Commitments

3 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Letters of Credit

Under the Revolving Credit Facility, the Company has a total capacity of $400.0 million that may be used for a combination of cash borrowings and letter of credit issuances. At December 31, 2024, the Company had aggregate letters of credit outstanding in the amount of $6.6 million, primarily related to certain insurance policies as described in Note 2 - Significant Accounting Policies.

Purchase Commitments

As of December 31, 2024, the Company had unconditional purchase commitments for diesel fuel and natural gas in the normal course of business in the aggregate amount of $3.7 million. Management does not expect any significant changes in the market value of these goods during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. As of December 31, 2024, the Company’s purchase commitments for the remainder of fiscal 2025 and in 2026 were as follows (unaudited, in thousands):


Fiscal Year	Amount
Remainder of 2025	$	2,418
2026	1,264
Total	$	3,682

Minimum Royalties

The Company has lease agreements associated with aggregates facilities under which the Company makes royalty payments. These agreements are outside the scope of Topic 842. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. The Company had commitments in the form of minimum royalties as of December 31, 2024 in the amount of $2.4 million, due as follows (unaudited, in thousands):


Fiscal Year	Amount
Remainder of 2025	$	260
2026	228
2027	216
2028	182
2029	182
Thereafter	1,361
Total	$	2,429

Royalty expense recorded in cost of revenue during the three months ended December 31, 2024 and 2023 was $0.6 million and $0.4 million, respectively.