EAGLE MATERIALS INC
For the period ended Mar 31, 2026. Filed May 19, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed May 19, 2026
EXP$186.04-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-03-31; filed 2025-05-20.
0000950170-25-075321
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-03-31; filed 2026-05-19.
0001193125-26-230979
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 130 previous paragraphs and 133 current paragraphs.
70 unchanged; 47 reworded; 10 added; 13 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
the sale of readymix concrete
Current report
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.
Current report
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.
Current report
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.
Current report
Net of freight, including Joint Venture.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Removed paragraphs (13)
Previous report
Demand Outlook
Previous report
In residential construction, activity has remained steady. While continuing higher interest rates have been a headwind for housing demand and affordability, several factors, including the chronic housing shortage caused by more than a decade of underproduction and exacerbated by "rate lock-in" have supported housing construction activity. We believe continued healthy consumer balance sheets should also support residential construction in the near term; however, a full housing recovery is not expected until mortgage rates decline, and/or affordability headwinds recede. The path ahead for the U.S. Federal Reserve monetary policy and its effect on mortgage rates is unclear, thus the timing of a full 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.
Previous report
Equity in Earnings of Unconsolidated Joint Venture decreased by $5.2 million, or 16%. The decline was due to lower gross sales prices of $1.8 million and higher operating costs of $3.4 million. The higher operating costs were due primarily to increased maintenance and fixed costs, which reduced operating earnings by approximately $3.0 million and $3.1 million, respectively. This was partially offset by lower freight costs of $1.3 million. The increase in maintenance and fixed costs was primarily due to the annual maintenance outage being moved from April 2025 to March 2025, and the start up of the new cement slag facility this past winter. The combined effect of the timing change of the annual outage and the commissioning costs of the new slag facility was approximately $4.0 million.
Previous report
Interest Expense, net decreased by approximately $1.8 million, or 4%, during fiscal 2025. The decrease was primarily related to approximately $1.1 million lower interest expense on our Revolving Credit Facility, including the Term Loan, and higher interest income of $0.7 million. The decrease in interest on our Revolving Credit Facility was related to lower average outstanding borrowings and lower interest rates.
Previous report
Net of freight, including the Joint Venture.
Previous report
Cement Revenue was $1,201.4 million for fiscal 2025, a 2% decrease over fiscal 2024. The decrease was primarily due to lower Sales Volume of $60.0 million, partially offset by higher gross sales prices of $35.4 million.
Previous report
Concrete and Aggregates Revenue decreased 1% to $251.6 million for fiscal 2025. Excluding the Aggregates Acquisitions, Revenue decreased 5% to $240.0 million. The decrease in Revenue was primarily related to $23.8 million of lower Sales Volume, which was partially offset by higher gross sales prices of $10.8 million.
Previous report
Operating Loss was approximately $8.8 million. Excluding the Aggregates Acquisitions, Operating Loss was $6.5 million. The decline in Operating Earnings was due to $4.2 million of lower Sales Volume and $25.5 million of higher operating expenses, partially offset by higher gross sales prices of $10.8 million. The increase in operating expenses was primarily due to approximately $5.1 million of higher cost of materials, $6.8 million of increased maintenance costs, and $5.2 million of higher direct costs, which includes labor and delivery.
Previous report
Operating Earnings increased 5% to $350.8 million in fiscal 2025. The increase was primarily related to higher gross sales prices and Sales Volume of approximately $6.1 million and $0.4 million, respectively, as well as lower operating expenses of $9.8 million. The decrease in operating costs was due primarily to $3.6 million of lower freight costs, a $3.5 million decrease in maintenance costs, and $3.6 million of lower energy costs, all of which were partially offset by an increase of $2.8 million in purchased raw materials. During fiscal 2025, Gypsum Wallboard Operating Margin increased to 41%. Fixed costs are not a significant part of the overall cost of wallboard; therefore, changes in volume have a relatively minor impact on our operating cost per unit.
Previous report
Impairment of Long-Lived Assets
Previous report
We assess our long-lived assets, including mining and related assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or group of assets, may not be recoverable. Long-lived assets, or groups of assets, are evaluated for impairment at the lowest level for which cash flows are largely independent of the cash flows of other assets. We assess recoverability of assets, or groups of assets, by comparing the carrying amount of an asset, or group of assets, to the future undiscounted net cash flows that we expect the asset, or group of assets, to generate. These impairment evaluations are significantly affected by estimates of future revenue, costs and expenses, and other factors. If the carrying value of the assets, or groups of assets, exceeds the undiscounted cash flows, then an impairment is indicated. If such assets, or groups of assets, are considered to be impaired, the impairment is recognized as the amount by which the carrying amount of the asset, or group of assets, exceeds the fair value of the asset, or group of assets.
Previous report
Net Cash Used in Financing Activities was approximately $192.9 million during fiscal 2025, compared with $368.9 million in fiscal 2024. The $176.0 million decrease was primarily due to an increase in our Term Loan of $125.0 million, and lower Purchases and Retirement of Common Stock of $45.0 million.
Previous report
In May 2025 we entered into an agreement with a contractor for the expansion and modernization of our gypsum wallboard in Oklahoma. This contract is not included in the table above, as we were not contractually obligated to make such payments at March 31, 2025. We expect to spend approximately $330.0 million over the next two years on this project.
Reworded paragraphs (47)
Previous wording
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.
Current wording
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.
Previous wording
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).
Current wording
All our business activities are conducted in the United States. These activities include:
Previous wording
On August 9, 2024, we finalized the Northern Kentucky Acquisition. The purchase price of the Northern Kentucky Acquisition was 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 from August 9, 2024 through March 31, 2025.
Current wording
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.
Previous wording
On January 7, 2025, we completed the Western Pennsylvania Acquisition. The purchase price of the Western Pennsylvania Acquisition was 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.
Current wording
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.
Previous wording
Our fiscal 2025 results were generally strong, with record Revenue of $2.3 billion, Net Earnings of $463.4 million, and Earnings per Share of $13.77 per share. Our end markets remained resilient despite adverse weather conditions, primarily in the Midwest and Great Plains markets, and widespread uncertainty around future U.S. economic conditions. Year over year sales volume in our Light Materials Sector increased, and declined in our Heavy Materials Sector.
Current wording
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.
Previous wording
The macroeconomic environment continues to be constructive for our products. We expect demand for cement to remain steady in the near term given bipartisan federal, state and local support for public infrastructure projects and continued spending on heavy manufacturing and private-nonresidential construction. To date, only approximately 30% of federal funding from the trillion-dollar Infrastructure Investment and Jobs Act(IIJA) has been spent. We anticipate a pick-up in demand as the remaining IIJA funds get spent on public construction and repair projects.
Current wording
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.
Previous wording
We believe we are well-positioned to manage our cost structure and meet our customers’ needs. 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.
Current wording
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.
Previous wording
Paper is a significant cost component in our Gypsum Wallboard business. The primary raw material used to produce paperboard is old corrugated cardboard (OCC). Recycled fiber prices are subject to change upon 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, natural gas, and electricity. However, because these price adjustments are not realized until future quarters, material costs in our Gypsum Wallboard segment are likely to fluctuate until the effects of these price adjustments are realized.
Current wording
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.
Previous wording
Energy costs decreased in all our businesses during fiscal 2025 compared with fiscal 2024; however, natural gas prices have recently increased and are expected to remain elevated during the winter months of calendar 2025-2026. Freight costs for our Gypsum Wallboard segment, which delivers mostly by trucks, declined in fiscal 2025, and are expected to remain stable in fiscal 2026. Freight costs for our Cement segment, which relies mostly on rail delivery, increased slightly in fiscal 2025, and are expected to increase in fiscal 2026. Additionally, labor constraints can adversely affect our Concrete and Aggregates businesses. If these constraints were to worsen, it could cause delays and inefficiencies in these businesses.
Current wording
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.
Previous wording
Maintenance costs were up 13% in fiscal 2025 and we expect continued inflation for maintenance as equipment and contractor costs remain high.
Current wording
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.
Previous wording
Revenue in fiscal 2025 was up slightly to $2,260.5 million. The Aggregates Acquisitions contributed $11.6 million of Revenue during fiscal 2025. Excluding Revenue from the Aggregates Acquisitions, Revenue decreased $10.4 million. This decrease was due to approximately $73.9 million of lower Sales Volume, primarily in Cement and Concrete and Aggregates, partially offset by $63.5 million of higher average gross sales prices across all segments. See Fiscal Year 2025 vs Fiscal Year 2024 Results by Segment section for more information.
Current wording
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.
Previous wording
Cost of Goods Sold increased by $13.4 million, or 1%, to $1,587.4 million in fiscal 2025. The Aggregates Acquisitions contributed $13.9 million of Cost of Goods Sold during fiscal 2025. Excluding the Northern Kentucky and Western Pennsylvania Acquisitions, Cost of Goods Sold decreased $0.5 million. The slight decrease in Cost of Goods Sold was due to higher operating costs of $55.6 million, partially offset by lower Sales Volume of $56.1 million. Operating costs increased in all our businesses, except Gypsum Wallboard, as discussed in the Fiscal Year 2025 vs Fiscal Year 2024 Results by Segment section.
Current wording
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.
Previous wording
Gross Profit decreased by 2% to $673.1 million in fiscal 2025 primarily due to lower Sales Volume and higher operating costs, partially offset by an increase in gross sales prices. Our Gross Profit margin declined to 29.8% in fiscal 2025, compared with 30.3% in fiscal 2024.
Current wording
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.
Previous wording
Corporate General and Administrative expenses increased by approximately $14.1 million, or 24%, to $73.9 million in fiscal 2025. The increase was due primarily to approximately $5.1 million of higher salary and incentive compensation, $3.2 million of higher information technology costs for upgrades, and $5.3 million of increased legal costs, including those associated with business development and transaction-related activities.
Current wording
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.
Previous wording
Other Nonoperating Income was $6.4 million in fiscal 2025 compared with $3.1 million in fiscal 2024. 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 nonroutine sales of excess raw materials or energy.
Current wording
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.
Previous wording
Earnings Before Income Taxes decreased to $591.5 million during fiscal 2025, primarily due to lower Gross Profit and Equity in Earnings of Joint Venture, as well as higher Corporate General and Administrative expenses, which were partially offset by lower Interest Expense and increased Other Income, Net.
Current wording
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.
Previous wording
Income Tax Expense for fiscal 2025 decreased to $128.1 million from $140.3 million for fiscal 2024. The effective tax rate was 22%, compared with 23% in the prior fiscal year.
Current wording
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.
Previous wording
Net Earnings decreased 3% in fiscal 2025 to $463.4 million. Diluted Earnings per Share in fiscal 2025 was up 1% to $13.77 compared with $13.61 for fiscal 2024. The improvement in diluted earnings per share despite lower Net Earnings is a result of lower weighted-average shares outstanding due to our share buyback program.
Current wording
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.
Previous wording
Total of wholly owned subsidiaries and proportionately consolidated 50% interest of the Joint Venture’s results.
Current wording
Total of wholly owned subsidiaries and proportionately consolidated 50% interest in the Joint Venture’s results.
Previous wording
Cement Operating Earnings decreased 6% to $319.5 million for fiscal 2025. The decrease was due to approximately $17.5 million of lower Sales Volume and $36.8 million of increased operating expenses, partially offset by $35.4 million of higher gross sales prices. The higher operating expenses consisted of $24.4 million of increased maintenance, $3.2 million of higher freight costs, a $5.4 million increase in purchased raw materials costs, and $7.6 million related to increased fixed costs, including labor, resulting from lower production. These higher costs were partially offset by a reduction in energy costs of $10.0 million and the impact of recording in the prior year $2.8 million of acquired inventories at fair value. Cement Operating Margin decreased to 27%, primarily due to increased operating expenses, partially offset by higher gross sales prices.
Current wording
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.
Previous wording
Gypsum Wallboard Revenue increased 1% to $846.5 million in fiscal 2025. The increase was due to higher gross sales prices and Sales Volume, which increased Revenue by $6.1 million and $0.9 million, respectively. Our market share remained relatively flat in fiscal 2025 compared with fiscal 2024.
Current wording
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.
Previous wording
Recycled Paperboard Revenue, including intersegment Revenue, increased 15% to $211.7 million for fiscal 2025, driven by an increase of approximately $17.8 million in gross sales prices and a $9.7 million increase Sales Volume. The increase in gross sales prices was due to the price adjustment provisions in our long-term sales agreements.
Current wording
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.
Previous wording
Operating Earnings increased 20% to $38.1 million for fiscal 2025, primarily due to higher gross sales prices of $17.8 million and $1.7 million of higher Sales Volume, partially offset by higher operating expenses of $13.0 million. The increase in operating expenses was primarily related to higher input costs, namely raw materials of $15.7 million and $0.5 million of higher repair and maintenance costs, which were partially offset by lower energy expenses of $2.7 million. During fiscal 2025, Operating Margin increased to 18% from 17% in fiscal 2024, primarily because of higher gross sales prices, partially offset by higher operating expenses.
Current wording
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.
Previous wording
Please see our Form 10-K for fiscal year 2024 for the discussion of our Results of Operations and results of Revenue and Operating Earnings by segment for fiscal 2024 compared with fiscal 2023. Our 2024 Form 10-K can be found on the investor page of our website, ateaglematerials.com.
Current wording
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, ateaglematerials.com.
Previous wording
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 statement impact. Listed below are those policies we believe are critical and require the use of complex judgment in their application.
Current wording
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.
Previous wording
We annually assess Goodwill for impairment 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.
Current wording
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.
Previous wording
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 quantitative Step 1 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 quantitative Step 1 test.
Current wording
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.
Previous wording
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 in order to test the reasonableness of our fair value calculations.
Current wording
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.
Previous wording
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, 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.
Current wording
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.
Previous wording
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 twelve 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 twelve-month period.
Current wording
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.
Previous wording
Cash Flows from Operating Activities decreased by $15.4 million to $548.5 million in fiscal 2025. The decrease was largely attributable to lower Net Earnings, adjusted for non-cash charges of $13.9 million and lower dividends from our Unconsolidated Joint Venture of $7.0 million, partially offset by higher changes in Working Capital of $5.5 million.
Current wording
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.
Previous wording
Working Capital increased by $35.4 million to $423.7 million at March 31, 2025, primarily because of higher Accounts Receivable, Inventories, and Prepaid and Other Assets of $9.3 million, $41.3 million, and $4.7 million, respectively. This was partially offset by an increase in Accounts Payable and Accrued Liabilities of $2.7 million and $1.8 million, respectively, and a decrease in Cash of $14.5 million.
Current wording
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.
Previous wording
The increase in Accounts and Notes Receivable at March 31, 2025, was primarily due to the timing of sales and collections during the quarter ended March 31, 2024. As a percentage of quarterly sales generated in the fiscal fourth quarters, Accounts Receivable was 45% at March 31, 2025, and 43% at March 31, 2024. 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, 2025.
Current wording
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.
Previous wording
Our Inventory balance at March 31, 2025, increased approximately $41.3 million from our balance at March 31, 2024. Within Inventories, Raw Materials and Materials-in-Progress, Aggregates, and Fuel and Coal increased by approximately $41.9 million, $5.6 million, and $4.0 million, respectively. The increases in Raw Materials and Materials-in-Progress, and Fuel and Coal were mostly due to timing, while the increase in Aggregates inventory was partially due to the Aggregates Acquisitions, which contributed $3.5 million of the increase in aggregates at March 31, 2025. 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, which was relatively flat compared with fiscal 2024. 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 of these repair parts are necessary, and we perform semi-annual analyses to identify obsolete parts.
Current wording
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.
Previous wording
Net Cash Used in Investing Activities in fiscal 2025 was approximately $370.1 million compared with $175.4 million in fiscal 2024, an increase of approximately $194.7 million. This was primarily due to an increase in additions to capital spending of $75.0 million and to acquisition spending of $119.8 million, in fiscal 2025 compared with fiscal 2024. The increase in capital spending was mainly due to the expansion and modernization of our Mountain Cement facility, and the increase in acquisition spending was due primarily to the Western Pennsylvania Acquisition.
Current wording
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.
Previous wording
Our debt-to-capitalization ratio and net debt-to-capitalization ratio were 46.1% and 45.7%, respectively, at March 31, 2025, compared with 45.7% and 44.9%, respectively, at March 31, 2024.
Current wording
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.
Previous wording
See Footnote (F) to the Audited Consolidated Financial Statements for further details on the Company's debt facilities, including interest rate, and financial and other covenants and restrictions.
Current wording
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.
Previous wording
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, 2025, we had $200.0 million outstanding of Revolving Loans under the Revolving Credit Facility and $9.9 million of outstanding letters of credit, leaving us with $540.1 million of available borrowings under the Revolving Credit Facility, net of outstanding letters of credit. We are contingently liable for performance under $43.9 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, 2025.
Current wording
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.
Previous wording
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 a number of 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.
Current wording
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.
Previous wording
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, 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 made by us may be funded by the use of cash on our balance sheet or the incurrence of new debt. The amounts involved in any such purchase transactions, individually or in aggregate, may be material.
Current wording
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.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
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)
Current report — wording carried from elsewhere
the grinding and sale of slag
Current report — wording carried from elsewhere
the mining of gypsum for the manufacture and sale of gypsum wallboard
Current report — wording carried from elsewhere
the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters
Current report — wording carried from elsewhere
the mining and sale of aggregates (crushed stone, sand, and gravel).
Current report — wording carried from elsewhere
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.