Revenues and Gross Profit

9 Months Ended

Sep. 30, 2025

Revenues And Gross Profit [Abstract]

11.

Revenues and Gross Profit

The following tables, which are reconciled to consolidated amounts and reflect continuing operations only, provide revenues and gross profit (loss) by line of business: Building Materials (further divided by product line) and Specialties. Effective September 30, 2025, the Company combined the cement and ready mixed concrete and the asphalt and paving services product lines (hereinafter, other building materials). The change was driven by the reduced significance of each of these product lines relative to consolidated revenues from continuing operations and consolidated income from continuing operating results as a result of the pending divestiture of the Company's Midlothian cement plant, related cement terminals and Texas ready mixed concrete plants (see Note 2) and associated reclassification of these revenues and income to discontinued operations for all periods presented. Interproduct revenues represent sales from the aggregates product line to the other building materials product line.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(Dollars in Millions)
Revenues:
Building Materials business:
Aggregates	$	1,458		$	1,250		$	3,780		$	3,377
Other Building Materials		351			392			744			814
Less: interproduct revenues		(94	)		(82	)		(216	)		(184	)
Total Building Materials business		1,715			1,560			4,308			4,007
Specialties		131			82			309			243
Total	$	1,846		$	1,642		$	4,617		$	4,250

Gross profit (loss):
Building Materials business:
Aggregates	$	531		$	438		$	1,257		$	1,069
Other Building Materials		54			64			75			92
Total Building Materials business		585			502			1,332			1,161
Specialties		34			29			108			84
Corporate		(8	)		(18	)		(18	)		(34	)
Total	$	611		$	513		$	1,422		$	1,211

The above information for 2024 has been reclassified to conform to the current-year presentation. For the three months ended September 30, 2024, the cement and ready mixed concrete product line reported revenues of $296 million and gross profit of $89 million (of which, $247 million and $86 million, respectively, are now classified as discontinued operations) and the asphalt and paving services product line reported revenues of $343 million and gross profit of $61 million. For the nine months ended September 30, 2024, the cement and ready mixed concrete product line reported revenues of $822 million and gross profit of $192 million (of which, $655 million and $177 million, respectively, are now classified as discontinued operations) and the asphalt and paving services product line reported revenues of $647 million and gross profit of $77 million.

Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Performance obligations within paving service agreements are satisfied over time, primarily ranging from one day to two years. Customer payments for the paving operations are based on a contractual billing schedule and are typically "paid-when-paid", meaning the Company is paid once the customer is paid.

Future revenues from unsatisfied performance obligations at September 30, 2025 and 2024 were $225 million and $322 million, respectively, where the remaining periods to complete these obligations ranged from one month to 27 months and one month to 21 months, respectively.

Service Revenues. Service revenues were $130 million and $164 million for the three months ended September 30, 2025 and 2024, respectively, and reported in the West Group. Service revenues for the nine months ended September 30, 2025 and 2024 were $267 million and $307 million, respectively. Service revenues include paving services in California through its April 2025 divestiture date and Colorado.