| Segments |
NOTE J: SEGMENTS The Building Materials business is comprised of four divisions that represent individual operating segments. These operating segments are consolidated into two reportable segments, the East Group and the West Group, for financial reporting purposes, as they meet the aggregation criteria (see Note A for 2026 changes to the components of the East Group and West Group reportable segments). The Specialties business represents a separate operating and reportable segment. The Company’s Chief Operating Decision Maker (CODM) is the Chief Operating Officer. The CODM reviews results by reportable segment on a quarterly basis and allocates resources to achieve the Company’s strategic objectives based on an evaluation of each reportable segment’s performance. This evaluation is largely based on segment earnings (loss) from operations, as management believes this is the best metric of segment profitability and operating performance. Segment earnings (loss) from operations is also a measure used in determining incentive compensation targets and awards. Segment earnings (loss) from operations includes revenues less cost of revenues; selling, general and administrative expenses; other operating income and expenses, net; and excludes interest income and expense; other nonoperating income and expenses, net; and income tax expense. The significant expense categories shown below align with the segment-level information regularly provided to the CODM. Other costs of revenues for each reportable segment mainly include raw materials, repairs and maintenance, contract services, supplies and royalties. Corporate loss from operations primarily includes depreciation and amortization; expenses for corporate administrative functions; acquisition, divestiture and integration expenses; and other nonrecurring income and expenses not attributable to operations of the Company's operating segments. The following tables display selected financial data for the Company’s reportable segments and reflect continuing operations only. Revenues, as presented on the consolidated statements of earnings and comprehensive earnings, reflect the elimination of intersegment revenues, which represent sales from one segment to another segment and are immaterial. Income tax expense is not allocated to the Company's reportable segments.
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Three Months Ended June 30, 2026 |
|
(in millions) |
|
East Group |
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|
West Group |
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|
Specialties |
|
|
Total Reportable Segments |
|
|
Corporate |
|
|
Total |
|
Segment Revenues |
|
$ |
972 |
|
|
$ |
823 |
|
|
$ |
152 |
|
|
$ |
1,947 |
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|
$ |
— |
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|
$ |
1,947 |
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Less: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits expense |
|
|
94 |
|
|
|
119 |
|
|
|
22 |
|
|
|
235 |
|
|
|
— |
|
|
|
235 |
|
Depreciation, depletion and
amortization expense |
|
|
90 |
|
|
|
88 |
|
|
|
11 |
|
|
|
189 |
|
|
|
1 |
|
|
|
190 |
|
Energy expense |
|
|
48 |
|
|
|
45 |
|
|
|
11 |
|
|
|
104 |
|
|
|
— |
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|
|
104 |
|
Other costs of revenues |
|
|
341 |
|
|
|
396 |
|
|
|
47 |
|
|
|
784 |
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|
|
6 |
|
|
|
790 |
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External freight expense1 |
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|
68 |
|
|
|
54 |
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|
|
11 |
|
|
|
133 |
|
|
|
— |
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|
|
133 |
|
Selling, general and administrative expenses |
|
|
45 |
|
|
|
39 |
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|
|
8 |
|
|
|
92 |
|
|
|
24 |
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|
|
116 |
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Acquisition, divestiture and integration expenses |
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|
— |
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|
|
— |
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|
|
— |
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|
|
— |
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|
|
18 |
|
|
|
18 |
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Other operating (income) expense, net |
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(9 |
) |
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|
1 |
|
|
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— |
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(8 |
) |
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(3 |
) |
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|
(11 |
) |
Segment Earnings (Loss) from Operations |
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$ |
295 |
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$ |
81 |
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$ |
42 |
|
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$ |
418 |
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|
$ |
(46 |
) |
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$ |
372 |
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Interest expense |
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|
|
|
|
|
|
|
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|
|
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|
59 |
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Other nonoperating income, net |
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(7 |
) |
Consolidated earnings from continuing
operations before income tax expense |
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$ |
320 |
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Three Months Ended June 30, 2025 |
|
(in millions) |
|
East Group |
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West Group |
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|
Specialties |
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Total Reportable Segments |
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Corporate |
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Total |
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Segment Revenues |
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$ |
878 |
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|
$ |
641 |
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$ |
90 |
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$ |
1,609 |
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|
$ |
— |
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$ |
1,609 |
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Less: |
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|
|
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|
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|
|
|
|
|
|
|
|
|
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Labor and benefits expense |
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|
91 |
|
|
|
94 |
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|
10 |
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|
195 |
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— |
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|
195 |
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Depreciation, depletion and
amortization expense |
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|
82 |
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|
|
51 |
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|
4 |
|
|
|
137 |
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|
1 |
|
|
|
138 |
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Energy expense |
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|
35 |
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|
31 |
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|
8 |
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|
|
74 |
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|
|
— |
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|
|
74 |
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Other costs of revenues |
|
|
268 |
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|
|
309 |
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|
|
23 |
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|
|
600 |
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|
8 |
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|
|
608 |
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External freight expense1 |
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|
57 |
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|
|
32 |
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|
|
9 |
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|
|
98 |
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|
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— |
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|
98 |
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Selling, general and administrative expenses |
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|
41 |
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|
|
35 |
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|
5 |
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|
81 |
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|
|
23 |
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|
|
104 |
|
Acquisition, divestiture and integration
expenses |
|
|
— |
|
|
|
— |
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|
|
— |
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|
|
— |
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|
|
2 |
|
|
|
2 |
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Other operating expense (income), net |
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|
2 |
|
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|
(3 |
) |
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— |
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|
(1 |
) |
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(22 |
) |
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|
(23 |
) |
Segment Earnings (Loss) from Operations |
|
$ |
302 |
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$ |
92 |
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$ |
31 |
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$ |
425 |
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$ |
(12 |
) |
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$ |
413 |
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Interest expense |
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|
57 |
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Other nonoperating income, net |
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|
|
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(9 |
) |
Consolidated earnings from continuing
operations before income tax expense |
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|
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|
$ |
365 |
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Six Months Ended June 30, 2026 |
|
(in millions) |
|
East Group |
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|
West Group |
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|
Specialties |
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Total Reportable Segments |
|
|
Corporate |
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Total |
|
Segment Revenues |
|
$ |
1,807 |
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|
$ |
1,208 |
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|
$ |
294 |
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$ |
3,309 |
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$ |
— |
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$ |
3,309 |
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Less: |
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|
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|
|
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Labor and benefits expense |
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|
186 |
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|
|
203 |
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|
45 |
|
|
|
434 |
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|
|
— |
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|
|
434 |
|
Depreciation, depletion and
amortization expense |
|
|
172 |
|
|
|
148 |
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|
|
21 |
|
|
|
341 |
|
|
|
2 |
|
|
|
343 |
|
Energy expense |
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|
85 |
|
|
|
69 |
|
|
|
23 |
|
|
|
177 |
|
|
|
— |
|
|
|
177 |
|
Other costs of revenues |
|
|
625 |
|
|
|
588 |
|
|
|
89 |
|
|
|
1,302 |
|
|
|
12 |
|
|
|
1,314 |
|
External freight expense1 |
|
|
131 |
|
|
|
84 |
|
|
|
21 |
|
|
|
236 |
|
|
|
— |
|
|
|
236 |
|
Selling, general and administrative expenses |
|
|
89 |
|
|
|
75 |
|
|
|
18 |
|
|
|
182 |
|
|
|
67 |
|
|
|
249 |
|
Acquisition, divestiture and integration
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
24 |
|
Other operating (income) expense, net |
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|
(6 |
) |
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|
3 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
2 |
|
|
|
(1 |
) |
Segment Earnings (Loss) from Operations |
|
$ |
525 |
|
|
$ |
38 |
|
|
$ |
77 |
|
|
$ |
640 |
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|
$ |
(107 |
) |
|
$ |
533 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115 |
|
Other nonoperating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19 |
) |
Consolidated earnings from continuing
operations before income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
437 |
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|
|
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|
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|
Six Months Ended June 30, 2025 |
|
(in millions) |
|
East Group |
|
|
West Group |
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|
Specialties |
|
|
Total Reportable Segments |
|
|
Corporate |
|
|
Total |
|
Segment Revenues |
|
$ |
1,636 |
|
|
$ |
958 |
|
|
$ |
177 |
|
|
$ |
2,771 |
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|
$ |
— |
|
|
$ |
2,771 |
|
Less: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits expense |
|
|
175 |
|
|
|
170 |
|
|
|
21 |
|
|
|
366 |
|
|
|
— |
|
|
|
366 |
|
Depreciation, depletion and
amortization expense |
|
|
157 |
|
|
|
99 |
|
|
|
8 |
|
|
|
264 |
|
|
|
2 |
|
|
|
266 |
|
Energy expense |
|
|
67 |
|
|
|
51 |
|
|
|
17 |
|
|
|
135 |
|
|
|
— |
|
|
|
135 |
|
Other costs of revenues |
|
|
508 |
|
|
|
464 |
|
|
|
40 |
|
|
|
1,012 |
|
|
|
8 |
|
|
|
1,020 |
|
External freight expense1 |
|
|
105 |
|
|
|
51 |
|
|
|
17 |
|
|
|
173 |
|
|
|
— |
|
|
|
173 |
|
Selling, general and administrative expenses |
|
|
83 |
|
|
|
72 |
|
|
|
10 |
|
|
|
165 |
|
|
|
65 |
|
|
|
230 |
|
Acquisition, divestiture and integration
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Other operating expense (income), net |
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
(17 |
) |
|
|
(14 |
) |
Segment Earnings (Loss) from Operations |
|
$ |
539 |
|
|
$ |
50 |
|
|
$ |
64 |
|
|
$ |
653 |
|
|
$ |
(62 |
) |
|
$ |
591 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113 |
|
Other nonoperating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19 |
) |
Consolidated earnings from continuing
operations before income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
497 |
|
1 External freight expense is pass-through for East and West Groups Assets employed by segment include assets directly identified with those operations, including assets held for sale. Corporate assets consist primarily of cash and cash equivalents; property, plant and equipment used in corporate operations; and other assets not directly identifiable with a reportable segment. As of December 31, 2025, assets held for sale associated with discontinued operations are predominantly included in the East Group. The decrease in assets employed in the East Group as of June 30, 2026 reflects the February 2026 divestiture of the Company's Texas cement and ready mixed concrete assets and is partially offset by the assets acquired in the QUIKRETE transaction (see Note B) located within the Company's East Division. The increase in assets employed in the West Group as of June 30, 2026 is primarily due to assets acquired in the QUIKRETE transaction located within the Company's Central and West Divisions, as well as the NFM acquisition.
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|
|
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|
June 30, |
|
|
December 31, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
Assets employed |
|
|
|
East Group |
|
$ |
10,381 |
|
|
$ |
10,880 |
|
West Group |
|
|
8,829 |
|
|
|
5,875 |
|
Specialties |
|
|
900 |
|
|
|
883 |
|
Total reportable segments |
|
|
20,110 |
|
|
|
17,638 |
|
Corporate |
|
|
1,195 |
|
|
|
1,073 |
|
Total |
|
$ |
21,305 |
|
|
$ |
18,711 |
|
The following tables display property additions for the Company’s reportable segments.
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
Total property additions, including the impact of acquisitions |
|
|
|
East Group |
|
$ |
695 |
|
|
$ |
192 |
|
West Group |
|
|
2,456 |
|
|
|
117 |
|
Specialties |
|
|
18 |
|
|
|
16 |
|
Total reportable segments |
|
|
3,169 |
|
|
|
325 |
|
Corporate |
|
|
7 |
|
|
|
11 |
|
Total |
|
$ |
3,176 |
|
|
$ |
336 |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
Property additions through business combinations |
|
|
|
East Group |
|
$ |
587 |
|
|
$ |
— |
|
West Group |
|
|
2,375 |
|
|
|
— |
|
Specialties |
|
|
6 |
|
|
|
— |
|
Total reportable segments |
|
|
2,968 |
|
|
|
— |
|
Corporate |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
2,968 |
|
|
$ |
— |
|
|