v3.25.4
Pension and other postretirement benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension and other postretirement benefits Pension and other postretirement benefits
The Company sponsors defined benefit pension plans, other postretirement benefit plans and defined
contribution plans in which only employees, retirees and former employees of the Company participate. The
Company’s employees also participate in certain multiple-employer and union-sponsored multiemployer
pension plans to which the Company contributes along with other employers. The majority of the defined
benefit pension plans are closed to new entrants and frozen to future accruals.
In connection with the completion of the Spin-Off, effective June 1, 2025 and June 20, 2025, Holcim
transferred to the Company certain Swiss employees who historically operated within specific corporate
functions of Holcim. The impact was a transfer of total pension plan assets of $55 million and total pension
plan obligations of $53 million associated with these Swiss employees. These employees were and if still with
the Company remain covered under the Holcim Pension Fund (“HPF”) and Holcim Supplementary Pension
Fund (“HSPF”), which are pension plans sponsored by Holcim. The funded status associated with these
employees under the HPF and HSPF was not reflected on the consolidated balance sheets as of December
31, 2024. Following the completion of the Spin-Off, the accumulated asset balances associated with these
employees have remained in the HPF and HSPF under an affiliation agreement. However, under Swiss law,
any employees transferred must transfer their accumulated asset balances to their new employer, and the
new employer becomes responsible for the pension obligations associated with the accumulated asset
balances. The incremental net pension plan assets of $2 million were reported within Other noncurrent assets
at the date of the Spin-Off.
The Company decided to terminate its main Canadian defined benefit pension plan on February 28, 2023.
The Company completed a partial settlement in the third quarter of 2024 through $99 million of lump sum
payments to plan participants. Full settlement of the Company’s main Canadian defined benefit pension plan
occurred effective October 3, 2024 following a conversion of the buy-in contracts to buy-out contracts in
conjunction with the plan termination. All liabilities related to the Company’s main Canadian defined benefit
pension plan were transferred to the insurer and a settlement loss of $61 million was recognized within Other
non-operating income (expense), net, on the consolidated statement of operations for the year ended
December 31, 2024.
The Company also terminated its main U.S. defined benefit pension plan as of May 31, 2023, and effective
November 13, 2023, the buy-in contracts were converted to buy-out contracts in conjunction with the plan
termination. All liabilities related to the Company’s main U.S. defined benefit pension plan were transferred to
the insurer, which is recognized as a settlement loss of $33 million was recognized within Other non-
operating income (expense), net, on the consolidated statement of operations for the year ended December
31, 2023.
Defined benefit pension plans
The following table summarizes, with respect to defined benefit pension plans, the benefit obligation, fair
value of plan assets, funded status, amounts recognized on the consolidated balance sheets and weighted-
average assumptions used to determine benefit obligations:
As of December 31,
2025
2024
(In millions, except for percentage data)
U.S.
Non-U.S.
U.S.
Non-U.S.
Change in benefit obligation:
Benefit obligation, beginning of year
$79
$215
$82
$747
Service cost
—
4
—
2
Interest cost
4
11
4
33
Actuarial (gains) and losses
—
(9)
—
8
Benefits paid
(6)
(7)
(7)
(44)
Settlements
—
—
—
(496)
Foreign currency rate changes
—
11
—
(35)
Plan transfer in
—
53
—
—
Benefit obligation, end of year
$77
$278
$79
$215
Change in fair value of plan assets:
Fair value of plan assets, beginning of year
$—
$175
$—
$669
Actual return on plan assets
—
5
—
39
Employer contributions
6
8
7
37
Plan transfer in
—
55
—
—
Benefits paid
(6)
(7)
(7)
(44)
Settlements
—
—
—
(496)
Foreign currency rate changes
—
10
—
(30)
Fair value of plan assets, end of year
—
246
—
175
Funded status
$(77)
$(32)
$(79)
$(40)
Amounts recognized on the consolidated balance sheets:
Noncurrent assets
$—
$28
$—
$20
Current liabilities
(7)
(5)
(7)
(4)
Noncurrent liabilities
(70)
(55)
(72)
(56)
Funded status at end of year
$(77)
$(32)
$(79)
$(40)
As of December 31,
2025
2024
(In millions, except for percentage data)
U.S.
Non-U.S.
U.S.
Non-U.S.
Amounts recognized in Accumulated other comprehensive loss:
Net actuarial (gain) loss
$(16)
$3
$(17)
$8
Total
$(16)
$3
$(17)
$8
Weighted-average assumptions used to determine benefit
obligations:
Discount rate
5.3%
4.1%
5.5%
4.7%
Rate of compensation increase
—%
2.4%
—%
2.5%
Interest crediting rate
3.0%
2.5%
3.0%
—%
The following table summarizes, with respect to defined benefit pension plans, the components of Net
periodic benefit cost, amounts recognized in Other comprehensive income (loss) and weighted-average
assumptions used to determine Net periodic benefit cost:
For the years ended December 31,
2025
2024
2023
2025
2024
2023
(In millions, except for percentage data)
U.S.
Non-U.S.
Components of Net periodic benefit cost (credit):
Service cost
$—
$—
$—
$4
$2
$2
Interest cost
4
4
38
11
33
33
Expected return on assets
—
—
(34)
(10)
(31)
(32)
Amortization of actuarial (gains)
(1)
(1)
—
—
—
—
Settlement loss
—
—
33
—
61
—
Net periodic benefit cost
$3
$3
$37
$5
$65
$3
Changes in plan assets and benefit obligations
recognized in Other comprehensive (income) loss:
Net actuarial (gain) loss
$—
$(1)
$3
$(5)
$—
$40
Amortization of actuarial loss (gain)
1
1
(33)
—
(61)
—
Foreign currency rate changes
—
—
—
—
(3)
1
Total recognized in Other comprehensive (income) loss
1
—
(30)
(5)
(64)
41
Total recognized in Net periodic benefit cost and Other
comprehensive (income) loss
$4
$3
$7
$—
$1
$44
Weighted-average assumptions used to determine Net
periodic benefit cost (credit):
Discount rate
5.5%
4.8%
5.9%
4.1%
4.6%
5.0%
Rate of compensation increase
—%
—%
—%
2.3%
2.5%
2.5%
Expected long-term rate of return on plan assets
—%
—%
5.9%
4.9%
4.9%
5.2%
Interest crediting rate
3.0%
3.0%
3.0%
2.9%
—%
—%
The defined benefit pension plans for which the projected benefit obligation exceeds the fair value of the
respective plan assets were as follows:
As of December 31,
2025
2024
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Defined benefit pension plans with projected benefit
obligations in excess of plan assets:
Projected benefit obligation
$77
$60
$79
$60
Fair value of plan assets
$—
$—
$—
$—
Other postretirement benefit plans
The following table summarizes, with respect to other postretirement benefit plans, the benefit obligation, fair
value of plan assets, funded status, amounts recognized on the consolidated balance sheets and weighted-
average assumptions used to determine benefit obligations:
As of December 31,
2025
2024
(In millions, except for percentage data)
U.S.
Non-U.S.
U.S.
Non-U.S.
Change in benefit obligation:
Benefit obligation, beginning of year
$49
$70
$55
$75
Service cost
—
1
—
1
Interest cost
2
3
2
3
Actuarial (gains)
(1)
(1)
(2)
—
Benefits paid
(6)
(5)
(6)
(5)
Foreign currency rate changes
—
3
—
(4)
Benefit obligation, end of year
$44
$71
$49
$70
Change in fair value of plan assets:
Fair value of plan assets, beginning of year
$—
$—
$—
$—
Employer contributions
6
5
6
5
Benefits paid
(6)
(5)
(6)
(5)
Fair value of plan assets, end of year
—
—
—
—
Funded status
$(44)
$(71)
$(49)
$(70)
Amounts recognized on the consolidated balance sheets:
Current liabilities
$(7)
$(4)
$(8)
$(4)
Noncurrent liabilities
(37)
(67)
(41)
(66)
Funded status at end of year
$(44)
$(71)
$(49)
$(70)
Amounts recognized in Accumulated other comprehensive loss:
Net actuarial (gains)
$(21)
$(17)
$(22)
$(16)
Total
$(21)
$(17)
$(22)
$(16)
Weighted-average assumptions used to determine benefit obligations:
Discount rate
5.1%
4.9%
5.4%
4.7%
The following table summarizes, with respect to other postretirement benefit plans, the components of Net
periodic benefit cost, amounts recognized in Other comprehensive income (loss), and weighted-average
assumptions used to determine Net periodic benefit cost:
For the years ended December 31,
2025
2024
2023
2025
2024
2023
(In millions, except for percentage data)
U.S.
Non-U.S.
Components of Net periodic benefit cost:
Service cost
$—
$—
$—
$1
$1
$1
Interest cost
2
2
3
3
3
3
Amortization of actuarial (gains)
(2)
(2)
(2)
—
(1)
(2)
Net periodic benefit cost
$—
$—
$1
$4
$3
$2
Changes in plan assets and benefit obligations
recognized in Other comprehensive (income) loss:
Net actuarial (gain) loss
$(1)
$(2)
$(3)
$(1)
$—
$10
Amortization of actuarial loss
2
2
2
—
1
2
Foreign currency rate changes
—
—
—
—
1
—
Total recognized in Other comprehensive (income) loss
$1
$—
$(1)
$(1)
$2
$12
Total recognized in Net periodic benefit cost and Other
comprehensive (income) loss
$1
$—
$—
$3
$5
$14
Weighted-average assumptions used to determine Net
periodic benefit cost:
Discount rate
5.4%
4.8%
4.9%
4.7%
4.7%
5.2%
The assumed healthcare cost trend rates were as follows:
For the years ended December 31,
U.S.
Non-U.S.
2025
2024
2023
2025
2024
2023
Healthcare cost trend rate assumed for next year
8.2%
7.9%
7.2%
5.1%
5.0%
4.6%
Rate to which the cost trend rate gradually declines
4.5%
4.5%
4.5%
4.0%
4.0%
4.0%
Year the rate reaches the ultimate rate
2035
2033
2031
2040
2040
2040
The other postretirement benefit plans for which the accumulated postretirement benefit obligation exceeds
the fair value of plan assets were as follows:
As of December 31,
2025
2024
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Other postretirement benefit plans with accumulated
postretirement benefit obligations in excess of plan assets:
Accumulated postretirement benefit obligation
$44
$71
$49
$70
Plan assets
The assets of the Company’s defined benefit pension plans are managed in Canada by fiduciary committees
and in Switzerland by Pension Fund Boards under Swiss law, with support from third party investment
consultants, for the benefit of the plan members. Consideration is given to the financial needs and
circumstances of the plans, the long-term nature of the benefit obligations and time horizon available for
investment, and the nature of the plans cash flows and liabilities. The investment strategy is set at the plan
level, typically to maintain a diversified portfolio of assets to reduce risk with the objective of minimizing
volatility and meeting future obligations and long-term cash requirements as they become due. The
investment policy for each plan specifies the investment objectives, responsibilities, asset allocation
guidelines, and investment monitoring requirements.
The expected long-term rate of return on plan assets is developed based on a targeted asset allocation
range, considering investment community forecasts and current market conditions to develop expected
returns for each of the asset classes used by the plans. These expected returns are weighted to reflect the
asset allocation of each plan.
The following is a description of the methods and assumptions used to estimate the fair value of the defined
benefit pension plan assets:
•Cash and cash equivalents: Cash and all highly liquid securities with original maturities of three
months or less are classified as Cash and cash equivalents. These assets are classified as Level 1.
•Equity instruments: Individual securities that are valued at the closing price or last trade reported on
the major market on which they are traded are classified as Level 1. Commingled funds that are
publicly traded are valued based upon market quotes and are classified as Level 1. Non-publicly
traded funds that require one or more significant unobservable inputs reflecting assumptions that
market participants would be expected to use in pricing the assets are classified as Level 3.
•Debt instruments: Debt instruments are valued based on prices derived from observable inputs and
are classified as Level 1 or Level 2. Level 2 investments may also include commingled funds that have
a readily determinable fair value based on observable prices of the underlying securities.
•Insurance contracts: Buy-in annuity contracts are valued based on the estimated surrender value of
the contracts, which are classified as Level 3 of the fair value hierarchy. The fair values of the
insurance contracts are determined by the insurance company’s valuation models and represent the
value the Company would receive upon surrender of these policies as of the measurement date.
•Other: Other is composed of property and alternative investments, which are valued based on prices
derived from observable market inputs, including observable prices of underlying investments, as
provided by third-party managers, and are classified as Level 2.
The Company’s target allocation ranges by asset class were as follow:
(In millions)
Defined Benefit Pension Plans 2025(1)
Cash and cash equivalents
0-10%
Equity instruments
17-50%
Debt instruments
0-72%
Other
7 - 39%
__________________
(1)There are no target asset allocations for the U.S. defined benefit pension plans, which have no assets as of December
31, 2025.
The Company’s asset allocation by asset class were as follow:
Defined Benefit Pension Plans Fair Values
As of December 31, 2025
Non-U.S. Plans
(In millions)
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$5
$—
$—
$5
Equity instruments
54
—
2
56
Debt instruments
9
53
—
62
Other
—
33
—
33
Insurance contracts
—
—
90
90
Total
$68
$86
$92
$246
There were no other postretirement benefit plan assets as of December 31, 2025.
The Company’s asset allocations by asset class were as follow:
Defined Benefit Pension Plans Fair Values
As of December 31, 2024
Non-U.S. Plans
(In millions)
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$2
$—
$—
$2
Equity instruments
26
—
2
28
Debt instruments
—
52
—
52
Insurance contracts
—
—
93
93
Total
$28
$52
$95
$175
There were no other postretirement benefit plan assets as of December 31, 2024.
The reconciliation for Level 3 pension plan assets by asset class were as follows:
For the year ended December 31, 2025
Non-U.S. Plans
(In millions)
Beginning
Balance
Actual return on
plan assets,
relating to assets
still held at
reporting date
Purchases,
sales and
settlements
Change due
to exchange
rate changes
Ending
Balance
Equity instruments
$2
$—
$—
$—
$2
Insurance contracts
93
1
(8)
4
90
Total
$95
$1
$(8)
$4
$92
For the year ended December 31, 2024
Non-U.S. Plans
(In millions)
Beginning
Balance
Actual return on
plan assets,
relating to assets
still held at
reporting date
Purchases,
sales and
settlements
Change due
to exchange
rate changes
Ending
Balance
Equity instruments
$26
$—
$(24)
$—
$2
Insurance contracts
468
23
(378)
(20)
93
Total
$494
$23
$(402)
$(20)
$95
Expected future benefit payments
The following table presents the expected future benefit payments to be made over the next 10 years:
Defined Benefit Pension Plans
Other Postretirement Benefit Plans
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
2026
$7
$21
$7
$4
2027
7
18
6
4
2028
7
18
6
4
2029
7
18
4
4
2030
6
17
4
4
2031-2035
29
83
15
22
The Company expects that it will contribute $7 million to the U.S. defined benefit pension plans, $10 million to
the non-U.S. defined benefit pension plans, $7 million to the U.S. other postretirement benefit plans and $4
million to the non-U.S. other postretirement benefit plans during the year ending December 31, 2026.
Defined contribution plans
In addition to the defined benefit pension plans and other postretirement benefit plans, the Company
sponsors various defined contribution plans for U.S. and Canadian employees. Expense recognized with the
defined contribution plans totaled $91 million, $78 million and $70 million for the years ended December 31,
2025, 2024 and 2023, respectively, and is included within Cost of revenues and Selling, general and
administrative expenses on the consolidated statements of operations.
Union-sponsored multiemployer pension plans
The Company participates in and contributes to various union-sponsored multiemployer pension plans for
U.S. and Canadian employees. The risks of participating in multiemployer pension plans differ from single
employer plans as follows:
•Assets contributed to a multiemployer pension plan by one employer may be used to provide
benefits to employees of other participating employers;
•If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be
borne by the remaining participating employers; and
•If the Company chooses to stop participating in one or more of the multiemployer pension plans to
which it contributes, the Company may be required to pay those plans an amount based on the
underfunded status of the plan, referred to as a withdrawal liability.
Total contributions to union-sponsored multiemployer pension plans were $37 million, $35 million and $35
million for the years ended December 31, 2025, 2024 and 2023, respectively.