BUSINESS SEGMENTS

12 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENTS

(H) Business Segments

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker (CODM), who is our President and Chief Executive Officer, to assist in allocating resources and assessing performance. This assessment is primarily based on segment earnings from operations, as management believes this is the best metric for segment operating performance. The CODM uses operating income as part of their review of the monthly operating results on a segment basis. The actual monthly results are reviewed against budgeted amounts as well as the current year reforecast and prior year actual amounts. Interest and taxes are managed on a centralized basis, and not included in segment operating information.

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments. The Company's operating segments are the same as the Company's reporting segments.

Our primary products, portland cement and gypsum wallboard, are essential for building, expanding and repairing roads, highways, and residential, commercial and industrial structures across America. We manufacture and sell our products through a network of more than 70 facilities spanning 21 states. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).

We operate eight modern cement plants, two slag grinding facilities, and over 30 cement distribution terminals. One cement plant and one slag plant is operated though our joint venture located in Buda, Texas. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate over 25 readymix concrete batch plants and seven aggregates processing plants in markets that are complementary to our cement network.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

The following tables set forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level, only at the consolidated company level.

Year Ended March 31, 2025 (dollars in thousands)	Cement		Concrete and Aggregates		Gypsum Wallboard		Recycled Paperboard		Total
Revenue from External Customers	$	1,053,620	$	237,723	$	846,499	$	122,666	$	2,260,508
Intersegment Revenue		36,799		13,913		—		89,058		139,770
Revenue from Joint Venture		110,943		—		—		—		110,943
		1,201,362		251,636		846,499		211,724		2,511,221
Reconciliation of Revenue
Intersegment Revenue										(139,770)
Revenue from Joint Venture										(110,943)
Total Consolidated Revenue									$	2,260,508
Less:
Freight and Delivery	$	90,996	$	32,593	$	146,000	$	96	$	269,685
Parts, Supplies, and Services (Includes Maintenance)		231,530		39,109		19,032		12,598		302,269
Energy		140,754		7,562		33,978		14,035		196,329
Raw Materials		84,669		109,587		179,142		94,769		468,167
Labor and Fixed Costs		162,741		36,722		61,968		21,431		282,862
Depreciation, Depletion, and Amortization (1)		91,817		23,247		25,807		14,782		155,653
Purchased Cement		77,059		—		—		—		77,059
Other Segment Items		2,340		11,581		29,808		15,935		59,664
Segment Profit	$	319,456	$	(8,765)	$	350,764	$	38,078	$	699,533
Reconciliation of Segment Profit and Loss
Corporate General and Administrative Expense										(73,942)
Other Non-Operating Income										6,420
Interest Expense										(40,526)
Earnings Before Income Taxes									$	591,485

Year Ended March 31, 2024 (dollars in thousands)	Cement		Concrete and Aggregates		Gypsum Wallboard		Recycled Paperboard		Total
Revenue from External Customers	$	1,077,918	$	240,012	$	839,530	$	101,837	$	2,259,297
Intersegment Revenue		35,363		12,940		—		82,351		130,654
Revenue from Joint Venture		112,736		—		—		—		112,736
		1,226,017		252,952		839,530		184,188		2,502,687
Reconciliation of Revenue
Intersegment Revenue										(130,654)
Revenue from Joint Venture										(112,736)
Total Consolidated Revenue									$	2,259,297
Less:
Freight and Delivery	$	94,031	$	33,976	$	149,441	$	623	$	278,071
Parts, Supplies, and Services (Includes Maintenance)		217,393		31,246		22,337		11,186		282,162
Energy		154,925		7,641		37,984		17,120		217,670
Raw Materials		87,154		112,447		178,340		83,784		461,725
Labor and Fixed Costs		155,118		31,014		59,796		22,875		268,803
Depreciation, Depletion, and Amortization (1)		89,138		19,728		23,038		14,811		146,715
Purchased Cement		86,219		—		—		—		86,219
Other Segment Items		3,690		4,499		34,058		2,173		44,420
Segment Profit	$	338,349	$	12,401	$	334,536	$	31,616	$	716,902
Reconciliation of Segment Profit and Loss
Corporate General and Administrative Expense										(59,795)
Other Non-Operating Income										3,087
Interest Expense										(42,257)
Earnings Before Income Taxes									$	617,937

Year Ended March 31, 2023 (dollars in thousands)	Cement		Concrete and Aggregates		Gypsum Wallboard		Recycled Paperboard		Total
Revenue from External Customers	$	927,637	$	239,516	$	872,471	$	108,445	$	2,148,069
Intersegment Revenue		32,915		—		—		92,835		125,750
Revenue from Joint Venture		113,518		—		—		—		113,518
		1,074,070		239,516		872,471		201,280		2,387,337
Reconciliation of Revenue
Intersegment Revenue										(125,750)
Revenue from Joint Venture										(113,518)
Total Consolidated Revenue									$	2,148,069
Less:
Freight and Delivery	$	97,126	$	36,115	$	160,536	$	8,760	$	302,537
Parts, Supplies, and Services (Includes Maintenance)		183,706		17,724		17,933		10,609		229,972
Energy		149,445		5,236		50,177		19,914		224,772
Raw Materials		75,617		112,269		184,677		95,060		467,623
Labor and Fixed Costs		141,719		19,511		54,041		20,761		236,032
Depreciation, Depletion, and Amortization (1)		81,643		17,413		21,744		14,942		135,742
Purchased Cement		47,454		—		—		—		47,454
Other Segment Items		18,598		12,989		30,864		6,014		68,465
Segment Profit	$	278,762	$	18,259	$	352,499	$	25,220	$	674,740
Reconciliation of Segment Profit and Loss
Corporate General and Administrative Expense										(53,630)
Other Non-Operating Income										2,654
Interest Expense										(35,171)
Earnings Before Income Taxes									$	588,593

(1) Depreciation, Depletion, and Amortization for corporate assets was $3,249 million, $3,117 million, and $2,812 million, in fiscal 2025, 2024, and 2023, respectively. These amounts are included in Corporate General and Administrative Expense.

Additional information about our segments is included below:

	For the Years Ended March 31,
	2025		2024		2023
		(dollars in thousands)
Capital Expenditures
Cement	$	139,965	$	65,442	$	39,049
Concrete and Aggregates		20,571		15,103		35,503
Gypsum Wallboard		15,843		29,127		31,063
Recycled Paperboard		15,193		10,085		2,898
Corporate and Other		3,709		548		1,630
	$	195,281	$	120,305	$	110,143
Segment Assets
Cement	$	$2,172,459	$	$2,042,499	$	$1,905,227
Concrete and Aggregates		$408,792		$225,485		$234,767
Gypsum Wallboard		$429,268		$432,122		$421,425
Recycled Paperboard		$166,673		$170,832		$163,797
Corporate and Other		$87,396		$76,081		$55,786
	$	3,264,588	$	2,947,019	$	2,781,002
Cement Operating Earnings
Wholly Owned		293,060		306,768		243,288
Joint Venture		26,396		31,581		35,474
	$	319,456	$	338,349	$	278,762
Cement Sales Volume (M tons)
Wholly Owned		6,237		6,610		6,399
Joint Venture		675		679		734
		6,912		7,289		7,133

Segment Operating Earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue less direct operating expenses, segment Depreciation, and segment Selling, General, and Administrative expenses. Segment Operating Earnings do not include certain nonrecurring losses, such as impairment and legal settlements. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and miscellaneous other assets.

The basis used to disclose Identifiable Assets; Capital Expenditures; and Depreciation, Depletion, and Amortization conforms with the equity method, and is similar to how we disclose these accounts in our Consolidated Balance Sheets and Consolidated Statements of Earnings.

The segment breakdown of Goodwill at March 31, 2025, and 2024 is as follows:

	For the Years Ended March 31,
	2025		2024
	(dollars in thousands)
Cement	$	227,639	$	227,639
Concrete and Aggregates		118,099		40,774
Gypsum Wallboard		116,618		116,618
Recycled Paperboard		7,538		7,538
	$	469,894	$	392,569

Summarized financial information for the Joint Venture that is not consolidated is set out below. The summarized financial information includes the total amount of the Joint Venture and not our 50% interest in those amounts:

	For the Years Ended March 31,
	2025		2024
	(dollars in thousands)
Revenue	$	221,937	$	225,503
Gross Margin	$	60,789	$	71,077
Earnings Before Income Taxes	$	53,217	$	63,644

	As of March 31,
	2025		2024
	(dollars in thousands)
Current Assets	$	128,384	$	111,164
Noncurrent Assets	$	207,910	$	158,618
Current Liabilities	$	25,618	$	27,994
Noncurrent Liabilities	$	30,152	$	14,974

On May 1, 2024, the Company and HM Southeast Cement LLC, a subsidiary of Heidelberg Materials, (our Joint Venture Partner) entered into a put option agreement (Put Option Agreement) that provides for the grant of reciprocal put options by the parties with respect to their 50% partnership interests in the Joint Venture. If the Company or our Joint Venture Partner exercises its put option under the Put Option Agreement, the other party is required to purchase the 50% partnership interest held by the exercising party for approximately $550.0 million, subject to certain customary adjustments. The put option can only be exercised in the event of a triggering event, which is defined as the entry by the exercising party into a binding and effective outside purchase agreement. An outside purchase agreement is a definitive agreement for the purchase of assets or operations to be used in the production or sale of grey cement products or slag in the Joint Venture market area for total consideration equal to or greater than $1 billion. The Put Option Agreement is effective for 15 months and expires on August 1, 2025.