NYSE: EXP

Decentralized operating structure with network-wide coordination

The Company operates a decentralized but coordinated plant network: day-to-day operations are managed by strong local operating teams, and products are separately branded and marketed by our individual companies. This regional-market strategy provides several benefits, including increased familiarity with our customers, higher brand recognition, and lower transportation costs, which is a meaningful advantage in the construction materials industry. Across the plant network, corporate level managers coordinate strategy and other important facets of our operations, like finance, procurement, and safety, to ensure consistent application of best practices across all business lines and uninterrupted product supply for customers, even during planned and unplanned maintenance outages.

Substantial owned raw material reserves and resources

We own, or control, at least 25 years of primary raw material reserves and resources (and in many instances, more than 50 years) for each of our cement and wallboard facilities, providing certainty of supply and enhancing our ability to control the cost of our primary raw materials.

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Production flexibility

We manage our production lines and work shifts both within each plant and across the entire plant network to enable us to operate our plants at high utilization levels generally, while providing optimal production flexibility. Accordingly, we can quickly adjust to changes in economic conditions.

Low-cost producer position

Our modern production lines, consistent maintenance programs, access to low-cost raw materials, and focus on continuous efficiency improvement help us minimize production costs across the network.

Proven management

Our current management team has significant and valuable expertise, with average industry experience of more than 20 years, spanning several business cycles. Management’s conservative balance sheet strategy focuses on maintaining prudent levels of leverage and liquidity through business cycles to protect the balance sheet through downturns and enable us to take advantage of growth opportunities, whether organic or through acquisitions.

Strategy

We consistently pursue the following strategic objectives that we believe differentiate us from our competitors and contribute to our margin performance and growth: positioning our business for steady performance through economic cycles, maintaining our position as a low-cost producer in all our markets, operating primarily in the United States in regionally diverse and demographically attractive markets, achieving profitable growth through both strategic acquisitions and the organic development of our asset network, and operating in a socially and environmentally responsible manner.

Maintain rigorous cycle management

We aim to maintain profitability and create value consistently through shifting economic cycles. Our goal is to increase earnings through cycles and maintain peak-to-trough resiliency of our assets. The cornerstones of our effective cycle management include keeping our plants well-maintained, operating at standard-setting efficiency and safety levels, and maintaining a healthy balance sheet to enable us to capitalize on growth opportunities, continue enhancing our assets, and return excess capital to shareholders. Acquisition opportunities and ongoing investments in our businesses must meet rigorous financial and strategic return criteria and position our assets for peak performance in both favorable and challenging market conditions.

Continuously innovate to advance our low-cost position

The bedrock of our strategy is to be a low-cost producer in each of the markets in which we compete. We have right-sized capacity to service the markets we participate in, and we focus diligently on reducing costs and making our operations more efficient to manage free cash flow through economic cycles. Maintaining our low-cost position provides meaningful competitive, financial, and environmental benefits. The products we make are basic necessities, and competition is often based largely on price, with consistent quality and customer service also being important considerations. Thus, being a low-cost producer is a competitive advantage and can lead to higher margins, better returns, and stronger free cash flow generation. Being a low-cost producer is key to our commercial success and also aligns with our commitment to sustainable environmental practices. To maintain our low-cost producer position, we are always innovating our production processes with the aim of using fewer resources to make the same

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products. We regularly invest in technologies at our facilities to control emissions and to modify the fuels that we burn.

Operate in regionally diverse and attractive markets

Demand for our products depends on construction activity, which tends to correlate with population growth. While the Company’s markets include most of the United States, except the Northeast, approximately 65% of our total revenue, including our proportional share from our joint venture, is generated in 10 states: Colorado, Illinois, Kansas, Kentucky, Missouri, Nevada, North Carolina, Ohio, Oklahoma, and Texas. Population growth is a major driver of demand for construction products and building materials. The population in these ten states is expected to increase approximately 16% between the 2020 census and 2050, compared with 12% for the United States as a whole, according to the latest update in July 2024 by the University of Virginia, Weldon Cooper Center for Public Service.

Achieve profitable growth through acquisition and organic development

We seek to grow the Company through prudent acquisitions and the organic development of our asset network. Since 2012, we have invested approximately $3.0 billion to expand the Heavy Materials business. These investments have more than doubled our U.S. cement capacity, and expanded our aggregates production capacity by more than 50%.

Growth in the Heavy Materials sector has been achieved mainly through acquisitions, which have expanded our geographic footprint, resulting in a contiguous and integrated cement system from northern California to western Pennsylvania and south to Texas. We have completed additional bolt-on acquisitions in aggregates, which also contribute to our expanded geographic footprint. We are currently investing over $400 million to modernize and expand our cement plant in Laramie, Wyoming, which will expand that plant's production capacity by 50% to 1.2 million tons and reduce its operating costs by 25%.

The Company has grown its Light Materials sector through organic growth investments. In fiscal 2020, we completed an expansion at our Recycled Paperboard plant that increased capacity by approximately 15% and provided cost savings. Our $330.0 million project to modernize and expand our Gypsum Wallboard facility in Oklahoma is currently under way. This project will increase capacity by 25% to 1.5 billion square feet (bsf) of production, lower the plant's operating costs, and take advantage of our nearby, low-cost natural gypsum reserves. We expect to complete the project in the second half of calendar 2027.

The Company will continue to proactively pursue acquisition opportunities and organic growth investments. Our free cash flow and balance sheet strength enable us to consider acquisitions and organic growth opportunities that align with our stringent return-on-investment criteria and advance our strategic priorities.

Operate in a socially and environmentally responsible manner

We aim to conduct all our operations in a way that enhances the returns and the sustainability of our business, ensures the health and safety of our employees, and minimizes negative environmental effects. We have defined our environmental and social responsibility priorities and developed a roadmap for pursuing them. Our initiatives encompass land use, water, emissions, the reduction of the carbon impacts of our products, human resources, and governance practices, which are all areas we view as essential to our success.

Management is responsible for implementing these initiatives, and our Board of Directors, or Board, is committed to overseeing and ensuring progress across our sustainability initiatives. In particular, pursuant

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to its charter, the Board's Corporate Governance, Nominating and Sustainability Committee has formal responsibility for leading the Board's oversight of these matters in coordination with management and other Board committees as appropriate. Management submits quarterly progress reports to the Board, and sustainability is a topic of discussion at every quarterly Board meeting. Compensation for key executives is linked, in part, to the achievement of specific sustainability goals.

Capital Allocation Priorities

Our capital allocation priorities are intended to enhance shareholder value and are as follows:

1. investing in growth opportunities that meet our strict financial return standards and are consistent with our strategic focus

2. making operating capital investments to maintain and strengthen our low-cost producer position

3. returning excess cash to shareholders through our share repurchase program and dividends.

In the past five years, we have invested $388.4 million in acquisitions, $905.0 million in organic capital expenditures, and approximately $2.2 billion in share repurchases and dividends. Since becoming a public company in 1994, our share count is down approximately 55%, and we have returned approximately $4.3 billion to our shareholders through a combination of share repurchases and dividends.

FISCAL 2026 EVENTS

Financial Highlights

Fiscal 2026 was a strong year for the Company, with increased earnings in our Cement, Concrete and Aggregates, and Recycled Paperboard segments. Financial highlights for fiscal 2026 compared with fiscal 2025 include:

1.
Record Revenue of $2.3 billion, up 2% from prior year

2.
Net Earnings of $423.8 million, down 9%

3.
Diluted Earnings per Share of $13.16, down 4%

4.
Repurchased approximately 1.7 million shares of our Common Stock for $381.8 million, returning a total of $414.2 million to shareholders through share repurchases and dividends

5.
Issued $750.0 million of 10-year senior notes with an interest rate of 5.000%, extending debt maturity schedule and increasing liquidity

Strategic Highlights

During fiscal 2026, we executed the following strategic actions that extended our integrated plant network, advanced our low-cost position, and expanded our ability to meet increasing demand in high-growth markets.

Modernization and Expansion of our Laramie, Wyoming Cement Plant

Construction on the modernization and expansion of our Mountain Cement facility in Laramie, Wyoming continued during fiscal 2026. The modernized plant and the construction of an additional cement distribution facility in northern Colorado will employ state-of-the-art technology, which will maximize operating efficiencies and further strengthen our low-cost producer position. Upon completion of the project, the plant's manufacturing capacity will increase by nearly 50% to approximately 1.2 million tons of

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cement, and it is expected that manufacturing costs will be reduced by approximately 25%. We expect start-up of the new facility in late calendar 2026.

Modernization and Expansion of our Duke, Oklahoma Gypsum Wallboard Plant

We began construction and made good progress on our $330.0 million project to modernize and expand our Gypsum Wallboard facility in Oklahoma. This project will increase capacity by 25% to 1.5 billion square feet (bsf) of production, lower the plant's operating costs, and take advantage of our nearby, low-cost natural gypsum reserves. We expect to complete the project in the second half of calendar 2027.

HUMAN CAPITAL

As of March 31, 2026, the Company had approximately 2,800 employees, of which approximately 800 are salaried, and approximately 2,000 are hourly. Approximately 780 of the hourly employees are employed under collective bargaining agreements and various supplemental agreements with local unions.

Recruiting, developing, and retaining qualified employees is essential to implement our strategy and maintain our low-cost position. The health and safety of our employees is the highest priority of management. We have comprehensive safety and wellness processes and policies and all our employees are provided with the training necessary to safely and effectively perform their responsibilities. In all our businesses we have implemented initiatives to improve workplace safety. We hold an annual safety conference during which we review our safety performance, assess the effectiveness of our programs, and determine improvement actions. Specific areas of review include training programs, best practices, and leading indicators such as near-miss reporting and root cause analysis of all lost-time injuries. We also engage outside parties to advise on safety trends and ways to mitigate identified risks.

Management reviews a variety of safety metrics, including leading and lagging indicators, and the business units give corporate management monthly updates. During fiscal 2026, our total recordable incident rate, or TRIR, was below the industry average for our combined businesses.

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Industry Segment Information

Our business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments; and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. The primary end market for our Cement and Concrete and Aggregates segments is infrastructure. The primary end market for our Gypsum Wallboard and Recycled Paperboard segments is residential construction.

For information about the financial results of our business segments, including revenue, average net sales prices, sales volume, and operating earnings, please see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Heavy Materials

Our Heavy Materials sector provides cement and concrete and aggregates for use in public infrastructure, private nonresidential, and residential construction. This sector comprises the Cement and Concrete and Aggregates segments. In calendar 2025, cement consumption in the United States, as stated by the American Cement Association (ACA), was 112.3 million short tons, which was approximately 2% lower than calendar 2024 consumption levels; whereas, our fiscal 2026 cement sales volume was up 8%. Our outperformance is due to our regional markets outperforming the national average and our fiscal year being a slightly different time period. Importantly, the U.S. consumes more cement than can be produced domestically. Imported cement consumption represented nearly 23% of total U.S. sales in both calendar 2025 and 2024.

CEMENT

Cement is the basic binding agent for concrete, a primary construction material. The principal sources of demand for cement are public infrastructure, private nonresidential construction, and residential construction, with public infrastructure accounting for approximately 50% of cement demand. The U.S. cement industry comprises numerous regional markets rather than a single national market. Cement consumption is affected by the time of year and prevalent weather conditions. Cement sales are generally greatest from spring through the middle of autumn.

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The manufacturing process for cement involves four main steps, as shown in the graphic below.

We also produce and market other cementitious products, including slag cement. Slag granules are obtained from steel companies and ground in our grinding facilities in Illinois and Texas. Slag is used in concrete mix designs to improve the durability of concrete and reduce future maintenance costs.

Limestone Mining Operations

We mine primarily limestone at our quarry operations serving each of our cement plants. The limestone mined at our quarries is then converted to cement, as outlined above. Each of our cement plants has its own dedicated limestone quarries, all of which have adequate access to highways and/or waterways. For more information about our limestone mining properties, including estimates of limestone resources and reserves, see Item 2. Properties.

Cement Plants

We operate eight modern cement plants, and two slag grinding facilities (one cement plant and one slag grinding facility are operated through a joint venture). Our clinker capacity is approximately 6.7 million tons, which is approximately 6% of total U.S. clinker capacity. Clinker is the intermediary product before it is ground into cement powder (see production process graphic above). All of our cement plants use dry-process technology, and approximately 80% of our clinker capacity is produced from preheater or preheater/pre-calciner kilns, which are generally more energy-efficient kiln types. In addition to production facilities, we also operate over 30 cement storage and distribution terminals.

Our cement companies focus on the U.S. heartland and operate as an integrated network selling product mainly in Colorado, Illinois, Kansas, Kentucky, Indiana, Iowa, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. Our Joint Venture (as defined below) includes a minority interest in an import terminal in Houston, Texas, from which we can purchase up to 495,000 tons of cement annually. Our slag facilities are located near Chicago, Illinois and Houston, Texas. Both slag facilities have 500,000 tons annual grinding capacity.

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The following table sets forth information regarding our cement plants at March 31, 2026 (tons are in thousands of short tons).

Plant Location

Rated Annual

Clinker

Capacity (1)

Annual

Grinding

Capacity

Manufacturing

Process

Number

of Kilns

Kiln

Dedication

Date

Buda, TX (2)

1,300

1,435

Dry – 4 Stage Preheater/Pre-calciner

1

1983

LaSalle, IL

1,000

1,100

Dry – 5 Stage Preheater/Pre-calciner

1

2006

Sugar Creek, MO

1,000

1,300

Dry – 5 Stage Preheater/Pre-calciner

1

2002

Laramie, WY

650

800

Dry – 2 Stage Preheater

1

1988

Dry – Long Dry Kiln

1

1996

Tulsa, OK

600

900

Dry – Long Dry Kiln

1

1961

Dry ‒ Long Dry Kiln

1

1964

Fernley, NV

500

550

Dry – Long Dry Kiln

1

1964

Dry – 1 Stage Preheater

1

1969

Louisville, KY

1,550

1,800

Dry – 4 Stage Preheater/Pre-calciner

1

1999

Fairborn, OH

730

980

Dry – 4 Stage Preheater

1

1974

Total Gross

7,330

8,865

Total Net (3)

6,680

8,150

(1)
One short ton equals 2,000 pounds.

(2)
The amount shown represents 100% of plant capacity. This plant is owned by the Joint Venture in which the Company has a 50% interest.

(3)
Net of partner’s 50% interest in the Buda, Texas plant.

All our cement subsidiaries are wholly owned except the Buda, Texas plant, which is owned by Texas Lehigh Cement Company LP, a limited partnership joint venture owned 50% by us, and 50% by HM Southeast Cement LLC, a subsidiary of Heidelberg Materials (our Joint Venture Partner).

Our cement production, including our 50% share of the cement Joint Venture production, totaled 6.9 million short tons and 6.0 million short tons for fiscal 2026 and fiscal 2025, respectively. Total net Cement sales, including our 50% share of cement sales from the Joint Venture, were 7.5 million short tons and 6.9 million short tons in fiscal 2026, and fiscal 2025, respectively. Total net Cement sales exceed production primarily because of imports through the Houston and Stockton import terminals.

Demand, Sales, and Distribution

The principal sources of demand for cement and slag are public infrastructure, private nonresidential construction, and residential construction, with public infrastructure comprising nearly 50% of total demand. Cement consumption in the U.S. decreased approximately 2% during calendar 2025, and the ACA forecasts cement consumption will decline approximately 2.5% in calendar 2026. Demand for cement is seasonal, particularly in northern states where inclement winter weather often affects construction activity. Cement sales are generally highest from spring through the middle of autumn.

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Demand for slag has increased as the availability of fly ash has decreased due to the reduction in the use of coal to generate power.

Because of cement’s low value-to-weight ratio, the relative cost of transporting cement on land is high and limits the geographic area in which each company can profitably market its products. The low value-to-weight ratio generally limits shipments by truck to a 150-mile radius from each plant, up to 300 miles by rail, and further by barge. No single cement company has a plant network extensive enough to serve all geographic areas, so profitability is sensitive to shifts in the balance between regional supply and demand.

Environmental and zoning regulations have made it increasingly difficult for the U.S. cement industry to expand existing facilities and to build new cement facilities. Although we cannot predict which policies federal, state, and local government bodies will enact in the future, we anticipate that zoning and permitting of new capacity additions will remain difficult. This could potentially enhance the value of our existing facilities. Furthermore, cost-efficient alternatives to cement are currently limited, and the availability of some alternatives is diminishing. For example, the availability of fly ash, a cement replacement, has decreased because of the retirement of coal-fired power plants and the conversion of power plants from coal to natural gas and other forms of energy.

The difficulty in adding cement capacity, coupled with limited alternatives, leads to high U.S. cement manufacturing utilization rates, as well as the need for imported cement when demand levels are high. Cement imports into the U.S. occur mostly to supplement domestic cement production or to supply a particular region. Cement is typically imported into deep water ports along the coasts or on the Great Lakes or transported on the Mississippi River system near major population centers. Our position in the U.S. heartland, away from most import terminals, provides a degree of insulation from coastal imports, given the expense of transporting cement from deep water ports into the heartland regions. This geographic position further enhances the value of our plant network.

The ACA estimates that imports represented approximately 23% of cement used in the U.S. during calendar 2025, similar to the amount used in calendar 2024. Based on the historical distribution of cement into the market, we believe that no less than approximately 5% to 10% of total U.S. consumption will consistently be served by imported cement.

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The following table shows the geographic areas served by each of our cement and slag plants and the location of our distribution terminals in each area. We have over 30 cement storage and distribution terminals, which are strategically located to extend the sales areas of our plants.

Plant Location

Type of Plant

Operating Company Name

Principal Geographic Areas

Distribution Terminals (1)

Buda,

Texas

Cement

Texas Lehigh Cement Company LP (the Joint Venture)

Texas and western

Louisiana

Corpus Christi, Texas; Houston, Texas;

Roanoke (Fort Worth), Texas; Waco,

Texas; Houston Cement Company

(Joint Venture), Houston, Texas

LaSalle,

Illinois

Cement

Illinois Cement Company

Illinois, Michigan, and

southern Wisconsin

Hartland, Wisconsin; South Beloit, Illinois;

Ottawa, Illinois

Sugar Creek,

Missouri

Cement

Central Plains Cement Company

Western Missouri, eastern

Kansas, eastern Nebraska, and Iowa

Sugar Creek, Missouri; Wichita, Kansas;

Omaha, Nebraska; Altoona, Iowa

Tulsa,

Oklahoma

Cement

Central Plains Cement Company

Oklahoma, western

Arkansas, and southern

Missouri

Oklahoma City, Oklahoma;

Springfield, Missouri

Laramie,

Wyoming

Cement

Mountain Cement Company

Wyoming, Utah, Colorado,

and western Nebraska

Salt Lake City, Utah; Denver, Colorado;

North Platte, Nebraska

Fernley,

Nevada

Cement

Nevada Cement Company

Northern Nevada and

northern California

Sacramento, California; Stockton, California; (2)

Redwood City, California (2)

Louisville,

Kentucky

Cement

Kosmos Cement Company

Kentucky, Ohio, Indiana, West Virginia, eastern Illinois, western Pennsylvania, and northern Tennessee

Indianapolis, Indiana; Ceredo, West Virginia;

Lexington, Kentucky (2); Cincinnati, Ohio;

Pittsburgh, Pennsylvania; Nashville,

Tennessee; Charleston, West Virginia;

Mount Vernon, Indiana (2)

Fairborn,

Ohio

Cement

Fairborn Cement Company

Ohio, eastern Indiana, and

northern Kentucky

Columbus, Ohio

Chicago,

Illinois

Slag

Skyway Cement Company

Illinois, Pennsylvania,

Iowa, Ohio, Minnesota,

Missouri, and Kansas

Kansas City, Missouri; Etna, Pennsylvania

Houston,

Texas

Slag

Texas Lehigh Cement Company LP (the Joint Venture)

Texas, Louisiana

Houston, Texas

(1)
Each distribution terminal listed in this table is capable of handling cement and/or slag.

(2)
These facilities are being leased.

The terminal in Lexington, Kentucky was originally leased under an initial term of five years, and we are currently operating the terminal on a year-to-year lease. The terminal in Mt. Vernon, Indiana is leased through fiscal 2031 and contains options that will allow the renewal of this lease for an additional twenty years.

Cement and slag are distributed directly to our customers mostly through customer pickup and by common carriers from our plants or distribution terminals. We transport cement and slag by truck, barge, and rail to our storage and distribution terminals.

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No single customer accounted for more than 10% of our Cement segment sales during fiscal 2026. We do not typically enter into long-term cement sales contracts or have a significant level of order backlog.

Raw Materials and Fuel Supplies

The principal raw material used in the production of cement is calcium carbonate in the form of limestone. Limestone is obtained mainly through mining and extraction operations conducted at mines and quarries that we own or lease and that are located in close proximity to our plants. We believe the estimated recoverable limestone reserves and resources we own or lease will permit each of our plants to operate at our present production capacity for at least 25 years. We are actively seeking to upgrade our extensive high-quality resource base at existing properties to reserves, or to acquire additional limestone reserves close to our plants. We believe we will be able to acquire more reserves in the future. Most of our existing properties have additional resources that have potential with further engineering and evaluation to be upgraded to reserves. Other raw materials used in significantly smaller quantities than limestone are sand, clay, iron ore, and gypsum. These materials are readily available and can be obtained from reserves owned or leased by the Company or purchased from outside suppliers.

We use coal, petroleum coke, natural gas, and alternative fuels to power our cement plants. The cost of fuel decreased throughout fiscal 2026, compared with fiscal 2025, primarily because of lower market prices and transportation costs for solid fuels such as coal and petroleum coke. We expect the cost of fuel to remain relatively stable in fiscal 2027. In keeping with our commitment to sustainability and cost management, we continue to expand the use of alternative fuels at our cement facilities.

Our slag facility in Illinois has an agreement with a steel manufacturer to supply granules necessary for grinding slag. Subject to certain conditions, this agreement requires us to purchase up to 550,000 tons of granules meeting certain product specifications, which the steel manufacturer makes available each year. Electric power is also a major cost component in the manufacturing process for both cement and slag, and we have sought to diminish overall power costs by adopting interruptible power supply agreements at certain locations. These agreements may expose us to some production interruptions during periods of power curtailment. Historically, these interruptions, when they occur, have not had a significant effect on our operations.

Environmental Matters

Our cement operations are subject to numerous federal, state, and local laws and regulations pertaining to health, safety, and the environment. Some of these laws, such as the federal Clean Air Act (CAA) and the federal Clean Water Act (CWA) (and analogous state laws) impose environmental-permitting requirements and govern the nature and amount of emissions that may be generated when conducting particular operations. Other laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) (and analogous state laws) impose obligations to clean up or remediate spills of hazardous materials into the environment. Still other laws require us to reclaim certain land upon completion of extraction and mining operations in our quarries. We believe that we currently hold all the material environmental permits that are necessary to conduct our operations. We further believe that we are conducting our operations in substantial compliance with these permits. In addition, none of our manufacturing sites are listed as a CERCLA Superfund site.

The following environmental issues involving the cement manufacturing industry deserve special mention.

Cement Kiln Dust – Our cement operations generate Cement Kiln Dust (CKD) as a byproduct. Because much of this CKD is unreacted raw materials, it is often returned to the production process. Substantially all CKD produced in connection with our ongoing operations is recycled. However, CKD was historically

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collected and is currently stored on-site at our Nevada, Missouri, Oklahoma and Wyoming cement plants and at a former plant site in Corpus Christi, Texas, which is no longer producing cement. Currently, CKD waste is generally excluded from the definition of hazardous waste under the federal regulations. However, CKD that comes in contact with water might produce a leachate with an alkalinity high enough to be classified as hazardous and might also leach certain hazardous trace metals therein. Since 2002, the U.S. Environmental Protection Agency (EPA) has been evaluating the regulatory status of CKD under the Resource Conservation and Recovery Act (RCRA). To date, the EPA has not changed the applicable regulatory framework or related definitions. If either the EPA or the states decide in the future to reclassify or impose new management standards on CKD, we could incur additional costs to comply with those requirements with respect to our historically collected CKD.

Potential Greenhouse Gas Regulation – Our operations generate certain greenhouse gases (GHGs), including carbon dioxide. In particular, the cement manufacturing process requires the combustion of large amounts of fuel to generate very high kiln temperatures. In addition, the production of carbon dioxide is a byproduct of the calcination process, in which carbon dioxide is removed from calcium carbonate to produce calcium oxide. We are actively monitoring any new regulation of GHGs that could materially affect our cement operations. Several states have implemented or are considering measures to reduce emissions of GHGs, primarily through the planned development of GHG inventories or registries, or regional GHG cap and trade programs. In general, it is not possible to predict whether any future legislation or regulations will be enacted or adopted to address GHG emissions or how any such legislation or regulations would affect our business. However, any imposition of raw materials or production limitations, fuel-use or carbon taxes, or emission limitations or reductions could have a significant impact on the cement manufacturing industry and a material adverse effect on our operations.

Solid Waste Incineration Regulations – The EPA has promulgated revised regulations for Commercial and Industrial Solid Waste Incineration (CISWI) units pursuant to Section 129 of the CAA. The EPA has approved several states’ implementation plans under this rule, and finalized a federal plan in December 2024 that applies in states that have not submitted and received approval for a state plan. Compared to the Portland Cement Manufacturing Industry National Emission Standards for Hazardous Air Pollutants (PC NESHAP), the CISWI regulations apply to a broader range of pollutants, and impose somewhat more stringent requirements related to dioxin/furans for existing and new sources.

Air Quality Standards –

NAAQS for Ozone. The EPA is engaged in an ongoing review and implementation of the national ambient air quality standards (NAAQS) for ozone. The CAA requires the EPA to review and, if necessary, revise the NAAQS every five years. The EPA initiated its updated review of the NAAQS in 2024 under the Biden Administration, which the agency indicated it plans to complete by 2030. The Trump Administration has not taken further action on this review to date.

The current 2015 ozone NAAQS (interstate transport requirements) required States to submit State Implementation Plans (SIPs) addressing the emissions that significantly contribute to nonattainment, or interference with maintenance, in downwind states. In February 2023, the EPA published a final rule disapproving in whole or in part the SIPs for twenty-one states, including Illinois, Kentucky, Missouri, Nevada, Ohio, Oklahoma, and Texas (all of which are relevant to our cement operations). The EPA is currently reconsidering many of these SIP disapprovals, including those for Kentucky, Missouri, Nevada, and Oklahoma, and anticipates completing the reconsideration action by the end of 2026.

In March 2023, the EPA finalized a Federal Implementation Plan (FIP), also known as the "Good Neighbor Plan," which addresses interstate transport obligations for 23 states, including the states subject to a SIP disapproval. The FIP establishes ozone season nitrogen oxide (NOx) emissions limitations

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beginning in 2026 for kilns used in cement and cement product manufacturing in 20 states, including all the above-listed states relevant to our cement operations. As a result of legal challenges, the FIP is currently subject to a nationwide stay, as described in more detail below. The EPA is currently reconsidering certain requirements under the Good Neighbor Plan, and anticipates completing this reconsideration action by the end of 2026.

Our facilities that are most directly affected by the SIP disapprovals and Good Neighbor FIP are our cement plants located in Nevada, Oklahoma, and Texas. We reached an agreement with the EPA in July 2024 to install additional NOx controls (low NOx burners) at our Nevada cement facility, which requires certain capital expenditures and may impact operating costs.

Various legal challenges have been filed against the EPA’s SIP disapprovals for several states and against the Good Neighbor Plan. We joined this litigation as a plaintiff in April 2023 in response to the SIP disapprovals. In the course of these challenges, petitioners obtained a stay of the SIP disapprovals for Nevada, Oklahoma, and Texas, as well as the Good Neighbor Plan, which has halted implementation of the FIP. Only two courts have issued a final ruling on the validity of the SIP disapprovals — a decision in December 2024 by the Sixth Circuit overturning the EPA’s disapproval of Kentucky’s SIP and a revised decision in March 2026 by Fifth Circuit overturning the EPA’s disapproval of Texas’s SIP. We are unable to predict the likely outcome of the legal challenges that remain pending. An adverse outcome could require us to incur significant capital expenditures related to the installation of additional controls and additional operating costs at the affected facilities or, if the installation of controls proves impracticable, to modify or curtail our operations at such facilities, which could have a material adverse effect on their profitability.

NAAQS for Fine Particulate Matter. In 2024, the EPA issued a final rule revising the NAAQS for fine particulate matter (PM2.5) or soot. The final rule lowers the level of the primary (health-based) annual standards and modifies related monitoring requirements. All other existing PM standards were retained. The final rule has been challenged by various parties. In addition, the EPA is currently reconsidering these requirements. In November 2025, the EPA requested that the D.C. Circuit vacate the revised standards but the court has not yet acted on this request. The timing and outcome of these legal challenges and the EPA’s reconsideration are unknown at this time. The anticipated impacts of the new PM2.5 NAAQS are similar to those for the ozone NAAQS, discussed above, and would result in a potential increase in our capital expenditures and operating expenses and make permitting more difficult.

Hazardous Air Pollutants – Eagle’s cement kilns are subject to National Emissions Standards for Hazardous Air Pollutants (NESHAPs), codified at 40 CFR Part 63 Subparts EEE and LLL. The EPA is conducting rulemakings that would revise Subparts EEE and LLL, such that kilns may be subject to additional emissions limitations, monitoring requirements and/or reporting obligations. The EPA issued a proposed rule in November 2025, which would establish emission limits and work practice standards for hydrogen fluoride and hydrogen cyanide emissions from cement kilns. To date, the EPA has not proposed updates to Subpart LLL standards.

Other – We believe that our current procedures and practices in our operations, including those for handling and managing hazardous materials, are consistent with industry standards and are in substantial compliance with applicable environmental laws and regulations. Nevertheless, because of the complexity of our operations and the environmental laws to which we are subject, there can be no assurance that past or future operations will not result in violations, remediation costs, or other liabilities or claims. Moreover, we cannot predict what environmental laws will be enacted or adopted in the future or how such future environmental laws or regulations will be administered or interpreted. Compliance with more

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stringent environmental laws, or stricter interpretation of existing environmental laws, could necessitate significant capital outlays.

In fiscal 2026, we had $11.1 million of capital expenditures related to compliance with environmental regulations applicable to our Cement operations. We anticipate spending $7.3 million during fiscal 2027.

Concrete and Aggregates

The aggregates business consists of mining, extracting, producing, and selling crushed stone, sand, and gravel. Aggregates are a granular material consisting of crushed stone, sand, and gravel, manufactured to specific sizes, grades, and chemistry for use primarily in construction applications.

Readymix concrete is a versatile, low-cost building material used in almost all construction. The production of readymix concrete involves mixing cement, sand, gravel or crushed stone, and water to form concrete, which is then sold and distributed to numerous construction contractors. Concrete is produced in batch plants and transported to customers’ job sites in mixer trucks.

During fiscal 2025, we acquired an aggregates operation in Northern Kentucky near our Battletown Materials plant, as well as an aggregates operation in Western Pennsylvania.

Aggregate Mining Operations

Aggregates are obtained principally by mining and extracting from quarries owned or leased by the Company. For more information about our aggregates mining properties, including estimates of resources and reserves, see Item 2. Properties.

The following table sets forth certain information regarding our aggregates facilities at March 31, 2026.

Location

Types

of Aggregates

Estimated Annual

Production

Capacity

(thousand tons)

Central Texas

Limestone and Gravel

2,500

Kansas City Area (1)

Limestone

—

Northern Colorado

Sand and Gravel

1,700

Northern Kentucky

Limestone

2,200

Northern Nevada

Sand and Gravel

850

Western Pennsylvania

Limestone

1,800

9,050

(1) The Company is currently not operating its aggregates plant in the Kansas City Area.

Our total net Aggregates sales (excluding intercompany tons sold) were 6.4 million tons in fiscal 2026, and 3.8 million tons in fiscal 2025. Total Aggregates production related to third party sales was 6.4 million tons in fiscal 2026, and 4.2 million tons in fiscal 2025. A portion of our total Aggregates production is used internally by our readymix Concrete operations in Texas, northern Colorado, and northern Nevada and by our Cement operations in northern Kentucky. In fiscal 2025, we made two aggregates related acquisitions, which contributed to the increases in fiscal 2026.

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Concrete Plants

We produce and distribute readymix concrete from company-owned sites in central Texas, the greater Kansas City area, northern Colorado, and northern Nevada. The following table sets forth information regarding these operations as of March 31, 2026.

Location

Number of Plants

Central Texas

11

Kansas City Area

9

Northern Colorado

4

Northern Nevada

6

Total

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Demand, Sales, and Distribution

Demand for readymix concrete and aggregates largely depends on local levels of construction activity. Construction activity is subject to weather conditions, the availability of financing at reasonable rates, and overall fluctuations in local economies, and therefore tends to be cyclical. We sell readymix concrete to numerous contractors and other customers in each plant’s marketing area. Our batch plants are strategically located to serve each marketing area. Concrete is delivered from the batch plants primarily by company-owned trucks. We sell aggregates to building contractors and other customers engaged in a wide variety of construction activities. Aggregates are distributed from our plants by common carriers and customer pickup. No single customer accounted for more than 10% of fiscal 2026 segment revenue.

The concrete and aggregates industry is highly fragmented, with numerous participants operating in each local area. Because the cost of transporting concrete and aggregates is very high relative to product values, producers of concrete and aggregates typically can profitably sell their products only in areas within 50 miles of their production facilities. There are high barriers to entry for new aggregates production facilities located near major metropolitan markets, including environmental permitting requirements and zoning of land to permit mining and extraction of aggregates.

Raw Materials

We obtain cement and aggregates for our Concrete businesses primarily from related companies, as outlined below.

Percentage of Internally Supplied

Location

Cement

Aggregates

Central Texas

50%

35%

Kansas City Area

100%

—

Northern Colorado

100%

50%

Northern Nevada

100%

60%

We obtain the balance of our cement and aggregates requirements from multiple outside sources in each of these areas.

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We mine and extract limestone, sand, and gravel, the principal raw materials used in the production of aggregates, from quarries owned or leased by us and located near our plants. On average, our aggregate reserves and resources exceed 25 years based on normalized production levels.

Cost of materials and delivery expense are the two biggest expense items for readymix concrete, comprising approximately 62% and 15% of total costs, respectively. In fiscal 2026, cost of materials and delivery expenses decreased by 1% and 13%, respectively, compared with fiscal 2025. We anticipate these costs will increase in fiscal 2027.

Environmental Matters

The concrete and aggregates industry is subject to environmental regulations similar to those governing our Cement operations, which are included in the Environmental Matters section in the Cement segment discussion.

We did not have any capital expenditures related to compliance with environmental regulations applicable to our Concrete and Aggregates operations in fiscal 2026, and we do not anticipate any material spending related to compliance with environmental regulations during fiscal 2027.

Light Materials

Our Light Materials sector comprises the Gypsum Wallboard segment, which produces gypsum wallboard used in residential and private nonresidential construction and repair and remodel activities, and the Recycled Paperboard segment, which produces paper primarily used in the manufacture of gypsum wallboard. Our operations in this sector are concentrated in the Sun Belt of the United States, which we define as the lower half of the United States, but not California. Population in the Sun Belt is projected to grow approximately 19% between 2020 and 2050, according to the latest update in July 2024 by University of Virginia, Weldon Cooper Center for Public Service. Population growth is a key long-term driver of demand for gypsum wallboard and recycled paperboard.

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Gypsum Wallboard

Gypsum wallboard is used to finish the interior walls and ceilings in residential, commercial, and industrial structures. Our gypsum wallboard products are marketed under the name American Gypsum.

The gypsum wallboard manufacturing process involves four main steps, as shown in the graphic below.

Gypsum Wallboard Plants and Gypsum Mining Operations

We own and operate five gypsum wallboard plants, shown in the table below. We anticipate running all our facilities at the level required to meet customer demand, up to maximum capacity. Our gypsum wallboard is distributed in the geographic markets nearest to our production facilities.

Four of our five gypsum wallboard plants are supplied with natural gypsum from our nearby gypsum quarries, while our wallboard plant in South Carolina is supplied with gypsum under a long-term supply contract with a third party. For more information about our gypsum mining properties, including estimates of gypsum resources and reserves, see Item 2. Properties.

The table shows approximate annual production capacity at each of our gypsum wallboard plants at March 31, 2026.

Location

Approximate Annual

Gypsum Wallboard

Capacity (MMSF) (1)

Albuquerque, New Mexico

425

Bernalillo, New Mexico

550

Gypsum, Colorado

700

Duke, Oklahoma

1,200

Georgetown, South Carolina

900

Total

3,775

(1) Million Square Feet (MMSF) based on anticipated product mix.

Our Gypsum Wallboard production totaled 2,792 MMSF in fiscal 2026, and 3,022 MMSF in fiscal 2025. Total Gypsum Wallboard sales were 2,759 MMSF in fiscal 2026, and 2,968 MMSF in fiscal 2025.

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Demand, Sales, and Distribution

The principal sources of demand for gypsum wallboard are residential construction, repair and remodel activities, private nonresidential construction, and other markets such as manufactured housing. According to the Gypsum Association, industry shipments of gypsum wallboard decreased approximately 7% to 25.4 billion square feet in calendar 2025. We estimate that residential construction and repair and remodel accounted for more than 80% of calendar 2025 industry sales.

Demand for gypsum wallboard closely follows construction industry cycles, particularly housing construction. Demand for wallboard can be seasonal and is generally highest from spring through the middle of autumn. Gypsum wallboard is sold on a delivered basis, and delivery is mostly by truck. We generally use third-party common carriers for deliveries. Although gypsum wallboard is distributed principally in local areas, certain industry producers (including the Company) have the ability to ship gypsum wallboard by rail outside their usual regional distribution areas to regions where demand is strong. Our rail distribution capabilities permit us to service customers in markets on both the east and west coasts, except for the Northeast. Less than 5% of our Wallboard volume sold during fiscal 2026 was delivered via rail.

We sell gypsum wallboard to numerous building-materials dealers, gypsum wallboard specialty distributors, lumber yards, home-center chains, and other customers located throughout the United States, with the exception of the Northeast. Three customers collectively accounted for approximately 64% of our Gypsum Wallboard segment sales during fiscal 2026.

There are currently six manufacturers of gypsum wallboard in the U.S., operating a total of 59 plants with a total of 69 lines, per the Gypsum Association. We estimate that the four largest producers ‒ Knauf, National Gypsum Company, CertainTeed, and Koch Industries ‒ account for approximately 85% of gypsum wallboard sales in the U.S. Total wallboard-rated production capacity in the United States is currently estimated by the Gypsum Association at approximately 32.7 billion square feet per year, on an annual product mix capacity basis.

Raw Materials and Fuel Supplies

We mine and extract natural gypsum, the principal raw material used in the manufacture of gypsum wallboard, from quarries owned, leased, or subject to mining claims owned by the Company and located near our plants. Our New Mexico reserves are under lease with the Pueblo of Zia. Gypsum ore reserves at the Gypsum, Colorado plant are contained within numerous placer claims encompassing 2,300 acres. Included in this are unpatented mining claims, where mineral rights can be developed upon completion of permitting requirements. We entered into a long-term agreement in 2005 with a public utility in South Carolina for synthetic gypsum, which we use at our Georgetown, South Carolina plant. This agreement has an initial term through December 2029, and we have two 20-year extension options that would extend the term through December 2069 should we elect to exercise both of our extension options. If the utility is unable to generate the agreed-upon amount of gypsum, it is responsible for providing gypsum from a third party to fulfill its obligations.

Through our modern low-cost paperboard mill, we manufacture sufficient quantities of paper necessary for our gypsum wallboard production. Paper is a significant cost component in the manufacture of gypsum wallboard, currently representing approximately one-third of our total production cost. Paper costs are expected to be relatively consistent throughout fiscal 2027. See Raw Materials and Fuel Supplies in the Recycled Paperboard section for more information.

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Our gypsum wallboard manufacturing operations use natural gas and electrical power. A significant portion of the Company’s natural gas requirements for our gypsum wallboard plants are currently provided by three gas producers under gas-supply agreements. Power for our Gypsum, Colorado facility is generated at the facility by a cogeneration power plant that we own and operate. Currently, the cogeneration power facility supplies power and waste hot gases for drying to the gypsum wallboard plant. We do not sell any power to third parties. Natural gas costs represented approximately 8% of our production costs in fiscal 2026.

Environmental Matters

The gypsum wallboard industry is subject to numerous federal, state, and local laws and regulations pertaining to health, safety, and the environment. Some of these laws, such as the federal CAA and the federal CWA and analogous state laws, impose environmental permitting requirements and govern the nature and amount of emissions that may be generated when conducting particular operations. Some laws, such as CERCLA and analogous state laws, impose obligations to clean up or remediate spills of hazardous materials into the environment. Still other laws require us to reclaim certain land upon completion of extraction and mining operations in our quarries. We do not, and have not, used asbestos in any of our gypsum wallboard products.

RCRA Regulation of CCRs – We use synthetic gypsum in wallboard manufactured at our Georgetown, South Carolina plant. In 2015, the EPA published its final rule addressing the storage, reuse, and disposal of coal combustion products, which include fly ash and flue gas desulfurization gypsum (synthetic gypsum). The rule, which applies only to electric utilities and independent power producers, establishes standards for the management of coal combustion residuals (CCRs) under Subtitle D of the RCRA. In general, under the rule, the EPA has chosen to regulate CCRs under the non-hazardous waste sections of RCRA. The rule imposes requirements addressing CCR surface impoundments and landfills, including location restrictions, design, and operating specifications; groundwater monitoring requirements; corrective action requirements; record keeping and reporting obligations; and closure requirements. Beneficial encapsulated uses of CCRs, including synthetic gypsum, are exempt from regulation. We do not believe that the rule as currently in effect or the currently proposed revisions thereto are likely to have material effects on our business, financial condition, and results of operations.

NAAQS for Ozone and Fine Particulate Matter – As discussed in greater detail in the “Environmental Matters” section for Cement, our operations are impacted by the NAAQS for ozone and fine particulate matter (PM2.5) or soot. Either of these regulations could have a material impact on our gypsum wallboard business, if areas in or surrounding our operations receive nonattainment designations, or if the EPA chooses to revise and lower the current ozone NAAQS.

Potential Greenhouse Gas Regulation – Although our Gypsum Wallboard operations could be adversely affected by federal, regional, or state climate change initiatives, at this time, it is not possible to accurately estimate how future laws or regulations addressing GHG emissions would impact our business. However, any imposition of raw materials or production limitations, fuel-use or carbon taxes, or emission limitations or reductions could have a significant impact on the gypsum wallboard manufacturing industry and a material adverse effect on the financial results of our operations.

There were $1.1 million of capital expenditures related to compliance with environmental regulations applicable to our Gypsum Wallboard operations during fiscal 2026. We anticipate spending $0.1 million during fiscal 2027.

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Recycled Paperboard

Our Recycled Paperboard manufacturing operation, which we refer to as Republic Paperboard Company, is located in Lawton, Oklahoma and has a technologically advanced paper machine designed primarily for gypsum liner production using 100% recycled paper. The paper’s uniform cross-directional strength and finish characteristics facilitate the efficiencies of new high-speed wallboard manufacturing lines and improve the efficiencies of the slower wallboard manufacturing lines. Although the machine was designed primarily to manufacture gypsum liner products, we are also able to manufacture several alternative products, including containerboard grades and lightweight packaging grades. We currently estimate the annual capacity of our paper mill to be approximately 380,000 tons.

Our paper machine allows the Recycled Paperboard operation to manufacture high-strength gypsum liner that we believe is lighter in basis weight than what is generally available in the U.S. The low-basis weight product uses less recycled fiber to produce paper that, in turn, requires less energy (natural gas) to evaporate moisture from the board during the gypsum wallboard manufacturing process. The low-basis weight paper also reduces the overall finished board weight, giving our Gypsum Wallboard operations more competitive transportation costs for both the inbound and outbound segments.

Demand, Sales, and Distribution

Our manufactured recycled paperboard products are sold to gypsum wallboard manufacturers and other industrial users. During fiscal 2026, approximately 40% of the recycled paperboard sold by our paper mill was consumed by the Company’s Gypsum Wallboard manufacturing operations. We have contracts with two other gypsum wallboard manufacturers that continue until either party gives two to three years advance notice of termination. These two contracts represent approximately 50% of our total segment revenue, with most of the remaining 10% of volume shipped to other gypsum wallboard manufacturers. The loss of any of these contracts or the termination or reduction of their current production of gypsum wallboard, unless replaced by a commercially similar arrangement, could have a material adverse effect on the Company.

Raw Materials and Fuel Supplies

The principal raw materials in recycled paperboard are recycled paper fiber (recovered wastepaper), water, and specialty paper chemicals. The largest wastepaper source used by the operation is old corrugated containers (known as OCC). A blend of high grades (white paper grades consisting of both printed and unprinted papers such as news blank, manifold white ledger, and other paper grades) is also used in the production of gypsum liner facing paper.

We believe that an adequate supply of recycled paper fiber will continue to be available from sources located in reasonable proximity to the paper mill. Although we have the capability to receive rail shipments, the vast majority of the recycled fiber we purchase is delivered via truck. Prices are subject to market fluctuations based on generation of material (supply), demand, and the presence of the export market. Fiber pricing, on average, was lower in fiscal 2026 than in fiscal 2025. Fiber prices are subject to change upon short notice due to factors outside of our control. Current gypsum liner customer contracts include price escalators that partially offset and compensate for changes in raw material fiber prices. The chemicals used in the paper-making operation, including size, retention aids, biocides, and sheet-strength additives, are available from several manufacturers at competitive prices.

The production of recycled paperboard involves the use of large volumes of water. We have an agreement with the City of Lawton municipal services to supply water to our manufacturing facility for the next 15 years, and we are improving our ability to recirculate our used water, which should significantly

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reduce our consumption of fresh water. Electricity, natural gas, and other utilities are available to us at either contracted rates or standard industrial rates in adequate supplies. These utilities are subject to standard industrial curtailment provisions.

Paperboard operations are generally large consumers of energy, mostly natural gas and electricity. Electricity is supplied to the paper mill by Public Service of Oklahoma (PSO), and they have requested a rate increase for fiscal 2027. Oklahoma is a regulated state for electricity services, and all rate change requests must be presented to the Oklahoma Corporation Commission for review and approval before implementation. At this time, we are unable to estimate how much of the increase will be granted by the Oklahoma Corporation Commission. PSO has been moving its fuel source dependency to natural gas and investing in wind energy, which could affect our electricity rates in future years. Natural gas costs in fiscal 2026 were similar to those in fiscal 2025, and they are subject to change upon short notice due to factors beyond our control. We use forward purchase contracts to manage our exposure to future price changes.

Environmental Matters

We did not have any capital expenditures related to compliance with environmental regulations applicable to our Recycled Paperboard operations during fiscal 2026, and we do not anticipate any capital expenditures related to compliance with environmental regulations during fiscal 2027.

Where You Can Find More Information

We publish our annual reports on Form 10-K and Form DEF 14A, Annual Proxy Statement; our quarterly reports on Form 10-Q; and current reports on Form 8-K. These reports, along with all amendments to them, are available free of charge through the Investor Relations page of our website, eaglematerials.com as soon as reasonably practicable after they are filed with or furnished to the Securities and Exchange Commission (SEC).

The Company also has a Code of Ethics, Human Rights Policy, Code of Vendor Conduct, and Occupational Health and Safety Policy, which can be accessed on our website, as well. Our Corporate Governance Guidelines and Stock Ownership Guidelines, as well as the charters for the Audit; Compensation; and Corporate Governance, Nominating and Sustainability Committees of the Board are also available on our website. All of these Corporate Governance and Board Committee Charter documents are available at ir.eaglematerials.com/corporate-governance. Our Sustainability Report is available at eaglematerials.com.

These references to our website are intended solely to inform investors where they may obtain additional information; the materials and other information presented on our website are not incorporated in and should not otherwise be considered part of this Report. Additionally, investors may obtain information by contacting our Investor Relations department directly at (214) 432-2000 or by writing to Eagle Materials Inc., Investor Relations, 5960 Berkshire Lane, Suite 900, Dallas, Texas 75225.

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