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What changed in EAGLE MATERIALS INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of EAGLE MATERIALS INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+301 added−253 removedSource: 10-K (2025-05-20) vs 10-K (2024-05-22)

Top changes in EAGLE MATERIALS INC's 2025 10-K

301 paragraphs added · 253 removed · 205 edited across 2 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

98 edited+65 added−19 removed58 unchanged
Biggest changeThe principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; public infrastructure expenditures; adverse weather conditions; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; availability of raw materials; changes in the costs of energy, including, without limitation, electricity, natural gas, coal and oil, and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (such as fluctuations in spot market prices), governmental orders, and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime, and interruption of production; material nonpayment or nonperformance by any of our key customers; consolidation of customers; inability to timely execute announced capacity expansions; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; insurance coverage; changes in economic conditions specific to any one or more of the Company’s markets; adverse impact of severe weather conditions (such as winter storms, tornadoes, and hurricanes) and their effects on our facilities, operations, and contractual arrangements with third parties; competition; alternative products and new product technologies; cyber-attacks or data security breaches; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures, and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions; and interest rates.
Biggest changeThe principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; fluctuations in public infrastructure expenditures; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability of and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; interruptions in our supply chain; inability to timely execute or realize capacity expansions or efficiency gains from capital improvement projects; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); changes in trade policy, including tariffs and the effects of any increases in tariffs on our business, including increases in inputs used in our facility expansion and modernization projects; possible losses or other adverse outcomes from pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; competition; cyber-attacks or data security breaches, together with the costs of protecting our systems against such incidents and the possible effects thereof on our operations; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products.
ITEM 1C. Cybersecurity RISK MANAGEMENT AND STRATEGY The Company continues to make cybersecurity a priority as the threat landscape evolves and becomes increasingly complex and sophisticated. Managing Material Risks & Integrated Overall Risk Management The Company has strategically integrated cybersecurity risk management into its broader risk management framework to promote a company-wide culture of cyber risk awareness.
ITEM 1C. Cybersecurity RISK MANAGEMENT AND STRATEGY The Company continues to make cybersecurity a priority as the threat landscape evolves and becomes increasingly complex and sophisticated. Managing Material Risks and Integrated Overall Risk Management The Company has strategically integrated cybersecurity risk management into its broader risk management framework to promote a company-wide culture of cyber risk awareness.
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.
Changes in market conditions, 60 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.
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.
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. 51 All our business activities are conducted in the United States.
If we perform a Step 1 test, and the carrying value of the 55 reporting unit exceeds its fair value, then an impairment charge equal to the difference, not to exceed the total amount of Goodwill, is recorded. The fair values of the reporting units are estimated by using both the market and income approaches.
If we perform a Step 1 test, and the carrying value of the reporting unit exceeds its fair value, then an impairment charge equal to the difference, not to exceed the total amount of Goodwill, is recorded. The fair values of the reporting units are estimated by using both the market and income approaches.
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 59 liquidity. See Market Conditions and Outlook section above for further discussion of the possible effects on our business.
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.
We assign the highest level of fair value available to assets acquired and liabilities assumed based on the following options: 56 Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.
We assign the highest level of fair value available to assets acquired and liabilities assumed based on the following options: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.
The size and complexity of our manufacturing plants, as well as the age of certain of our plants, creates 58 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.
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.
Level 3 inputs are used to estimate the fair value of acquired mineral reserves, mineral interests, and separately identifiable intangible assets. In determining the fair value of property, plant, and equipment, replacement cost, adjusted for the age and condition of the acquired machinery and equipment, is used.
Level 3 inputs are used to estimate the fair value of acquired mineral reserves, mineral interests, and separately identifiable intangible assets. 61 In determining the fair value of property, plant, and equipment, replacement cost, adjusted for the age and condition of the acquired machinery and equipment, is used.
LIQUIDITY AND CAPITAL RESOURCES We believe that 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.
LIQUIDITY AND CAPITAL RESOURCES We believe we have access at the present time to sufficient financial resources from our liquidity sources to fund our business and operations, including contractual obligations, capital expenditures, and debt service obligations, for at least the next twelve months.
The Equity Compensation Plan information set forth in Part III, Item 12 of this Form 10-K is hereby incorporated by reference into this Part II, Item 5. 45 PERFORMANCE GRAPH The following performance graph and related information shall not be deemed soliciting material or to be filed with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Securities Exchange Act, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing.
The Equity Compensation Plan information set forth in Part III, Item 12 of this Form 10-K is hereby incorporated by reference into this Part II, Item 5. 49 PERFORMANCE GRAPH The following performance graph and related information shall not be deemed soliciting material or to be filed with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Securities Exchange Act, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing.
They include cement plants, quarries, and related facilities; concrete and aggregates plants and quarries; gypsum wallboard plants; and a recycled paperboard mill; as well as distribution terminals and our headquarters in Dallas, Texas.
They include cement and slag cement plants, quarries, and related facilities; concrete and aggregates plants and quarries; gypsum wallboard plants; and a recycled paperboard mill; as well as distribution terminals and our headquarters in Dallas, Texas.
Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 44 P ART II I TEM 5.
Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 48 P ART II I TEM 5.
Our ability to increase sales prices to cover higher costs in the future varies with the level of activity in the construction industry: the number, size, and strength of competitors, as well as the availability of products to supply a local market. 61 General Outlook See “Market Conditions and Outlook” within Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Our ability to increase sales prices to cover higher costs in the future varies with the level of activity in the construction industry: the number, size, and strength of competitors, as well as the availability of products to supply a local market. 67 General Outlook See “Market Conditions and Outlook” within Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Risks from Cybersecurity Incidents To our knowledge, the Company has not been subject to cybersecurity incidents that have materially affected, or are reasonably likely to materially affect, the Company, its operations, or financial standing. 41 GOVERNANCE Risk Management Personnel The Company’s cybersecurity risk management program is overseen by management at multiple levels.
Risks from Cybersecurity Incidents To our knowledge, the Company has not been subject to cybersecurity incidents that have materially affected, or are reasonably likely to materially affect, the Company, its operations, or financial standing . 38 GOVERNANCE Risk Management Personnel The Company’s cybersecurity risk management program is overseen by management at multiple levels.
In addition, the CFO provides updates to the full Board upon request, and timely updates regarding unique developments such as regulatory updates or vulnerability developments, based on details provided by the DIT and DIS. 42 I TEM 2. Properties Our operating facilities span the U.S.
In addition, the CFO provides updates to the full Board upon request, and timely updates regarding unique developments such as regulatory updates or vulnerability developments, based on details provided by the DIT and DIS. 39 I TEM 2. Properties Our operating facilities span the U.S.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Prices and Dividends As of May 17, 2024, there were approximately 1,050 holders of record of our Common Stock which trades on the New York Stock Exchange under the symbol EXP.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Prices and Dividends As of May 17, 2025, there were approximately 1,050 holders of record of our Common Stock which trades on the New York Stock Exchange under the symbol EXP.
Any adjustments subsequent to the conclusion of the measurement period will be recorded to our Consolidated Statements of Earnings.
Any adjustments subsequent to the conclusion of the measurement period will be recorded on our Consolidated Statements of Earnings.
(2) The Term Loan facility expires in May 2027. (3) We estimate the future cash flows for interest and commitment fees by assuming a level repayment of the Revolving Credit Facility over its remaining term. Actual amounts paid, as well as the payment time periods, will likely differ from this estimate.
(2) The Term Loan facility expires in February 2030. (3) We estimate the future cash flows for interest and commitment fees by assuming a level repayment of the Revolving Credit Facility over its remaining term. Actual amounts paid, as well as the payment time periods, will likely differ from this estimate.
In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s result of operations.
In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s results of operations.
Under the direction of our DIT, the DIS plays a key role in assessing, monitoring and managing the Company’s cybersecurity risks with the support of Company management, external cybersecurity consultants, as well as dedicated information technology and security personnel. Our DIS has 38 years of IT experience, 33 years of which are specializing in cybersecurity practices.
Under the direction of our DIT, the DIS plays a key role in assessing, monitoring and managing the Company’s cybersecurity risks with the support of Company management, external cybersecurity consultants , as well as dedicated information technology and security personnel. Our DIS has 39 years of IT experience, 34 years of which are specializing in cybersecurity practices.
Based on details provided by the DIT and DIS, the Chief Financial Officer (CFO) provides the Audit Committee quarterly updates that encompass a broad range of topics, including: • Current cybersecurity threat landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reports and learnings from unique cybersecurity events, including those of other companies; and • Compliance status and efforts with regulatory requirements and industry standards.
Based on details provided by the DIT and DIS, the Chief Financial Officer (CFO) p rovides the Audit Committee quarterly updates that encompass a broad range of topics, including: • current cybersecurity threat landscape and emerging threats; • status of ongoing cybersecurity initiatives and strategies; • incident reports and learning from unique cybersecurity events, including those of other companies; and • compliance status and efforts with regulatory requirements and industry standards.
Please see the Industry Segment Information section on pages 6-25 for more information about the location of our facilities, and a summary of mineral reserves for each of our applicable businesses. The following map shows the locations of our operating facilities at March 31, 2024, by type of facility.
Please see the Industry Segment Information section on pages 6-21 for more information about the location of our facilities, and a summary of mineral reserves for each of our applicable businesses. The following map shows the locations of our operating facilities at March 31, 2025, by type of facility.
Debt Financing Activities Below is a summary of the Company’s outstanding debt facilities at March 31, 2024: Maturity Revolving Credit Facility May 2027 Term Loan May 2027 2.500% Senior Unsecured Notes July 2031 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.
Debt Financing Activities Below is a summary of the Company’s outstanding debt facilities at March 31, 2025: Maturity Revolving Credit Facility February 2030 Term Loan February 2030 2.500% Senior Unsecured Notes July 2031 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.
We are contingently liable for performance under $29.3 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, 2024. Other than the Revolving Credit Facility, we have no additional source of committed external financing in place.
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. Other than the Revolving Credit Facility, we have no additional source of committed external financing in place.
Including this latest authorization, our Board has approved the repurchase in the open market of a cumulative total of approximately 55.9 million shares of our Common Stock since we became publicly held in April 1994. During fiscal years 2024, 2023 and 2022, we repurchased 1,863,534, 3,075,788 and 3,982,657 shares, respectively, at average prices of $184.21, $126.05 and $148.08, respectively.
Including this latest authorization, our Board has approved the repurchase in the open market of a cumulative total of approximately 55.9 million shares of our Common Stock since we became publicly held in April 1994. During fiscal years 2025, 2024 and 2023, we repurchased 1,214,173, 1,863,534 and 3,075,788 shares, respectively, at average prices of $245.67, $184.21 and $126.05, respectively.
All of our facilities are owned, with the exception of our headquarters in Dallas, which is leased through May 2029, and certain terminals, as discussed on page 12. None of our facilities are pledged as security for any debts.
All our facilities are owned, with the exception of our headquarters in Dallas, which is leased through January 2036, and certain terminals, as discussed on page 8. None of our facilities are pledged as security for any debts.
The segment breakdown of Goodwill at March 31, 2024 and 2023, was as follows: 2024 2023 (dollars in thousands) Cement $ 227,639 $ 215,781 Concrete and Aggregates 40,774 40,774 Gypsum Wallboard 116,618 116,618 Paperboard 7,538 7,538 $ 392,569 $ 380,711 Business Combinations The acquisition method of accounting requires that we recognize the assets acquired and liabilities assumed at their acquisition date fair values.
The segment breakdown of Goodwill at March 31, 2025, and 2024, was as follows: 2025 2024 (dollars in thousands) Cement $ 227,639 $ 227,639 Concrete and Aggregates 118,099 40,774 Gypsum Wallboard 116,618 116,618 Recycled Paperboard 7,538 7,538 $ 469,894 $ 392,569 Business Combinations The acquisition method of accounting requires that we recognize the assets acquired and liabilities assumed at their acquisition date fair values.
Forward-looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates, or expectations.
Forward-looking statements may be identified by the context of the statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events.
(4) The future cash flows for interest on the Term Loan were calculated using the same estimated interest rates as the Revolving Credit Facility. (5) Purchase obligations are noncancelable agreements to purchase coal, natural gas, slag, and synthetic gypsum, and to fund capital expenditure commitments.
(4) The future cash flows for interest on the Term Loan were calculated using the same estimated interest rates as the Revolving Credit Facility. (5) Purchase obligations are noncancelable agreements to purchase coal, natural gas, slag, and synthetic gypsum, and to fund capital expenditure commitments, including the expansion and modernization of our cement plant in Wyoming.
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.
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.
For example, increases in interest rates, decreases in demand for construction materials, or increases in the cost of energy (including, without limitation, electricity, natural gas, coal and oil) and the cost of our raw materials could affect the revenue and operating earnings of our operations.
For example, increases in interest rates, decreases in demand for construction 68 materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations.
We have repurchased approximately 50.0 million shares from April 1994 through March 31, 2024. As a result, we have a total of approximately 5.9 million shares that remain available for repurchase as authorized by our Board. The Board did not specify an expiration date for its authorizations.
We have repurchased approximately 51.2 million shares from April 1994 through March 31, 2025. As a result, we have a total of approximately 4.7 million shares that remain available for repurchase as authorized by our Board. The Board did not specify an expiration date for its authorizations.
We are unable to predict the likely outcome of these actions. For additional information regarding claims and other contingent liabilities to which we may be subject, see Footnote (J) in the Audited Consolidated Financial Statements. I TEM 4.
For additional information regarding claims and other contingent liabilities to which we may be subject, see Footnote (J) in the Audited Consolidated Financial Statements. I TEM 4.
In the event of a cybersecurity incident, the Company is equipped with a defined and practiced incident response plan, which details immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Board of Directors Oversight The Audit Committee of the Company’s Board is responsible for overseeing the Company’s cyber risk.
In the event of a cybersecurity incident, the Company is equipped with a defined and practiced incident response plan, which details immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
The increase was largely attributable to higher Net Earnings, adjusted for non-cash charges of $37.4 million and changes in Working Capital of $4.8 million, partially offset by lower dividends from our Unconsolidated Joint Venture of $20.0 million.
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.
Cash Used for Share Repurchases and Stock Repurchase Program See table under Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities” for additional information. Share repurchases may be made from time to time in the open market or in privately negotiated transactions.
“Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities” for additional information. Share repurchases may be made from time to time in the open market or in privately negotiated transactions.
Income Tax Expense Income Tax Expense for fiscal 2024 increased to $140.3 million from $127.1 million for fiscal 2023. The effective tax rate was 23%, compared with 22% in the prior fiscal year. Net Earnings and Diluted Earnings per Share Net Earnings increased 3% in fiscal 2024 to $477.6 million.
Income Tax Expense 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. Net Earnings and Diluted Earnings per Share Net Earnings decreased 3% in fiscal 2025 to $463.4 million.
Based on our current actuarial estimates, we do not anticipate making contributions to our defined benefit plans for fiscal year 2025. Inflation and Changing Prices The Consumer Price Index rose approximately 3.5% in fiscal 2024, 5.0% in fiscal 2023, and 8.5% in fiscal 2022.
We expect to spend approximately $330.0 million over the next two years on this project. Based on our current actuarial estimates, we do not anticipate making contributions to our defined benefit plans for fiscal year 2025. Inflation and Changing Prices The Consumer Price Index rose approximately 2.4% in fiscal 2025, 3.5% in fiscal 2024, and 5.0% in fiscal 2023.
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. Energy, primarily solid fuel costs, increased in all our businesses, but primarily Cement, during fiscal 2024.
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.
The increase was primarily related to higher interest expense on our Revolving Credit Facility, including the Term Loan, of approximately $7.7 million. The increase in interest on our Revolving Credit Facility was related to increased average outstanding borrowings and higher interest rates, partially offset by increased interest income on cash deposits.
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.
Below is a summary of the ratings published by the agencies as of the date indicated: Moody's S&P Corporate/Family Rating Baa2 BBB Outlook Stable Stable Guaranteed Senior Notes Baa2 BBB Date of Latest Report January 2024 June 2023 We also have approximately $26.9 million of lease liabilities at March 31, 2024, that have an average remaining life of approximately 9.6 years.
Below is a summary of the ratings published by the agencies as of the date indicated: Moody's S&P Corporate/Family Rating Baa2 BBB Outlook Stable Stable Guaranteed Senior Notes Baa2 BBB Date of Latest Report January 2024 June 2023 We also have approximately $37.6 million of lease liabilities at March 31, 2025, that have an average remaining life of approximately 12.6 years. 65 Cash Used for Share Repurchases and Stock Repurchase Program See table under Item 5.
Finally, any forward-looking statements made by the Company are subject to the risks and 62 impacts associated with natural disasters, the outbreak, escalation, or resurgence of public health emergencies, pandemics, or other unforeseen events, and governmental measures in reaction thereto, as well as their impact on our operations or on economic conditions, capital and financial markets.
Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets.
This was partially offset by higher gross sales prices of approximately $8.2 million. The higher operating costs were due primarily to increased maintenance, energy, freight, and purchased cement costs, which reduced operating earnings by approximately $3.6 million, $1.4 million, $0.6 million, and $2.8 million, respectively.
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.
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 that we believe are critical and require the use of complex judgment in their application.
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.
Impairment of Long-Lived Assets 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.
Listed below are those policies we believe are critical and require the use of complex judgment in their application. 59 Impairment of Long-Lived Assets 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.
Other Nonoperating Income consists of a variety of items that are nonsegment operating in nature, 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. Interest Expense, Net Interest Expense, net increased by approximately $7.1 million, or 20%, during 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. Interest Expense, Net Interest Expense, net decreased by approximately $1.8 million, or 4%, during fiscal 2025.
Earnings Before Income Taxes Earnings Before Income Taxes increased to $617.9 million during fiscal 2024, primarily because of higher Gross Profit. This was partially offset by higher Corporate General and Administrative expenses and Interest Expense, as well as lower Equity in Earnings of Joint Venture.
Earnings Before Income Taxes 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.
At March 31, 2024, we had $170.0 million outstanding of Revolving Loans under the Revolving Credit Facility and $8.3 million of outstanding letters of credit, leaving us with $571.7 million of available borrowings under the Revolving Credit Facility, net of outstanding letters of credit.
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 64 borrowings under the Revolving Credit Facility, net of outstanding letters of credit.
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. 57 Cash Flow The following table provides a summary of our Cash Flows: For the Fiscal Years Ended March 31, 2024 2023 (dollars in thousands) Net Cash Provided by Operating Activities $ 563,938 $ 541,726 Investing Activities: Additions to Property, Plant, and Equipment (120,305 ) (110,143 ) Acquisition Spending (55,053 ) (158,451 ) Net Cash Used in Investing Activities (175,358 ) (268,594 ) Financing Activities: Borrowings Under Revolving Credit Facility 13,000 200,000 Repayment of Borrowings Under Revolving Credit Facility — (43,000 ) Repayment of Term Loan (10,000 ) (7,500 ) Dividends Paid to Stockholders (35,298 ) (37,496 ) Purchase and Retirement of Common Stock (343,274 ) (387,717 ) Proceeds from Stock Option Exercises 17,098 5,418 Payment of Debt Issuance Costs — (903 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation (10,423 ) (6,108 ) Net Cash Used in Financing Activities (368,897 ) (277,306 ) Net Increase (Decrease) in Cash and Cash Equivalents $ 19,683 $ (4,174 ) Cash Flows from Operating Activities increased by $22.2 million to $563.9 million for fiscal 2024.
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. 62 Cash Flow The following table provides a summary of our Cash Flows: For the Fiscal Years Ended March 31, 2025 2024 (dollars in thousands) Net Cash Provided by Operating Activities $ 548,548 $ 563,938 Investing Activities: Additions to Property, Plant, and Equipment (195,281 ) (120,305 ) Acquisition Spending (174,850 ) (55,053 ) Net Cash Used in Investing Activities (370,131 ) (175,358 ) Financing Activities: Borrowings Under Revolving Credit Facility 335,000 13,000 Repayment of Borrowings Under Revolving Credit Facility (305,000 ) — Borrowings Under Term Loan 125,000 — Repayment of Term Loan (11,250 ) (10,000 ) Dividends Paid to Stockholders (33,722 ) (35,298 ) Purchase and Retirement of Common Stock (298,286 ) (343,274 ) Payment of Excise Tax on Purchases and Retirement of Common Stock (3,331 ) — Proceeds from Stock Option Exercises 6,380 17,098 Payment of Debt Issuance Costs (1,834 ) — Shares Redeemed to Settle Employee Taxes on Stock Compensation (5,898 ) (10,423 ) Net Cash Used in Financing Activities (192,941 ) (368,897 ) Net Increase (Decrease) in Cash and Cash Equivalents $ (14,524 ) $ 19,683 Cash Flows from Operating Activities decreased by $15.4 million to $548.5 million in fiscal 2025.
Maintenance costs were up 21% in fiscal 2024 and we expect continued inflation for maintenance as equipment and contractor costs remain high. 48 Results of Operations Fiscal Year 2024 Compared with Fiscal Year 2023 For the Years Ended March 31, 2024 2023 Percentage Change (in thousands, except per share) Revenue $ 2,259,297 $ 2,148,069 5 % Cost of Goods Sold (1,573,976 ) (1,508,803 ) 4 % Gross Profit 685,321 639,266 7 % Equity in Earnings of Unconsolidated Joint Venture 31,581 35,474 (11 )% Corporate General and Administrative (59,795 ) (53,630 ) 11 % Other Nonoperating Income 3,087 2,654 16 % Interest Expense, net (42,257 ) (35,171 ) 20 % Earnings Before Income Taxes 617,937 588,593 5 % Income Tax Expense (140,298 ) (127,053 ) 10 % Net Earnings $ 477,639 $ 461,540 3 % Diluted Earnings per Share $ 13.61 $ 12.46 9 % Revenue Revenue increased in fiscal 2024 by $111.2 million, or 5%, to $2,259.3 million.
Maintenance costs were up 13% in fiscal 2025 and we expect continued inflation for maintenance as equipment and contractor costs remain high. 53 Results of Operations Fiscal Year 2025 Compared with Fiscal Year 2024 For the Years Ended March 31, 2025 2024 Percentage Change (in thousands, except per share) Revenue $ 2,260,508 $ 2,259,297 — Cost of Goods Sold (1,587,371 ) (1,573,976 ) 1 % Gross Profit 673,137 685,321 (2 )% Equity in Earnings of Unconsolidated Joint Venture 26,396 31,581 (16 )% Corporate General and Administrative (73,942 ) (59,795 ) 24 % Other Nonoperating Income 6,420 3,087 108 % Interest Expense, net (40,526 ) (42,257 ) (4 )% Earnings Before Income Taxes 591,485 617,937 (4 )% Income Tax Expense (128,069 ) (140,298 ) (9 )% Net Earnings $ 463,416 $ 477,639 (3 )% Diluted Earnings per Share $ 13.77 $ 13.61 1 % Revenue Revenue in fiscal 2025 was up slightly to $2,260.5 million.
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. 53 Recycled Paperboard For the Years Ended March 31, 2024 2023 Percentage Change (in thousands, except per ton information) Revenue, including Intersegment $ 184,188 $ 201,280 (8 )% Less Intersegment Revenue (82,351 ) (92,835 ) (11 )% Revenue $ 101,837 $ 108,445 (6 )% Sales Volume (M Tons) 333 326 2 % Average Net Sales Price, per ton (1) $ 551.72 $ 590.67 (7 )% Operating Margin, per ton $ 94.94 $ 77.36 23 % Operating Earnings $ 31,616 $ 25,220 25 % (1) Net of freight per ton.
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. 58 Recycled Paperboard For the Years Ended March 31, 2025 2024 Percentage Change (in thousands, except per ton information) Revenue, including Intersegment $ 211,724 $ 184,188 15 % Less Intersegment Revenue (89,058 ) (82,351 ) 8 % Revenue $ 122,666 $ 101,837 20 % Sales Volume (M Tons) 350 333 5 % Average Net Sales Price, per ton (1) $ 604.02 $ 551.72 9 % Operating Margin, per ton $ 108.79 $ 94.94 15 % Operating Earnings $ 38,078 $ 31,616 20 % (1) Net of freight per ton.
The increase in operating expenses was primarily due to higher cost of materials, maintenance, and delivery of approximately $17.7 million, $2.4 million, and $3.1 million, respectively. 52 Light Materials Gypsum Wallboard For the Years Ended March 31, 2024 2023 Percentage Change (in thousands, except per MMSF information) Revenue $ 839,530 $ 872,471 (4 )% Sales Volume (MMSF) 2,965 3,065 (3 )% Freight and Delivery Costs billed to Customers $ (149,441 ) $ (160,536 ) (7 )% Average Net Sales Price, per MSF (1) $ 232.75 $ 232.31 — Freight, per MSF $ 50.40 $ 52.38 (4 )% Operating Margin, per MSF $ 112.83 $ 115.01 (2 )% Operating Earnings $ 334,536 $ 352,499 (5 )% (1) Net of freight per MSF.
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. 57 Light Materials Gypsum Wallboard For the Years Ended March 31, 2025 2024 Percentage Change (in thousands, except per MMSF information) Revenue $ 846,499 $ 839,530 1 % Sales Volume (MMSF) 2,968 2,965 — Freight and Delivery Costs billed to Customers $ (146,000 ) $ (149,441 ) (2 )% Average Net Sales Price, per MSF (1) $ 236.04 $ 232.75 1 % Freight, per MSF $ 49.19 $ 50.40 (2 )% Operating Margin, per MSF $ 118.18 $ 112.83 5 % Operating Earnings $ 350,764 $ 334,536 5 % (1) Net of freight per MSF.
Capital Expenditures The following table shows Capital Expenditures in fiscal years 2024 and 2023: For the Fiscal Years Ended March 31, 2024 2023 (dollars in thousands) Land and Quarries $ 6,760 $ 14,325 Plants 63,744 64,720 Buildings, Machinery and Equipment 49,801 31,098 Total Capital Expenditures $ 120,305 $ 110,143 Capital expenditures for fiscal 2025 are expected to range from $310.0 million to $340.0 million and to be allocated primarily to the Heavy Materials sector.
Capital Expenditures The following table shows Capital Expenditures in fiscal years 2025 and 2024: For the Fiscal Years Ended March 31, 2025 2024 (dollars in thousands) Land and Quarries $ 9,234 $ 6,760 Plants 123,120 63,744 Buildings, Machinery and Equipment 62,927 49,801 Total Capital Expenditures $ 195,281 $ 120,305 Capital expenditures for fiscal 2026 are expected to range from $475.0 million to $525.0 million and to be allocated between the Heavy Materials and Light Materials sectors.
Heavy Materials Cement (1) For the Years Ended March 31, 2024 2023 Percentage Change (in thousands, except per ton information) Revenue, including Intersegment and Joint Venture $ 1,226,017 $ 1,074,070 14 % Less Intersegment Revenue $ (35,363 ) $ (32,915 ) 7 % Less Joint Venture Revenue $ (112,736 ) $ (113,518 ) (1 )% Revenue $ 1,077,918 $ 927,637 16 % Sales Volume (M Tons) 7,289 7,133 2 % Freight and Delivery Costs billed to Customers $ (70,823 ) $ (60,288 ) 17 % Average Net Sales Price, per ton (2) $ 150.99 $ 134.36 12 % Operating Margin, per ton $ 46.42 $ 39.08 19 % Operating Earnings $ 338,349 $ 278,762 21 % (1) Total of wholly owned subsidiaries and proportionately consolidated 50% interest of the Joint Venture’s results.
Heavy Materials Cement (1) For the Years Ended March 31, 2025 2024 Percentage Change (in thousands, except per ton information) Revenue, including Intersegment and Joint Venture $ 1,201,362 $ 1,226,017 (2 )% Less Intersegment Revenue $ (36,799 ) $ (35,363 ) 4 % Less Joint Venture Revenue $ (110,943 ) $ (112,736 ) (2 )% Revenue $ 1,053,620 $ 1,077,918 (2 )% Sales Volume (M Tons) 6,912 7,289 (5 )% Freight and Delivery Costs billed to Customers $ (69,457 ) $ (70,823 ) (2 )% Average Net Sales Price, per ton (2) $ 156.67 $ 150.99 4 % Operating Margin, per ton $ 46.22 $ 46.42 — Operating Earnings $ 319,456 $ 338,349 (6 )% (1) Total of wholly owned subsidiaries and proportionately consolidated 50% interest of the Joint Venture’s results.
We expanded our Gross Profit margin to 30.3% in fiscal 2024. 49 Equity in Earnings of Unconsolidated Joint Venture Equity in Earnings of Unconsolidated Joint Venture decreased by $3.9 million, or 11%. The decline was mostly due to higher operating costs and lower Sales Volume of $9.3 million and $2.8 million, respectively.
Our Gross Profit margin declined to 29.8% in fiscal 2025, compared with 30.3% in fiscal 2024. 54 Equity in Earnings of Unconsolidated Joint Venture 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.
Purchases of the Company's common stock during the quarter ended March 31, 2024, were as follows: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs January 1 through January 31, 2024 50,534 $ 206.95 — February 1 through February 29, 2024 178,000 240.73 — March 1 through March 31, 2024 160,000 256.96 — Quarter 4 Totals 388,534 $ 243.02 — 5,883,670 We did not have any sales of unregistered equity securities during fiscal years 2024, 2023, or 2022.
Purchases of the Company's common stock during the quarter ended March 31, 2025, were as follows: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1 through January 31, 2025 123,513 $ 249.60 — February 1 through February 28, 2025 95,000 241.52 — March 1 through March 31, 2025 199,941 216.23 — Quarter 4 Totals 418,454 $ 231.82 — 4,669,497 We did not have any sales of unregistered equity securities during fiscal years 2025, 2024, or 2023.
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, 2024.
As a percentage of quarterly sales 63 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.
See Footnote (B) in the Audited Consolidated Financial Statements for more information regarding the Stockton Terminal Acquisition. 47 MARKET CONDITIONS AND OUTLOOK Our fiscal 2024 results were generally strong, and we achieved record Revenue of $2.3 billion and record Net Earnings and Earnings per Share of $477.6 million and $13.61 per share, respectively.
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 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.
The Operating Margin increased to 28%, primarily due to higher gross sales prices, partially offset by increased operating costs. 51 Concrete and Aggregates For the Years Ended March 31, 2024 2023 Percentage Change (in thousands, except net sales prices) Revenue, including Intersegment $ 252,952 $ 239,516 6 % Less Intersegment Revenue (12,940 ) — — Revenue $ 240,012 $ 239,516 — Sales Volume M Cubic Yards of Concrete 1,328 1,545 (14 )% M Tons of Aggregate 4,064 2,909 40 % Average Net Sales Price Concrete - Per Cubic Yard $ 145.98 $ 133.34 9 % Aggregates - Per Ton $ 11.26 $ 11.53 (2 )% Operating Earnings $ 12,401 $ 18,259 (32 )% Concrete and Aggregates Revenue increased 6% to $253.0 million for fiscal 2024.
Cement Operating Margin decreased to 27%, primarily due to increased operating expenses, partially offset by higher gross sales prices. 56 Concrete and Aggregates For the Years Ended March 31, 2025 2024 Percentage Change (in thousands, except net sales prices) Revenue, including Intersegment $ 251,636 $ 252,952 (1 )% Less Intersegment Revenue (13,913 ) (12,940 ) 8 % Revenue $ 237,723 $ 240,012 (1 )% Sales Volume M Cubic Yards of Concrete 1,235 1,328 (7 )% M Tons of Aggregate 3,854 4,064 (5 )% Average Net Sales Price Concrete - Per Cubic Yard $ 148.48 $ 145.98 2 % Aggregates - Per Ton $ 13.09 $ 11.26 16 % Operating Earnings (Loss) $ (8,765 ) $ 12,401 (171 )% Concrete and Aggregates Revenue decreased 1% to $251.6 million for fiscal 2025.
Gypsum Wallboard Revenue decreased 4% to $839.5 million in fiscal 2024. The decrease was due to lower gross sales prices and Sales Volume, which reduced Revenue by $4.5 million and $28.5 million, respectively. Our market share remained relatively flat in fiscal 2024 compared with fiscal 2023. Operating Earnings decreased 5% to $334.5 million for fiscal 2024.
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. Operating Earnings increased 5% to $350.8 million in fiscal 2025.
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 own a 50% interest in the Joint Venture and account for our interest under the equity method of accounting.
The increase in Cost of Goods Sold was due to higher operating costs of $61.5 million, partially offset by lower Sales Volume of $46.2 million. Operating costs increased in all of our businesses, except Recycled Paperboard and Aggregates, as discussed in the Fiscal Year 2024 vs Fiscal Year 2023 Results by Segment section.
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. Gross Profit 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.
In response to the disapproval of the SIPs for such states, both such states and we have commenced litigation against the EPA. The litigation commenced by us was filed in April 2023 in the Ninth Circuit Court of Appeals, the Tenth Circuit Court of Appeals, and the Fifth Circuit Court of Appeals.
In response to the disapproval of the SIPs for such states, we commenced litigation against the EPA in April 2023.
Our 2023 Form 10-K can be found on the investor page of our website, at eaglematerials.com . CRITICAL Accounting Policies Certain of our critical accounting policies require the use of judgment in their application or require estimates of inherently uncertain matters.
CRITICAL Accounting Policies Certain of our critical accounting policies require the use of judgment in their application or require estimates of inherently uncertain matters.
The decrease in operating expenses was primarily related to lower input costs, namely raw materials, energy, and freight, which increased Operating Earnings by $16.9 million, $3.7 million, and $8.1 million, respectively. This was partially offset by higher chemical expenses of $1.3 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.
These estimated capital expenditures will include the expansion and modernization of our Mountain Cement facility in Wyoming, as well as maintenance capital expenditures and improvements, and other safety and regulatory projects. 60 Dividends Dividends paid in fiscal years 2024, 2023, and 2022 were $35.3 million, $37.5 million, and $30.8 million, respectively.
These estimated capital expenditures will include the expansion and modernization of our Mountain Cement facility in Wyoming and the modernization and expansion of our gypsum wallboard plant in Oklahoma, as well as maintenance capital expenditures and improvements, and other safety and regulatory projects.
The decrease was primarily related to lower gross sales prices and Sales Volume of approximately $4.5 million and $11.5 million, respectively, as well as higher operating expenses of $2.0 million. During fiscal 2024, Gypsum Wallboard Operating Margin remained flat at 40%.
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.
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.
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.
The increases in raw materials and materials-in-progress, finished cement, and fuel and coal were mostly due to timing. Additionally, the Stockton Terminal Acquisition contributed $8.7 million of the increase in finished cement at March 31, 2024.
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.
Operating Earnings decreased 32% to approximately $12.4 million. Excluding Battletown Materials, Operating Earnings were $13.2 million, a decrease of $5.1 million. The decline in Operating Earnings was due to higher operating expenses of $23.8 million. This was partially offset by higher gross sales prices and Sales Volume of $18.6 million and $0.3 million, respectively.
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.
Operating Earnings increased 25% to $31.6 million for fiscal 2024, primarily related to higher Sales Volume and lower operating expenses of $0.6 million and $27.1 million, respectively. This was partially offset by lower gross sales prices of $21.3 million.
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.
Excluding Battletown Materials and Intersegment Revenue, Revenue decreased 3% to $232.8 million. The decrease in Revenue was primarily related to lower Sales Volume in Concrete, which negatively affected Revenue by $28.9 million. This was partially offset by higher gross sales prices and Sales Volume for Aggregates of $18.6 million and $3.6 million, respectively.
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. Operating Loss was approximately $8.8 million. Excluding the Aggregates Acquisitions, Operating Loss was $6.5 million.
Recycled Paperboard Revenue, including intersegment Revenue, declined 8% to $184.2 million for fiscal 2024, as lower gross sales prices negatively affected Revenue by approximately $21.3 million, partially offset by higher Sales Volume of $4.2 million. The decrease in gross sales prices was due to the price adjustment provisions in our long-term sales agreements.
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.
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 raw material fiber prices.
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 Inventory balance at March 31, 2024, increased approximately $82.0 million from our balance at March 31, 2023. Within Inventories, raw materials and materials-in-progress, finished cement, recycled paperboard, repair parts inventory, and fuel and coal increased by approximately $25.9 million, $25.0 million, $5.6 million, $14.6 million, and $6.1 million, respectively.
No significant deterioration in the collectability of our Accounts Receivable was identified at March 31, 2025. 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.
Battletown Materials is included in our Heavy Materials sector, in the Concrete and Aggregates business segment. On May 3, 2023, we finalized the Stockton Terminal Acquisition. The purchase price of the Stockton Terminal Acquisition was approximately $55.1 million. The Stockton Terminal Acquisition is included in our Heavy Materials sector, in the Cement business segment, in fiscal 2024.
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.
Net Cash Used in Investing Activities in fiscal 2024 was approximately $175.4 million compared with $268.6 million in fiscal 2023, a decrease of approximately $93.2 million. This was primarily due to $103.4 million less in acquisition spending in fiscal 2024 compared with fiscal 2023.
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 graph assumes that the value of the investment (including the reinvestment of dividends) in the Company’s common stock and in each of the indices was $100 on March 31, 2019, and tracks it through March 31, 2024. 3/19 3/20 3/21 3/22 3/23 3/24 Eagle Materials Inc. 100.00 69.62 160.41 154.28 177.79 330.92 Russell 1000 100.00 91.97 147.70 167.30 153.26 199.03 Dow Jones U.S.
The graph assumes that the value of the investment (including the reinvestment of dividends) in the Company’s common stock and in each of the indexes was $100 on March 31, 2020, and tracks it through March 31, 2025. 3/20 3/21 3/22 3/23 3/24 3/25 Eagle Materials Inc. 100.00 230.42 221.62 255.39 475.35 389.78 Russell 1000 100.00 160.59 181.90 166.63 216.40 233.32 Dow Jones U.S.
The increase in electricity and transportation resulted in higher costs for our manufacturing businesses during fiscal 2024, and we expect these increases to continue throughout calendar 2024. We have some protection from increasing natural gas costs in fiscal 2025 as we have forward purchase contracts for approximately 30.0% of our anticipated natural gas usage.
During fiscal 2025, the Consumer Price Index (CPI) for electricity, natural gas, and transportation increased 2.8%, 9.4%, and 3.1%, respectively, while the cost of gasoline declined 9.8%. We have some protection from increasing natural gas costs in fiscal 2026 as we have forward purchase contracts for approximately 20.0% of our anticipated natural gas usage.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFinancial Statements and Supplementary Data Financial Information Index to Financial Statements and Related Information PAGE Eagle Materials Inc.: Consolidated Statements of Earnings for the Years Ended March 31, 2024, 2023, and 20 22 65 Consolidated Statements of Comprehensive Earnings for the Years Ended March 31, 2024, 2023, and 2022 66 Consolidated Balance Sheets as of March 31, 2024 and 2023 67 Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 2022 68 Consolidated Statements of Stockholders’ Equity for the Years Ended March 31, 2024, 2023, and 20 22 69 Notes to Consolidated Financial Statements 70 Report of Independent Registered Public Accounting Firm 97 Auditor Name: Ernst & Young LLP Auditor Location: Dallas, Texas Auditor Firm ID: 42 64 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Earnings For the Years Ended March 31, 2024 2023 2022 (dollars in thousands, except share and per share data) Revenue $ 2,259,297 $ 2,148,069 $ 1,861,522 Cost of Goods Sold 1,573,976 1,508,803 1,341,908 Gross Profit 685,321 639,266 519,614 Equity in Earnings of Unconsolidated Joint Venture 31,581 35,474 32,488 Corporate General and Administrative Expense ( 59,795 ) ( 53,630 ) ( 46,801 ) Loss on Early Retirement of Senior Notes — — ( 8,407 ) Other Nonoperating Income 3,087 2,654 9,073 Interest Expense, net ( 42,257 ) ( 35,171 ) ( 30,873 ) Earnings Before Income Taxes 617,937 588,593 475,094 Income Taxes ( 140,298 ) ( 127,053 ) ( 100,847 ) Net Earnings $ 477,639 $ 461,540 $ 374,247 EARNINGS PER SHARE Basic $ 13.72 $ 12.54 $ 9.23 Diluted 13.61 12.46 9.14 AVERAGE SHARES OUTSTANDING Basic 34,811,560 36,798,354 40,547,048 Diluted 35,097,871 37,052,942 40,929,712 CASH DIVIDENDS PER SHARE $ 1.00 $ 1.00 $ 0.75 See Notes to Consolidated Financial Statements. 65 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Comprehensive Earnings For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Net Earnings $ 477,639 $ 461,540 $ 374,247 Net Actuarial Change in Defined Benefit Plans: Unrealized (Loss) Gain During the Period, net of tax (benefit) expense of $( 24 ), $( 147 ), and $ 48 ( 53 ) ( 465 ) 161 Amortization of Net Actuarial Gain (Loss), net of tax (expense) benefit of $ 59 , $ 30 , and $ 39 192 93 104 Comprehensive Earnings $ 477,778 $ 461,168 $ 374,512 See Notes to Consolidated Financial Statements. 66 Eagle Materials Inc. and Subsidiaries C onsolidated Balance Sheets March 31, 2024 2023 (dollars in thousands) ASSETS Current Assets Cash and Cash Equivalents $ 34,925 $ 15,242 Accounts and Notes Receivable, net 202,985 195,052 Inventories 373,923 291,882 Income Tax Receivable 9,910 16,267 Prepaid and Other Assets 5,950 3,060 Total Current Assets 627,693 521,503 Property, Plant, and Equipment, net 1,676,217 1,662,061 Notes Receivable — 7,382 Investment in Joint Venture 113,478 89,111 Operating Lease Right-of-Use Assets 19,373 20,759 Goodwill and Intangible Assets, net 486,117 466,043 Other Assets 24,141 14,143 Total Assets $ 2,947,019 $ 2,781,002 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $ 127,183 $ 110,408 Accrued Liabilities 94,327 86,472 Operating Lease Liabilities 7,899 6,009 Current Portion of Long-term Debt 10,000 10,000 Total Current Liabilities 239,409 212,889 Long-term Debt 1,083,299 1,079,032 Noncurrent Operating Lease Liabilities 19,037 24,940 Other Long-term Liabilities 51,942 41,603 Deferred Income Taxes 244,797 236,844 Total Liabilities 1,638,484 1,595,308 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 34,143,945 and 35,768,376 Shares, respectively 341 358 Capital in Excess of Par Value — — Accumulated Other Comprehensive Losses ( 3,373 ) ( 3,547 ) Retained Earnings 1,311,567 1,188,883 Total Stockholders’ Equity 1,308,535 1,185,694 $ 2,947,019 $ 2,781,002 See Notes to Consolidated Financial Statements. 67 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Cash Flows For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Earnings $ 477,639 $ 461,540 $ 374,247 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities, Net of Effect of Noncash Activity: Depreciation, Depletion, and Amortization 149,832 138,554 128,811 Write-off of Debt Issuance Costs — — 6,101 Deferred Income Tax Provision 7,953 4,475 6,383 Stock Compensation Expense 19,900 17,155 14,264 Equity in Earnings of Unconsolidated Joint Venture ( 31,581 ) ( 35,474 ) ( 32,488 ) Distributions from Joint Venture 7,000 27,000 27,250 Changes in Operating Assets and Liabilities: Accounts and Notes Receivable ( 551 ) ( 12,035 ) ( 29,209 ) Inventories ( 67,232 ) ( 47,946 ) ( 912 ) Accounts Payable and Accrued Liabilities 13,794 ( 7,797 ) 27,192 Other Assets ( 20,468 ) 4,955 ( 1,331 ) Income Taxes Receivable 7,652 ( 8,701 ) ( 3,137 ) Net Cash Provided by Operating Activities 563,938 541,726 517,171 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant, and Equipment ( 120,305 ) ( 110,143 ) ( 74,121 ) Acquisition Spending ( 55,053 ) ( 158,451 ) — Proceeds from Sale of Businesses — — — Net Cash Provided by (Used in) Investing Activities ( 175,358 ) ( 268,594 ) ( 74,121 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings Under Revolving Credit Facility 13,000 200,000 200,000 Repayment of Borrowings Under Revolving Credit Facility — ( 43,000 ) — Proceeds from 2.500% Senior Unsecured Notes — — 743,692 Repayment of 4.500% Senior Unsecured Notes — — ( 350,000 ) Repayment of Term Loan ( 10,000 ) ( 7,500 ) ( 665,000 ) Dividends Paid to Stockholders ( 35,298 ) ( 37,496 ) ( 30,770 ) Purchase and Retirement of Common Stock ( 343,274 ) ( 387,717 ) ( 589,742 ) Proceeds from Stock Option Exercises 17,098 5,418 21,366 Premium Paid on Early Retirement of Senior Notes — — ( 8,407 ) Payment of Debt Issuance Costs — ( 903 ) ( 7,985 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation ( 10,423 ) ( 6,108 ) ( 5,308 ) Net Cash Used in Financing Activities ( 368,897 ) ( 277,306 ) ( 692,154 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 19,683 ( 4,174 ) ( 249,104 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15,242 19,416 268,520 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 34,925 $ 15,242 $ 19,416 See Notes to Consolidated Financial Statements. 68 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Stockholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Losses Total (dollars in thousands) Balance at March 31, 2021 $ 424 $ 62,497 $ 1,299,509 $ ( 3,440 ) $ 1,358,990 Net Earnings — — 374,247 — 374,247 Stock Option Exercises and Restricted Share Vesting 3 21,363 — — 21,366 Stock Compensation Expense — 14,264 — — 14,264 Shares Redeemed to Settle Employee Taxes — ( 5,308 ) — — ( 5,308 ) Purchase and Retirement of Common Stock ( 40 ) ( 92,816 ) ( 496,886 ) — ( 589,742 ) Dividends to Stockholders — — ( 40,526 ) — ( 40,526 ) Unfunded Pension Liability, net of tax — — — 265 265 Balance at March 31, 2022 $ 387 $ — $ 1,136,344 $ ( 3,175 ) $ 1,133,556 Net Earnings — — 461,540 — 461,540 Stock Option Exercises and Restricted Share Vesting 2 5,416 — — 5,418 Stock Compensation Expense — 17,155 — — 17,155 Shares Redeemed to Settle Employee Taxes — ( 6,108 ) — — ( 6,108 ) Purchase and Retirement of Common Stock ( 31 ) ( 16,463 ) ( 371,961 ) — ( 388,455 ) Dividends to Stockholders — — ( 37,040 ) — ( 37,040 ) Unfunded Pension Liability, net of tax — — — ( 372 ) ( 372 ) Balance at March 31, 2023 $ 358 $ — $ 1,188,883 $ ( 3,547 ) $ 1,185,694 Net Earnings — — 477,639 — 477,639 Stock Option Exercises and Restricted Share Vesting 2 17,096 — — 17,098 Stock Compensation Expense — 19,900 — — 19,900 Shares Redeemed to Settle Employee Taxes ( 1 ) ( 10,422 ) — — ( 10,423 ) Purchase and Retirement of Common Stock ( 18 ) ( 26,574 ) ( 320,114 ) — ( 346,706 ) Dividends to Stockholders — — ( 34,841 ) — ( 34,841 ) Unfunded Pension Liability, net of tax — — — 174 174 Balance at March 31, 2024 $ 341 $ — $ 1,311,567 $ ( 3,373 ) $ 1,308,535 See Notes to Consolidated Financial Statements. 69 Eagle Materials Inc. and Subsidiaries N ot es to Consolidated Financial Statements (A) Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Eagle Materials Inc. and its majority-owned subsidiaries (the Company), which may be referred to as we, our, or us.
Biggest changeFinancial Statements and Supplementary Data Financial Information Index to Financial Statements and Related Information PAGE Eagle Materials Inc.: Consolidated Statements of Earnings for the Years Ended March 31, 2025, 2024, and 20 23 71 Consolidated Statements of Comprehensive Earnings for the Years Ended March 31, 2025, 2024, and 20 23 72 Consolidated Balance Sheets as of March 31, 2025 and 2024 73 Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 2023 74 Consolidated Statements of Stockholders’ Equity for the Years Ended March 31, 2025, 2024, and 20 23 75 Notes to Consolidated Financial Statements 76 Report of Independent Registered Public Accounting Firm 114 Auditor Name: Ernst & Young LLP Auditor Location: Dallas, Texas Auditor Firm ID: 42 70 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Earnings For the Years Ended March 31, 2025 2024 2023 (dollars in thousands, except share and per share data) Revenue $ 2,260,508 $ 2,259,297 $ 2,148,069 Cost of Goods Sold 1,587,371 1,573,976 1,508,803 Gross Profit 673,137 685,321 639,266 Equity in Earnings of Unconsolidated Joint Venture 26,396 31,581 35,474 Corporate General and Administrative Expense ( 73,942 ) ( 59,795 ) ( 53,630 ) Other Nonoperating Income 6,420 3,087 2,654 Interest Expense, net ( 40,526 ) ( 42,257 ) ( 35,171 ) Earnings Before Income Taxes 591,485 617,937 588,593 Income Taxes ( 128,069 ) ( 140,298 ) ( 127,053 ) Net Earnings $ 463,416 $ 477,639 $ 461,540 EARNINGS PER SHARE Basic $ 13.88 $ 13.72 $ 12.54 Diluted 13.77 13.61 12.46 AVERAGE SHARES OUTSTANDING Basic 33,378,050 34,811,560 36,798,354 Diluted 33,646,395 35,097,871 37,052,942 CASH DIVIDENDS PER SHARE $ 1.00 $ 1.00 $ 1.00 See Notes to Consolidated Financial Statements. 71 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Comprehensive Earnings For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Net Earnings $ 463,416 $ 477,639 $ 461,540 Net Actuarial Change in Defined Benefit Plans: Unrealized Gain (Loss) During the Period, net of tax benefit of $ 26 , $( 24 ), and $( 147 ) 74 ( 53 ) ( 465 ) Amortization of Net Actuarial Gain, net of tax benefit of $ 63 , $ 59 , and $ 30 174 192 93 Comprehensive Earnings $ 463,664 $ 477,778 $ 461,168 See Notes to Consolidated Financial Statements. 72 Eagle Materials Inc. and Subsidiaries C onsolidated Balance Sheets March 31, 2025 2024 (dollars in thousands) ASSETS Current Assets Cash and Cash Equivalents $ 20,401 $ 34,925 Accounts Receivable, net 212,332 202,985 Inventories 415,175 373,923 Income Tax Receivable 10,020 9,910 Prepaid and Other Assets 10,729 5,950 Total Current Assets 668,657 627,693 Property, Plant, and Equipment, net 1,792,982 1,676,217 Investment in Joint Venture 140,089 113,478 Operating Lease Right-of-Use Assets 29,313 19,373 Goodwill and Intangible Assets, net 595,752 486,117 Other Assets 37,795 24,141 Total Assets $ 3,264,588 $ 2,947,019 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $ 129,895 $ 127,183 Accrued Liabilities 96,077 94,327 Operating Lease Liabilities 4,032 7,899 Current Portion of Long-term Debt 15,000 10,000 Total Current Liabilities 245,004 239,409 Long-term Debt 1,223,316 1,083,299 Noncurrent Operating Lease Liabilities 33,597 19,037 Other Long-term Liabilities 66,029 51,942 Deferred Income Taxes 239,942 244,797 Total Liabilities 1,807,888 1,638,484 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 32,973,121 and 34,143,945 Shares, respectively 330 341 Capital in Excess of Par Value — — Accumulated Other Comprehensive Losses ( 3,125 ) ( 3,373 ) Retained Earnings 1,459,495 1,311,567 Total Stockholders’ Equity 1,456,700 1,308,535 $ 3,264,588 $ 2,947,019 See Notes to Consolidated Financial Statements. 73 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Cash Flows For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Earnings $ 463,416 $ 477,639 $ 461,540 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities, Net of Effect of Noncash Activity: Depreciation, Depletion, and Amortization 158,902 149,832 138,554 Deferred Income Tax Provision ( 4,855 ) 7,953 4,475 Stock Compensation Expense 18,743 19,900 17,155 Equity in Earnings of Unconsolidated Joint Venture ( 26,396 ) ( 31,581 ) ( 35,474 ) Distributions from Joint Venture — 7,000 27,000 Changes in Operating Assets and Liabilities: Accounts and Notes Receivable ( 7,904 ) ( 551 ) ( 12,035 ) Inventories ( 36,832 ) ( 67,232 ) ( 47,946 ) Accounts Payable and Accrued Liabilities 874 13,794 ( 7,797 ) Other Assets ( 16,747 ) ( 20,468 ) 4,955 Income Taxes Receivable ( 653 ) 7,652 ( 8,701 ) Net Cash Provided by Operating Activities 548,548 563,938 541,726 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant, and Equipment ( 195,281 ) ( 120,305 ) ( 110,143 ) Acquisition Spending ( 174,850 ) ( 55,053 ) ( 158,451 ) Net Cash Used in Investing Activities ( 370,131 ) ( 175,358 ) ( 268,594 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings Under Revolving Credit Facility 335,000 13,000 200,000 Repayment of Borrowings Under Revolving Credit Facility ( 305,000 ) — ( 43,000 ) Borrowings Under Term Loan 125,000 — — Repayment of Term Loan ( 11,250 ) ( 10,000 ) ( 7,500 ) Dividends Paid to Stockholders ( 33,722 ) ( 35,298 ) ( 37,496 ) Purchase and Retirement of Common Stock ( 298,286 ) ( 343,274 ) ( 387,717 ) Payment of Excise Tax on Purchases and Retirement of Common Stock ( 3,331 ) — — Proceeds from Stock Option Exercises 6,380 17,098 5,418 Payment of Debt Issuance Costs ( 1,834 ) — ( 903 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation ( 5,898 ) ( 10,423 ) ( 6,108 ) Net Cash Used in Financing Activities ( 192,941 ) ( 368,897 ) ( 277,306 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 14,524 ) 19,683 ( 4,174 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 34,925 15,242 19,416 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 20,401 $ 34,925 $ 15,242 See Notes to Consolidated Financial Statements. 74 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Stockholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Losses Total (dollars in thousands) Balance at March 31, 2022 $ 387 $ — $ 1,136,344 $ ( 3,175 ) $ 1,133,556 Net Earnings — — 461,540 — 461,540 Stock Option Exercises and Restricted Share Vesting 2 5,416 — — 5,418 Stock Compensation Expense — 17,155 — — 17,155 Shares Redeemed to Settle Employee Taxes — ( 6,108 ) — — ( 6,108 ) Purchase and Retirement of Common Stock ( 31 ) ( 16,463 ) ( 371,961 ) — ( 388,455 ) Dividends to Stockholders — — ( 37,040 ) — ( 37,040 ) Unfunded Pension Liability, net of tax — — — ( 372 ) ( 372 ) Balance at March 31, 2023 $ 358 $ — $ 1,188,883 $ ( 3,547 ) $ 1,185,694 Net Earnings — — 477,639 — 477,639 Stock Option Exercises and Restricted Share Vesting 2 17,096 — — 17,098 Stock Compensation Expense — 19,900 — — 19,900 Shares Redeemed to Settle Employee Taxes ( 1 ) ( 10,422 ) — — ( 10,423 ) Purchase and Retirement of Common Stock ( 18 ) ( 26,574 ) ( 320,114 ) — ( 346,706 ) Dividends to Stockholders — — ( 34,841 ) — ( 34,841 ) Unfunded Pension Liability, net of tax — — — 174 174 Balance at March 31, 2024 $ 341 $ — $ 1,311,567 $ ( 3,373 ) $ 1,308,535 Net Earnings — — 463,416 — 463,416 Stock Option Exercises and Restricted Share Vesting 1 6,379 — — 6,380 Stock Compensation Expense — 18,743 — — 18,743 Shares Redeemed to Settle Employee Taxes — ( 5,898 ) — — ( 5,898 ) Purchase and Retirement of Common Stock ( 12 ) ( 19,224 ) ( 282,032 ) — ( 301,268 ) Dividends to Stockholders — — ( 33,456 ) — ( 33,456 ) Unfunded Pension Liability, net of tax — — — 248 248 Balance at March 31, 2025 $ 330 $ — $ 1,459,495 $ ( 3,125 ) $ 1,456,700 See Notes to Consolidated Financial Statements. 75 Eagle Materials Inc. and Subsidiaries N ot es to Consolidated Financial Statements (A) Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Eagle Materials Inc. and its majority-owned subsidiaries (the Company), which may be referred to as we, our, or us.
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 tables set forth certain financial information relating to our operations by segment.
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. 94 The following tables set forth certain financial information relating to our operations by segment.
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 100 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 117 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
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. 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.
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. We also perform an overall comparison of all reporting units to our market capitalization to test the reasonableness of our fair value calculations.
We carefully consider the requirements mandated by such laws and regulations and have procedures in place at all of our operating units to monitor compliance. Any matters that are identified as potential exposures under these laws and regulations are carefully reviewed by management to determine our potential liability.
We carefully consider the requirements mandated by such laws and regulations and have procedures in place at all our operating units to monitor compliance. Any matters that are identified as potential exposures under these laws and regulations are carefully reviewed by management to determine our potential liability.
These funds are maintained by an investment manager and are primarily invested in indexes. The remaining funds, excluding cash, primarily consist of investments in institutional funds. Profit Sharing Plans We also provide profit sharing plans, which cover substantially all salaried and certain hourly employees.
These funds are maintained by an investment manager and are primarily invested in indexes. The remaining funds, excluding cash, primarily consist of investments in institutional funds. 112 Profit-Sharing Plans We also provide profit sharing plans, which cover substantially all salaried and certain hourly employees.
We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when 87 the more-likely-than-not threshold is met.
We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when the more-likely-than-not threshold is met.
The qualitative analysis considers 71 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.
The qualitative analysis 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.
A hypothetical 100 basis point increase in interest rates on these outstanding borrowings would increase our interest expense by $3.5 million on an annual basis. At present, we do not utilize derivative financial instruments. We are subject to commodity risk with respect to price changes principally in coal, petroleum coke, natural gas, and power.
A hypothetical 100 basis point increase in interest rates on these outstanding borrowings would increase our interest expense by $5.0 million on an annual basis. At present, we do not utilize derivative financial instruments. We are subject to commodity risk with respect to price changes principally in coal, petroleum coke, natural gas, and power.
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 five aggregates processing plants in markets that are complementary to our cement network.
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 in markets that are complementary to our cement network.
We believe that our audits provide a reasonable basis for our opinion. 97 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
We believe that our audits provide a reasonable basis for our opinion. 114 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
Any assets held for sale are reflected at the lower of their carrying amount or fair value less cost to sell. There were no indicators of impairment related to our long-lived assets during fiscal 2024. Other Assets Other Assets are primarily composed of financing costs related to our Revolving Credit Facility, deferred expenses, and deposits.
Any assets held for sale are reflected at the lower of their carrying amount or fair value less cost to sell. There were no indicators of impairment related to our long-lived assets during fiscal 2025. Other Assets Other Assets are primarily composed of financing costs related to our Revolving Credit Facility, deferred expenses, and deposits.
We recorded no interest and penalties for each of the fiscal years ended March 31, 2024, 2023, and 2022. (J) Commitments and Contingencies Our operations and properties are subject to extensive and changing federal, state, and local laws; regulations and ordinances governing the protection of the environment; as well as laws relating to worker health and workplace safety.
We recorded no interest and penalties for each of the fiscal years ended March 31, 2025, 2024, and 2023. (J) Commitments and Contingencies Our operations and properties are subject to extensive and changing federal, state, and local laws; regulations and ordinances governing the protection of the environment; as well as laws relating to worker health and workplace safety.
(M) Pension and Profit Sharing Plans We offer our employees multiple retirement and profit sharing plans. Pension Plans We have several defined benefit and defined contribution retirement plans that together cover substantially all of our employees.
(M) Pension and Profit Sharing Plans We offer our employees multiple retirement and profit-sharing plans. Pension Plans We have several defined benefit and defined contribution retirement plans that together cover substantially all our employees.
Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Eagle Materials Inc. and Subsidiaries (the Company) as of March 31, 2024 and 2023, the related consolidated statements of earnings, comprehensive earnings, stockholders' equity and cash flows for each of the three years in the period ended March 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).
Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Eagle Materials Inc. and subsidiaries (the Company) as of March 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive earnings, stockholders' equity and cash flows for each of the three years in the period ended March 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2024, in conformity with U.S. generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2025, in conformity with U.S. generally accepted accounting principles.
The carrying values of cash and cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities approximate their fair values at March 31, 2024, due to the short-term maturities of these assets and liabilities. The fair value of our Revolving Credit Facility and Term Loan also approximates its carrying values at March 31, 2024.
The carrying values of cash and cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities approximate their fair values at March 31, 2025, due to the short-term maturities of these assets and liabilities. The fair value of our Revolving Credit Facility and Term Loan also approximates its carrying values at March 31, 2025.
Opinion on Internal Control Over Financial Reporting We have audited Eagle Materials Inc. and Subsidiaries’ internal control over financial reporting as of March 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Opinion on Internal Control Over Financial Reporting We have audited Eagle Materials Inc. and subsidiaries’ internal control over financial reporting as of March 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
If the carrying value of the assets, or group of assets, exceeds the undiscounted cash flows, then an impairment is indicated.
If the carrying value of the assets, or group of assets, exceeds the undiscounted cash flows, then 79 an impairment is indicated.
In our opinion, Eagle Materials Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2024, based on the COSO criteria.
In our opinion, Eagle Materials Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2025, based on the COSO criteria.
In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which focuses on the rate reconciliation and income taxes paid.
PENDING ADOPTION In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which focuses on the rate reconciliation and income taxes paid.
Auditing management’s process for measuring certain raw materials and materials-in-progress inventory was complex as auditor judgment was necessary to evaluate the Company’s process for measuring the inventory, given the technology utilized, and converting the measurements to tonnage.
Auditing management’s process for measuring certain raw materials and materials-in-progress inventory was complex as auditor judgement was necessary to evaluate the Company’s process for measuring the inventory, given the technology utilized, and converting the measurements to tonnage.
Other Information None of the Company's directors or officers adopted , modified, or terminated a Rule 10b5-1 trading arrangement, or a non-Rule 10b5-1 trading arrangement during the Company's fiscal fourth quarter ended March 31, 2024.
Other Information None of the Company's directors or officers adopted , modified , or terminated a Rule 10b5-1 trading arrangement, or a non-Rule 10b5-1 trading arrangement during the Company's fiscal fourth quarter ended March 31, 2025.
The Company has elected to treat freight and delivery charges we pay for the delivery of goods to our customers as a fulfilment activity rather than a separate performance obligation.
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.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2024 and 2023, the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity and cash flows for each of the three years in the period ended March 31, 2024, and the related notes, and our report dated May 22, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity and cash flows for each of the three years in the period ended March 31, 2025, and the related notes and our report dated May 20, 2025 expressed an unqualified opinion thereon.
We attempt to limit our exposure to changes in commodity prices by entering into contracts or increasing our use of alternative fuels. 63 I TEM 8.
We attempt to limit our exposure to changes in commodity prices by entering into contracts or increasing our use of alternative fuels. 69 I TEM 8.
Based on our evaluation under the framework in Internal Control – Integrated Framework , our management concluded that our internal control over financial reporting was effective as of March 31, 2024.
Based on our evaluation under the framework in Internal Control – Integrated Framework , our management concluded that our internal control over financial reporting was effective as of March 31, 2025.
Segment Operating Earnings don’t include certain nonrecurring losses, such as impairment and legal settlements. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and miscellaneous other assets.
Segment Operating Earnings do not include certain nonrecurring losses, such as impairment and legal settlements. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and miscellaneous other assets.
The state income tax credits may be carried forward indefinitely. We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2019, and forward.
The state income tax credits may be carried forward indefinitely. 102 We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2022, and forward.
The effectiveness of our internal control over financial reporting as of March 31, 2024, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein. 99 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Eagle Materials Inc.
The effectiveness of our internal control over financial reporting as of March 31, 2025, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein. 116 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Eagle Materials Inc.
The fair value of our Senior Unsecured Notes at March 31, 2024 is as follows: Fair Value (dollars in thousands) 2.500 % Senior Unsecured Notes Due 2031 $ 628,000 The estimated fair value of our long-term debt was based on publicly quoted prices of these debt instruments (level 1 input).
The fair value of our Senior Unsecured Notes at March 31, 2025, is as follows: Fair Value (dollars in thousands) 2.500 % Senior Unsecured Notes Due 2031 $ 654,000 The estimated fair value of our long-term debt was based on publicly quoted prices of these debt instruments (level 1 input).
Accounts and Notes Receivable Accounts and Notes Receivable have been shown net of the allowance for doubtful accounts of $ 6.7 million and $ 6.9 million at March 31, 2024 and 2023, respectively. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.
Accounts Receivable Accounts and Notes Receivable have been shown net of the allowance for doubtful accounts of $ 6.4 million and $ 6.7 million at March 31, 2025, and 2024, respectively. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.
Additionally, all entities are required to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and local, and by individual 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.
Additionally, all entities are required to disclose income taxes paid, net of refunds received, disaggregated by federal, state, local, and individual 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. Early adoption and retrospective application are permitted.
The pension plans’ approximate weighted-average asset allocation at March 31, 2024 and 2023, and the range of target allocation are as follows: Percentage of Plan Assets at March 31, Range of Target Allocation 2024 2023 Asset Category Equity Securities 10 – 20 % — 9 % Debt Securities 60 – 90 % 98 % 89 % Other 0 – 20 % 2 % 2 % Total 100 % 100 % Our pension investment strategies have been developed as part of a comprehensive management process that considers the interaction between the assets and liabilities within each plan.
The pension plans’ approximate weighted-average asset allocation at March 31, 2025 and 2024, and the range of target allocation were as follows: Percentage of Plan Assets at March 31, Range of Target Allocation 2025 2024 Asset Category Equity Securities 10 – 20 % — — Debt Securities 60 – 90 % 98 % 98 % Other 0 – 20 % 2 % 2 % Total 100 % 100 % Our pension investment strategies have been developed as part of a comprehensive management process that considers the interaction between the assets and liabilities within each plan.
The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.
The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Major renewals and improvements are capitalized and depreciated. Annual maintenance is expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of depreciable assets and totaled $ 139.5 million, $ 129.6 million, and $ 122.4 million, for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
Major renewals and improvements are capitalized and depreciated. Annual maintenance is expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of depreciable assets and totaled $ 147.6 million, $ 139.5 million, and $ 129.6 million, for the fiscal years ended March 31, 2025, 2024, and 2023, respectively.
The Revolving Credit Facility includes a separate $ 200.0 million term loan facility (the Term Loan) and 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, excluding the Term Loan), provided that the existing lenders, or new lenders, agree to such increase.
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, excluding the Term Loan), provided that the existing lenders, or new lenders, agree to such increase.
Costs relating to the employer discretionary contributions for our plan totaled $ 9.6 million, $ 9.1 million, and $ 8.5 million in fiscal years 2024, 2023, and 2022, respectively.
Costs relating to the employer discretionary contributions for our plan totaled $ 9.8 million, $ 9.6 million, and $ 9.1 million in fiscal years 2025, 2024, and 2023, respectively.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas May 22, 2024 I TEM 9b.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas May 20, 2025 118 I TEM 9b.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2024, based on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 22, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 20, 2025 expressed an unqualified opinion thereon.
We elected to perform a Step 1 quantitative test on all of our reporting units with Goodwill during the fourth quarter of fiscal 2024. We estimated the fair value of the reporting unit using a discounted cash flow model as well as a market analysis.
We performed a step 1 quantitative test on all our reporting units with Goodwill during the fourth quarter of fiscal 2024. We estimated the fair value of the reporting units using a discounted cash flow model as well as a market analysis.
The change in unrecognized tax benefits for the years ended March 31, 2024, 2023, and 2022 was as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Balance at Beginning of Year $ 1,284 $ 1,284 $ 1,284 Increase Related to Current Tax Positions — — — Decrease Related to Current Tax Positions — — — Payments — — — $ 1,284 $ 1,284 $ 1,284 We classify interest and penalties related to uncertain tax positions as current income tax expense.
The changes in unrecognized tax benefits for the years ended March 31, 2025, 2024, and 2023 were as follows: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Balance at Beginning of Year $ 1,284 $ 1,284 $ 1,284 Increase Related to Current Tax Positions — — — Decrease Related to Prior Year Tax Positions ( 1,284 ) — — Payments — — — $ — $ 1,284 $ 1,284 We classify interest and penalties related to uncertain tax positions as current income tax expense.
We performed qualitative assessments on all of our reporting units in the fourth quarter of fiscal years 2023 and 2022. As a result of these qualitative assessments, we determined it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative test in either fiscal 2023 or fiscal 2022.
We performed qualitative assessments on all our reporting units in the fourth quarter of fiscal 2025. As a result of these qualitative assessments, we determined it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative test in fiscal 2025.
Approximately $ 215.3 million, $ 229.6 million, and $ 199.1 million of freight for the fiscal years ended March 31, 2024, 2023, and 2022, respectively, were included in both Revenue and Cost of Goods Sold in our Consolidated Statement of Earnings.
Approximately $ 211.2 million, $ 215.3 million, and $ 229.6 million of freight for the fiscal years ended March 31, 2025, 2024, and 2023, respectively, were included in both Revenue and Cost of Goods Sold in our Consolidated Statement of Earnings.
We anticipate the total expense in fiscal 2025 related to these plans will be approximately $ 2.0 million. 96 R eport of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Eagle Materials Inc.
We anticipate the total expense in fiscal 2026 related to these plans will be approximately $ 0.5 million . 113 R eport of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Eagle Materials Inc.
Based on our current actuarial estimates, we do no t anticipate making any contributions to our defined benefit plans for fiscal 2025. 94 The fair values of our defined benefit plans’ consolidated assets by category as of March 31, 2024 and 2023 were as follows: March 31, 2024 2023 (dollars in thousands) Equity Securities $ — $ 2,878 Fixed Income Securities 29,541 27,811 Cash Equivalents 583 417 Total $ 30,124 $ 31,106 The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Footnote (A) to the Consolidated Financial Statements.
Based on our current actuarial estimates, we do no t anticipate making any contributions to our defined benefit plans for fiscal 2026. 111 The fair values of our defined benefit plans’ consolidated assets by category as of March 31, 2025 and 2024 were as follows: March 31, 2025 2024 (dollars in thousands) Equity Securities $ — $ — Fixed Income Securities 29,010 29,541 Cash Equivalents 482 583 Total $ 29,492 $ 30,124 The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Footnote (A) to the Consolidated Financial Statements.
At March 31, 2024, we had contingent liabilities under these outstanding letters of credit of approximately $ 8.3 million. We are currently contingently liable for performance under $ 29.3 million in performance bonds required by certain states and municipalities, and their related agencies. The bonds are principally for certain reclamation obligations and mining permits.
At March 31, 2025, we had contingent liabilities under these outstanding letters of credit of approximately $ 9.9 million. 103 We are currently contingently liable for performance under $ 43.9 million in performance bonds required by certain states and municipalities, and their related agencies. The bonds are principally for certain reclamation obligations and mining permits.
The fair values by category of inputs as of March 31, 2024, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ — $ — $ — Fixed Income Securities — 29,541 — 29,541 Cash Equivalents 583 — — 583 $ 583 $ 29,541 $ — $ 30,124 The fair values by category of inputs as of March 31, 2023, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ 2,878 $ — $ 2,878 Fixed Income Securities — 27,811 — 27,811 Cash Equivalents 417 — — 417 $ 417 $ 30,689 $ — $ 31,106 Equity securities consist of funds that are not actively traded.
The fair values by category of inputs as of March 31, 2025, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ — $ — $ — Fixed Income Securities — 29,010 — 29,010 Cash Equivalents 482 — — 482 $ 482 $ 29,010 $ — $ 29,492 The fair values by category of inputs as of March 31, 2024, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ — $ — $ — Fixed Income Securities — 29,541 — 29,541 Cash Equivalents 583 — — 583 $ 583 $ 29,541 $ — $ 30,124 Equity securities consist of funds that are not actively traded.
The segment breakdown of Goodwill at March 31, 2024 and 2023 is as follows: For the Years Ended March 31, 2024 2023 (dollars in thousands) Cement $ 227,639 $ 215,781 Concrete and Aggregates 40,774 40,774 Gypsum Wallboard 116,618 116,618 Paperboard 7,538 7,538 $ 392,569 $ 380,711 Summarized financial information for the Joint Venture that is not consolidated is set out below.
The segment breakdown of Goodwill at March 31, 2025, and 2024 is as follows: For the Years Ended March 31, 2025 2024 (dollars in thousands) Cement $ 227,639 $ 227,639 Concrete and Aggregates 118,099 40,774 Gypsum Wallboard 116,618 116,618 Recycled Paperboard 7,538 7,538 $ 469,894 $ 392,569 Summarized financial information for the Joint Venture that is not consolidated is set out below.
Other Nonoperating Income includes lease and rental income, asset sale income, non-inventoried aggregates sales income, and trucking income, as well as other miscellaneous revenue items and costs that have not been allocated to a business segment.
Other Nonoperating Income includes lease and rental income, asset sale income, non-inventoried aggregates sales income, and trucking income, as well as other miscellaneous revenue items and costs that have not been allocated to a business segment. See Footnote (H) for disaggregation of Revenue by segment.
At March 31, 2024, there was approximately $ 1.7 million of unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted-average period of 1.9 years.
At March 31, 2025, there was approximately $ 1.1 million of unrecognized compensation expense related to outstanding stock options, which is expected to be recognized over a weighted-average period of 1.0 years.
Dallas, Texas May 22, 20 24 98 I TEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. I tem 9a.
Dallas, Texas May 20, 20 25 115 I TEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. I tem 9a.
We also made matching contributions to the hourly profit sharing plan for certain of our entities totaling $ 1.8 million , $ 1.4 million, and $ 1.3 million for these employees during fiscal years 2024, 2023, and 2022, respectively. 95 Approximately 50 of our employees belong to two different multi-employer plans.
We also made matching contributions to the hourly profit-sharing plan for certain of our entities totaling $ 2.7 million, $ 1.8 million, and $ 1.4 million for these employees during fiscal years 2025, 2024, and 2023, respectively. Historically, approximately 50 of our employees each belong to one of two multi-employer plans.
Raw Materials and Materials-in-Progress inventory existence Description of the Matter As described in Note A, the Company’s raw materials and materials-in-progress inventory balance was $122.8 million at March 31, 2024.
Raw Materials and Materials-in-Progress inventory existence Description of the Matter As described in Note A, the Company’s raw materials and materials-in-progress inventory balance was $164.7 million at March 31, 2025.
At March 31, 2024, we had $170.0 million outstanding under the Revolving Credit Facility and $182.5 million outstanding under the Term Loan, under which borrowings bear interest at a variable rate based on the secured overnight financing rate (SOFR).
At March 31, 2025, we had $200.0 million outstanding under the Revolving Credit Facility and $296.3 million outstanding under the Term Loan, under which borrowings bear interest at a variable rate based on the secured overnight financing rate (SOFR).
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 5, 2027.
The Revolving Credit Facility includes a $ 40.0 million letter of credit facility and a swingline loan sub-facility of $ 25.0 million.
The Fiscal 2024 Employee Restricted Stock Performance Award and the Fiscal 2024 Employee Restricted Stock Time-Vesting Award were valued at the closing price of the stock on the date of grant and are being expensed over a three-year period.
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 annual measurement date is March 31 for the benefit obligations, fair value of plan assets, and the funded status of the defined benefit plans. 92 The following table provides a reconciliation of the Benefit Obligations and Fair Values of Plan Assets for all defined benefit plans for the years ended March 31, 2024 and 2023, as well as a statement of the funded status for the same periods: For the Years Ended March 31, 2024 2023 (dollars in thousands) Reconciliation of Benefit Obligations Benefit Obligation at April 1, $ 29,189 $ 33,909 Interest Cost on Projected Benefit Obligation 1,413 1,240 Actuarial Gain ( 829 ) ( 4,509 ) Benefits Paid ( 1,643 ) ( 1,451 ) Benefit Obligation at March 31, $ 28,130 $ 29,189 Reconciliation of Fair Value of Plan Assets Fair Value of Plan Assets at April 1, $ 31,106 $ 36,313 Actual Return on Plan Assets 641 ( 3,756 ) Employer Contributions 20 — Benefits Paid ( 1,643 ) ( 1,451 ) Fair Value of Plan Assets at March 31, 30,124 31,106 Funded Status Funded Status at March 31, $ 1,994 $ 1,917 Amounts Recognized in the Balance Sheet Include: Other Assets $ 1,994 $ 1,917 Accumulated Other Comprehensive Losses Net Actuarial Loss 4,454 4,662 Accumulated Other Comprehensive Losses $ 4,454 $ 4,662 Tax Impact ( 1,081 ) ( 1,115 ) Accumulated Other Comprehensive Losses, net of tax $ 3,373 $ 3,547 Net periodic pension cost for the fiscal years ended March 31, 2024, 2023, and 2022, included the following components: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Interest Cost of Projected Benefit Obligation 1,413 1,240 1,167 Expected Return on Plan Assets ( 1,512 ) ( 1,366 ) ( 1,299 ) Recognized Net Actuarial Loss 250 123 143 Net Periodic Pension Cost $ 151 $ ( 3 ) $ 11 Expected benefit payments over the next five years, and the following five years under the pension plans are expected to be as follows (dollars in thousands): Fiscal Years Total 2025 $ 1,843 2026 $ 1,874 2027 $ 1,951 2028 $ 1,988 2029 $ 1,962 2030-2034 $ 9,853 The following tables set forth the assumptions used in the actuarial calculations of the present value of Net Periodic Benefit Costs and Benefit Obligations: 93 March 31, 2024 2023 2022 Net Periodic Benefit Costs Discount Rate 4.99 % 3.75 % 3.33 % Expected Return on Plan Assets 5.00 % 3.85 % 3.50 % Rate of Compensation Increase n/a n/a n/a March 31, 2024 2023 Benefit Obligations Discount Rate 5.27 % 4.99 % Rate of Compensation Increase n/a n/a The expected long-term rate of return on plan assets is an assumption reflecting the anticipated weighted-average rate of earnings on the portfolio over the long term.
The annual measurement date is March 31 for the benefit obligations, fair value of plan assets, and the funded status of the defined benefit plans. 108 The following table provides a reconciliation of the Benefit Obligations and Fair Values of Plan Assets for all defined benefit plans for the years ended March 31, 2025, and 2024, as well as a statement of the funded status for the same periods: For the Years Ended March 31, 2025 2024 (dollars in thousands) Reconciliation of Benefit Obligations Benefit Obligation at April 1, $ 28,130 $ 29,189 Interest Cost on Projected Benefit Obligation 1,434 1,413 Actuarial Gain ( 612 ) ( 829 ) Benefits Paid ( 1,669 ) ( 1,643 ) Benefit Obligation at March 31, $ 27,283 $ 28,130 Reconciliation of Fair Value of Plan Assets Fair Value of Plan Assets at April 1, $ 30,124 $ 31,106 Actual Return on Plan Assets 1,037 641 Employer Contributions — 20 Benefits Paid ( 1,669 ) ( 1,643 ) Fair Value of Plan Assets at March 31, 29,492 30,124 Funded Status Funded Status at March 31, $ 2,209 $ 1,994 Amounts Recognized in the Balance Sheet Include: Other Assets $ 2,209 $ 1,994 Accumulated Other Comprehensive Losses Net Actuarial Loss 4,115 4,454 Accumulated Other Comprehensive Losses $ 4,115 $ 4,454 Tax Impact ( 990 ) ( 1,081 ) Accumulated Other Comprehensive Losses, net of tax $ 3,125 $ 3,373 109 Net periodic pension cost for the fiscal years ended March 31, 2025, 2024, and 2023, included the following components: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Interest Cost of Projected Benefit Obligation 1,434 1,413 1,240 Expected Return on Plan Assets ( 1,548 ) ( 1,512 ) ( 1,366 ) Recognized Net Actuarial Loss 238 250 123 Net Periodic Pension Cost $ 124 $ 151 $ ( 3 ) Expected benefit payments over the next five years, and the following five years under the pension plans are expected to be as follows (dollars in thousands): Fiscal Years Total 2026 $ 1,898 2027 $ 1,977 2028 $ 2,012 2029 $ 1,984 2030 $ 2,017 2031-2035 $ 9,899 The following tables set forth the assumptions used in the actuarial calculations of the present value of Net Periodic Benefit Costs and Benefit Obligations: March 31, 2025 2024 2023 Net Periodic Benefit Costs Discount Rate 5.27 % 4.99 % 3.75 % Expected Return on Plan Assets 5.30 % 5.00 % 3.85 % Rate of Compensation Increase n/a n/a n/a March 31, 2025 2024 Benefit Obligations Discount Rate 5.53 % 5.27 % Rate of Compensation Increase n/a n/a 110 The expected long-term rate of return on plan assets is an assumption reflecting the anticipated weighted-average rate of earnings on the portfolio over the long term.
The summarized financial information includes the total amount of the Joint Venture and not our 50% interest in those amounts: For the Years Ended March 31, 2024 2023 (dollars in thousands) Revenue $ 225,503 $ 227,565 Gross Margin $ 71,077 $ 77,673 Earnings Before Income Taxes $ 63,644 $ 71,491 As of March 31, 2024 2023 (dollars in thousands) Current Assets $ 111,164 $ 88,562 Noncurrent Assets $ 158,618 $ 124,503 Current Liabilities $ 27,994 $ 29,434 On May 1, 2024, the Company and HM Southeast Cement LLC, a subsidiary of Heidelberg Materials, (our Joint Venture Partner) entered into a put option agreement (Put Option Agreement) that provides for the grant of reciprocal put options by the parties with respect to their 50 % partnership interests in the Joint Venture.
The summarized financial information includes the total amount of the Joint Venture and not our 50% interest in those amounts: For the Years Ended March 31, 2025 2024 (dollars in thousands) Revenue $ 221,937 $ 225,503 Gross Margin $ 60,789 $ 71,077 Earnings Before Income Taxes $ 53,217 $ 63,644 As of March 31, 2025 2024 (dollars in thousands) Current Assets $ 128,384 $ 111,164 Noncurrent Assets $ 207,910 $ 158,618 Current Liabilities $ 25,618 $ 27,994 Noncurrent Liabilities $ 30,152 $ 14,974 99 On May 1, 2024, the Company and HM Southeast Cement LLC, a subsidiary of Heidelberg Materials, (our Joint Venture Partner) entered into a put option agreement (Put Option Agreement) that provides for the grant of reciprocal put options by the parties with respect to their 50 % partnership interests in the Joint Venture.
There were 16,609, 52,375, and 6,053 stock options at an average exercise price of $ 133.91 per share, $ 127.06 per share, and $ 139.80 per share, respectively, that were excluded from the computation of 75 diluted earnings per share for the fiscal years ended March 31, 2024, 2023, and 2022, because such inclusion would have been anti-dilutive.
For the fiscal years ended March 31, 2025, 2024, and 2023, there were 4,404 , 16,609 , and 52,375 stock options at an average exercise price of $ 240.32 per share, $ 133.91 per share, and $ 127.06 per share, respectively, that were excluded from the computation of diluted earnings per share, because including these options would have been anti-dilutive.
(L) Net Interest Expense The following components are included within Interest Expense, net: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Interest Income $ ( 1,043 ) $ ( 421 ) $ ( 39 ) Interest Expense 41,403 33,706 21,637 Other Expenses 1,897 1,886 9,275 Interest Expense, net $ 42,257 $ 35,171 $ 30,873 Interest Income includes interest earned on investments of excess Cash and Cash Equivalents.
(L) Net Interest Expense The following components are included within Interest Expense, net: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Interest Income $ ( 1,718 ) $ ( 1,043 ) $ ( 421 ) Interest Expense 40,237 41,403 33,706 Other Expenses 2,007 1,897 1,886 Interest Expense, net $ 40,526 $ 42,257 $ 35,171 107 Interest Income includes interest earned on investments of excess Cash and Cash Equivalents.
We were in compliance with all covenants at March 31, 2024; therefore, all $ 571.7 million is available for future borrowings. 80 Term Loan On May 5, 2022, we borrowed the $ 200.0 million Term Loan under the Revolving Credit Facility, and used these proceeds to, among other things, pay down a portion of the Revolving Credit Facility.
We were in compliance with all covenants at March 31, 2025; therefore, all $ 540.1 million is available for future borrowings. Term Loan On February 4, 2025, we borrowed an additional $ 125.0 million under the Term Loan, and used these proceeds to, among other things, pay down a portion of the Revolving Credit Facility.
The contracts comprise approximately 35 % of our anticipated natural gas usage. 88 (K) Stock Option Plans On August 3, 2023, our stockholders approved the Eagle Materials Inc. 2023 Equity Incentive Plan (the 2023 Plan), which reserves 1,425,000 shares for future grants of stock awards.
(K) EQUITY AWARDS On August 3, 2023, our stockholders approved the Eagle Materials Inc. 2023 Equity Incentive Plan (the 2023 Plan), which reserves 1,425,000 shares for future grants of stock awards.
Total Selling, General, and Administrative Expenses for each of the periods are summarized as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Operating Units Selling, G&A $ 75,001 $ 65,468 $ 56,561 Corporate G&A 59,795 53,630 46,801 $ 134,796 $ 119,098 $ 103,362 Earnings per Share For the Years Ended March 31, 2024 2023 2022 Weighted-Average Shares of Common Stock Outstanding 34,811,560 36,798,354 40,547,048 Effect of Dilutive Shares: Assumed Exercise of Outstanding Dilutive Options 304,889 418,659 539,309 Less Shares Repurchased from Proceeds of Assumed Exercised Options ( 157,457 ) ( 290,590 ) ( 343,917 ) Restricted Stock Units 138,879 126,519 187,272 Weighted-Average Common Stock and Dilutive Securities Outstanding 35,097,871 37,052,942 40,929,712 The line Less Shares Repurchased from Proceeds of Assumed Exercised Options includes unearned compensation related to outstanding stock options.
Total Selling, General, and Administrative Expenses for the past three fiscal years are summarized as follows: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Operating Units Selling, G&A $ 74,713 $ 75,001 $ 65,468 Corporate G&A 73,942 59,795 53,630 $ 148,655 $ 134,796 $ 119,098 82 Earnings per Share For the Years Ended March 31, 2025 2024 2023 Weighted-Average Shares of Common Stock Outstanding 33,378,050 34,811,560 36,798,354 Effect of Dilutive Shares: Assumed Exercise of Outstanding Dilutive Options 218,434 304,889 418,659 Less Shares Repurchased from Proceeds of Assumed Exercised Options ( 82,734 ) ( 157,457 ) ( 290,590 ) Restricted Stock and Restricted Stock Units 132,645 138,879 126,519 Weighted-Average Common Stock and Dilutive Securities Outstanding 33,646,395 35,097,871 37,052,942 The line Less Shares Repurchased from Proceeds of Assumed Exercised Options includes unearned compensation related to outstanding stock options.
The Put Option Agreement is effective for 15 months , and expires on August 1, 2025 . 85 (I) Income Taxes The provision for income taxes from continuing operations includes the following components: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Current Provision Federal $ 111,690 $ 103,940 $ 87,626 State 20,689 18,520 6,924 132,379 122,460 94,550 Deferred Provision (Benefit) Federal 5,607 11,321 3,491 State 2,312 ( 6,728 ) 2,806 7,919 4,593 6,297 Provision for Income Taxes $ 140,298 $ 127,053 $ 100,847 The effective tax rates vary from the federal statutory rates due to the following items: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Earnings Before Income Taxes $ 617,937 $ 588,593 $ 475,094 Income Taxes at Statutory Rate $ 129,766 $ 123,605 $ 99,770 Increases (Decreases) in Tax Resulting from State Income Taxes, net 18,172 16,821 12,743 Statutory Depletion in Excess of Cost ( 9,883 ) ( 8,253 ) ( 7,796 ) Excess Tax Benefit from Stock Compensation ( 5,417 ) ( 1,593 ) ( 3,048 ) Meals and Entertainment Disallowance 524 484 279 Limitation on Officer's Compensation 6,513 3,009 2,568 Valuation Allowance 500 ( 7,205 ) ( 4,556 ) Other 123 185 887 Provision for Income Taxes $ 140,298 $ 127,053 $ 100,847 Effective Tax Rate 23 % 22 % 21 % 86 Components of deferred income taxes are as follows: March 31, 2024 2023 (dollars in thousands) Items Giving Rise to Deferred Tax Liabilities Excess Tax Depreciation and Amortization $ ( 260,577 ) $ ( 253,541 ) Investment in Joint Venture Basis Differences ( 4,294 ) ( 8,744 ) Depletable Assets ( 7,710 ) ( 3,876 ) Right-of-Use Assets ( 4,774 ) ( 5,202 ) Inventory — ( 406 ) Other ( 2,956 ) ( 2,908 ) Total Deferred Tax Liabilities $ ( 280,311 ) $ ( 274,677 ) Items Giving Rise to Deferred Tax Assets Change in Accruals $ 13,313 $ 12,886 Bad Debts 1,621 1,662 Long-term Incentive Compensation Plan 3,622 3,515 Credits and Other Carryforwards 11,466 12,995 Lease Liability 6,598 7,647 Inventory 307 — Pension 1,087 1,128 Subtotal 38,014 39,833 Valuation Allowance ( 2,500 ) ( 2,000 ) Total Deferred Tax Assets $ 35,514 $ 37,833 We record Deferred Tax Assets and Liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences.
(I) Income Taxes The provision for income taxes from continuing operations includes the following components: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Current Provision Federal $ 114,606 $ 111,690 $ 103,940 State 18,411 20,689 18,520 133,017 132,379 122,460 Deferred Provision (Benefit) Federal ( 5,117 ) 5,607 11,321 State 169 2,312 ( 6,728 ) ( 4,948 ) 7,919 4,593 Provision for Income Taxes $ 128,069 $ 140,298 $ 127,053 100 The effective tax rates vary from the federal statutory rates due to the following items: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Earnings Before Income Taxes $ 591,485 $ 617,937 $ 588,593 Income Taxes at Statutory Rate $ 124,212 $ 129,766 $ 123,605 Increases (Decreases) in Tax Resulting From State Income Taxes, net 14,680 18,172 16,821 Statutory Depletion in Excess of Cost ( 9,927 ) ( 9,883 ) ( 8,253 ) Excess Tax Benefit from Stock Compensation ( 3,951 ) ( 5,417 ) ( 1,593 ) Meals and Entertainment Disallowance 478 524 484 Limitation on Officers' Compensation 4,843 6,513 3,009 Valuation Allowance 500 500 ( 7,205 ) Other ( 2,766 ) 123 185 Provision for Income Taxes $ 128,069 $ 140,298 $ 127,053 Effective Tax Rate 22 % 23 % 22 % 101 Components of deferred income taxes are as follows: For the Years Ended March 31, 2025 2024 (dollars in thousands) Items Giving Rise to Deferred Tax Liabilities Excess Tax Depreciation and Amortization $ ( 256,999 ) $ ( 260,577 ) Depletable Assets ( 4,455 ) ( 4,294 ) Investment in Joint Venture Basis Differences ( 6,436 ) ( 7,710 ) Right-of-Use Assets ( 7,996 ) ( 4,774 ) Inventory ( 1,276 ) — Other — ( 2,956 ) Total Deferred Tax Liabilities $ ( 277,162 ) $ ( 280,311 ) Items Giving Rise to Deferred Tax Assets Change in Accruals $ 12,866 $ 13,313 Bad Debts 1,551 1,621 Long-term Incentive Compensation Plan 4,609 3,622 Credits and Other Carryforwards 9,905 11,466 Lease Liability 9,303 6,598 Inventory — 307 Pension 984 1,087 Other 1,002 — Subtotal 40,220 38,014 Valuation Allowance ( 3,000 ) ( 2,500 ) Total Deferred Tax Assets $ 37,220 $ 35,514 We record Deferred Tax Assets and Liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences.
Additionally, we lease certain equipment under short-term leases with initial terms of less than 12 months. These short-term equipment leases are not recorded on the balance sheet.
Additionally, we lease certain equipment under short-term leases with initial terms of less than 12 months.
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). 82 We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and over 30 cement distribution terminals, including terminals acquired in the Stockton Terminal Acquisition.
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).
The Term Loan requires quarterly principal payments of $ 2.5 million, with any unpaid amounts due upon maturity on May 5, 2027 .
The Term Loan requires quarterly principal payments of $ 3.8 million, with any unpaid amounts due upon maturity on February 4, 2030 .
Consolidated Cash Flows – Supplemental Disclosures Supplemental cash flow information is as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Cash Payments: Interest $ 43,663 $ 31,596 $ 21,298 Income Taxes 124,482 131,512 86,407 Operating Cash Flows Used for Operating Leases 9,286 8,314 8,141 Noncash Financing Activities: Right-of-Use Assets Obtained for Capitalized Operating Leases $ 6,465 $ 1,711 $ 2,598 Excise Tax on Share Repurchases 3,432 738 — Selling, General, and Administrative Expenses Selling, General, and Administrative Expenses of the operating units are included in Cost of Goods Sold on the Consolidated Statements of Earnings.
Comprehensive Income/Losses As of March 31, 2025, we have an Accumulated Other Comprehensive Loss of $ 3.1 million, which is net of income taxes of $ 1.0 million, in connection with recognizing the difference between the fair value of the pension assets and the projected benefit obligation. 81 Consolidated Cash Flows – Supplemental Disclosures Supplemental cash flow information is as follows: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Cash Payments: Interest $ 42,368 $ 43,663 $ 31,596 Income Taxes 140,786 124,482 131,512 Operating Cash Flows Used for Operating Leases 8,708 9,286 8,314 Noncash Financing Activities: Right-of-Use Assets Obtained for Capitalized Operating Leases $ 18,373 $ 6,465 $ 1,711 Excise Tax on Share Repurchases 2,982 3,432 738 Selling, General, and Administrative Expenses Selling, General, and Administrative Expenses of the operating units are included in Cost of Goods Sold on the Consolidated Statements of Earnings.
Lease expense for our operating and short-term leases is as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Operating Lease Cost $ 8,030 $ 7,339 $ 6,543 Short-term Lease Cost 691 593 1,261 Total Lease Cost $ 8,721 $ 7,932 $ 7,804 78 The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows: March 31, 2024 2023 (dollars in thousands) Operating Leases: Operating Lease Right-of-Use Assets $ 19,373 $ 20,759 Current Operating Lease Liabilities $ 7,899 $ 6,009 Noncurrent Operating Lease Liabilities 19,037 24,940 Total Operating Lease Liabilities $ 26,936 $ 30,949 Future payments for operating leases are as follows: Amount Fiscal Year (dollars in thousands) 2025 $ 8,650 2026 4,785 2027 3,619 2028 2,752 2029 2,675 Thereafter 11,006 Total Lease Payments $ 33,487 Less: Imputed Interest ( 6,551 ) Present Value of Lease Liabilities $ 26,936 Weighted-Average Remaining Lease Term (in years) 9.6 Weighted-Average Discount Rate 4.16 % (F) Indebtedness Long-term debt consists of the following: As of March 31, 2024 2023 (dollars in thousands) Revolving Credit Facility $ 170,000 $ 157,000 2.500 % Senior Unsecured Notes Due 2031 750,000 750,000 Term Loan 182,500 192,500 Total Debt 1,102,500 1,099,500 Less: Current Portion of Long-term Debt ( 10,000 ) ( 10,000 ) Less: Unamortized Discount and Debt Issuance Costs ( 9,201 ) ( 10,468 ) Long-term Debt $ 1,083,299 $ 1,079,032 The weighted-average interest rate of borrowings under our Revolving Credit Facility during fiscal years 2024, 2023, and 2022 was approximately 6.6 %, 3.7 %, and 1.5 %, respectively.
These short-term equipment leases are not recorded on the balance sheet. 88 Lease expense for our operating and short-term leases is as follows: For the Years Ended March 31, 2025 2024 2023 (dollars in thousands) Operating Lease Cost $ 7,953 $ 8,030 $ 7,339 Short-term Lease Cost 1,306 691 593 Total Lease Cost $ 9,259 $ 8,721 $ 7,932 The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows: March 31, 2025 2024 (dollars in thousands) Operating Leases: Operating Lease Right-of-Use Assets $ 29,313 $ 19,373 Current Operating Lease Liabilities $ 4,032 $ 7,899 Noncurrent Operating Lease Liabilities 33,597 19,037 Total Operating Lease Liabilities $ 37,629 $ 26,936 89 Future payments for operating leases are as follows: Amount Fiscal Year (dollars in thousands) 2025 $ 5,015 2026 4,239 2027 3,550 2028 3,586 2029 3,725 Thereafter 30,002 Total Lease Payments $ 50,117 Less: Imputed Interest ( 12,488 ) Present Value of Lease Liabilities $ 37,629 Weighted-Average Remaining Lease Term (in years) 12.6 Weighted-Average Discount Rate 4.32 % (F) Indebtedness Long-term debt consists of the following: As of March 31, 2025 2024 (dollars in thousands) Revolving Credit Facility $ 200,000 $ 170,000 2.500 % Senior Unsecured Notes Due 2031 750,000 750,000 Term Loan 296,250 182,500 Total Debt 1,246,250 1,102,500 Less: Current Portion of Long-term Debt ( 15,000 ) ( 10,000 ) Less: Unamortized Discount and Debt Issuance Costs ( 7,934 ) ( 9,201 ) Long-term Debt $ 1,223,316 $ 1,083,299 90 The weighted-average interest rates of borrowings under our Revolving Credit Facility during fiscal years 2025, 2024, and 2023 were approximately 6.5 %, 6.6 %, and 3.7 %, respectively.
(H) Business Segments 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 in order to allocate resources and assess performance. Our business is organized into two sectors within which there are four reportable business segments.
(H) Business Segments 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.
Options granted under the Fiscal 2024 Board Stock Option Award vest one year after the date of grant, and can be exercised from the vesting date until their expiration on the tenth anniversary of the grant date. 89 All stock options issued during fiscal 2024 and 2023 were valued at the grant date using the Black-Scholes option pricing model.
Options granted under the Fiscal 2025 Board of Directors Stock Option Award vest one year after the grant date and can be exercised from the date of vesting until their expiration on the tenth anniversary of the grant date .
We have certain forward purchase contracts, primarily for natural gas, that expire during calendar years 2024 and 2025.
We have certain forward purchase contracts, primarily for natural gas, that expire during calendar years 2025 and 2026. The contracts comprise approximately 20 % of our anticipated natural gas usage.
We had state net operating loss carryforwards of $ 1.6 million at March 31, 2024, compared with $ 2.3 million at March 31, 2023, net of Valuation Allowance. We had state income tax credit carryforwards of $ 9.9 million at March 31, 2024, compared with $ 10.7 million at March 31, 2023, net of Valuation Allowance.
We had state net operating loss carryforwards of $ 1.6 million at both March 31, 2025 and 2024, net of Valuation Allowances. We had state income tax credit carryforward deferred tax assets of $ 8.3 million at March 31, 2025, and $ 9.9 million at March 31, 2023, net of Valuation Allowances.
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 that is 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 the sale of cement, concrete, aggregates, and gypsum wallboard, which is not under 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. 80 Revenue from sales under our long-term supply agreements is also recognized upon transfer of control to the customer, which occurs at the time the product is shipped from the production facility.
Inventories consist of the following: March 31, 2024 2023 (dollars in thousands) Raw Materials and Materials-in-Progress $ 122,772 $ 96,880 Finished Cement 71,396 46,364 Aggregates 12,149 8,309 Gypsum Wallboard 5,242 4,244 Paperboard 14,278 8,651 Repair Parts and Supplies 127,511 112,885 Fuel and Coal 20,575 14,549 $ 373,923 $ 291,882 Property, Plant, and Equipment Property, Plant, and Equipment are stated at cost.
Inventories consist of the following: March 31, 2025 2024 (dollars in thousands) Raw Materials and Materials-in-Progress $ 164,683 $ 122,772 Finished Cement 67,711 71,396 Aggregates 17,681 12,149 Gypsum Wallboard 5,708 5,242 Recycled Paperboard 7,814 14,278 Repair Parts and Supplies 126,983 127,511 Fuel and Coal 24,595 20,575 $ 415,175 $ 373,923 Property, Plant, and Equipment Property, Plant, and Equipment are stated at cost.
The following table summarizes the allocation of the Purchase Price to assets acquired and liabilities assumed: (dollars in thousands) Inventory $ 14,809 Prepaid and Other Assets 179 Property, Plant, and Equipment 12,737 Lease Right-of-Use Assets 1,646 Intangible Assets 16,100 Lease Obligations ( 1,646 ) Other Long-term Liabilities ( 630 ) Goodwill 11,858 Total Purchase Price $ 55,053 The estimated useful lives assigned to Property, Plant, and Equipment range from 5 to 15 years, while the estimated useful lives assigned to Intangible Assets are 15 years.
The following table summarizes the allocation of the Purchase Price to assets acquired and liabilities assumed: (dollars in thousands) Inventory $ 1,067 Property, Plant, and Equipment 18,237 Lease Right-of-Use Assets 757 Intangible Assets 1,309 Accrued Liabilities ( 71 ) Lease Obligations ( 757 ) Other Long-term Liabilities ( 1,422 ) Total Net Assets Acquired 19,120 Goodwill 5,761 Total Purchase Price $ 24,881 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 15 years.
We incurred $ 220.1 million, $ 173.4 million, and $ 147.8 million of maintenance and repair expenses in the fiscal years ended March 31, 2024, 2023, and 2022, respectively, which is included in Cost of Goods Sold on the Consolidated Statement of Earnings.
We incurred $ 248.4 million, $ 220.1 million, and $ 173.4 million of maintenance and repair expenses in the fiscal years ended March 31, 2025, 2024, and 2023, respectively, which is included in Cost of Goods Sold on the Consolidated Statement of Earnings. 77 Goodwill and Intangible Assets Goodwill We annually assess Goodwill in the fourth quarter of our fiscal year, or more frequently when indicators of impairment exist.
Amortization expense is expected to be approximately $ 7.7 million in fiscal 2025, $ 7.6 million in fiscal 2026, $ 7.5 million in fiscal 2027, $ 7.4 million in fiscal 2028, and $ 7.1 million in fiscal 2029.
Amortization expense is expected to be approximately $ 10.3 million in fiscal 2026, $ 10.1 million in fiscal 2027, $ 10.0 million in fiscal 2028 and $ 9.8 million in fiscal 2029 and fiscal 2030.
The following table shows stock option activity for the years presented: For the Years Ended March 31, 2024 2023 2022 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding Options at Beginning of Year 436,949 $ 89.69 456,849 $ 83.81 708,501 $ 83.85 Granted 5,558 $ 172.62 56,621 $ 125.90 11,316 $ 140.42 Exercised ( 189,143 ) $ 90.40 ( 73,343 ) $ 80.19 ( 247,578 ) $ 86.97 Cancelled ( 1,000 ) $ 73.37 ( 3,178 ) $ 109.15 ( 15,390 ) $ 76.63 Outstanding Options at End of Year 252,364 $ 91.28 436,949 $ 89.69 456,849 $ 83.81 Options Exercisable at End of Year 215,913 339,043 314,624 Weighted-Average Fair Value of Options Granted During the Year $ 69.84 $ 48.36 $ 49.18 The following table summarizes information about stock options outstanding at March 31, 2024: Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Shares Outstanding Weighted- Average Exercise Price $ 59.32 - $ 81.28 107,490 5.64 $ 62.50 107,490 $ 62.50 $ 91.21 - $ 106.00 75,608 4.27 $ 94.15 73,750 $ 94.07 $ 118.27 - $ 190.97 69,266 8.08 $ 131.95 34,673 $ 130.74 252,364 5.90 $ 91.04 215,913 $ 84.24 At March 31, 2024, the aggregate intrinsic value for outstanding and exercisable options was approximately $ 45.6 million and $ 40.5 million, respectively.
The following table shows stock option activity for the years presented: For the Years Ended March 31, 2025 2024 2023 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding Options at Beginning of Year 252,364 $ 91.28 436,949 $ 89.69 456,849 $ 83.81 Granted 5,476 $ 244.92 5,558 $ 172.62 56,621 $ 125.90 Exercised ( 72,553 ) $ 90.20 ( 189,143 ) $ 90.40 ( 73,343 ) $ 80.19 Cancelled ( 1,054 ) $ 125.97 ( 1,000 ) $ 73.37 ( 3,178 ) $ 109.15 Outstanding Options at End of Year 184,233 $ 95.75 252,364 $ 91.28 436,949 $ 89.69 Options Exercisable at End of Year 162,740 215,913 339,043 Weighted-Average Fair Value of Options Granted During the Year $ 104.45 $ 69.84 $ 48.36 The following table summarizes information about stock options outstanding at March 31, 2025: Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Shares Outstanding Weighted- Average Exercise Price $ 59.32 - $ 81.28 88,060 4.54 $ 63.01 88,060 $ 63.01 $ 91.21 - $ 100.88 32,852 3.27 $ 94.95 32,852 $ 94.95 $ 118.27 - $ 139.25 48,931 7.11 $ 126.59 35,272 $ 127.06 $ 143.09 - $ 261.76 14,390 8.13 $ 193.10 6,556 $ 159.30 184,233 5.28 $ 95.75 162,740 $ 87.22 106 At March 31, 2025, the aggregate intrinsic values for outstanding and exercisable options were approximately $ 23.4 million and $ 14.2 million, respectively.

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