| Segment Operations |
Note L – Segment Operations Our operating segments reflect the way in which internally-reported financial information is regularly reviewed by the CODM to analyze performance, make decisions and allocate resources. We have identified our CEO as our CODM. Our CODM evaluates segment performance on the basis of adjusted EBITDA, as described in the “Use of Non-GAAP Financial Measures and Definitions” section. Factors used to identify operating segments include the nature of the products provided by each business, the management reporting structure, similarity of economic characteristics and certain quantitative measures, as prescribed by GAAP. Our operations are organized under two operating segments: Consumer Products and Building Products. Activity outside of our two operating segments is presented within “Other” and “Unallocated Corporate” as described further below. Other includes our share of the equity earnings of two of our unconsolidated joint ventures, SES and Workhorse, and the related investments in these businesses. Unallocated Corporate includes certain assets and liabilities (e.g. public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole. The following tables present summarized financial information for our reportable operating segments, Other, and Unallocated Corporate for the periods indicated. A reconciliation from the GAAP financial measure of earnings (loss) before income taxes to the non-GAAP financial measure of adjusted EBITDA is provided directly following the summarized information below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2026 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
|
|
Building |
|
|
Consumer |
|
|
Operating |
|
|
|
|
|
Unallocated |
|
|
|
|
|
Products |
|
|
Products |
|
|
Segments |
|
|
Other |
|
|
Corporate |
|
|
Consolidated |
|
Net sales |
$ |
223,850 |
|
|
$ |
154,827 |
|
|
$ |
378,677 |
|
|
|
- |
|
|
|
- |
|
|
$ |
378,677 |
|
Cost of goods sold |
|
172,971 |
|
|
|
96,172 |
|
|
|
269,143 |
|
|
|
- |
|
|
|
60 |
|
|
|
269,203 |
|
SG&A |
|
37,437 |
|
|
|
28,180 |
|
|
|
65,617 |
|
|
|
- |
|
|
|
10,128 |
|
|
|
75,745 |
|
Restructuring and other expense (income), net |
|
100 |
|
|
|
(1 |
) |
|
|
99 |
|
|
|
- |
|
|
|
2,087 |
|
|
|
2,186 |
|
Other segment items (1) |
|
(56 |
) |
|
|
(25 |
) |
|
|
(81 |
) |
|
|
340 |
|
|
|
1,885 |
|
|
|
2,144 |
|
Equity in net income of unconsolidated affiliates |
|
32,822 |
|
|
|
- |
|
|
|
32,822 |
|
|
|
(2,107 |
) |
|
|
- |
|
|
|
30,715 |
|
Earnings (loss) before income taxes |
|
46,220 |
|
|
|
30,501 |
|
|
|
76,721 |
|
|
|
(2,447 |
) |
|
|
(14,160 |
) |
|
|
60,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items to adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of inventory step-up |
|
1,500 |
|
|
|
- |
|
|
|
1,500 |
|
|
|
- |
|
|
|
- |
|
|
|
1,500 |
|
Depreciation and amortization |
|
10,382 |
|
|
|
3,969 |
|
|
|
14,351 |
|
|
|
- |
|
|
|
201 |
|
|
|
14,552 |
|
Interest expense (income) |
|
(33 |
) |
|
|
- |
|
|
|
(33 |
) |
|
|
- |
|
|
|
1,861 |
|
|
|
1,828 |
|
Stock-based compensation |
|
656 |
|
|
|
640 |
|
|
|
1,296 |
|
|
|
- |
|
|
|
2,456 |
|
|
|
3,752 |
|
Restructuring and other expense (income), net |
|
100 |
|
|
|
(1 |
) |
|
|
99 |
|
|
|
- |
|
|
|
2,087 |
|
|
|
2,186 |
|
Non-cash charges in miscellaneous income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
340 |
|
|
|
- |
|
|
|
340 |
|
Net loss attributable to noncontrolling interest |
|
- |
|
|
|
343 |
|
|
|
343 |
|
|
|
- |
|
|
|
- |
|
|
|
343 |
|
Adjusted EBITDA |
$ |
58,825 |
|
|
$ |
35,452 |
|
|
$ |
94,277 |
|
|
$ |
(2,107 |
) |
|
$ |
(7,555 |
) |
|
$ |
84,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2025 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
|
|
Building |
|
|
Consumer |
|
|
Operating |
|
|
|
|
|
Unallocated |
|
|
|
|
|
Products |
|
|
Products |
|
|
Segments |
|
|
Other |
|
|
Corporate |
|
|
Consolidated |
|
Net sales |
$ |
164,810 |
|
|
$ |
139,714 |
|
|
$ |
304,524 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
304,524 |
|
Cost of goods sold |
|
127,157 |
|
|
|
88,069 |
|
|
|
215,226 |
|
|
|
- |
|
|
|
51 |
|
|
|
215,277 |
|
SG&A |
|
27,566 |
|
|
|
28,406 |
|
|
|
55,972 |
|
|
|
- |
|
|
|
7,033 |
|
|
|
63,005 |
|
Restructuring and other expense, net |
|
579 |
|
|
|
- |
|
|
|
579 |
|
|
|
- |
|
|
|
4,795 |
|
|
|
5,374 |
|
Other segment items (1) |
|
(409 |
) |
|
|
12 |
|
|
|
(397 |
) |
|
|
- |
|
|
|
767 |
|
|
|
370 |
|
Equity in net income (loss) of unconsolidated affiliates |
|
34,498 |
|
|
|
- |
|
|
|
34,498 |
|
|
|
(2,417 |
) |
|
|
- |
|
|
|
32,081 |
|
Earnings (loss) before income taxes |
|
44,415 |
|
|
|
23,227 |
|
|
|
67,642 |
|
|
|
(2,417 |
) |
|
|
(12,646 |
) |
|
|
52,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items to adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,449 |
|
|
|
4,314 |
|
|
|
11,763 |
|
|
|
- |
|
|
|
187 |
|
|
|
11,950 |
|
Interest expense |
|
4 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
624 |
|
|
|
628 |
|
Stock-based compensation |
|
740 |
|
|
|
760 |
|
|
|
1,500 |
|
|
|
- |
|
|
|
1,424 |
|
|
|
2,924 |
|
Restructuring and other expense, net |
|
579 |
|
|
|
- |
|
|
|
579 |
|
|
|
- |
|
|
|
4,795 |
|
|
|
5,374 |
|
Net loss attributable to noncontrolling interest |
|
- |
|
|
|
324 |
|
|
|
324 |
|
|
|
- |
|
|
|
- |
|
|
|
324 |
|
Adjusted EBITDA |
$ |
53,187 |
|
|
$ |
28,625 |
|
|
$ |
81,812 |
|
|
$ |
(2,417 |
) |
|
$ |
(5,616 |
) |
|
$ |
73,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended February 28, 2026 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
|
|
Building |
|
|
Consumer |
|
|
Operating |
|
|
|
|
|
Unallocated |
|
|
|
|
|
Products |
|
|
Products |
|
|
Segments |
|
|
Other |
|
|
Corporate |
|
|
Consolidated |
|
Net sales |
$ |
616,147 |
|
|
$ |
393,689 |
|
|
$ |
1,009,836 |
|
|
|
- |
|
|
|
- |
|
|
$ |
1,009,836 |
|
Cost of goods sold |
|
475,625 |
|
|
|
257,713 |
|
|
|
733,338 |
|
|
|
- |
|
|
|
111 |
|
|
|
733,449 |
|
SG&A |
|
105,134 |
|
|
|
83,891 |
|
|
|
189,025 |
|
|
|
- |
|
|
|
28,006 |
|
|
|
217,031 |
|
Restructuring and other expense, net |
|
552 |
|
|
|
12 |
|
|
|
564 |
|
|
|
- |
|
|
|
5,742 |
|
|
|
6,306 |
|
Other segment items (1) |
|
289 |
|
|
|
(7 |
) |
|
|
282 |
|
|
|
4,534 |
|
|
|
3,149 |
|
|
|
7,965 |
|
Equity in net income of unconsolidated affiliates |
|
101,570 |
|
|
|
- |
|
|
|
101,570 |
|
|
|
(5,080 |
) |
|
|
- |
|
|
|
96,490 |
|
Earnings (loss) before income taxes |
|
136,117 |
|
|
|
52,080 |
|
|
|
188,197 |
|
|
|
(9,614 |
) |
|
|
(37,008 |
) |
|
|
141,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items to adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of inventory step-up |
|
3,651 |
|
|
|
- |
|
|
|
3,651 |
|
|
|
- |
|
|
|
- |
|
|
|
3,651 |
|
Depreciation and amortization |
|
29,028 |
|
|
|
11,776 |
|
|
|
40,804 |
|
|
|
- |
|
|
|
598 |
|
|
|
41,402 |
|
Interest expense (income) |
|
228 |
|
|
|
(4 |
) |
|
|
224 |
|
|
|
- |
|
|
|
3,139 |
|
|
|
3,363 |
|
Stock-based compensation |
|
2,190 |
|
|
|
2,054 |
|
|
|
4,244 |
|
|
|
- |
|
|
|
6,260 |
|
|
|
10,504 |
|
Restructuring and other expense, net |
|
552 |
|
|
|
12 |
|
|
|
564 |
|
|
|
- |
|
|
|
5,742 |
|
|
|
6,306 |
|
Non-cash charges in miscellaneous income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,534 |
|
|
|
- |
|
|
|
4,534 |
|
Net loss attributable to noncontrolling interest |
|
- |
|
|
|
969 |
|
|
|
969 |
|
|
|
- |
|
|
|
- |
|
|
|
969 |
|
Adjusted EBITDA |
$ |
171,766 |
|
|
$ |
66,887 |
|
|
$ |
238,653 |
|
|
$ |
(5,080 |
) |
|
$ |
(21,269 |
) |
|
$ |
212,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended February 28, 2025 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable |
|
|
|
|
|
|
|
|
|
|
|
Building |
|
|
Consumer |
|
|
Operating |
|
|
|
|
|
Unallocated |
|
|
|
|
|
Products |
|
|
Products |
|
|
Segments |
|
|
Other |
|
|
Corporate |
|
|
Consolidated |
|
Net sales |
$ |
461,821 |
|
|
$ |
374,057 |
|
|
$ |
835,878 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
835,878 |
|
Cost of goods sold |
|
367,931 |
|
|
|
242,040 |
|
|
|
609,971 |
|
|
|
- |
|
|
|
106 |
|
|
|
610,077 |
|
SG&A |
|
83,972 |
|
|
|
85,975 |
|
|
|
169,947 |
|
|
|
- |
|
|
|
27,012 |
|
|
|
196,959 |
|
Restructuring and other expense, net |
|
1,382 |
|
|
|
- |
|
|
|
1,382 |
|
|
|
- |
|
|
|
7,770 |
|
|
|
9,152 |
|
Other segment items (1) |
|
(587 |
) |
|
|
20 |
|
|
|
(567 |
) |
|
|
- |
|
|
|
1,908 |
|
|
|
1,341 |
|
Equity in net income of unconsolidated affiliates |
|
105,438 |
|
|
|
- |
|
|
|
105,438 |
|
|
|
(3,309 |
) |
|
|
- |
|
|
|
102,129 |
|
Earnings (loss) before income taxes |
|
114,561 |
|
|
|
46,022 |
|
|
|
160,583 |
|
|
|
(3,309 |
) |
|
|
(36,796 |
) |
|
|
120,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items to adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of inventory step-up |
|
1,477 |
|
|
|
- |
|
|
|
1,477 |
|
|
|
- |
|
|
|
- |
|
|
|
1,477 |
|
Depreciation and amortization |
|
22,156 |
|
|
|
12,982 |
|
|
|
35,138 |
|
|
|
- |
|
|
|
569 |
|
|
|
35,707 |
|
Interest expense |
|
33 |
|
|
|
- |
|
|
|
33 |
|
|
|
- |
|
|
|
2,117 |
|
|
|
2,150 |
|
Stock-based compensation |
|
1,969 |
|
|
|
2,060 |
|
|
|
4,029 |
|
|
|
- |
|
|
|
6,093 |
|
|
|
10,122 |
|
Restructuring and other expense, net |
|
1,382 |
|
|
|
- |
|
|
|
1,382 |
|
|
|
- |
|
|
|
7,770 |
|
|
|
9,152 |
|
Net loss attributable to noncontrolling interest |
|
- |
|
|
|
820 |
|
|
|
820 |
|
|
|
- |
|
|
|
- |
|
|
|
820 |
|
Adjusted EBITDA |
$ |
141,578 |
|
|
$ |
61,884 |
|
|
$ |
203,462 |
|
|
$ |
(3,309 |
) |
|
$ |
(20,247 |
) |
|
$ |
179,906 |
|
(1)Except as noted herein, Other segment items consist of non-operating activity included in adjusted EBITDA. For the current year period, Other segment items also included certain non-cash charges in Miscellaneous income (expense), net related to the divestiture of the composite assets of our SES joint venture, including the unrealized loss on the common shares of Hexagon Composites and Hexagon Purus that we received as consideration. These charges were excluded from adjusted EBITDA as shown in the Reconciling items to adjusted EBITDA section in the tables above for the current year period. See “Use of Non-GAAP Financial Measures and Definitions” for additional information. (2)See “Use of Non-GAAP Financial Measures and Definitions” for additional information. Total assets for each of our reportable operating segments at the dates indicated were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 28, |
|
|
May 31, |
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Consumer Products |
|
|
|
|
$ |
537,382 |
|
|
$ |
531,187 |
|
Building Products |
|
|
|
|
|
1,155,910 |
|
|
|
795,837 |
|
Total reportable operating segments |
|
|
|
|
|
1,693,292 |
|
|
|
1,327,024 |
|
Unallocated Corporate and Other |
|
|
|
|
|
130,246 |
|
|
|
368,128 |
|
Total assets |
|
|
|
|
$ |
1,823,538 |
|
|
$ |
1,695,152 |
|
The following table reports the capital expenditures for each of our reportable operating segments for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
February 28, |
|
|
February 28, |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Consumer Products |
$ |
6,020 |
|
|
$ |
8,775 |
|
|
$ |
21,956 |
|
|
$ |
19,508 |
|
Building Products |
|
7,038 |
|
|
|
3,413 |
|
|
|
15,436 |
|
|
|
11,470 |
|
Total reportable operating segments |
|
13,058 |
|
|
|
12,188 |
|
|
|
37,392 |
|
|
|
30,978 |
|
Unallocated Corporate |
|
736 |
|
|
|
516 |
|
|
|
2,029 |
|
|
|
6,516 |
|
Total |
$ |
13,794 |
|
|
$ |
12,704 |
|
|
$ |
39,421 |
|
|
$ |
37,494 |
|
|