NOTE 2. SEGMENT RESULTS Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate. Our Mineral Fiber and Architectural Specialties segment net sales represent the product-based group offerings we sell to external customers. Our Chief Operating Decision Maker (“CODM”) is our President and Chief Executive Officer. Segment operating income (loss) is the measure of segment profit or loss reviewed by the CODM. The following tables are presented at the level of disaggregation regularly reviewed by the CODM to evaluate operating performance and allocate resources to operating segments:
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For the three months ended June 30, 2025 |
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Mineral Fiber |
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Architectural Specialties |
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|
Unallocated
Corporate |
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Total |
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Net sales to external customers |
|
$ |
267.0 |
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|
$ |
157.6 |
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$ |
- |
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|
$ |
424.6 |
|
Cost of goods sold |
|
|
156.7 |
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|
|
91.8 |
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|
|
0.3 |
|
|
|
248.8 |
|
Gross profit (loss) |
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|
110.3 |
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|
|
65.8 |
|
|
|
(0.3 |
) |
|
|
175.8 |
|
SG&A expenses |
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|
44.0 |
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|
40.2 |
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|
|
0.3 |
|
|
|
84.5 |
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Equity (earnings) loss from unconsolidated affiliates, net |
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|
(32.1 |
) |
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- |
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|
0.2 |
|
|
|
(31.9 |
) |
Segment operating income (loss) |
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$ |
98.4 |
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$ |
25.6 |
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|
$ |
(0.8 |
) |
|
$ |
123.2 |
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Depreciation and amortization |
|
$ |
22.1 |
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|
$ |
8.4 |
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$ |
- |
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|
$ |
30.5 |
|
Purchases of property, plant and equipment |
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|
16.8 |
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|
|
3.1 |
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|
- |
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|
|
19.9 |
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For the three months ended June 30, 2024 |
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Mineral Fiber |
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Architectural Specialties |
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|
Unallocated
Corporate |
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Total |
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Net sales to external customers |
|
$ |
250.2 |
|
|
$ |
114.9 |
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|
$ |
- |
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|
$ |
365.1 |
|
Cost of goods sold |
|
|
147.5 |
|
|
|
68.0 |
|
|
|
0.3 |
|
|
|
215.8 |
|
Gross profit (loss) |
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|
102.7 |
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|
|
46.9 |
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|
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(0.3 |
) |
|
|
149.3 |
|
SG&A expenses |
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|
47.5 |
|
|
|
32.7 |
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|
0.4 |
|
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|
80.6 |
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Equity (earnings) loss from unconsolidated affiliates, net |
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(26.5 |
) |
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- |
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0.2 |
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(26.3 |
) |
Segment operating income (loss) |
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$ |
81.7 |
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|
$ |
14.2 |
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|
$ |
(0.9 |
) |
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$ |
95.0 |
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Depreciation and amortization |
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$ |
19.7 |
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|
$ |
5.8 |
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$ |
- |
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$ |
25.5 |
|
Purchases of property, plant and equipment |
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|
16.0 |
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|
3.9 |
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|
- |
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19.9 |
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For the six months ended June 30, 2025 |
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Mineral Fiber |
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|
Architectural Specialties |
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|
Unallocated
Corporate |
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Total |
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Net sales to external customers |
|
$ |
512.1 |
|
|
$ |
295.2 |
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|
$ |
- |
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|
$ |
807.3 |
|
Cost of goods sold |
|
|
304.7 |
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|
|
176.2 |
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|
|
0.7 |
|
|
|
481.6 |
|
Gross profit (loss) |
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|
207.4 |
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|
119.0 |
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(0.7 |
) |
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|
325.7 |
|
SG&A expenses |
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|
83.4 |
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|
78.6 |
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|
0.5 |
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|
162.5 |
|
Equity (earnings) loss from unconsolidated affiliates, net |
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(58.9 |
) |
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- |
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|
0.4 |
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(58.5 |
) |
Segment operating income (loss) |
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$ |
182.9 |
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|
$ |
40.4 |
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|
$ |
(1.6 |
) |
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$ |
221.7 |
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Depreciation and amortization |
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$ |
42.9 |
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|
$ |
16.9 |
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|
$ |
- |
|
|
$ |
59.8 |
|
Purchases of property, plant and equipment |
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|
31.4 |
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|
|
7.6 |
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|
- |
|
|
|
39.0 |
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For the six months ended June 30, 2024 |
|
Mineral Fiber |
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|
Architectural Specialties |
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|
Unallocated
Corporate |
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Total |
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Net sales to external customers |
|
$ |
489.8 |
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|
$ |
201.6 |
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|
$ |
- |
|
|
$ |
691.4 |
|
Cost of goods sold |
|
|
293.2 |
|
|
|
123.9 |
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|
|
0.7 |
|
|
|
417.8 |
|
Gross profit (loss) |
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|
196.6 |
|
|
|
77.7 |
|
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(0.7 |
) |
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|
273.6 |
|
SG&A expenses |
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|
89.6 |
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|
55.8 |
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|
0.6 |
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|
146.0 |
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Equity (earnings) loss from unconsolidated affiliates, net |
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|
(53.9 |
) |
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|
- |
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|
0.4 |
|
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|
(53.5 |
) |
Segment operating income (loss) |
|
$ |
160.9 |
|
|
$ |
21.9 |
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|
$ |
(1.7 |
) |
|
$ |
181.1 |
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Depreciation and amortization |
|
$ |
39.6 |
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$ |
10.2 |
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$ |
- |
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$ |
49.8 |
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Purchases of property, plant and equipment |
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|
27.6 |
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|
7.0 |
|
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|
- |
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|
34.6 |
|
The following table reconciles our total segment operating income to earnings before income taxes. These items are measured and managed only on a consolidated basis.
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2025 |
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|
2024 |
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|
2025 |
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|
2024 |
|
Total segment operating income |
|
$ |
123.2 |
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|
$ |
95.0 |
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|
$ |
221.7 |
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|
$ |
181.1 |
|
Interest expense |
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|
8.6 |
|
|
|
11.1 |
|
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|
17.1 |
|
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|
20.1 |
|
Other non-operating (income), net |
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|
(0.7 |
) |
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(3.2 |
) |
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|
(1.4 |
) |
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|
(6.3 |
) |
Earnings before income taxes |
|
$ |
115.3 |
|
|
$ |
87.1 |
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$ |
206.0 |
|
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$ |
167.3 |
|
The following tables present balance sheet information by operating segment:
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As of June 30, 2025 |
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Mineral Fiber |
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Architectural Specialties |
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Unallocated
Corporate |
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Total |
|
Segment assets |
|
$ |
1,089.0 |
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|
$ |
592.8 |
|
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$ |
180.2 |
|
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$ |
1,862.0 |
|
Investment in unconsolidated affiliates |
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|
30.4 |
|
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|
- |
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|
4.2 |
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|
34.6 |
|
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As of December 31,2024 |
|
Mineral Fiber |
|
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Architectural Specialties |
|
|
Unallocated
Corporate |
|
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Total |
|
Segment assets |
|
$ |
1,063.8 |
|
|
$ |
602.2 |
|
|
$ |
176.7 |
|
|
$ |
1,842.7 |
|
Investment in unconsolidated affiliates |
|
|
22.6 |
|
|
|
- |
|
|
|
4.6 |
|
|
|
27.2 |
|
|