v3.25.4

Income taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes As the Company is incorporated in Switzerland. the components of income tax expense and the effective tax rate tables are based on Switzerland’s federal tax rate. Income tax provision The components of Income before income tax expense and income from equity method investments are as follows:
| For the years ended December 31,
(In millions) | 2025 |  | 2024 |  | 2023
Swiss | $288 |  | $328 |  | $218
Non-Swiss | 1,209 |  | 1,300 |  | 1,085
Total income before income tax expense and income from equity method investments | $1,497 |  | $1,628 |  | $1,303
The provision for income taxes consists of the following:
| For the years ended December 31,
(In millions) | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Swiss – Federal | $24 |  | $24 |  | $2
Swiss – Cantonal | 11 |  | — |  | 1
Non-Swiss | 213 |  | 379 |  | 347
Total current tax expense | 248 |  | 403 |  | 350
Deferred: |  |  |  |  |
Swiss – Federal | (1) |  | 25 |  | 17
Swiss – Cantonal | — |  | 14 |  | 7
Non-Swiss | 79 |  | (74) |  | (13)
Total deferred tax expense (benefit) | 78 |  | (35) |  | 11
Total income tax expense | $326 |  | $368 |  | $361
For purposes of the effective tax rate reconciliation, the Company uses the Swiss federal statutory income tax rate of 8.5%. A reconciliation of the statutory Swiss federal tax rate and the Company’s effective tax rate is as follows:
| For the years ended December 31, |
(In millions, except for percentage data) | 2025 | % | 2024 | % | 2023 | %
Swiss federal statutory tax rate | $127 | 8.5 | $138 | 8.5 | $111 | 8.5
Cantonal income taxes (1) | 11 | 0.7 | 14 | 0.8 | 8 | 0.6
Changes in unrecognized tax benefits | (20) | (1.4) | 15 | 0.9 | 43 | 3.3
OECD Pillar Two tax | (6) | (0.4) | 24 | 1.5 |  |
Other adjustments: |  |  |  |  |  |
Deferred tax adjustments | 7 | 0.5 |  |  |  |
Other | (3) | (0.1) | (2) | (0.1) |  |
Foreign tax effects |  |  |  |  |  |
United States |  |  |  |  |  |
Effect of rates different than statutory | 97 | 6.5 | 118 | 7.2 | 96 | 7.4
State and local income taxes | 33 | 2.2 | 46 | 2.8 | 46 | 3.6
Nontaxable or nondeductible items |  |  |  |  | 5 | 0.4
Other adjustments: |  |  |  |  |  |
Percentage depletion | (17) | (1.1) | (18) | (1.1) | (16) | (1.3)
Deferred tax adjustments |  |  | (18) | (1.1) | 2 | 0.2
Purchase price adjustments |  |  | (13) | (0.8) |  |
Other | (2) | (0.1) | (8) | (0.5) | 4 | 0.3
Canada |  |  |  |  |  |
Effect of rates different than statutory | 70 | 4.6 | 58 | 3.5 | 51 | 4.0
State and local income taxes | 1 | 0.1 | 1 | 0.1 | 1 | 0.1
Nontaxable or nondeductible items |  |  | 7 | 0.5 | 7 | 0.6
Other adjustments: |  |  |  |  |  |
Repatriation cost | 28 | 1.8 |  |  |  |
Other | (1) | (0.1) | 6 | 0.4 | 3 | 0.1
Other foreign jurisdictions: |  |  |  |  |  |
Other adjustments | 1 | 0.1 |  |  |  |
Total income tax expense | $326 |  | $368 |  | $361 |
Effective income tax rate | 21.8% |  | 22.6% |  | 27.8% |
__________________ (1)Entirely comprised of income taxes from the Canton of Zug. The Company’s effective income tax rate for the year ended December 31, 2025 was higher than the Swiss statutory rate due to the Company’s jurisdictional mix of earnings, and repatriation costs, which were partially offset by changes in uncertain tax positions, percentage depletion, and a reduction in Pillar Two taxes from new regulatory guidance. The Company’s effective income tax rate for the year ended December 31, 2024 was higher than the Swiss statutory rate due to the Company’s jurisdictional mix of earnings, changes in uncertain tax positions, and Pillar Two taxes, which was offset by percentage depletion and return to provision adjustments. The Company’s effective income tax rate for the year ended December 31, 2023 was higher than the Swiss statutory rate due to the Company’s jurisdictional mix of earnings, changes in uncertain tax positions, and return to provision adjustments, which was partially offset by percentage depletion. Income Taxes Paid
| For the years ended December 31,
(In millions) | 2025 |  | 2024 |  | 2023
Swiss | $— |  | $— |  | $—
United States | 230 |  | 196 |  | 142
Canada | 139 |  | 106 |  | 69
Total income taxes paid | $369 |  | $302 |  | $211
No Swiss federal or cantonal income tax was paid in the year. An y income tax attributed to the pre-spin period was accrued and paid by Holcim. The Company will pay Swiss income tax for the post-spin 2025 period in 2026 in accordance with Swiss tax law. Deferred income tax liabilities, net The components of Deferred income tax liabilities, net were as follows:
| As of December 31,
(In millions) | 2025 |  | 2024
Deferred tax assets: |  |  |
Deferred expenses and defined benefit pension plan obligations | $265 |  | $291
Lease liabilities | 171 |  | 138
Site restoration | 122 |  | 61
Net operating loss | 90 |  | 22
Other assets | 49 |  | 78
Total deferred tax assets | 697 |  | 590
Less: valuation allowances | (66) |  | (13)
Total deferred tax assets after valuation allowances | $631 |  | $577
Deferred tax liabilities: |  |  |
Cost depletion | $(144) |  | $(107)
Property, plant and equipment | (1,018) |  | (1,009)
Intangible and other long-lived assets | (301) |  | (260)
Leased right-of-use assets | (163) |  | (137)
Other liabilities | (33) |  | —
Total deferred tax liabilities | (1,659) |  | (1,513)
Total net deferred tax liabilities | $(1,028) |  | $(936)
Reported as: |  |  |
Deferred tax liabilities | $(1,048) |  | $(936)
Other noncurrent assets | 20 |  | —
Deferred tax liabilities, net | $(1,028) |  | $(936)
The change in the net deferred income tax liabilities from December 31, 2024 to December 31, 2025 was primarily driven by a repatriation cost deferred tax liability recorded on the current year unremitted earnings that are not indefinitely reinvested. There was also an increase in the intangible deferred tax liability related to goodwill and intellectual property tax amortization that exceeds book amortization. As of December 31, 2025 and 2024, the Company had $752 million and $227 million, respectively, of gross loss carryforwards, of which approximately $599 million and $181 million, respectively, related to U.S. state gross loss carryforwards, and the remaining relates to Canada and Switzerland. The net operating loss and credit carryforwards have various expiration dates from 2026 to an indefinite carryforward period in the United States, expiration years of 2031 and 2032 in Switzerland, and various expiration years in Canada ranging from 2032 to 2045. Valuation Allowances Related to Deferred Taxes: The summary of the change in valuation allowance at December 31 was:
(In millions) | 2025 |  | 2024 |  | 2023
Balance as of January 1 | $13 |  | $12 |  | $12
Increase (decrease) charged to tax expense | 3 |  | 1 |  | —
Currency translation and other | 50 |  | — |  | —
Balance as of December 31 | $66 |  | $13 |  | $12
The net change in the total valuation allowance for the years ended December 31, 2025 and 2024 was $53 million and $1 million, respectively. The 2025 movement is primarily related to the U.S valuation allowance that was previously net with its respective net operating losses or state credit carryforwards. Tax uncertainties A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows:
(In millions) | 2025 |  | 2024 |  | 2023
Balance as of January 1 | $167 |  | $161 |  | $128
Increases related to current period tax positions | 2 |  | 15 |  | 27
Increases related to prior period tax positions | 14 |  | 10 |  | 8
Decreases related to prior period tax positions | (3) |  | (12) |  | —
Decreases related to lapses in statutes of limitations | (40) |  | (7) |  | (2)
Balance as of December 31 | $140 |  | $167 |  | $161
As of December 31, 2025, the Company had $140 million of unrecognized tax benefits, accrued interest and penalties, which would favorably impact the Company’s future tax rates in the event that the tax benefits are eventually recognized. We include interest and penalties related to uncertain tax positions as a component of income tax expense. For the years ended December 31, 2025, 2024 and 2023, the Company had accrued interest and penalties to taling $49 million, $42 million and $32 million, respectively, as well as accrued liabilities totaling $91 million, $125 million and $129 million, r espectively. Our unrecognized tax benefits for uncertain positions are included within Other Non-current Liabilities on our consolidated balance sheet. Our unrecognized tax benefits decreased during 2025 primarily related to statute of limitations expirations, which was partially offset by a net increase for tax positions related to the current and prior years in the U.S and Canada. Our unrecognized tax benefits increased during 2024 primarily due to an increase in tax positions related to the current and prior years in the U.S and Canada partially offset by statute of limitations expirations. Our unrecognized tax benefits increased during 2023 primarily due to an increase in tax positions related to the current and prior years in the U.S and Canada partially offset by statute of limitations expirations. The Company is subject to ongoing tax examinations in the United States and Canada. The specific timing of when these open examinations will be concluded is uncertain. Tax controversies have substantially concluded for U.S state income tax matters through 2020, and Canada through 2008. Indefinite Reinvestment Cumulative unremitted earnings of the Company’s U.S. and Canadian subsidiaries could be taxable if repatriated in a future period. The unremitted retained earnings in the U.S. business are planned to be reinvested indefinitely. However, due to additional cash needs in the U.S. to support anticipated acquisition activity as well as anticipated plant refurbishment in Canada, the Canadian business plans to potentially repatriate $550 million of the cumulative unremitted earnings and indefinitely reinvest remaining unremitted earnings. The Company has recognized a deferred tax liability of approximately $23 million on the current year unremitted earnings that are not indefinitely reinvested. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. Recent Tax Law Changes Effective January 1, 2024, the Company is subject to the 15% minimum tax rate provisions of the Organization for Economic Co-operation and Development (“OECD”) Pillar Two framework enacted into law in both Switzerland and Canada. Estimated Pillar Two top-up taxes of $12 million and $24 million have been included in the calculation of the Company’s total income tax expense for the years ended December 31, 2025 and 2024, respectively. Further, in the first quarter of 2025, new legislation was introduced around Pillar Two that resulted in the Company recognizing a benefit of $18 million. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law, which reinstates several favorable tax provisions effective in 2025. The tax effects of the OBBBA have been recognized in the period of enactment and did not have a material impact on our effective tax rate for the period ended December 31, 2025.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration