423.8 million, and Diluted Earnings per Share of $13.16 per share. Our end markets remained resilient despite geopolitical, fiscal, and trade-policy disruptions and widespread uncertainty around future U.S. economic conditions. Year-over-year sales volume increased in our Heavy Materials Sector and declined in our Light Materials Sector.

The macroeconomic environment continues to be constructive for our products. We expect demand for cement to remain steady in the near term supported by bipartisan federal, state, and local support for public infrastructure projects and continued spending on heavy manufacturing and certain elements of the private-nonresidential construction category. A significant amount of federal funding from the trillion-dollar Infrastructure Investment and Jobs Act (IIJA) remains to be spent, and state Department of Transportation (DOT) budgets remain strong.

The backdrop for residential construction activity remained challenging in fiscal 2026, primarily because of housing affordability concerns driven by persistently elevated mortgage interest rates, as well as other macroeconomic uncertainties. At the same time, the national supply of homes remains constrained by years of underbuilding. Recently, new home construction has slowed as builders have pulled back on production because of mixed demand signals and higher levels of new home inventory in certain markets. This recent pullback affected our wallboard sales volume, which was down approximately 7% in fiscal 2026. The path ahead for mortgage rates, and the corresponding effect on residential construction activity, is unclear, and thus the timing of a recovery in new-home construction remains uncertain. Nonetheless, we believe our geographic footprint across the U.S. heartland and fast-growing Sun Belt region positions us to capitalize on these market dynamics in the near and longer term.

51

Cost Outlook

We believe we are well-positioned to manage our cost structure and meet our customers’ needs. Our major costs include raw materials, energy, freight, labor, and maintenance.

Our substantial raw material reserves for our Cement, Aggregates, and Gypsum Wallboard businesses, and their proximity to our respective manufacturing facilities support our low-cost producer position across all our business segments.

Paper is a significant cost component in our Recycled Paperboard and Gypsum Wallboard businesses. The primary raw material used to produce paperboard is old corrugated containers (OCC). Recently, OCC prices have been relatively flat; however, recycled fiber prices are subject to change on short notice due to several factors, including supply of OCC and demand for OCC from both domestic and international companies. Our current customer contracts for gypsum liner include price adjustments that partially compensate for changes in the cost of raw materials, such as recycled fiber and energy, including natural gas and electricity. However, because these price adjustments are not realized until future quarters, adjustments to material costs in our Gypsum Wallboard segment could be delayed until the effects of these price adjustments are realized.

Energy costs decreased in some of our businesses and increased in others during fiscal 2026 compared with fiscal 2025 and are expected to remain relatively stable over the near future. Freight costs for our Gypsum Wallboard segment, which delivers mostly by trucks, increased in fiscal 2026, and with current fuel prices increasing, they could increase in fiscal 2027. Freight costs for our Cement segment, which relies mostly on rail delivery, increased slightly in fiscal 2026, and are expected to increase in fiscal 2027. Additionally, labor shortages, primarily of truck drivers, can adversely affect our Concrete business. Any worsening of labor constraints could cause delays and inefficiencies in this business.

While maintenance costs were down 2% in fiscal 2026, we expect low single digit inflation for maintenance as equipment and contractor costs are expected to increase.

52

Results of Operations

Fiscal Year 2026 Compared with Fiscal Year 2025

For the Years Ended March 31,

2026

2025

Percentage

Change

(in thousands, except per share)

Revenue

$

2,308,658

$

2,260,508

2

%

Cost of Goods Sold

(1,656,115

)

(1,587,371

)

4

%

Gross Profit

652,543

673,137

(3

)%

Equity in Earnings of Unconsolidated Joint Venture

19,989

26,396

(24

)%

Corporate General and Administrative

(89,182

)

(73,942

)

21

%

Other Nonoperating Income

5,108

6,420

(20

)%

Interest Expense, net

(46,482

)

(40,526

)

15

%

Earnings Before Income Taxes

541,976

591,485

(8

)%

Income Tax Expense

(118,167

)

(128,069

)

(8

)%

Net Earnings

$

423,809

$

463,416

(9

)%

Diluted Earnings per Share

$

13.16

$

13.77

(4

)%

Revenue

Revenue in fiscal 2026 increased 2% to $2,308.7 million. The Aggregates Acquisitions contributed $30.6 million of Revenue during fiscal 2026. Excluding Revenue from the Aggregates Acquisitions, Revenue increased $17.6 million. This increase was due to approximately $41.5 million of higher Sales Volume, primarily in Cement, partially offset by $23.9 million of lower average gross sales prices, primarily in our Gypsum Wallboard segment. See Fiscal Year 2026 vs Fiscal Year 2025 Results by Segment section for more information.

Cost of Goods Sold

Cost of Goods Sold increased by $68.7 million, or 4%, to $1,656.1 million in fiscal 2026. The Aggregates Acquisitions contributed $24.3 million of Cost of Goods Sold during fiscal 2026. Excluding the Northern Kentucky and Western Pennsylvania Acquisitions, Cost of Goods Sold increased $44.4 million. The increase in Cost of Goods Sold was due to higher Sales Volume of $39.6 million and higher operating costs of $4.8 million. Operating costs increased primarily in Cement and Gypsum Wallboard and were offset by our Recycled Paperboard and Concrete and Aggregates segments as discussed in the Fiscal Year 2026 vs Fiscal Year 2025 Results by Segment section.

53

Gross Profit

Gross Profit decreased by 3% to $652.5 million in fiscal 2026 primarily because of lower gross sales prices and higher operating costs, partially offset by an increase in Sales Volume. Gross Profit margin declined to 28.3% in fiscal 2026, compared with 29.8% in fiscal 2025.

Equity in Earnings of Unconsolidated Joint Venture

Equity in Earnings of Unconsolidated Joint Venture decreased by $6.4 million, or 24%. The decline was due to lower gross sales prices of $8.2 million and higher operating costs of $2.1 million, which were partially offset by higher Sales Volumes of $3.9 million. The higher operating costs were due primarily to increased raw materials and freight, which reduced operating earnings by approximately $6.1 million and $2.3 million, respectively. The increased raw materials and freight costs were partially offset by $5.1 million of lower maintenance costs.

Corporate General and Administrative

Corporate General and Administrative expenses increased by approximately $15.3 million, or 21%, to $89.2 million in fiscal 2026. The increase was due primarily to approximately $7.8 million of higher salaries and incentive compensation, $4.8 million of higher information technology costs for upgrades, and $2.4 million of higher professional services fees.

Other nonoperating Income

Other Nonoperating Income was $5.1 million in fiscal 2026 compared with $6.4 million in fiscal 2025. Other Nonoperating Income consists of a variety of items that are not related to segment operations, including lease and rental income, investment income, asset sales, and other miscellaneous income and cost items, such as large non-routine sales of excess raw materials or energy.

Interest Expense, Net

Interest Expense, net increased by approximately $6.0 million, or 15%, during fiscal 2026. The increase was mainly due to increased interest expense of approximately $14.1 million on our 5.000% Senior Unsecured Notes due May 2036, which were issued on November 13, 2025; $1.9 million of higher interest on our Term Loan, which was increased to $300.0 million in February 2025; and $0.4 million of increased debt amortization costs related to these new borrowings, all of which were partially offset by approximately $4.4 million of increased interest income resulting from a higher cash balance and higher Interest Capitalized of approximately $6.0 million. The increase in Interest Capitalized was due primarily to capital spending for the expansion and modernization of our cement plant in Laramie, Wyoming and our gypsum wallboard plant in Oklahoma.

Earnings Before Income Taxes

Earnings Before Income Taxes decreased from $591.5 million during fiscal 2025 to $542.0 million during fiscal 2026, primarily due to lower Gross Profit and Equity in Earnings of Joint Venture, as well as higher Corporate General and Administrative expenses and Interest Expense.

Income Tax Expense

Income Tax Expense for fiscal 2026 decreased to $118.2 million from $128.1 million for fiscal 2025. The effective tax rate was 22%, compared with 22% in the prior fiscal year.

54

Net Earnings and Diluted Earnings per Share

Net Earnings decreased 9% in fiscal 2026 to $423.8 million. Diluted Earnings per Share in fiscal 2026 was down 4% to $13.16 compared with $13.77 for fiscal 2025. The decrease in Diluted Earnings per share was primarily due to lower Net Earnings, which was partially offset by lower weighted-average shares outstanding due to our share buyback program.

55

FISCAL YEAR 2026 vs FISCAL YEAR 2025 Results by Segment

The following presents results within our two business sectors in fiscal 2026 and fiscal 2025. Revenue and operating results are organized by sector and discussed by individual business segment within each respective business sector.

Heavy Materials

Cement (1)

For the Years Ended March 31,

2026

2025

Percentage

Change

(in thousands, except per ton information)

Revenue, including Intersegment and Joint Venture

$

1,299,383

$

1,201,362

8

%

Less Intersegment Revenue

$

(36,011

)

$

(36,799

)

(2

)%

Less Joint Venture Revenue

$

(119,341

)

$

(110,943

)

8

%

Revenue

$

1,144,031

$

1,053,620

9

%

Sales Volume (M Tons)

7,471

6,912

8

%

Freight and Delivery Costs Billed to Customers

$

(81,822

)

$

(69,457

)

18

%

Average Net Sales Price, per ton (2)

$

155.18

$

156.67

(1

)%

Operating Margin, per ton

$

43.94

$

46.22

(5

)%

Operating Earnings

$

328,306

$

319,456

3

%

(1)
Total of wholly owned subsidiaries and proportionately consolidated 50% interest in the Joint Venture’s results.

(2)
Net of freight, including Joint Venture.

Cement Revenue was $1,299.4 million in fiscal 2026, an 8% increase over fiscal 2025. The increase was primarily due to higher Sales Volume of $93.5 million and higher gross sales prices of $4.5 million.

Cement Operating Earnings increased 3% to $328.3 million in fiscal 2026. The increase was due to approximately $26.1 million of higher Sales Volume and $4.5 million of higher gross sales prices, partially offset by $21.7 million of increased operating expenses. The higher operating expenses consisted of a $15.3 million increase in purchased raw materials costs, $16.2 million related to increased fixed costs, primarily labor and depreciation, depletion, and amortization. These higher costs were partially offset by a reduction in maintenance costs of $7.6 million and energy of $6.1 million. Cement Operating Margin decreased to 25%, primarily because of increased operating expenses, partially offset by higher gross sales prices.

56

Concrete and Aggregates

For the Years Ended March 31,

2026

2025

Percentage

Change

(in thousands, except net sales prices)

Revenue, including Intersegment

$

299,504

$

251,636

19

%

Less Intersegment Revenue

(16,229

)

(13,913

)

17

%

Revenue

$

283,275

$

237,723

19

%

Sales Volume

M Cubic Yards of Concrete

1,232

1,235

—

M Tons of Aggregate

6,567

3,854

70

%

Average Net Sales Price

Concrete - Per Cubic Yard

$

153.18

$

148.48

3

%

Aggregates - Per Ton

$

14.23

$

13.09

9

%

Operating Earnings (Loss)

$

12,864

$

(8,765

)

n/m

Concrete and Aggregates Revenue increased 19% to $299.5 million in fiscal 2026. Excluding the Aggregates Acquisitions, Revenue increased 12% to $268.9 million. The increase in Revenue was due to higher Concrete gross sales prices of $5.9 million and higher Aggregates Sales Volume of $13.3 million, which were partially offset by lower Aggregates gross sales prices and lower Concrete Sales Volume, which reduced revenue by $3.7 million and $0.4 million, respectively.

Operating Earnings improved to $12.9 million in fiscal 2026. Excluding the Aggregates Acquisitions, Operating Earnings increased to $10.1 million for fiscal 2026. The increase in Operating Earnings was due to $2.2 million and $2.1 million of higher gross sales prices and Sales Volume, respectively, as well as lower operating expenses of $11.2 million. The lower operating expenses were primarily due to lower cost of materials, maintenance, delivery, and fixed costs of $1.3 million, $3.8 million, $2.4 million, and $4.5 million, respectively.

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Light Materials

Gypsum Wallboard

For the Years Ended March 31,

2026

2025

Percentage

Change

(in thousands, except per MMSF information)

Revenue

$

764,493

$

846,499

(10

)%

Sales Volume (MMSF)

2,759

2,968

(7

)%

Freight and Delivery Costs Billed to Customers

$

(140,719

)

$

(146,000

)

(4

)%

Average Net Sales Price, per MSF (1)

$

226.08

$

236.04

(4

)%

Freight, per MSF

$

51.00

$

49.19

4

%

Operating Margin, per MSF

$

103.96

$

118.18

(12

)%

Operating Earnings

$

286,831

$

350,764

(18

)%

(1)
Net of freight per MSF.

Gypsum Wallboard Revenue decreased 10% to $764.5 million in fiscal 2026. The decrease was due to lower gross sales prices and Sales Volume, which decreased Revenue by $22.4 million and $59.6 million, respectively. Our market share remained relatively flat in fiscal 2026 compared with fiscal 2025.

Operating Earnings decreased 18% to $286.8 million in fiscal 2026. The decrease was primarily related to lower gross sales prices of $22.4 million, lower Sales Volume of $24.7 million, and higher operating expenses of $16.8 million. The increase in operating costs was due primarily to $5.3 million of freight costs, $0.7 million of energy costs, $2.4 million of maintenance costs, and $5.2 million of raw materials. During fiscal 2026, Gypsum Wallboard Operating Margin decreased to 38%, due to lower gross sales price and increased operating expenses.

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Recycled Paperboard

For the Years Ended March 31,

2026

2025

Percentage

Change

(in thousands, except per ton information)

Revenue, including Intersegment

$

199,215

$

211,724

(6

)%

Less Intersegment Revenue

(82,356

)

(89,058

)

(8

)%

Revenue

$

116,859

$

122,666

(5

)%

Sales Volume (M Tons)

341

350

(3

)%

Average Net Sales Price, per ton (1)

$

584.77

$

604.02

(3

)%

Operating Margin, per ton

$

130.59

$

108.79

20

%

Operating Earnings

$

44,531

$

38,078

17

%

(1)
Net of freight per ton.

Recycled Paperboard Revenue, including Intersegment Revenue, decreased 6% to $199.2 million in fiscal 2026, due to a decrease of approximately $6.6 million in gross sales prices and a $5.9 million decrease in Sales Volume. The decline in gross sales prices was due to the price adjustment provisions in our long-term sales agreements.

Operating Earnings increased 17% to $44.5 million in fiscal 2026, primarily because of lower operating expenses of $14.2 million, partially offset by lower gross sales prices and Sales Volume of $6.6 million and $1.0 million, respectively. The decrease in operating expenses was primarily related to lower raw materials costs of $16.8 million, which was partially offset by higher energy expenses of $2.7 million. During fiscal 2026, Operating Margin increased to 22% from 18% in fiscal 2025, primarily because of lower operating expenses, partially offset by lower gross sales prices.

Fiscal Year 2025 Compared with Fiscal Year 2024

Please see our Form 10-K for fiscal year 2025 for the discussion of our Results of Operations and Revenue and Operating Earnings by segment for fiscal 2025 compared with fiscal 2024. Our 2025 Form 10-K can be found on the investor page of our website, at eaglematerials.com.

CRITICAL Accounting Policies

Certain of our critical accounting policies require the use of judgment in their application or require estimates of inherently uncertain matters. Although our accounting policies are in compliance with generally accepted accounting principles, a change in the facts and circumstances of the underlying transactions could significantly change the application of the accounting policies and the resulting financial statements. Listed below are those policies we believe are critical and require the use of complex judgment in their application.

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Goodwill

We assess Goodwill for impairment annually in the fourth quarter of our fiscal year, or more frequently when indicators of impairment exist. Impairment testing for Goodwill is done at the reporting unit, which is consistent with our reportable segments.

Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Prior to performing the Step 1 quantitative test, we may, at our discretion, perform an optional qualitative analysis, or we may choose to proceed directly to the Step 1 quantitative analysis. The qualitative test considers the impact of the following events and circumstances on the reporting unit being tested: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant entity-specific events. If, as a result of this qualitative analysis, we conclude that it is more likely than not (a likelihood of greater than 50%) that the fair value of the reporting unit exceeds its carrying value, then an impairment does not exist, and the Step 1 quantitative test is not required. If we are unable to conclude that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then we proceed to the Step 1 quantitative test.

Step 1 of the quantitative test for impairment compares the fair value of the reporting unit to its carrying value. If the carrying value exceeds the fair value, then an impairment is indicated. If facts and circumstances related to our business change in subsequent years, we may choose to perform a quantitative analysis in those future years. If we perform a Step 1 test, and the carrying value of the reporting unit exceeds its fair value, then an impairment charge equal to the difference, not to exceed the total amount of Goodwill, is recorded.

The fair values of the reporting units are estimated by using both the market and income approaches. The market approach considers market factors and certain multiples in comparison to similar companies, while the income approach uses discounted cash flows to determine the estimated fair values of the reporting units. Key assumptions in the model include estimated average net sales prices, sales volume, and the estimated weighted-average cost of capital specific to each industry. We also perform an overall comparison of all reporting units to our market capitalization to test the reasonableness of our fair value calculations.

Determining the fair value of our reporting units involves the use of significant estimates and assumptions and considerable management judgment. We base our fair value estimates on assumptions we believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. The most important assumption underlying our estimates is the projection of construction spending in the U.S. over the next several years. Actual results may differ materially from those estimates. Changes in market conditions, market trends, interest rates, or other factors outside of our control, such as a worldwide pandemic, global energy crisis, or military conflict, could cause us to change key assumptions and our judgment about a reporting unit’s prospects. Similarly, in a specific period, a reporting unit could significantly underperform relative to its historical or projected future operating results. Either situation could result in a meaningfully different estimate of the fair value of our reporting units, and a consequent future impairment charge.

60

The segment breakdown of Goodwill at March 31, 2026, and 2025, was as follows.

2026

2025

(dollars in thousands)

Cement

$

227,639

$

227,639

Concrete and Aggregates

118,878

118,099

Gypsum Wallboard

116,618

116,618

Recycled Paperboard

7,538

7,538

$

470,673

$

469,894

Business Combinations

The acquisition method of accounting requires that we recognize the assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of consideration transferred over the acquisition date net fair values of the assets acquired and the liabilities assumed. The purchase price allocation is a critical accounting policy because the estimation of fair values of acquired assets and assumed liabilities is judgmental and requires various assumptions. Further, the amounts and useful lives assigned to depreciable and amortizable assets versus amounts assigned to Goodwill, which is not amortized, can significantly affect the results of operations in the period of and for periods subsequent to a business combination. Although independent appraisals may be used to assist in the determination of the fair values of certain assets and liabilities, the appraised values are usually based on significant estimates provided by management, such as forecasted revenue or profit, and the replacement cost and useful lives of the acquired property, plant, and equipment.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. We assign the highest level of fair value available to assets acquired and liabilities assumed based on the following options:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

Level 3 – Unobservable inputs, which includes the use of valuation models.

Level 2 fair values are typically used to value acquired receivables, inventories, machinery and equipment, land, buildings, deferred income tax assets and liabilities, and accruals for payables, asset retirement obligations, and contingencies.

Level 3 inputs are used to estimate the fair value of acquired mineral reserves, mineral interests, and separately identifiable intangible assets.

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In determining the fair value of property, plant, and equipment, replacement cost, adjusted for the age and condition of the acquired machinery and equipment, is used. The replacement cost is based on estimates of current cost to construct similar machinery and equipment and is compared to amounts paid for similar assets in market transactions for consistency.

In determining the fair value of intangible assets, an income approach is generally used and may incorporate the use of a discounted cash flow method. In applying the discounted cash flow analysis, the estimated future cash flows and residual values for each intangible asset are discounted to a present value using a discount rate based on an estimated weighted-average cost of capital for the building materials industry. These cash flow projections are based on management’s estimates of economic and market conditions including revenue growth rates, operating margins, capital expenditures, customer attrition rates, and working capital requirements.

While we use our best estimates and assumptions as part of the process to value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. During the measurement period, which occurs before finalization of the purchase price allocation, changes in assumptions and estimates that result in adjustments to the fair values of assets acquired and liabilities assumed are recorded on a retroactive basis as of the acquisition date, with the corresponding offset to Goodwill. Any adjustments subsequent to the conclusion of the measurement period will be recorded on our Consolidated Statements of Earnings.

LIQUIDITY AND CAPITAL RESOURCES

We believe we have access at the present time to sufficient financial resources from our liquidity sources to fund our business and operations, including contractual obligations, capital expenditures, and debt service obligations, for at least the next 12 months. In the long term, we intend to rely on our existing financial resources, together with borrowings under existing and future credit facilities and potential offerings of our securities in private or public markets. We regularly monitor any potential disruptions to the economy, and to our operations, particularly changing fiscal policy or economic conditions affecting our industries. Please see the Debt Financing Activities section below for a discussion of our revolving credit facility and the amount of borrowings available to us in the next 12 month period.

62

Cash Flow

The following table provides a summary of our Cash Flows.

For the Fiscal Years Ended March 31,

2026

2025

(dollars in thousands)

Net Cash Provided by Operating Activities

$

614,166

$

548,548

Investing Activities:

Additions to Property, Plant, and Equipment

(416,739

)

(195,281

)

Minority Investment

(15,000

)

—

Acquisition Spending

—

(174,850

)

Net Cash Used in Investing Activities

(431,739

)

(370,131

)

Financing Activities:

Borrowings Under Revolving Credit Facility

145,000

335,000

Repayment of Borrowings Under Revolving Credit Facility

(345,000

)

(305,000

)

Borrowings Under Term Loan

—

125,000

Repayment of Term Loan

(15,000

)

(11,250

)

Proceeds from Issuance of 5.000% Senior Notes

741,772

—

Dividends Paid to Stockholders

(32,385

)

(33,722

)

Purchase and Retirement of Common Stock

(381,809

)

(298,286

)

Payment of Excise Tax on Purchases and Retirement of Common Stock

(2,587

)

(3,331

)

Proceeds from Stock Option Exercises

535

6,380

Payment of Debt Issuance Costs

(6,851

)

(1,834

)

Shares Redeemed to Settle Employee Taxes on Stock Compensation

(8,583

)

(5,898

)

Net Cash Provided by (Used in) Financing Activities

95,092

(192,941

)

Net Increase (Decrease) in Cash and Cash Equivalents

$

277,519

$

(14,524

)

Cash Flows from Operating Activities increased by $65.6 million to $614.2 million in fiscal 2026. The increase was largely attributable to higher changes in Working Capital of $62.9 million and higher Net Earnings, adjusted for non-cash charges of $2.7 million.

Working Capital increased by $267.1 million to $690.7 million at March 31, 2026, primarily because of higher Cash and Accounts Receivable of $277.5 million and $16.2 million, respectively. This was partially offset by an increase in Accounts Payable and Accrued Liabilities of $9.0 million and $6.1 million, respectively, and a decrease in Inventories of $6.8 million.

63

The increase in Accounts Receivable at March 31, 2026, was primarily due to the timing of sales and collections during the quarter ended March 31, 2026. As a percentage of quarterly sales generated in the fiscal fourth quarters, Accounts Receivable was 48% at March 31, 2026, and 45% at March 31, 2025. Management measures the change in Accounts Receivable by monitoring the day’s sales outstanding monthly to determine if any deterioration has occurred in the collectability of the Accounts Receivable. No significant deterioration in the collectability of our Accounts Receivable was identified at March 31, 2026.

Our Inventory balance at March 31, 2026, decreased approximately $6.8 million from our balance at March 31, 2025. Within Inventories, Raw Materials and Materials-in-Progress, Finished Cement, Aggregates, and Fuel and Coal decreased by approximately $5.9 million, $4.4 million, $1.6 million, and $5.0 million, respectively, which was partially offset by an increase in Repair Parts and Supplies and Recycled Paperboard of $8.1 million and $2.9 million, respectively. The decreases in Raw Materials and Materials-in-Progress, and Fuel and Coal were mostly due to timing. We have less than one year’s sales of all product inventories, and our inventories have a low risk of obsolescence given that they are basic construction materials. The largest individual balance in our inventory is Repair Parts. The size and complexity of our manufacturing plants, as well as the age of certain of our plants, creates the need to stock a high level of repair parts inventory. We believe all these repair parts are necessary, and we perform semi-annual analyses to identify obsolete parts.

Net Cash Used in Investing Activities in fiscal 2026 was approximately $431.7 million compared with $370.1 million in fiscal 2025, an increase of approximately $61.6 million. This was primarily due to an increase in additions to capital spending and an investment of $221.5 million and $15.0 million, respectively. This was partially offset by a reduction in acquisition spending of $174.9 million. The increase in capital spending was mainly due to the expansion and modernization of our Mountain Cement facility and our gypsum wallboard plant in Oklahoma.

Net Cash Provided by Financing Activities was approximately $95.1 million during fiscal 2026, compared with Net Cash Used in Financing Activities of $192.9 million in fiscal 2025. The $288.0 million increase was mainly related to higher borrowings, net of repayments, of $383.0 million, partially offset by higher Purchases and Retirement of Common Stock and Payment of Debt Issuance Costs of $83.5 million and $5.0 million, respectively, as well as lower Proceeds from Stock Option Exercises of $5.8 million.

Our debt-to-capitalization ratio and net debt-to-capitalization ratio were 54.7% and 50.1%, respectively, at March 31, 2026, compared with 46.1% and 45.7%, respectively, at March 31, 2025.

Debt Financing Activities

Below is a summary of the Company’s outstanding debt facilities at March 31, 2026.

Maturity

Revolving Credit Facility

February 2030

Term Loan

February 2030

2.500% Senior Unsecured Notes

July 2031

5.000% Senior Unsecured Notes

March 2036

See Footnote (F) to the Audited Consolidated Financial Statements for further details on the Company's debt facilities, including interest rates, and financial and other covenants and restrictions.

64

The revolving borrowing capacity of our Revolving Credit Facility is $750.0 million (any revolving loans borrowed under the Revolving Credit Facility, as applicable, the Revolving Loans). The Revolving Credit Facility also includes a swingline loan sublimit of $25.0 million, and a $40.0 million letter of credit facility. At March 31, 2026, we had no outstanding Revolving Loans under the Revolving Credit Facility and $9.9 million of outstanding letters of credit, leaving us with $740.1 million of available borrowings under the Revolving Credit Facility, net of outstanding letters of credit. We are contingently liable for performance under $48.7 million in performance bonds relating primarily to our mining operations. We do not have any off-balance-sheet debt or any outstanding debt guarantees as of March 31, 2026.

Other than the Revolving Credit Facility, we have no additional source of committed external financing in place. Should the Revolving Credit Facility be terminated, no assurance can be given as to our ability to secure a new source of financing. Consequently, if any balance were outstanding on the Revolving Credit Facility at the time of termination, and an alternative source of financing could not be secured, it would have a material adverse impact on our business.

We believe that our cash flow from operations and available borrowings under our Revolving Credit Facility, as well as cash on hand, should be sufficient to meet our currently anticipated operating needs, capital expenditures, and debt service requirements for at least the next 12 months. However, our future liquidity and capital requirements may vary depending on several factors, including market conditions in the construction industry, our ability to maintain compliance with covenants in our Revolving Credit Facility, the level of competition, and general and economic factors beyond our control, such as supply chain constraints and inflation. These and other developments could reduce our cash flow or require that we seek additional sources of funding. We cannot predict what effect these factors will have on our future liquidity. See Market Conditions and Outlook section above for further discussion of the possible effects on our business.

As market conditions warrant, the Company may from time to time seek to purchase or repay its outstanding debt securities or loans, including the 2.500% Senior Unsecured Notes, 5.000% Senior Unsecured Notes, the Term Loan, and any Revolving Credit Loans, in each case, in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases we make may be funded by using cash on our balance sheet or issuing new debt. The amounts involved in any such purchase transactions, individually or in aggregate, may be material.

Our Senior Unsecured Notes are rated by Moody’s Investor Service (Moody’s) and Standard and Poor’s Global Ratings (S&P). The ratings are typically monitored by stockholders, creditors, or suppliers, and they serve as indicators of the Company’s viability. Below is a summary of the ratings published by the agencies as of the date indicated:

Moody's

S&P

Corporate/Family Rating

Baa2

BBB

Outlook

Stable

Stable

Guaranteed Senior Notes

Baa2

BBB

Date of Latest Report

November 2025

February 2026

We also have approximately $36.7 million of lease liabilities at March 31, 2026, that have an average remaining life of approximately 11.7 years.

65

Cash Used for Share Repurchases and Stock Repurchase Program

See table under Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities” for additional information.

Share repurchases may be made from time to time in the open market or in privately negotiated transactions. The timing and amount of any share repurchases will be determined by the Company’s management, based on its evaluation of market and economic conditions and other factors. In some cases, repurchases may be made pursuant to plans, programs, or directions established from time to time by the Company’s management, including plans to comply with the safe harbor provided by Rule 10b5-1.

Capital Expenditures

The following table shows Capital Expenditures in fiscal years 2026 and 2025.

For the Fiscal Years Ended March 31,

2026

2025

(dollars in thousands)

Land and Quarries

$

8,795

$

9,234

Plants

330,736

123,120

Buildings, Machinery and Equipment

77,211

62,927

Total Capital Expenditures

$

416,742

$

195,281

Capital expenditures for fiscal 2027 are expected to range from $490.0 million to $525.0 million and to be allocated between the Heavy Materials and Light Materials sectors. These estimated capital expenditures will include the expansion and modernization of our Mountain Cement facility in Wyoming and the modernization and expansion of our gypsum wallboard plant in Oklahoma, as well as maintenance capital expenditures and improvements, and other safety and regulatory projects.

Dividends

Dividends paid in fiscal years 2026, 2025, and 2024 were $32.4 million, $33.7 million, and $35.3 million, respectively.

66

Contractual and Other Obligations

We have certain Contractual Obligations arising from indebtedness, operating leases, and purchase obligations. Future payments due, aggregated by type of contractual obligation, are shown below.

Payments Due by Period

Total

Less than

1 year

1-3 years

3-5 years

More than

5 years

(dollars in thousands)

Revolving Credit Facility (1)

$

—

$

—

$

—

$

—

$

—

Term Loan (2)

281,250

15,000

30,000

236,250

—

Senior Unsecured Notes

1,500,000

—

—

—

1,500,000

Interest and Commitment Fees on Credit Facility (3)

3,546

925

1,850

771

—

Interest on Term Loan (4)

49,651

13,774

25,288

10,589

—

Interest on Senior Unsecured Notes

470,313

56,250

112,500

112,500

189,063

Operating Leases

47,904

5,227

8,511

7,928

26,238

Purchase Obligations (5)

451,667

409,048

41,714

362

543

Total

$

2,804,331

$

500,224

$

219,863

$

368,400

$

1,715,844

(1)
The Revolving Credit Facility expires in February 2030.

(2)
The Term Loan facility expires in February 2030.

(3)
We estimate the future cash flows for interest and commitment fees by assuming a level repayment of the Revolving Credit Facility over its remaining term. Actual amounts paid, as well as the payment time periods, will likely differ from this estimate.

(4)
The future cash flows for interest on the Term Loan were calculated using the same estimated interest rates as the Revolving Credit Facility.

(5)
Purchase obligations are noncancelable agreements to purchase coal, natural gas, slag, and synthetic gypsum, and to fund capital expenditure commitments, including the expansion and modernization of our cement plant in Wyoming, and the modernization and expansion of our Gypsum Wallboard plant in Oklahoma.

Based on our current actuarial estimates, we do not anticipate making contributions to our defined benefit plans for fiscal year 2027.

Inflation and Changing Prices

The Consumer Price Index (CPI) rose approximately 3.3% in fiscal 2026, 2.4% in fiscal 2025, and 3.5% in fiscal 2024. During fiscal 2026, the CPI for electricity, natural gas, gasoline, and transportation increased 4.6%, 6.4%, 18.9%, and 4.1%, respectively. We have some protection from increasing natural gas costs in fiscal 2027 as we have forward purchase contracts for approximately 20.0% of our anticipated natural gas usage. The increase in CPI for transportation and gasoline will likely raise our freight costs in the near term; however, most of the increase in gasoline prices appears to stem from the military action in the Strait of Hormuz. A resolution of this crisis would likely lead to a drop in gasoline prices. Our ability to increase sales prices to cover higher costs in the future varies with the level of activity in the construction industry; the number, size, and strength of competitors; and the availability of products to supply a local market.

67

General Outlook

See “Market Conditions and Outlook” within Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Recent Accounting Pronouncements

Refer to Footnote (A) to the Audited Consolidated Financial Statements for information regarding recently issued accounting pronouncements that may affect our financial statements.

Forward-Looking Statements

Certain matters discussed in this report contain forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statements and generally arise when the Company is discussing its beliefs, estimates, or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Company’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties, and other factors, many of which are outside the Company’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; fluctuations in public infrastructure expenditures; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability of and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal, and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime, and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; interruptions in our supply chain; inability to timely execute or realize capacity expansions or efficiency gains from capital improvement projects; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); changes in trade policy, including tariffs and the effects of any increases in tariffs on our business, including increases in inputs used in our facility expansion and modernization projects; possible losses or other adverse outcomes from pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; competition; cyber-attacks or data security breaches, together with the costs of protecting our systems against such incidents and the possible effects thereof on our operations; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demand for construction

68

materials or increases in the cost of energy (including, without limitation, natural gas, coal, and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s results of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital, and financial markets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and subsequent quarterly and annual reports upon filing. These reports are filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.