UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended

~~December~~June 3130, ~~2024~~2025

Commission File Number 1-12984

EAGLE MATERIALS INC.

(Exact name of registrant as specified in its charter)

Delaware (State of Incorporation)

75-2520779 (I.R.S. Employer Identification No.)

5960 Berkshire Lane, Suite 900, Dallas, Texas 75225 (Address of principal executive offices)

(214) 432-2000 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock (par value $.01 per share)

     EXP

     New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NONo ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.).

Yes ☐ No ☒

As of ~~January~~July 2725, 2025, the number of outstanding shares of common stock was:

Class		Outstanding Shares
Common Stock, $.01 Par Value		3332,~~287~~449,~~642~~297

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION (unaudited)

		Page
Item 1.	Consolidated Financial Statements
	Consolidated Statements of Earnings for the Three and Nine Months Ended December 31, 2024 and 2023	1
	Consolidated Statements of Earnings for the Three Months Ended June 30, 2025 and 2024	1
	Consolidated Statements of Comprehensive Earnings for the Three and Nine Months Ended December 31, 2024 and 2023	2
	Consolidated Statements of Comprehensive Earnings for the Three Months Ended June 30, 2025 and 2024	2
	Consolidated Balance Sheets as of December 31, 2024 and March 31, 2024	3
	Consolidated Balance Sheets as of June 30, 2025, and March 31, 2025	3
	Consolidated Statements of Cash Flows for the Three and Nine Months Ended December, 2024 and 2023	4
	Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2025 and 2024	4
	Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended December 31, 2024 and 2023	5
	Consolidated Statements of Stockholders' Equity for the Three Months Ended June 30, 2025 and 2024	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2024
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3538
Item 4.	Controls and Procedures	3538
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	3639
Item 1a.	Risk Factors	3739
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3739
Item 4.	Mine Safety Disclosures	3739
Item 5.	Other Information	3739
Item 6.	Exhibits	3740
SIGNATURES		3842

PART I. Financial Information (Unaudited)

Item 1. Consolidated Financial Statements.

EAGLE MATERIALS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)

	For the Three Months Ended December 31,								For the Nine Months Ended December 31,
		For the Three Months Ended June 30,
	2024				2023				2024			2023
		2025						2024
	~~(dollars in thousands, except share and per share data)~~	(dollars in thousands, except share and per share data)
Revenue	$	~~558,025~~	634,690		$	~~558,833~~	$		$608,689	~~1,790,333~~		$	~~1,782,590~~
Cost of Goods Sold		~~380,212~~	449,091			~~378,205~~			421,821	~~1,221,808~~			~~1,216,949~~
Gross Profit		~~177,813~~	185,599			~~180,628~~			186,868	~~568,525~~			~~565,641~~
Equity in Earnings of Unconsolidated Joint Venture		~~4,987~~	3,804			~~9,285~~			7,716	~~21,979~~			~~22,790~~
Corporate General and Administrative Expense		~~(20,818~~	)(20,783	)		~~(14,201~~	)		(15,649	~~(54,346~~)	)		~~(42,456~~	)
Other Non-Operating Income (Loss)		1,381				1,019				4,788			2,837
Other Non-Operating Income			954						2,683
Interest Expense, net		~~(9,061~~	)(11,716	)		~~(10,128~~	)		(10,684	~~(30,459~~)	)		~~(32,571~~	)
Earnings Before Income Taxes		~~154,302~~	157,858			~~166,603~~			170,934	~~510,487~~			~~516,241~~
Income Taxes		~~(34,728~~	)(34,496	)		~~(37,465~~	)		(37,092	~~(113,551~~)	)		~~(115,701~~	)
Net Earnings	$	~~119,574~~	123,362			~~129,138~~	$		133,842	~~396,936~~			~~400,540~~
EARNINGS PER SHARE
Basic	$	~~3.59~~	3.78		$	~~3.75~~	$		$3.97	~~11.85~~		$	~~11.47~~
Diluted	$	~~3.56~~	3.76		$	~~3.72~~			$3.94	~~11.75~~		$	~~11.38~~
AVERAGE SHARES OUTSTANDING
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		~~33,317,168~~	32,624,075			~~34,466,141~~			33,734,280	~~33,493,382~~			~~34,931,378~~
Diluted		~~33,608,538~~	32,808,568			~~34,749,721~~			33,993,023	~~33,771,660~~			~~35,201,658~~
CASH DIVIDENDS PER SHARE	$	~~0.25~~	0.25		$	~~0.25~~	$		$0.25	~~0.75~~		$	~~0.75~~

See Notes to Unaudited Consolidated Financial Statements.

EAGLE MATERIALS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (unaudited)

	For the Three Months Ended December 31,								For the Nine Months Ended December 31,
		For the Three Months Ended June 30,
	2024				2023				2024			2023
		2025						2024
	~~(dollars in thousands)~~	(dollars in thousands)
Net Earnings	$	~~119,574~~	123,362		$	~~129,138~~	$		$133,842	~~396,936~~		$	~~400,540~~
Net Actuarial Change in Defined Benefit Plans
Net Actuarial Change in Defined Benefit Plans:
Amortization of Net Actuarial Loss		60	53			63			60	~~180~~			~~189~~
Tax Expense		~~(15~~	)(12	)		~~(15~~	)		(15	~~(45~~)	)		~~(45~~	)
Comprehensive Earnings	$	~~119,619~~	123,403		$	~~129,186~~	$		$133,887	~~397,071~~		$	~~400,684~~

See Notes to Unaudited Consolidated Financial Statements.

EAGLE MATERIALS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited)

	December 31,				March 31,
		June 30,						March 31,
	2024				2024
		2025						2025
	~~(dollars in thousands)~~	(dollars in thousands)
ASSETS
Current Assets
Cash and Cash Equivalents	$	~~31,173~~	59,739		$	~~34,925~~	$		20,401
Accounts and Notes Receivable, net		182,379				202,985
Accounts Receivable, net			263,398						212,332
Inventories		~~392,266~~	393,401			~~373,923~~			415,175
Income Tax Receivable		~~1,743~~	1,384			~~9,910~~			10,020
Prepaid and Other Assets		~~10,901~~	14,443			~~5,950~~			10,729
Total Current Assets		~~618,462~~	732,365			~~627,693~~			668,657
Property, Plant, and Equipment, net		~~1,736,159~~	1,840,845			~~1,676,217~~			1,792,982
Investment in Joint Venture		~~135,672~~	143,893			~~113,478~~			140,089
Operating Lease Right-of-Use Assets		~~34,227~~	31,866			~~19,373~~			29,313
Goodwill and Intangible Assets, net		~~487,388~~	593,163			~~486,117~~			595,752
Other Assets		~~31,762~~	55,182			~~24,141~~			37,795
Total Assets	$	~~3,043,670~~	3,397,314		$	~~2,947,019~~	$		3,264,588
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	~~118,718~~	136,225		$	~~127,183~~	$		129,895
Accrued Liabilities		~~86,999~~	87,677			~~94,327~~			96,077
Income Tax Payable		3,090				—
Operating Lease Liabilities			4,688						4,032
Operating Lease Liabilities		5,074				7,899
Income Taxes Payable			24,768						—
Current Portion of Long-Term Debt		10,000				10,000
Current Portion of Long-term Debt			15,000						15,000
Total Current Liabilities		~~223,881~~	268,358			~~239,409~~			245,004
Long-Term Debt		~~991,749~~	1,294,883			~~1,083,299~~			1,223,316
Noncurrent Operating Lease Liabilities		~~34,951~~	35,123			~~19,037~~			33,597
Other Long-Term Liabilities		~~50,696~~	64,498			~~51,942~~			66,029
Deferred Income Taxes		~~246,254~~	242,678			~~244,797~~			239,942
Total Liabilities		~~1,547,531~~	1,905,540			~~1,638,484~~			1,807,888
Stockholders’ Equity
Preferred Stock, Par Value $0.01; Authorized 5,000,000 Shares; None Issued		—	—			—			—
Common Stock, Par Value $0.01; Authorized 100,000,000 Shares; Issued and Outstanding 33,391,155 and 34,143,945 Shares, respectively		334				341
Common Stock, Par Value $0.01; Authorized 100,000,000 Shares; Issued and Outstanding 32,582,297 and 32,973,121 Shares, respectively			326						330
Capital in Excess of Par Value		—	—			—			—
Accumulated Other Comprehensive Losses		~~(3,238~~	)(3,084	)		~~(3,373~~	)		(3,125	)
Retained Earnings		~~1,499,043~~	1,494,532			~~1,311,567~~			1,459,495
Total Stockholders’ Equity		~~1,496,139~~	1,491,774			~~1,308,535~~			1,456,700
Total Liabilities and Stockholders’ Equity	$	3,043,670			$	2,947,019
	$		3,397,314				$		3,264,588

See Notes to Unaudited Consolidated Financial Statements.

EAGLE MATERIALS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	For the Nine Months Ended December 31,
		For the Three Months Ended June 30,
	2024				2023
		2025						2024
	~~(dollars in thousands)~~	(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Earnings	$	~~396,936~~	123,362		$	~~400,540~~	$		133,842
Adjustments to Reconcile Net Earnings to Net Cash Providedby Operating Activities, Net of Effect of Non-Cash Activity
Adjustments to Reconcile Net Earnings to Net Cash Providedby Operating Activities, Net of Effect of Non-Cash Activity:
Depreciation, Depletion, and Amortization		~~116,661~~	40,644			~~111,347~~			38,350
Deferred Income Tax Provision		~~1,457~~	2,736			~~9,324~~			(2,212	)
Stock Compensation Expense		~~14,221~~	4,822			~~15,356~~			4,539
Equity in Earnings of Unconsolidated Joint Venture		~~(21,979~~	)(3,804	)		~~(22,790~~	)		(7,716	)
Distributions from Joint Venture		—				7,000
Changes in Operating Assets and Liabilities:
Changes in Operating Assets and Liabilities
Accounts Receivable			(51,066	)					(75,443	)
Accounts and Notes Receivable		20,606				9,452
Inventories			21,774						2,304
Inventories		(17,277	)			(27,137	)
Accounts Payable and Accrued Liabilities			(5,534	)					15,503
Accounts Payable and Accrued Liabilities		(15,175	)			3,278
Other Assets			(27,361	)					(16,724	)
Other Assets		(18,041	)			(19,428	)
Income Taxes Receivable			31,061						40,193
Income Taxes Payable (Receivable)		8,371				13,607
Net Cash Provided by Operating Activities			136,634						132,636
Net Cash Provided by Operating Activities		485,780				500,549
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant, and Equipment			(76,097	)					(33,128	)
Additions to Property, Plant, and Equipment		(146,975	)			(87,848	)
Net Cash Used in Investing Activities			(76,097	)					(33,128	)
Acquisition Spending		(24,881	)			(55,053	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Cash Used in Investing Activities		(171,856	)			(142,901	)
Borrowings Under Revolving Credit Facility			100,000						10,000
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Borrowings Under Revolving Credit Facility			(25,000	)					—
Borrowings Under Revolving Credit Facility		100,000				222,000
Repayment of Term Loan			(3,750	)					(2,500	)
Repayment of Borrowings Under Revolving Credit Facility		(185,000	)			(272,000	)
Dividends Paid to Stockholders			(8,254	)					(8,538	)
Repayment of Term Loan		(7,500	)			(7,500	)
Purchase and Retirement of Common Stock			(78,616	)					(85,490	)
Dividends Paid to Stockholders		(25,373	)			(26,692	)
Proceeds from Stock Option Exercises			—						56
Purchase and Retirement of Common Stock		(201,276	)			(248,852	)
Shares Redeemed to Settle Employee Taxes on Stock Compensation			(5,579	)					(1,421	)
Payment of Excise Tax on Purchases and Retirements of Common Stock		(3,331	)			—
Net Cash Used in Financing Activities			(21,199	)					(87,893	)
Proceeds from Stock Option Exercises		6,260				11,560
NET INCREASE IN CASH AND CASH EQUIVALENTS			39,338						11,615
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(1,456	)			(2,494	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			20,401						34,925
Net Cash Used in Financing Activities		(317,676	)			(323,978	)
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$		59,739				$		46,540
NET INCREASE IN CASH AND CASH EQUIVALENTS		(3,752	)			33,670
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		34,925				15,242
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	31,173			$	48,912

See Notes to Unaudited Consolidated Financial Statements.

EAGLE MATERIALS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

	CommonStock				~~Capital inExcess ofPar Value~~		Capital inExcess ofPar Value	~~RetainedEarnings~~			~~AccumulatedOtherComprehensiveLosses~~RetainedEarnings				~~Total~~		AccumulatedOtherComprehensiveLosses			Total
	~~(dollars in thousands)~~	(dollars in thousands)
Balance at March 31, 2023	$	358			$	—		$	1,188,883		$	(3,547	)		$	1,185,694
Balance at March 31, 2024	$		341				$	—			$		1,311,567				$	(3,373	)	$	1,308,535
Net Earnings		—	—			—		—	~~120,849~~			—	133,842			~~120,849~~		—			133,842
Stock Compensation Expense		—				6,457			—			—				6,457
Stock Option Exercises and Restricted Share Vesting			—					56					—					—			56
Stock Option Exercises and Restricted Share Issuances		2				10,383			—			—				10,385
Stock Compensation Expense			—					4,539					—					—			4,539
Shares Redeemed to Settle Employee Taxes		(1	)—			~~(1,359~~	)	(1,421	—)			—	—			~~(1,360~~	)	—			(1,421	)
Purchase and Retirement of Common Stock		(5	)(3	)		~~(15,481~~	)	(3,174	~~(59,313~~)	)		—	(83,168	)		~~(74,799~~	)	—			(86,345	)
Dividends to Shareholders		—				—			(8,863	)		—				(8,863	)
Dividends to Stockholders			—					—					(8,453	)				—			(8,453	)
Unfunded Pension Liability, net of tax		—	—			—		—	—			48	—			48		45			45
Balance at June 30, 2023	$	354			$	—		$	1,241,556		$	(3,499	)		$	1,238,411
Balance at June 30, 2024	$		338				$	—			$		1,353,788				$	(3,328	)	$	1,350,798
Net Earnings		—				—			150,553			—				150,553
	CommonStock						Capital inExcess ofPar Value				RetainedEarnings						AccumulatedOtherComprehensiveLosses			Total
Stock Compensation Expense		—				4,542			—			—				4,542
		(dollars in thousands)
Stock Option Exercise and Restricted Share Issuances		—				1,084			—			—				1,084
Balance at March 31, 2025	$		330				$	—			$		1,459,495				$	(3,125	)	$	1,456,700
Shares Redeemed to Settle Employee Taxes		—				(1,134	)		—			—				(1,134	)
Net Earnings			—					—					123,362					—			123,362
Purchase and Retirement of Common Stock		(4	)			(4,492	)		(73,541	)		—				(78,037	)
Stock Compensation Expense			—					4,822					—					—			4,822
Dividends to Shareholders		—				—			(8,833	)		—				(8,833	)
Shares Redeemed to Settle Employee Taxes			(1	)				(4,822	)				(756	)				—			(5,579	)
Unfunded Pension Liability, net of tax		—				—			—			48				48
Purchase and Retirement of Common Stock			(3	)				—					(79,400	)				—			(79,403	)
Balance at September 30, 2023	$	350			$	—		$	1,309,735		$	(3,451	)		$	1,306,634
Dividends to Stockholders			—					—					(8,169	)				—			(8,169	)
Net Earnings		—				—			129,138			—				129,138
Unfunded Pension Liability, net of tax			—					—					—					41			41
Stock Compensation Expense		—				4,357			—			—				4,357
Balance at June 30, 2025	$		326				$	—			$		1,494,532				$	(3,084	)	$	1,491,774
Stock Option Exercise and Restricted Share Issuances		—				91			—			—				91
Purchase and Retirement of Common Stock		(5	)			(4,448	)		(94,051	)		—				(98,504	)
Dividends to Shareholders		—				—			(8,603	)		—				(8,603	)
Unfunded Pension Liability, net of tax		—				—			—			48				48
Balance at December 31, 2023	$	345			$	—		$	1,336,219		$	(3,403	)		$	1,333,161
	CommonStock				Capital inExcess ofPar Value			RetainedEarnings			AccumulatedOtherComprehensiveLosses				Total
	(dollars in thousands)
Balance at March 31, 2024	$	341			$	—		$	1,311,567		$	(3,373	)		$	1,308,535
Net Earnings		—				—			133,842			—				133,842
Stock Compensation Expense		—				4,539			—			—				4,539
Stock Option Exercises and Restricted Share Issuances		—				56			—			—				56
Shares Redeemed to Settle Employee Taxes		—				(1,421	)		—			—				(1,421	)
Purchase and Retirement of Common Stock		(3	)			(3,174	)		(83,168	)		—				(86,345	)
Dividends to Shareholders		—				—			(8,453	)		—				(8,453	)
Unfunded Pension Liability, net of tax		—				—			—			45				45
Balance at June 30, 2024	$	338			$	—		$	1,353,788		$	(3,328	)		$	1,350,798
Net Earnings		—				—			143,520			—				143,520
Stock Compensation Expense		—				4,864			—			—				4,864
Stock Option Exercise and Restricted Share Issuances		—				2,149			—			—				2,149
Shares Redeemed to Settle Employee Taxes		—				(35	)		—			—				(35	)
Purchase and Retirement of Common Stock		(3	)			(6,978	)		(54,312	)		—				(61,293	)
Dividends to Shareholders		—				—			(8,399	)		—				(8,399	)
Unfunded Pension Liability, net of tax		—				—			—			45				45
Balance at September 30, 2024	$	335			$	—		$	1,434,597		$	(3,283	)		$	1,431,649
Net Earnings		—				—			119,574			—				119,574
Stock Compensation Expense		—				4,818			—			—				4,818
Stock Option Exercise and Restricted Share Issuances		1				4,054			—			—				4,055
Purchase and Retirement of Common Stock		(2	)			(8,872	)		(46,777	)		—				(55,651	)
Dividends to Shareholders		—				—			(8,351	)		—				(8,351	)
Unfunded Pension Liability, net of tax		—				—			—			45				45
Balance at December 31, 2024	$	334			$	—		$	1,499,043		$	(3,238	)		$	1,496,139

See Notes to Unaudited Consolidated Financial Statements.

Eagle Materials Inc. and SubsidiariesNotes to Unaudited Consolidated Financial Statements

(A) BASIS OF PRESENTATION

The accompanying Unaudited Consolidated Financial Statements as of and for the three-month ~~and~~period ~~nine months~~ ended ~~December~~June 3130, ~~2024~~2025, include the accounts of Eagle Materials Inc. and its majority-owned subsidiaries (collectively, the Company, us, or we) and have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission on May 2220, ~~2024~~2025.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, ~~and~~although we believe that the disclosures are adequate to make the information presented not misleading. In our opinion, all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the information in the following Unaudited Consolidated Financial Statements of the Company have been included. The results of operations for interim periods are not necessarily indicative of the results for the full year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncements

PENDING ADOPTION

In ~~November~~December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-0709, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures (ASU 2023-0709), which isfocuses ~~intended~~on the rate reconciliation and income taxes paid. ASU 2023-09 requires public entities to ~~improve~~disclose, ~~reportable~~on ~~segment~~an ~~disclosure~~annual ~~requirements~~basis, ~~primarily~~a ~~through~~tabular ~~enhanced~~rate ~~disclosures~~reconciliation ~~about~~using ~~significant~~both ~~segment~~percentages ~~expenses~~and currency amounts organized by specified categories with certain reconciling items broken out by nature and jurisdiction to the extent those items exceed a specified threshold. ~~ASU~~Additionally, ~~2023-07~~all ~~will~~entities ~~become~~are ~~effective~~required ~~for~~to ~~public~~disclose ~~companies~~income ~~during~~taxes ~~annual~~paid, ~~reporting~~net ~~periods~~of ~~beginning~~refunds ~~after~~received, ~~December~~disaggregated 15by federal, ~~2023~~state, local, and ~~interim~~individual ~~reporting~~jurisdiction if the amount is at least 5% of the total income tax payments, net of refunds received. ASU 2023-09 is effective prospectively for annual periods beginning after December 15, 2024,. ~~with~~Early ~~early~~ adoption and retrospective application are permitted. ~~The~~ASU ~~Company~~2023-09 iswill ~~currently~~not ~~evaluating~~have ~~the~~any impact ofon ~~adopting~~the ~~this~~Company's ~~guidance~~results onof ~~its~~operations, ~~Consolidated~~cash ~~Financial~~flows, ~~Statements~~and financial condition.

In ~~December~~November ~~2023~~2024, the FASB issued Accounting Standards Update No. ~~2023~~2024-0903, Income ~~Taxes~~Statement-Reporting ~~(Topic~~Comprehensive ~~740): Improvements to~~ Income-Expense ~~Tax~~Disaggregation Disclosures (~~ASU~~Subtopic ~~2023~~220-0940),: ~~which~~Disaggregation ~~focuses~~of onIncome ~~the rate reconciliation~~ and ~~income~~Expenses ~~taxes~~(ASU ~~paid~~2024-03). ASU ~~2023~~2024-0903 requires public business entities to disclose, onadditional aninformation ~~annual~~about ~~basis,~~certain akey ~~tabular~~expense ~~rate reconciliation using both percentages and currency amounts organized by specified~~ categories ~~with~~within ~~certain~~major ~~reconciling~~income ~~items~~statement ~~that~~captions ~~exceed~~in athe ~~specified~~Notes ~~threshold~~to ~~broken~~the ~~out~~Consolidated byFinancial ~~nature and jurisdiction~~Statements. ~~Additionally,~~The ~~all~~new ~~entities~~standard ~~are~~is ~~required~~effective tofor ~~disclose~~fiscal ~~income~~years ~~taxes~~beginning ~~paid,~~after ~~net~~December ~~of refunds received~~15, ~~disaggregated by federal~~2026, ~~state,~~ and ~~local jurisdiction, if the amount~~ is atto ~~least~~be 5%applied ~~of the total income tax payments, net of refunds received, by individual jurisdiction. ASU 2023-09 is effective~~ prospectively ~~for annual periods beginning after December 15, 2024~~. Early adoption ~~and~~is ~~retrospective application are~~ permitted. ~~ASU~~The ~~2023-09~~Company ~~will~~is ~~not~~currently ~~have~~evaluating ~~any~~the impact onof ~~the~~adopting ~~Company's~~this ~~results~~guidance ofon ~~operations,~~its ~~cash~~Consolidated ~~flows,~~Financial ~~and financial condition~~Statements.

(B) SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	For the Nine Months Ended December 31,
	For the Three Months Ended June 30,
		2024			2023
	2025				2024
	~~(dollars in thousands)~~	(dollars in thousands)
Cash Payments
Cash Payments:
Interest	$	~~37,223~~	7,948	$	~~38,797~~$	3,678
Income Taxes		~~110,683~~	734		~~92,718~~	780
Operating Cash Flows Used for Operating Leases		~~6,802~~	1,498		~~7,016~~	2,287
Non-Cash Financing Activities
Noncash Financing Activities:
Excise Tax on Share Repurchases	$	2,013		$	3,227
Right-of-Use Assets Obtained for Capitalized Operating Leases	$		3,325		$	855
Right-of-Use Assets Acquired for Capitalized Operating Leases		19,588			6,018
Excise Tax on Share Repurchases			787			719

On ~~August~~January 97, ~~2024~~2025, we purchased ~~the~~Bullskin ~~assets~~Stone of& Lime, LLC, an aggregates ~~operation~~business located in ~~Battletown,~~Western ~~Kentucky~~Pennsylvania (the ~~Kentucky~~ Acquisition), ~~which was accounted~~ for ~~under the acquisition method. The purchase price of the Kentucky Acquisition was~~ approximately $24150.90 million., ~~The~~which ~~purchase~~will ~~price~~be ~~allocation~~accounted ~~has~~for ~~not~~under ~~yet~~the ~~been~~acquisition ~~finalized~~method. The purchase price was funded through borrowings under our Revolving Credit Facility. Operations related to the ~~Kentucky~~ Acquisition are included in the Concrete and Aggregates ~~business~~segment in our segment reporting ~~from August 9, 2024, through December 31, 2024~~.

The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed (based on Level 3 inputs of the fair value hierarchy) as of ~~December~~June 3130, ~~2024:~~2025. Adjustments to the preliminary purchase price allocation could be significant, particularly with respect to Intangible Assets and Property, Plant, and Equipment.

	Estimated Fair Value
	Fair Value(dollars in thousands)
Inventory	$	1,067
Accounts Receivable	$		1,443
Property, Plant, and Equipment		16,815
Inventories			3,354
Lease Right-of-Use Assets		757
Prepaid and Other Current Assets			229
Intangible Assets		1,309
Property, Plant, and Equipment			35,097
Accrued Liabilities		(71	)
Intangible Assets			39,400
Lease Obligations		(757	)
Accounts Payable and Accrued Liabilities			(327	)
Goodwill		5,761
Other Long-term Liabilities			(792	)
Total Estimated Purchase Price	$	24,881
Total Net Assets Acquired			78,404
Goodwill			71,543
Total Purchase Price	$		149,947

The estimated useful lives assigned to Property, Plant, and Equipment range from 5 to 30 years, while the estimated useful lives assigned to Intangible Assets are approximately 15 years. All goodwill generated from the Kentucky Acquisition is deductible for income tax purposes.

The following table presents the Revenue and Operating Loss related to the Kentucky Acquisition that has been included in our Consolidated Statement of Earnings from August 9, 2024, through December 31, 2024.

	For the Three Months Ended			For the Nine Months Ended
	December 31, 2024
	(dollars in thousands)
Revenue	$	3,086		$	4,821
Operating Loss	$	(296	)	$	(642	)

Operating Loss for the three and nine months ended December 31, 2024, was affected by approximately $0.6 million and $1.0 million, respectively, related to depreciation and amortization. Operating Loss for the nine months ended December 31, 2024, was affected by approximately $0.7 million related to the recording of acquired inventories at fair value.

~~Subsequent~~The estimated useful lives assigned to Property, Plant, and Equipment range from 5 to 30 years. Goodwill represents the excess purchase price over the fair value of the assets acquired and the liabilities assumed. The Goodwill was generated by the availability of co-product sales and the opportunity associated with the expansion of our Aggregates business to the Western Pennsylvania region of the United States. All Goodwill generated from the Acquisition is deductible for income tax purposes.

OnThe ~~January~~following 7,table ~~2025,~~is ~~we purchased Bullskin Stone & Lime, LLC,~~ a ~~pure-play~~summary ~~aggregates~~of ~~business located in Western Pennsylvania (~~the ~~Pennsylvania~~fair ~~Acquisition),~~value ~~which~~estimates ~~will be accounted for under the acquisition method. The purchase price~~ of the ~~Pennsylvania~~identifiable ~~Acquisition~~intangible ~~was~~assets ~~approximately~~and ~~$152.5~~their ~~million, subject to customary post~~weighted-~~closing~~average ~~adjustments.~~useful The purchase price was funded through borrowings under our Revolving Credit Facility. Operations related to the Pennsylvania Acquisition will be included in the Concrete and Aggregates business in our segment reporting.lives:


	Weighted-Average Life (in years)		Estimated Fair Value (dollars in thousands)


Customer Relationships		15	$	38,900


Trade Name and Technology		5		500


Total Intangible Assets			$	39,400

The following table presents the Revenue and Operating Earnings related to the Acquisition that have been included in our Consolidated Statement of Earnings for the three months ended June 30, 2025.


	For the Three Months Ended June 30, 2025
	(dollars in thousands)


Revenue	$	7,202


Operating Earnings	$	1,634

Included in Operating Earnings shown above is approximately $1.7 million related to depreciation and amortization.

(D) REVENUE

We earn Revenue primarily from the sale of products, which include cement, concrete, aggregates, gypsum wallboard, and recycled paperboard. The vast majority of Revenue from the sale of concrete, aggregates, and gypsum wallboard is originated by purchase orders from our customers, who are mostly third-party contractors and suppliers. Revenue from the sale of cement is recognized at the point-of-sale to customers under sales orders. Revenue from our Recycled Paperboard segment is generated mainly through long-term supply agreements. These agreements do not have a stated maturity date, but may be terminated by either party with a two- to three-year notice period. We invoice customers upon shipment, and our collection terms range from 30 to 75 days. Revenue from the sale of cement, concrete, aggregates, and gypsum wallboard not related to long-term supply agreements is recognized upon shipment of the related products to customers, which is when title and ownership are transferred, and the customer is obligated to pay.

Revenue from sales under our long-term supply agreements is also recognized upon transfer of control to the customer, which generally occurs at the time the product is shipped from the production facility or terminal location. Our long-term supply agreements with customers define, among other commitments, the volume of product ~~that~~ we must provide and the volume that the customer must purchase by the end of the defined periods. Pricing structures under our agreements are generally market-based, but are subject to certain contractual adjustments. Shortfall amounts, if applicable under these arrangements, are constrained and not recognized as Revenue until an agreement is reached with the customer and, therefore, are not subject to the risk of reversal.

The Company offers certain of its customers, including those with long-term supply agreements, rebates and incentives, which we treat as variable consideration. We adjust the amount of Revenue recognized for the variable consideration using the most likely amount method based on past history and projected volumes in the rebate and incentive period. Any amounts billed to customers for taxes are excluded from Revenue.

The Company has elected to treat freight and delivery charges we pay for the delivery of goods to our customers as a fulfillment activity rather than a separate performance obligation. When we arrange for a third party to deliver products to customers, fees for shipping and handling billed to the customer are recorded as Revenue, while costs we incur for shipping and handling are recorded as expenses and included in Cost of Goods Sold.

Other Non-Operating Income includes lease and rental income, asset sale income, non-inventoried aggregates sales income, distribution center income, and trucking income, as well as other miscellaneous revenue items and costs that have not been allocated to a business segment.

See ~~Footnote~~Note (N) to the Unaudited Consolidated Financial Statements for disaggregation of revenue by segment.

(E) ACCOUNTS ~~AND NOTES~~ RECEIVABLE

Accounts Receivable are shown net of the allowance for ~~credit~~doubtful ~~losses~~accounts totaling $6.6 million and $6.7 million at ~~December~~June 3130, ~~2024~~2025, and March 31, ~~2024~~2025, respectively. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers. The allowance for ~~credit~~non-collection ~~losses~~of receivables is based on ~~detailed~~ analysis of economic trends in the construction industry, detailed analysis of the expected collectability of past- due accounts receivable, and the expected collectability of overall receivables. We have no significant credit risk concentration among our diversified customer base.

accounts receivable, and the expected collectability of overall receivables. We have no significant credit risk concentration among our diversified customer base.

(F) INVENTORIES

Inventories are stated at the lower of average cost (including applicable material, labor, depreciation, and plant overhead) or net realizable value. Raw Materials and Materials-in-Progress include clinker, which is an intermediary product before it is ground into cement powder. Quantities of Raw Materials and Materials-in-Progress, Aggregates, and Coal inventories, are based on measured volumes, subject to estimation based on the size and location of the inventory piles, and are converted to tonnage using standard inventory density factors. Inventories consist of the following:

	December 31,		March 31,
	June 30,		March 31,
	2024		2024
		2025		2025
	(dollars in thousands)
Raw Materials and Materials-in-Progress	$	~~140~~151,~~568~~324	$	~~122~~164,~~772~~683
Finished Cement		6563,~~839~~249		7167,~~396~~711
Aggregates		16,~~676~~371		1217,~~149~~681
Gypsum Wallboard		6,~~747~~087		5,~~242~~708
Recycled Paperboard		97,~~401~~124		147,~~278~~814
Repair Parts and Supplies		~~128~~125,~~584~~182		~~127~~126,~~511~~983
Fuel and Coal		24,~~451~~064		2024,~~575~~595
	$	~~392~~393,~~266~~401	$	~~373~~415,~~923~~175

(G) ACCRUED EXPENSES

Accrued Expenses consist of the following:

	December 31,			March 31,
	June 30,				March 31,
	2024			2024
	2025				2025
	(dollars in thousands)
Payroll and Incentive Compensation	$	~~34,500~~	20,083	$	~~34,274~~$	31,918
Benefits		~~17,374~~	16,724		~~17,507~~	16,950
Dividends		8,559			6,374
Interest			12,541			7,689
Interest		1,348			8,729
Dividends			8,378			8,463
Property Taxes		~~4,902~~	8,399		~~5,921~~	5,836
Power and Fuel		~~3,359~~	3,171		~~2,993~~	4,045
Freight		~~4,004~~	4,663		~~2,893~~	3,664
Excise Tax		~~2,851~~	4,608		~~4,170~~	3,822
Legal and Professional		~~2,150~~	3,880		~~2,602~~	3,953
Sales and Use Tax		~~1,300~~	1,619		~~1,372~~	1,500
Other		~~6,652~~	3,611		~~7,492~~	8,237
	$	~~86,999~~	87,677	$	~~94,327~~$	96,077

(H) LEASES

We lease certain real estate, buildings, and equipment, including railcars and barges. Certain of these leases contain escalations of rent over the term of the lease, as well as options for us to extend the term of the lease at the end of the original term. These extensions range from periods of 1one year to 20 years. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. In calculating the present value of future minimum lease payments, we use the rate implicit in the lease if it can be determined. Otherwise, we use our incremental borrowing rate in effect at the commencement of the lease to determine the present value of the future minimum lease payments. Additionally, we lease certain equipment under short-term leases with initial terms of less than 12 months, which are not recorded on the balance sheet. ~~During December 2024 we extended the term of the lease of our corporate office from May 2029 to January 2036.~~

Lease expense for our operating and short-term leases is as follows:

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	For the Three Months Ended June 30,
	2024			2023			2024		2023
	2025				2024
	(dollars in thousands)
Operating Lease Cost	$	~~1,982~~	2,199	$	~~1,921~~$	2,047	$	~~5,933~~	$	~~6,148~~
Short-Term Lease Cost		~~317~~	623		~~187~~	341		~~962~~		~~601~~
Total Lease Cost	$	~~2,299~~	2,822	$	~~2,108~~$	2,388	$	~~6,895~~	$	~~6,749~~

The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows:

	December 31,		March 31,
	2024		2024
	(dollars in thousands)
Operating Leases
Operating Lease Right-of-Use Assets	$	34,227	$	19,373
Current Operating Lease Liabilities	$	5,074	$	7,899
Noncurrent Operating Lease Liabilities		34,951		19,037
Total Operating Lease Liabilities	$	40,025	$	26,936

Future payments for operating leases are as follows (dollars in thousands):

Fiscal Year	Amount
2025 (remaining three months)	$	1,893
2026		4,959
2027		4,183
2028		3,495
2029		3,530
Thereafter		34,094
Total Lease Payments	$	52,154
Less: Imputed Interest		(12,129	)
Present Value of Lease Liabilities	$	40,025
Weighted-Average Remaining Lease Term (in years)		11.2
Weighted-Average Discount Rate		3.30	%

(I) Share-BASED EMPLOYEE COMPENSATION

On August 3, 2023, our stockholders approved the Eagle Materials Inc. 2023 Equity Incentive Plan (the Plan), which reserves 1,425,000 shares for future grants of stock awards. Under the terms of the 2023 Plan, we can issue equity awards, including stock options, restricted stock units, restricted stock, and stock appreciation rights to employees of the Company, members of the Board of Directors and consultants, independent contractors, and agents of the Company. The Compensation Committee of our Board of Directors (Compensation Committee) specifies grant terms for awards under the Plan.

Fiscal 2025 Equity Awards

In May 2024, the Compensation Committee awarded to certain officers and key employees an aggregate of 29,391 performance stock units and 1,963 performance stock options, as compensation for achievement of the target level of performance (collectively, the Performance Stock Awards). For the Performance Stock Awards to be earned, the Company must achieve performance vesting criteria as modified based on the Company’s average absolute total stockholder return during the performance period. The performance vesting criteria are based on certain levels of average annual return on equity (as defined in the Performance Stock Award Agreements) ranging from 10.0% to 20.0% measured at the end of fiscal 2027 (three-year performance period) as modified by total stockholder return. Performance outcomes (taking into account both criteria) will result in a threshold vesting percentage of 50% of target, and maximum performance will result in a vesting percentage of

~~200%~~The Right-of-Use ~~target.~~Assets Ifand ~~the~~Lease ~~threshold~~Liabilities ~~vesting~~are ~~percentage~~reflected ison ~~not~~our ~~achieved,~~Balance ~~none~~Sheet ofas ~~the Performance Stock Awards will be earned.~~follows:

Our Performance Stock Awards are evaluated on a quarterly basis with adjustments to compensation expense based on the likelihood of the performance targets being achieved or exceeded. The maximum expense for our outstanding Performance Stock Awards is approximately $11.7 million. Any forfeitures are recognized as a reduction to expense in the period in which they occur.


	June 30,		March 31,
	2025		2025
	(dollars in thousands)


Operating Leases:


Operating Lease Right-of-Use Assets	$	31,866	$	29,313





Current Operating Lease Liabilities	$	4,688	$	4,032


Noncurrent Operating Lease Liabilities		35,123		33,597


Total Operating Lease Liabilities	$	39,811	$	37,629

~~The~~Future ~~fair~~payments ~~value~~for ofoperating ~~the~~leases ~~above Performance Stock Awards was determined using a Monte Carlo simulation. The following~~ are ~~key~~as ~~inputs in the Monte Carlo analysis for the Fiscal 2025 Employee Performance Stock Award.~~ follows:

Measurement Period (in years)		2.85
	Amount
Risk-Free Interest Rate		4.7	%
Fiscal Year	(dollars in thousands)
Dividend Yield		0.4	%
2026 (remaining nine months)	$		4,360
Volatility		31.4	%
2027			5,227
Estimated Fair Value of Market-Based PSAs at Grant Date	$	238.27
2028			4,467
2029			4,044
2030			4,130
Thereafter			30,037
Total Lease Payments	$		52,265
Less: Imputed Interest			(12,454	)
Present Value of Lease Liabilities	$		39,811
Weighted-Average Remaining Lease Term (in years)			11.8
Weighted-Average Discount Rate			4.42	%

In addition to the Performance Stock Awards discussed above, the Compensation Committee approved the granting to certain officers and key employees an aggregate of 1,963 time-vesting stock options, which vest ratably over three years (~~the Fiscal 2025 Employee Time-Vesting Stock Option Grant~~I) ~~and~~EQUITY ~~30,272~~AWARDS shares of time-vesting restricted stock units, which vest ratably over three years (the Fiscal 2025 Employee Restricted Stock Unit Time-Vesting Award). The Fiscal 2025 Employee Restricted Stock Unit Time-Vesting Award was valued at the closing price of the stock on the grant date and is being expensed over a three-year period. The Fiscal 2025 Employee Time-Vesting Stock Option Grant was valued at its grant date using the Black-Scholes option pricing model, which used similar inputs as the Monte Carlo analysis shown above.

InOn August ~~2024~~3, 2023, our stockholders approved the ~~Compensation~~Eagle ~~Committee~~Materials ~~granted~~Inc. 2023 Equity Incentive Plan (the 2023 Plan), which reserves 1,~~550~~425,000 ~~options~~shares tofor ~~members~~future grants of stock awards. Under the ~~Board~~terms of ~~Directors (~~the ~~Fiscal~~2023 ~~2025~~Plan, ~~Board~~we ofcan ~~Directors~~issue ~~Stock~~equity ~~Option~~awards, ~~Award).~~including ~~Options~~stock ~~granted~~options, ~~under~~restricted ~~the~~stock ~~Fiscal~~units, ~~2025~~restricted ~~Board~~stock, ofand ~~Directors~~stock ~~Stock~~appreciation ~~Option~~rights ~~Award~~to ~~vest~~employees ~~one~~of ~~year~~the ~~after~~Company, members of the ~~grant~~Board ~~date~~of Directors, and ~~can~~consultants, beindependent ~~exercised~~contractors, ~~from~~and ~~the~~agents ~~date~~ of ~~vesting~~the ~~until~~Company. ~~their~~The ~~expiration~~Compensation onCommittee ~~the~~of ~~tenth~~our ~~anniversary~~Board of ~~the~~Directors (Compensation Committee) specifies grant ~~date~~terms for awards under the Plan.

The Fiscal 2025 Board of Directors Stock Option Award was valued at its grant date using the Black-Scholes option pricing model and is being expensed over a one-year period. The weighted-average assumptions used in the Black-Scholes model to value the Fiscal 2025 Board of Directors Stock Option Award are as follows:

Dividend Yield		0.5	%
Expected Volatility		38.8	%
Risk-Free Interest Rate		4.4	%
Expected Life	6.0 years

In August 2024, the Compensation Committee granted 7,078 shares of time-vesting restricted stock to members of the Board of Directors (the Fiscal 2025 Board of Directors Restricted Stock Award). Restricted stock granted under the Fiscal 2025 Board of Directors Restricted Stock Award vest one year after the grant date and were valued at the closing price of the stock on the grant date. The value of the Fiscal 2025 Board of Directors Restricted Stock Award is being expensed over a one-year period.

In addition to the awards described above, we may issue equity awards, including stock options, restricted stock, and restricted stock units, to certain employees from time to time. Any options issued are valued using the Black-Scholes options pricing model on the grant date and expensed over the vesting period, while restricted stock and restricted stock units are valued using the closing price on the date of grant and expensed over the vesting period.

~~Long-Term~~Fiscal ~~Compensation~~2026 ~~Plans~~Equity Awards

In May 2025, the Compensation Committee awarded to certain officers and key employees an aggregate of 29,273 performance stock units and 14,712 performance stock options, which represents achievement of the target level of performance (collectively, the Performance Stock Awards or PSAs). For the Performance Stock Awards to be earned, the Company must achieve performance vesting criteria as modified based on the Company’s average absolute total stockholder return during the performance period. The performance vesting criteria are based upon certain levels of average annual return on equity (as defined in the Performance Stock Award Agreements) ranging from 10.0% to 20.0% measured at the end of fiscal 2028 (three-year performance period) as modified by total stockholder return. Performance outcomes (taking into account both criteria) will result in a threshold vesting percentage of 50% of target and maximum performance will result in a vesting percentage of 200% of target. If the threshold vesting percentage is not achieved none of the Performance Stock Awards will be earned.

Our Performance Stock Awards are evaluated on a quarterly basis with adjustments to compensation expense based on the likelihood of the performance targets being achieved or exceeded. The maximum expense for our outstanding Performance Stock Awards is approximately $17.4 million. Any forfeitures are recognized as a reduction to expense in the period in which they occur.

The fair value of the above Performance Stock Awards was determined using a Monte Carlo simulation. The following are key inputs in the Monte Carlo analysis for the Fiscal 2026 Employee Performance Stock Awards.


	Fiscal 2026


Measurement Period (in years)		2.86


Risk-Free Interest Rate		4.0	%


Dividend Yield		0.5	%


Volatility		31.3	%


Estimated Fair Value of Market-Based PSAs at Grant Date	$	213.66

In addition to the Performance Stock Awards discussed above, the Compensation Committee approved the granting to certain officers and key employees an aggregate of 14,712 time-vesting stock options which vest ratably over three years (the Fiscal 2026 Employee Time-Vesting Stock Option Grant) and 29,273 shares of time-vesting restricted stock units, which vest ratably over three years (the Fiscal 2026 Employee Restricted Stock Unit Time-Vesting Award). The Fiscal 2026 Employee Restricted Stock Unit Time-Vesting Award was valued at the closing price of the stock on the grant date and is being expensed over a three-year period. The Fiscal 2026 Employee Time-Vesting Stock Option Grant was valued at the grant date using the Black-Scholes option pricing model, which used similar input as the Monte Carlo analysis shown above.

In addition to the stock awards described above, we may issue additional equity awards, including stock options, restricted stock, and restricted stock units, to certain employees from time to time. Any options issued are valued using the Black-Scholes options pricing model on the grant date and expensed over the vesting period, while restricted stock and restricted stock units are valued using the closing price on the date of grant and expensed over the vesting period.

STOCK OPTIONS

Stock option expense for all outstanding stock option awards totaled approximately $0.34 million and $0.93 million for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2024,~~2025 ~~respectively,~~ and ~~$0.5 million and $1.5 million for the three and nine months ended December 31~~2024, ~~2023,~~ respectively. At ~~December~~June 3130, ~~2024~~2025, there was approximately $13.47 million of unrecognized compensation ~~expense~~cost related to outstanding stock options, which is expected to be recognized over a weighted-average period of 12.34 years.

The following table represents stock option activity for the nine months ended December 31, 2024:

	Numberof Shares			Weighted-AverageExercisePrice
Outstanding Options at March 31, 2024		252,364		$	91.28
Granted		5,476		$	244.92
Exercised		(71,353	)	$	90.04
Cancelled		(1,054	)	$	125.97
Outstanding Options at December 31, 2024		185,433		$	95.78
Options Exercisable at December 31, 2024		148,214
Weighted-Average Fair Value of Options GrantedDuring the Year	$	104.45

The following table summarizes information about stock options outstanding at December 31, 2024:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number ofSharesOutstanding		Weighted-AverageRemainingContractualLife (in years)		Weighted-AverageExercisePrice		Number ofSharesOutstanding		Weighted-AverageExercisePrice
$59.32 - $81.28		88,060		4.78	$	63.01		88,060	$	63.01
$91.21 - $100.88		34,052		3.60	$	95.12		32,194	$	94.99
$118.27 - $139.25		48,931		7.36	$	126.59		22,043	$	126.41
$143.09 - $261.76		14,390		8.38	$	193.10		5,917	$	158.49
		185,433		5.52	$	95.78		148,214	$	83.19

At December 31, 2024, the aggregate intrinsic value of the outstanding and exercisable options was approximately $28.0 million and $24.2 million, respectively. The total intrinsic value of options exercised during the nine months ended December 31, 2024, was approximately $14.5 million.

RESTRICTED STOCK UNITS AND RESTRICTED STOCK

The following table summarizes the activity for restricted stock units and nonvested restricted stock during the nine months ended December 31, 2024:

	Number of Shares			Weighted-Average Grant Date Fair Value
Restricted Stock Units and Nonvested Restricted Stock at March 31, 2024		204,946		$	121.12
Granted		66,741		$	240.61
Vested		(26,194	)	$	183.42
Forfeited		—		$	—
Restricted Stock Units and Nonvested Restricted Stock at December 31, 2024		245,493		$	156.30

Expense related to restricted stock units and restricted stock was approximately $4.5 million and $13.3 million for the three and nine months ended December 31, 2024, respectively, and $4.0 million and $13.8 million for the

~~three~~The ~~and~~following ~~nine~~table ~~months~~represents ~~ended~~stock ~~December~~option ~~31,~~activity ~~2023,~~for ~~respectively.~~the Atthree ~~December~~months ~~31,~~ended ~~2024,~~June ~~there was approximately $23.7 million of unearned compensation from restricted stock units and restricted stock~~30, ~~which~~2025: ~~will be recognized over a weighted-average period of 1.5 years.~~

The number of shares available for future grants of stock options, restricted stock units, stock appreciation rights, and restricted stock under the Plan was 1,343,966 at December 31, 2024.


	Number of Shares			Weighted- Average Exercise Price


Outstanding Options at March 31, 2025		184,233	$		95.75


Granted		29,424	$		213.66


Exercised		—	$		—


Cancelled		—	$		—


Outstanding Options at June 30, 2025		213,657	$		111.99


Options Exercisable at June 30, 2025		164,778


Weighted-Average Fair Value of Options Granted During the Year			$		90.94

The following table summarizes information about stock options outstanding at June 30, 2025:



	Options Outstanding						Options Exercisable


Range of Exercise Prices	Number of Shares Outstanding		Weighted- Average Remaining Contractual Life (in years)		Weighted- Average Exercise Price		Number of Shares Outstanding		Weighted- Average Exercise Price


$59.32 - $81.28		88,060		4.29	$	63.01		88,060	$	63.01


$91.21 - $100.88		32,852		3.02	$	94.95		32,852	$	94.95


$118.27 - $139.25		48,931		6.87	$	126.59		36,079	$	126.93


$143.09 - $261.76		43,814		2.59	$	206.91		7,787	$	166.51


		213,657		4.33	$	111.99		164,778	$	88.26

At June 30, 2025, the aggregate intrinsic value of the outstanding and exercisable options was approximately $19.8 million and $18.7 million, respectively. There were no options exercised during the three months ended June 30, 2025.

RESTRICTED STOCK UNITS AND RESTRICTED STOCK

The following table summarizes the activity for restricted stock units and nonvested restricted stock during the three months ended June 30, 2025:


	Number of Shares				Weighted- Average Grant Date Fair Value


Restricted Stock Units and Nonvested Restricted Stock at March 31, 2025		194,099		$		150.56


Granted		58,546		$		213.66


Vested		(62,204	)	$		91.22


Cancelled		—		$		—


Restricted Stock Units and Nonvested Restricted Stock at June 30, 2025		190,441		$		126.88

Expense related to restricted stock units and restricted stock was approximately $4.5 million and $4.3 million for the three months ended June 30, 2025, and 2024, respectively. At June 30, 2025, there was approximately $30.2 million of unearned compensation from restricted stock units and nonvested restricted shares, which will be recognized over a weighted-average period of 1.8 years.

The number of shares available for future grants of stock options, restricted stock units, stock appreciation rights, and restricted stock under the Plan was 1,255,563 at June 30, 2025.

(J) COMPUTATION OF EARNINGS PER SHARE

The calculation of basic and diluted common shares outstanding is as follows:

For the Three Months Ended December 31,

For the Nine Months Ended December 31,

For the Three Months Ended June 30,

2024

2023

2024

2023

2025

2024

Weighted-Average Shares of Common Stock Outstanding

3332,~~317~~624,~~168~~075

~~34,466,141~~

33,734,280

~~33,493,382~~

~~34,931,378~~

Effect of Dilutive Shares

Effect of Dilutive Shares:

Assumed Exercise of Outstanding Dilutive Options

~~203~~178,~~978~~757

~~305,842~~

250,430

~~231,459~~

~~312,723~~

Less Shares Repurchased from Proceeds of Assumed Exercised Options

(6778,~~763~~526

)

~~(169,413~~

)(98,558

)

~~(86,173~~

)

~~(170,910~~

)

Restricted Stock and Restricted Stock Units

~~155~~84,~~155~~262

~~147,151~~

106,871

~~132,992~~

~~128,467~~

Weighted-Average Common Stock and Dilutive Securities Outstanding

3332,~~608~~808,~~538~~568

~~34,749,721~~

33,993,023

~~33,771,660~~

~~35,201,658~~

Shares Excluded Due to Anti-Dilution Effects

5,476

5,558

4,047

22,145

Shares Excluded Due to Anti-Dilution Effects, Including Contingent Awards

64,216

56,641

(K) PENSION AND EMPLOYEE BENEFIT PLANS

We sponsor several single-employer defined benefit plans and defined contribution plans, which together cover substantially all our employees. Benefits paid under the single-employer defined benefit plans covering certain hourly employees were historically based on years of service and the employee’s qualifying compensation over the last few years of employment. Over the last several years, these plans have been frozen to new participants and new benefits, with the last plan becoming frozen during fiscal 2020. Our defined benefit plans are all fully funded, with plan assets exceeding the benefit obligation at March 31, 2024. Due to the frozen status and current funding of the single-employer pension plans, our expected pension expense for fiscal 2025 is less than $0.2 million.

the last few years of employment. These plans have been frozen to new participants and new benefits over the last several years, with the last plan frozen during fiscal 2020. Our defined benefit plans are all fully funded, with plan assets exceeding the benefit obligation at March 31, 2025. Due to the frozen status and current funding of the single-employer pension plans, our expected pension expense for fiscal 2026 is less than $0.1 million.

(L) INCOME TAXES

Income Taxes for the interim periods presented have been included in the accompanying financial statements on the basis of an estimated annual effective tax rate. In addition to the amount of tax resulting from applying the estimated annual effective tax rate to pre-tax income, we will include, when appropriate, certain items treated as discrete events to arrive at an estimated overall tax amount. The effective tax rate for the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025, was approximately 22%, which ~~was~~is consistent with the ~~effective~~ tax rate ~~of 22%~~ for the ~~nine~~three months ended ~~December~~June 3130, ~~2023~~2024. The effective tax rate was higher than the U.S. ~~Statutory~~statutory rate of 21% mainly due to state income taxes, partially offset by a benefit recognized related to percentage depletion.

13On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact of the OBBBA on its consolidated financial statements.

(M) LONG-TERM DEBT

Long-term Debt at ~~December~~June 3130, ~~2024~~2025 iswas as follows:

	December 31,				March 31,
	June 30, 2025						March 31, 2025
	2024				2024
	(dollars in thousands)
	(dollars in thousands)
Revolving Credit Facility	$		275,000				$	200,000
Revolving Credit Facility	$	85,000			$	170,000
2.500% Senior Unsecured Notes Due 2031			750,000					750,000
2.500% Senior Unsecured Notes Due 2031		750,000				750,000
Term Loan			292,500					296,250
Term Loan		175,000				182,500
Total Debt			1,317,500					1,246,250
Total Debt		1,010,000				1,102,500
Less: Current Portion of Long-term Debt			(15,000	)				(15,000	)
Less: Current Portion of Long-Term Debt		(10,000	)			(10,000	)
Less: Unamortized Discount and Debt Issuance Costs			(7,617	)				(7,934	)
Less: Unamortized Discounts and Debt Issuance Costs		(8,251	)			(9,201	)
Long-term Debt	$		1,294,883				$	1,223,316
Long-Term Debt	$	991,749			$	1,083,299

Revolving Credit Facility

We have an unsecured $750.0 million revolving credit facility (the Revolving Credit Facility)., ~~The~~which ~~Revolving Credit Facility~~ includes a separate $~~200~~300.0 million term loan facility (the Term Loan). ~~and~~The Revolving Credit Facility also provides the Company the option to increase the borrowing capacity by up to $375.0 million (for a total borrowing capacity of $1,125.0 million), provided the existing lenders, or new lenders, agree to such increase. The Revolving Credit Facility includes a $40.0 million letter of credit facility and a swingline loan sub-facility of $25.0 million, and expires on ~~May~~February 54, ~~2027~~2030.

The Revolving Credit Facility contains customary covenants for an unsecured investment-grade facility, including covenants that restrict the Company’s and/or its subsidiaries’ ability to incur additional debt; encumber assets; merge with or transfer or sell assets to other persons; and enter into certain affiliate transactions. The Revolving Credit Facility also requires the Company to maintain at the end of each fiscal quarter a Leverage Ratio of 3.50:1.00 or less and an Interest Coverage Ratio (both ratios, as defined in the Revolving Credit Facility) equal to or greater than 2.50 to 1.00 (collectively, the Financial Covenants).

At the Company’s option, outstanding loans under the Revolving Credit Facility bear interest, at a variable rate equal to either (i) the adjusted term SOFR rate (secured overnight financing rate), plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating); (ii) in respect of any Revolving Loans (until such time as the then-existing Benchmark (as defined in the Revolving Credit Facility) is replaced in accordance with the Revolving Credit Facility), the adjusted daily simple SOFR rate, plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating) or (iii) an Alternate Base Rate (as defined in the Revolving Credit Facility), which is the highest of (a) the Prime Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, (b) the NYFRB Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, plus ½ of 1%, and (c) the Adjusted Term SOFR (as defined in the Revolving Credit Facility) for a one month interest period on any applicable day, or if such day is not a business day, the immediately preceding business day, plus 1.0%, in each case plus an agreed upon spread (ranging from 0 to 62.5 basis points), which is established quarterly based on the Company's credit rating. The Company is also required to pay a facility fee on unused available borrowings under the Revolving Credit Facility ranging from 9 to 22.5 basis points, which is established based on the Company's then credit rating. 15

Credit Facility also requires the Company to maintain at the end of each fiscal quarter a Leverage Ratio of 3.50:1.00 or less and an Interest Coverage Ratio (both ratios, as defined in the Revolving Credit Facility) equal to or greater than 2.50 to 1.00 (collectively, the Financial Covenants).

At the Company’s option, outstanding loans under the Revolving Credit Facility bear interest, at a variable rate equal to either (i) the adjusted term SOFR rate (secured overnight financing rate), plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating); (ii) in respect of any Revolving Loans (until such time as the then-existing Benchmark (as defined in the Revolving Credit Facility) is replaced in accordance with the Revolving Credit Facility), the adjusted daily simple SOFR rate, plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating) or (iii) an Alternate Base Rate (as defined in the Revolving Credit Facility), which is the highest of (a) the Prime Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, (b) the NYFRB Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, plus ½ of 1%, and (c) the Adjusted Term SOFR (as defined in the Revolving Credit Facility) for a one-month interest period on any applicable day, or if such day is not a business day, the immediately preceding business day, plus 1.0%, in each case plus an agreed upon spread (ranging from 0 to 62.5 basis points), which is established quarterly based on the Company's credit rating. The Company is also required to pay a facility fee on unused available borrowings under the Revolving Credit Facility ranging from 9 to 22.5 basis points, which is established based on the Company's then credit rating.

The Company pays each lender a participation fee with respect to such lender’s participations in letters of credit, which fee accrues at the same Applicable Rate (as defined in the Revolving Credit Facility) used to determine the interest rate applicable to Eurodollar Revolving Loans (as defined in the Revolving Credit Facility), plus a fronting fee for each letter of credit issued by the issuing bank in an amount equal to 12.5 basis points per annum on the daily maximum amount then available to be drawn under such letter of credit. The Company also pays each issuing bank such bank’s standard fees with respect to issuance, amendment or extensions of letters of credit and other processing fees, and other standard costs and charges relating to such issuing bank’s letters of credit from time to time.

14There was $275.0 million of outstanding borrowings under the Revolving Credit Facility, plus $9.9 million outstanding letters of credit as of June 30, 2025, leaving us with $465.1 million of available borrowings under the Revolving Credit Facility, net of the outstanding letters of credit. We were in compliance with all Financial Covenants on June 30, 2025; therefore, the entire $465.1 million is available for future borrowings.

There were $85.0 million of outstanding borrowings under the Revolving Credit Facility, plus $10.0 million outstanding letters of credit as of December 31, 2024. Subsequent to December 31, 2024, we borrowed approximately $152.5 million to fund the Pennsylvania Acquisition. After this borrowing, we have $502.5 million of available borrowings under the Revolving Credit Facility, net of the outstanding letters of credit. We were in compliance with all Financial Covenants on December 31, 2024; therefore, the entire $502.5 million is available for future borrowings.

Term Loan

On ~~May~~February 54, ~~2022~~2025, we ~~borrowed~~increased ~~the~~our ~~$200.0 million~~ Term Loan borrowings under the Revolving Credit Facility to $300.0 million, and used these proceeds to, among other things, pay down a portion of the Revolving Credit Facility. The Term Loan requires quarterly principal payments of approximately $23.58 million, with any unpaid amounts due upon maturity on ~~May~~February 54, ~~2027~~2030. At the Company’s option, principal amounts outstanding under the Term Loan bear interest as set forth in the Revolving Credit Facility (but not, for the avoidance of doubt, at a daily simple SOFR rate unless and until such time as the then-existing Benchmark (as defined in the Revolving Credit Facility) is replaced in accordance with the Revolving Credit Facility).

2.500% Senior Unsecured Notes Due 2031

On July 1, 2021, we issued $750.0 million aggregate principal amount of 2.500% senior notes due July 2031 (the 2.500% Senior Unsecured Notes). The 2.500% Senior Unsecured Notes are senior unsecured obligations of the Company and are not guaranteed by any of our subsidiaries. The 2.500% Senior Unsecured Notes were issued net of original issue discount of $6.3 million and have an effective interest rate of approximately 2.6%. The original issue discount is being amortized by the effective interest method over the 10-year term of the notes. The 2.500% Senior Unsecured Notes are redeemable prior to April 1, 2031, at a redemption price equal to 100% of the aggregate principal amount of the 2.500% Senior Unsecured Notes being redeemed, plus the present value of remaining scheduled payments of principal and interest from the applicable redemption date to April 1, 2031, discounted to the redemption date on a semi-annual basis at the Treasury rate plus 20 basis points. The 2.500% Senior Unsecured Notes are redeemable on or after April 1, 2031, at a redemption price equal to 100% of the aggregate principal amount of the 2.500% Senior Unsecured Notes being redeemed, plus accrued and unpaid interest to, but excluding, the applicable redemption date. If we experience certain change of control triggering events, we would be required to offer to repurchase the 2.500% Senior Unsecured Notes at a purchase price equal to 101% of the aggregate principal amount of the 2.500% Senior Unsecured Notes being repurchased, plus accrued and unpaid interest to, but excluding, the applicable redemption date. The indenture governing the 2.500% Senior Unsecured Notes contains certain covenants that limit our ability to create or permit to exist certain liens; enter into sale and leaseback transactions; and consolidate, merge, or transfer all or substantially all of our assets, and provides for certain events of default that, if any occurred, would permit or require the principal of and accrued interest on the 2.500% Senior Unsecured Notes to become or be declared due and payable.

(N) SEGMENT INFORMATION

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments.

Our primary products are commodities that are essential in commercial and residential construction; public construction projects to build, expand, and repair roads and buildings; and all repair and remodel activities. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, which provides us with regional economic

diversification. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland 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).

We operate eight modern cement plants (one of which is operated through our Texas Lehigh joint venture (The Joint Venture)), two slag grinding facilities (one of which is operated through the Joint Venture), and more than 30 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate 25 readymix concrete batch plants and seven aggregates processing plants in markets that are complementary to our cement network.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	2024			2023			2024			2023
	(dollars in thousands)
Revenue
Cement	$	295,400		$	308,654		$	987,342		$	998,437
Concrete and Aggregates		60,716			61,186			195,511			201,526
Gypsum Wallboard		209,493			200,969			642,294			629,299
Recycled Paperboard		56,158			47,053			161,175			135,397
		621,767			617,862			1,986,322			1,964,659
Less: Intersegment Revenue		(37,316	)		(32,346	)		(111,428	)		(99,356	)
Less: Joint Venture Revenue		(26,426	)		(26,683	)		(84,561	)		(82,713	)
	$	558,025		$	558,833		$	1,790,333		$	1,782,590

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2024		2023		2024		2023
	(dollars in thousands)
Intersegment Revenue
Cement	$	9,084	$	7,804	$	29,748	$	27,192
Concrete and Aggregates		4,311		3,414		12,138		10,235
Recycled Paperboard		23,921		21,128		69,542		61,929
	$	37,316	$	32,346	$	111,428	$	99,356
Cement Sales Volume (M tons)
Wholly Owned		1,541		1,663		5,156		5,470
Joint Venture		161		161		517		496
		1,702		1,824		5,673		5,966

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	2024			2023			2024			2023
	(dollars in thousands)						(dollars in thousands)
Operating Earnings
Cement	$	86,763		$	105,566		$	291,821		$	301,056
Concrete and Aggregates		(1,397	)		1,760			588			13,434
Gypsum Wallboard		86,393			75,063			270,510			251,625
Recycled Paperboard		11,041			7,524			27,585			22,316
Sub-Total		182,800			189,913			590,504			588,431
Corporate General and Administrative Expense		(20,818	)		(14,201	)		(54,346	)		(42,456	)
Other Non-Operating Income (Loss)		1,381			1,019			4,788			2,837
Earnings Before Interest and Income Taxes		163,363			176,731			540,946			548,812
Interest Expense, net		(9,061	)		(10,128	)		(30,459	)		(32,571	)
Earnings Before Income Taxes	$	154,302		$	166,603		$	510,487		$	516,241
Cement Operating Earnings
Wholly Owned	$	81,776		$	96,281		$	269,842		$	278,266
Joint Venture		4,987			9,285			21,979			22,790
	$	86,763		$	105,566		$	291,821		$	301,056
Capital Expenditures
Cement	$	35,609		$	11,571		$	102,384		$	38,288
Concrete and Aggregates		4,668			1,207			18,795			10,281
Gypsum Wallboard		2,560			7,386			9,925			23,866
Recycled Paperboard		4,309			1,868			12,425			7,733
Corporate and Other		224			403			3,446			7,680
	$	47,370		$	22,435		$	146,975		$	87,848
Depreciation, Depletion, and Amortization
Cement	$	23,029		$	22,514		$	68,853		$	66,380
Concrete and Aggregates		5,261			4,857			15,074			14,850
Gypsum Wallboard		6,414			5,611			19,338			16,620
Recycled Paperboard		3,723			3,694			11,082			11,121
Corporate and Other		807			792			2,314			2,376
	$	39,234		$	37,468		$	116,661		$	111,347

remaining scheduled payments of principal and interest from the applicable redemption date to April 1, 2031, discounted to the redemption date on a semi-annual basis at the Treasury rate plus 20 basis points. The 2.500% Senior Unsecured Notes are redeemable on or after April 1, 2031, at a redemption price equal to 100% of the aggregate principal amount of the 2.500% Senior Unsecured Notes being redeemed, plus accrued and unpaid interest to, but excluding, the applicable redemption date. If we experience certain change of control triggering events, we would be required to offer to repurchase the 2.500% Senior Unsecured Notes at a purchase price equal to 101% of the aggregate principal amount of the 2.500% Senior Unsecured Notes being repurchased, plus accrued and unpaid interest to, but excluding, the applicable redemption date. The indenture governing the 2.500% Senior Unsecured Notes contains certain covenants that limit our ability to create or permit to exist certain liens; enter into sale and leaseback transactions; and consolidate, merge, or transfer all or substantially all of our assets, and provides for certain events of default that, if any occurred, would permit or require the principal of and accrued interest on the 2.500% Senior Unsecured Notes to become or be declared due and payable.

	December 31,		March 31,
	2024		2024
	(dollars in thousands)
Identifiable Assets
Cement	$	2,115,736	$	2,042,499
Concrete and Aggregates		259,266		225,485
Gypsum Wallboard		409,056		432,122
Recycled Paperboard		168,690		170,832
Other, net		90,922		76,081
	$	3,043,670	$	2,947,019

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker (CODM), who is our President and Chief Executive Officer, to assist in allocating resources and assessing performance. This assessment is primarily based on segment earnings from operations, as management believes this is the best metric for segment operating performance. The CODM uses operating income as part of his review of the monthly operating results on a segment basis. The actual monthly results are reviewed against budgeted amounts as well as the current year reforecast and prior year actual amounts. Interest and taxes are managed on a centralized basis and are not included in segment operating information.

Our business is organized into two sectors, within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments. The Company's operating segments are the same as the Company's reporting segments.

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. We manufacture and sell our 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. Our operations are conducted in the United States and include the mining of limestone for the manufacture, production, distribution, and sale of portland 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).

We operate eight modern cement plants, two slag grinding facilities, and over 30 cement distribution terminals. One cement plant and one slag plant are operated though our joint venture located in Buda, Texas (the Joint Venture). Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate over 25 readymix concrete batch plants and seven aggregates processing plants, with annual production capacity of 9 million tons, in markets that are complementary to our cement network.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental United States, with the exception of the Northeast.

management reports the segments within the Company for making operating decisions and assessing performance.

The following tables set forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level, only at the consolidated company level.


Three Months Ended June 30, 2025 (dollars in thousands)	Cement		Concrete and Aggregates		Gypsum Wallboard		Recycled Paperboard		Total


Revenue from External Customers	$	310,326	$	73,716	$	221,516	$	29,132	$	634,690


Intersegment Revenue		10,013		3,852		—		21,972		35,837


Revenue from Joint Venture		27,283		—		—		—		27,283


		347,622		77,568		221,516		51,104		697,810


Reconciliation of Revenue


Intersegment Revenue										(35,837	)


Revenue from Joint Venture										(27,283	)


Total Consolidated Revenue									$	634,690



Less:


Freight and Delivery	$	28,078	$	6,889	$	39,372	$	—	$	74,339


Parts, Supplies, and Services (Includes Maintenance)		74,706		11,633		5,354		3,110		94,803


Energy		32,780		2,200		8,597		4,078		47,655


Raw Materials		21,160		29,057		46,667		21,894		118,778


Labor and Fixed Costs		44,509		10,023		16,117		5,865		76,514


Depreciation, Depletion, and Amortization (1)		22,838		6,791		6,519		3,672		39,820


Purchased Cement		17,274		—		—		—		17,274


Other Segment Items		25,193		4,800		6,249		2,982		39,224


Segment Profit	$	81,084	$	6,175	$	92,641	$	9,503	$	189,403



Reconciliation of Segment Profit and Loss


Corporate General and Administrative Expense										(20,783	)


Other Non-Operating Income										954


Interest Expense										(11,716	)


Earnings Before Income Taxes									$	157,858

         Three Months Ended June 30, 2024
(dollars in thousands)

         Cement

         Concrete
and
Aggregates

         Gypsum Wallboard

         Recycled Paperboard

         Total

Filing Compare · EAGLE MATERIALS INC