Segment Results

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segment Results

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:

For the three months ended September 30, 2025	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	274.0		$	151.2	$	-		$	425.2
Cost of goods sold		155.3			91.1		0.3			246.7
Gross profit (loss)		118.7			60.1		(0.3	)		178.5
SG&A expenses		49.1			40.7		0.3			90.1
Loss related to change in fair value of contingent consideration		-			0.1		-			0.1
(Gain) on sales of fixed assets, net		(0.9	)		-		-			(0.9	)
Equity (earnings) loss from unconsolidated affiliates, net		(28.2	)		-		0.2			(28.0	)
Segment operating income (loss)	$	98.7		$	19.3	$	(0.8	)	$	117.2
Depreciation and amortization	$	21.6		$	8.5	$	-		$	30.1
Purchases of property, plant and equipment		18.5			4.1		-			22.6

For the three months ended September 30, 2024	Mineral Fiber			Architectural Specialties			Unallocated Corporate			Total
Net sales to external customers	$	258.0		$	128.6		$	-		$	386.6
Cost of goods sold		146.5			75.5			0.5			222.5
Gross profit (loss)		111.5			53.1			(0.5	)		164.1
SG&A expenses		43.6			33.9			0.1			77.6
Loss related to change in fair value of contingent consideration		0.1			0.1			-			0.2
Loss (gain) on sales and impairment of fixed assets, net		0.3			(0.1	)		-			0.2
Equity (earnings) loss from unconsolidated affiliates, net		(25.5	)		-			0.3			(25.2	)
Segment operating income (loss)	$	93.0		$	19.2		$	(0.9	)	$	111.3
Depreciation and amortization	$	19.7		$	6.4		$	-		$	26.1
Purchases of property, plant and equipment		15.9			3.5			-			19.4

For the nine months ended September 30, 2025	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	786.1		$	446.4	$	-		$	1,232.5
Cost of goods sold		460.0			267.3		1.0			728.3
Gross profit (loss)		326.1			179.1		(1.0	)		504.2
SG&A expenses		132.3			119.0		0.8			252.1
Loss related to change in fair value of contingent consideration		0.2			0.3		-			0.5
(Gain) loss on sales of fixed assets, net		(0.9	)		0.1		-			(0.8	)
Equity (earnings) loss from unconsolidated affiliates, net		(87.1	)		-		0.6			(86.5	)
Segment operating income (loss)	$	281.6		$	59.7	$	(2.4	)	$	338.9
Depreciation and amortization	$	64.5		$	25.4	$	-		$	89.9
Purchases of property, plant and equipment		49.9			11.7		-			61.6

For the nine months ended September 30, 2024	Mineral Fiber			Architectural Specialties		Unallocated Corporate			Total
Net sales to external customers	$	747.8		$	330.2	$	-		$	1,078.0
Cost of goods sold		439.7			199.4		1.2			640.3
Gross profit (loss)		308.1			130.8		(1.2	)		437.7
SG&A expenses		132.8			89.6		0.7			223.1
Loss related to change in fair value of contingent consideration		0.5			0.1		-			0.6
Loss on sales and impairment of fixed assets, net		0.3			-		-			0.3
Equity (earnings) loss from unconsolidated affiliates, net		(79.4	)		-		0.7			(78.7	)
Segment operating income (loss)	$	253.9		$	41.1	$	(2.6	)	$	292.4
Depreciation and amortization	$	59.3		$	16.6	$	-		$	75.9
Purchases of property, plant and equipment		43.5			10.5		-			54.0

During the third quarter of 2025, we sold a parcel of land at a Mineral Fiber plant for total proceeds of $1.0 million, with a $0.9 million gain recorded upon sale.

During the third quarter of 2024, we sold our idled Mineral Fiber plant in St. Helens, Oregon for total proceeds of $9.4 million, with a $4.6 million gain recorded upon sale, and we recorded an impairment loss of $4.9 million within our Mineral Fiber segment upon classification of a parcel of undeveloped land adjacent to our corporate campus in Lancaster, Pennsylvania to assets held for sale. During the second quarter of 2024 we sold a building and related land of an Architectural Specialties design center in Chicago, Illinois for total proceeds of $2.1 million, with no gain or loss recorded upon sale.

The impact of these transactions was recorded within (gain) loss on sales and impairment of fixed assets, net on our Condensed Consolidated Statements of Earnings and Comprehensive Income.

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.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Total segment operating income	$	117.2		$	111.3		$	338.9		$	292.4
Interest expense		8.2			10.5			25.3			30.6
Other non-operating (income), net		(0.5	)		(3.0	)		(1.9	)		(9.3	)
Earnings before income taxes	$	109.5		$	103.8		$	315.5		$	271.1

The following tables present balance sheet information by operating segment:

As of September 30, 2025	Mineral Fiber		Architectural Specialties		Unallocated Corporate		Total
Segment assets	$	1,082.1	$	621.1	$	190.2	$	1,893.4
Investments in unconsolidated affiliates		27.3		-		4.0		31.3
As of December 31, 2024	Mineral Fiber		Architectural Specialties		Unallocated Corporate		Total
Segment assets	$	1,063.8	$	602.2	$	176.7	$	1,842.7
Investments in unconsolidated affiliates		22.6		-		4.6		27.2