# EAGLE MATERIALS INC (EXP)

Informational only - not investment advice.

CIK: 0000918646
SIC: 3241 Cement, Hydraulic
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 32](/major-group/32/) > [SIC 3241 Cement, Hydraulic](/industry/3241/)
Latest 10-K filed: 2026-05-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=918646
Filing source: https://www.sec.gov/Archives/edgar/data/918646/000119312526230979/exp-20260331.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-19 · accession 0001193125-26-230979 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918646.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,308,658,000 USD | 2026 | verified |
| Net income | 423,809,000 USD | 2026 | verified |
| Assets | 3,842,244,000 USD | 2026 | verified |
| Free cash flow | 197,427,000 USD | 2026 | computed |
| Net margin | 18.36% | 2026 | computed |
| Revenue YoY | +2.13% | 2026 | computed |
| ROE | 28.74% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.


## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2308658000 | USD | 2026 | 2026-05-19 |
| Net income | 423809000 | USD | 2026 | 2026-05-19 |
| Assets | 3842244000 | USD | 2026 | 2026-05-19 |

## Financials

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

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 1,211,220,000 | 1,386,520,000 | 1,310,254,000 | 1,404,033,000 | 1,622,642,000 | 1,861,522,000 | 2,148,069,000 | 2,259,297,000 | 2,260,508,000 | 2,308,658,000 |
| Net income | 198,219,000 | 256,632,000 | 68,860,000 | 70,894,000 | 339,444,000 | 374,247,000 | 461,540,000 | 477,639,000 | 463,416,000 | 423,809,000 |
| Gross profit | 312,045,000 | 338,756,000 | 348,102,000 | 342,666,000 | 408,355,000 | 519,614,000 | 639,266,000 | 685,321,000 | 673,137,000 | 652,543,000 |
| Diluted EPS | 4.10 | 5.28 | 1.47 | 1.68 | 8.12 | 9.14 | 12.46 | 13.61 | 13.77 | 13.16 |
| Operating cash flow | 331,598,000 | 337,665,000 | 350,284,000 | 399,301,000 | 643,073,000 | 517,171,000 | 541,726,000 | 563,938,000 | 548,548,000 | 614,166,000 |
| Capital expenditures | 56,938,000 | 131,957,000 | 168,873,000 | 132,119,000 | 53,933,000 | 74,121,000 | 110,143,000 | 120,305,000 | 195,281,000 | 416,739,000 |
| Dividends paid | 19,341,000 | 19,438,000 | 18,927,000 | 17,142,000 | 4,163,000 | 30,770,000 | 37,496,000 | 35,298,000 | 33,722,000 | 32,385,000 |
| Share buybacks | 60,013,000 | 61,078,000 | 271,988,000 | 313,887,000 | 0.00 | 589,742,000 | 387,717,000 | 343,274,000 | 298,286,000 | 381,809,000 |
| Assets | 2,247,124,000 | 2,368,003,000 | 2,169,163,000 | 2,961,020,000 | 2,838,681,000 | 2,579,652,000 | 2,781,002,000 | 2,947,019,000 | 3,264,588,000 | 3,842,244,000 |
| Liabilities | 1,043,674,000 | 950,313,000 | 959,676,000 | 1,993,177,000 | 1,479,691,000 | 1,446,096,000 | 1,595,308,000 | 1,638,484,000 | 1,807,888,000 | 2,367,416,000 |
| Stockholders' equity | 1,203,450,000 | 1,417,690,000 | 1,209,487,000 | 967,843,000 | 1,358,990,000 | 1,133,556,000 | 1,185,694,000 | 1,308,535,000 | 1,456,700,000 | 1,474,828,000 |
| Cash and cash equivalents | 6,561,000 | 9,315,000 | 8,601,000 | 118,648,000 | 263,520,000 | 19,416,000 | 15,242,000 | 34,925,000 | 20,401,000 | 297,920,000 |
| Free cash flow | 274,660,000 | 205,708,000 | 181,411,000 | 267,182,000 | 589,140,000 | 443,050,000 | 431,583,000 | 443,633,000 | 353,267,000 | 197,427,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 16.37% | 18.51% | 5.26% | 5.05% | 20.92% | 20.10% | 21.49% | 21.14% | 20.50% | 18.36% |
| Return on equity | 16.47% | 18.10% | 5.69% | 7.32% | 24.98% | 33.02% | 38.93% | 36.50% | 31.81% | 28.74% |
| Return on assets | 8.82% | 10.84% | 3.17% | 2.39% | 11.96% | 14.51% | 16.60% | 16.21% | 14.20% | 11.03% |
| Liabilities / equity | 0.87 | 0.67 | 0.79 | 2.06 | 1.09 | 1.28 | 1.35 | 1.25 | 1.24 | 1.61 |
| Current ratio | 1.75 | 2.56 | 2.38 | 4.00 | 3.91 | 2.13 | 2.45 | 2.62 | 2.73 | 3.66 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/EXP/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000918646.json.

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

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2021-09-30 |  | 102,125,000 |  | reported discrete quarter |
| 2022-Q3 | 2021-12-31 | 462,941,000 |  | 2.53 | reported discrete quarter |
| 2022-Q4 | 2022-03-31 | 413,117,000 | 74,316,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2022-Q1 | 2022-06-30 |  |  | 2.75 | reported discrete quarter |
| 2022-Q2 | 2022-09-30 |  |  | 3.72 | reported discrete quarter |
| 2023-Q1 | 2023-06-30 | 601,521,000 | 120,849,000 | 3.40 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  | 120,849,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-09-30 | 622,236,000 |  | 4.26 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 |  | 150,553,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-12-31 | 558,833,000 |  | 3.72 | reported discrete quarter |
| 2024-Q1 | 2024-06-30 | 608,689,000 | 133,842,000 | 3.94 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 |  | 133,842,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-09-30 | 623,619,000 |  | 4.26 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 |  | 143,520,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-12-31 | 558,025,000 |  | 3.56 | reported discrete quarter |
| 2026-Q2 | 2025-06-30 |  | 123,362,000 |  | reported discrete quarter |
| 2026-Q2 | 2025-09-30 | 638,906,000 |  | 4.23 | reported discrete quarter |
| 2026-Q3 | 2025-09-30 |  | 137,383,000 |  | reported discrete quarter |
| 2026-Q3 | 2025-12-31 | 555,956,000 |  | 3.22 | reported discrete quarter |
| 2026-Q4 | 2026-03-31 | 479,106,000 | 60,161,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-06-30 | 650,966,000 | 102,127,000 | 3.29 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from EXP's latest 10-K: [/company/EXP/business/](/company/EXP/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from EXP's latest 10-K: [/company/EXP/risk-factors/](/company/EXP/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/918646/000119312526323823/exp-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

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

EXECUTIVE SUMMARY

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

Our business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. Financial results and other information for the three months ended June 30, 2026, and 2025, are presented on a consolidated basis and by business segment.

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

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

MARKET CONDITIONS AND OUTLOOK

Our fiscal 2027 first quarter results were generally strong, with record Revenue of $651.0 million, Net Earnings of $102.1 million, and Diluted Earnings per Share of $3.29 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.

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 certain elements of private-nonresidential construction, including data centers. 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 supportive.

The backdrop for residential construction activity remained challenging in the first quarter of fiscal 2027, 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 2% in the first quarter of fiscal 2027. The path ahead for mortgage rates, and the corresponding effect on residential construction activity, is unclear, and

25

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.

Cost Outlook

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

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

Recycled fiber and finished paper are significant cost components in our Recycled Paperboard and Gypsum Wallboard businesses, respectively. The primary raw material used to produce paperboard is old corrugated containers (OCC). 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. OCC prices have increased recently. Our current customer contracts for gypsum liner include price adjustments that partially compensate for changes in the cost of raw materials, such as OCC 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.

Our energy costs were nearly flat during the first quarter of fiscal 2027 compared with the first quarter of fiscal 2026 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 the first quarter of fiscal 2027, and with current fuel prices increasing, they could continue to increase in fiscal 2027. Freight costs for our Cement segment, which relies mostly on rail delivery, also increased in the first quarter of fiscal 2027, and are expected to increase in fiscal 2027. Additionally, labor shortages, primarily of truck drivers, can adversely affect our Concrete business. Any worsening of labor constraints could cause delays and inefficiencies in this business.

While cement maintenance costs were up 10% in the first quarter of fiscal 2027, this was largely driven by specific projects at some of our Cement plants. Other than these discreet projects, we expect low single digit inflation for maintenance costs as equipment and contractor costs are expected to increase.

26

RESULTS OF OPERATIONS

THREE MONTHS ENDED June 30, 2026, Compared WITH THREE MONTHS ENDED June 30, 2025

[[GREPCENT_TABLE]]
[["","","For the Three Months Ended June 30,"],["","","","","2026","","","","","","2025","","","","Percentage Change"],["","","(in thousands, except per share)"],["Revenue","","$","","650,966","","","","$","","634,690","","","","","3","%"],["Cost of Goods Sold","","","","(489,721",")","","","","","(449,091",")","","","","9","%"],["Gross Profit","","","","161,245","","","","","","185,599","","","","","(13",")%"],["Equity in Earnings of Unconsolidated Joint Venture","","","","2,843","","","","","","3,804","","","","","(25",")%"],["Corporate General and Administrative Expense","","","","(20,202",")","","","","","(20,783",")","","","","(3",")%"],["Other Non-Operating Income","","","","746","","","","","","954","","","","","(22",")%"],["Interest Expense, net","","","","(12,947",")","","","","","(11,716",")","","","","11","%"],["Earnings Before Income Taxes","","","","131,685","","","","","","157,858","","","","","(17",")%"],["Income Tax Expense","","","","(29,558",")","","","","","(34,496",")","","","","(14",")%"],["Net Earnings","","$","","102,127","","","","$","","123,362","","","","","(17",")%"],["Diluted Earnings per Share","","$","","3.29","","","","$","","3.76","","","","","(13",")%"]]
[[/GREPCENT_TABLE]]

REVENUE

Revenue increased by $16.3 million, or 3%, to $651.0 million for the three months ended June 30, 2026. Higher Sales Volume positively affected Revenue by $19.8 million, and was partially offset by lower gross sales prices, which adversely affected Revenue by approximately $3.5 million.

COST OF GOODS SOLD

Cost of Goods Sold increased by $40.6 million, or 9%, to $489.7 million for the three months ended June 30, 2026. The increase was due to higher operating costs and Sales Volume of $25.7 million and $14.9 million, respectively. The $25.7 million of higher operating costs were primarily attributable to $16.8 million of higher costs in our Cement segment, $4.5 million of higher costs in Gypsum Wallboard, and $5.5 million of higher Concrete and Aggregates costs, all of which were partially offset by $1.1 million of lower operating costs in our Paperboard business.

The $17.6 million of higher Sales Volume was primarily related to $15.9 million of higher Sales Volume in our Cement business and $1.9 million higher Paperboard Sales Volume. These costs were partially offset by lower Sales Volume of $2.0 million in our Gypsum Wallboard business and $0.9 million in our Concrete and Aggregates business. These costs are discussed further in the segment analysis.

27

GROSS PROFIT

Gross Profit decreased 13% to $161.2 million during the three months ended June 30, 2026. The decrease was primarily related to higher operating costs of $25.7 million and lower gross sales prices of $3.5 million, partially offset by higher Sales Volume of $4.8 million. The gross margin declined to 25%, with higher operating costs being partially offset by higher Sales Volume.

EQUITY IN EARNINGS OF UNCONSOLIDATED JOINT VENTURE

Equity in Earnings of our Unconsolidated Joint Venture decreased by $1.0 million, or 25%, for the three months ended June 30, 2026. The decrease was due to lower average gross sales prices of $0.5 million and increased operating costs of $1.1 million, partially offset by higher Sales Volume of $0.7 million. Increased operating costs were primarily related to higher maintenance and freight costs of $1.6 million and $0.8 million, respectively, which was partially offset by lower purchased cement costs of $1.4 million.

CORPORATE GENERAL AND ADMINISTRATIVE

Corporate General and Administrative expenses decreased by approximately $0.6 million, or 3%, for the three months ended June 30, 2026. The decrease was due primarily to lower salary and incentive compensation of $2.8 million, which was partially offset by higher information technology costs and insurance costs of $1.8 million and $0.5 million, respectively.

OTHER NON-OPERATING INCOME

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

INTEREST EXPENSE, NET

Interest Expense, net increased by approximately $1.2 million, or 11%, during the three months ended June 30, 2026. This increase was due to increased interest expense of approximately $5.2 million and increased other expenses of $0.4 million, which was partially offset by higher Interest Capitalized of approximately $2.5 million and higher interest income of $1.9 million. The increase in interest expense was primarily a result of our 5.000% Senior Unsecured Notes due March 2036, which were issued on November 13, 2025. 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 Duke, Oklahoma.

EARNINGS BEFORE INCOME TAXES

Earnings Before Income Taxes decreased to $131.7 million during the three months ended June 30, 2026, primarily as a result of lower Gross Profit and Equity in Earnings o

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

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/918646/000119312526230979/exp-20260331.htm
Complete FY 2026 MD&A: /company/EXP/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-05-19
Report date: 2026-03-31

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

executive summary

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

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

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

50

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

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

•
the grinding and sale of slag

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

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

•
the sale of readymix concrete

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

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

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

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

MARKET CONDITIONS AND OUTLOOK

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

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

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

51

Cost Outlook

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

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

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

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

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

52

Results of Operations

Fiscal Year 2026 Compared with Fiscal Year 2025

[[GREPCENT_TABLE]]
[["","","For the Years Ended March 31,"],["","","","","2026","","","","","","2025","","","","Percentage Change"],["","","(in thousands, except per share)"],["Revenue","","$","","2,308,658","","","","$","","2,260,508","","","","","2","%"],["Cost of Goods Sold","","","","(1,656,115",")","","","","","(1,587,371",")","","","","4","%"],["Gross Profit","","","","652,543","","","","","","673,137","","","","","(3",")%"],["Equity in Earnings of Unconsolidated Joint Venture","","","","19,989","","","","","","26,396","","","","","(24",")%"],["Corporate General and Administrative","","","","(89,182",")","","","","","(73,942",")","","","","21","%"],["Other Nonoperating Income","","","","5,108","","","","","","6,420","","","","","(20",")%"],["Interest Expense, net","","","","(46,482",")","","","","","(40,526",")","","","","15","%"],["Earnings Before Income Taxes","","","","541,976","","","","","","591,485","","","","","(8",")%"],["Income Tax Expense","","","","(118,167",")","","","","","(128,069",")","","","","(8",")%"],["Net Earnings","","$","","423,809","","","","$","","463,416","","","","","(9",")%"],["Diluted Earnings per Share","","$","","13.16","","","","$","","13.77","","","","","(4",")%"]]
[[/GREPCENT_TABLE]]

Revenue

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

Cost of Goods Sold

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

53

Gross Profit

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

Equity in Earnings of Unconsolidated Joint Venture

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

Corporate General and Administrative

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

Other nonoperating Income

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

Interest Expense, Net

Interest Expense, net increased by approximately $6.0 million, or 15%, during fiscal 2026. The increase was mainly due to increased interest expense o

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/EXP/mda/fy2026/
All MD&A years: /company/EXP/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/EXP/mda/fy2025/): filed 2025-05-20; accession 0000950170-25-075321 (https://www.sec.gov/Archives/edgar/data/918646/000095017025075321/exp-20250331.htm)
- [FY 2024 MD&A](/company/EXP/mda/fy2024/): filed 2024-05-22; accession 0000950170-24-063523 (https://www.sec.gov/Archives/edgar/data/918646/000095017024063523/exp-20240331.htm)
- [FY 2023 MD&A](/company/EXP/mda/fy2023/): filed 2023-05-19; accession 0000950170-23-023282 (https://www.sec.gov/Archives/edgar/data/918646/000095017023023282/exp-20230331.htm)
- [FY 2022 MD&A](/company/EXP/mda/fy2022/): filed 2022-05-20; accession 0000950170-22-010413 (https://www.sec.gov/Archives/edgar/data/918646/000095017022010413/exp-20220331.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3241 Cement, Hydraulic) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/EXP.md · JSON record: /company/EXP.json · verified financials: /company/EXP/financials.json / /company/EXP/financials.csv · machine TOC for the whole site: /llms.txt