Financial Analysis

4. Acquisitions The Company strategically acquires companies in order to increase its footprint and offer products and services that enhance its existing offerings. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values at the date of the acquisition with the remaining amount recorded in Goodwill. During the six months ended June 30, 2026, the Company completed the acquisition of 16 companies. The total cash consideration for these acquisitions, net of cash acquired, was $1,110 million. The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates. The Company expects to finalize the valuation and complete the purchase price allocations as soon as practical but no later than one year from the acquisition dates. The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions as of June 30, 2026, including measurement period adjustments to provisional fair values in respect of acquisitions completed in previous periods, were: in $ millions Total (i) Identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents 73 Accounts receivable, net 132 Inventories 49 Other current assets 10 Property, plant and equipment, net 291 Intangible assets, net 114 Op …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

9. Debt Long-term debt was: June 30 December 31 June 30 in $ millions Effective interest rate 2026 2025 2025 Senior Notes (U.S. Dollar denominated unless otherwise noted) 1.250% euro Senior Notes due 2026 1.25 % 855 882 879 3.400% Senior Notes due 2027 3.49 % 600 600 600 4.000% euro Senior Notes due 2027 4.13 % 570 588 586 3.950% Senior Notes due 2028 4.07 % 900 900 900 1.375% euro Senior Notes due 2028 1.42 % 684 705 703 5.200% Senior Notes due 2029 5.30 % 750 750 750 4.125% Sterling Senior Notes due 2029 4.22 % 529 539 548 5.125% Senior Notes due 2030 5.25 % 1,250 1,250 1,250 1.625% euro Senior Notes due 2030 1.72 % 855 882 879 4.400% Senior Notes due 2031 4.58 % 1,000 1,000 4.000% euro Senior Notes due 2031 4.10 % 855 882 879 6.400% Senior Notes due 2033 (i) 6.43 % 213 213 213 5.400% Senior Notes due 2034 5.52 % 750 750 750 5.500% Senior Notes due 2035 5.57 % 1,250 1,250 1,250 4.250% euro Senior Notes due 2035 4.38 % 855 882 879 5.000% Senior Notes due 2036 5.15 % 1,000 1,000 5.125% Senior Notes due 2045 5.25 % 500 500 500 4.400% Senior Notes due 2047 4.44 % 400 400 400 4.500% Senior Notes due 2048 4.63 % 600 600 600 5.875% Senior Notes due 2055 5.97 % 500 500 500 5.600% Senior Notes due 2056 5.74 % 500 500 Bank and Other Debt Obligations USD interest-bearing loan due 2027 4.96 % 750 750 750 PHP interest-bearing loan due 2027 5.63 % 389 391 410 AUD interest-bearing loan due 2028 6.09 % 421 411 AUD interest-bearing loan due 2029 % 483 AUD interest-bearing loan due 2030 5.31 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three months ended June 30, 2026 in $ millions Americas Materials Solutions Americas Building Solutions International Solutions Total Principal activities and products Essential Materials (i) 1,638 1,589 3,227 Road Solutions (i) 3,319 1,350 4,669 Building & Infrastructure Solutions (ii) 764 566 1,330 Outdoor Living Solutions 1,353 198 1,551 Total revenues 4,957 2,117 3,703 10,777 Three months ended June 30, 2025 in $ millions Americas Materials Solutions Americas Building Solutions International Solutions Total Principal activities and products Essential Materials 1,365 1,376 2,741 Road Solutions (i) 3,144 1,392 4,536 Building & Infrastructure Solutions (ii) 697 585 1,282 Outdoor Living Solutions 1,462 185 1,647 Total revenues 4,509 2,159 3,538 10,206 Six months ended June 30, 2026 in $ millions Americas Materials Solutions Americas Building Solutions International Solutions Total Principal activities and products Essential Materials (i) 2,782 2,777 5,559 Road Solutions (i) 4,899 2,482 7,381 Building & Infrastructure Solutions (ii) 1,355 1,104 2,459 Outdoor Living Solutions 2,430 318 2,748 Total revenues 7,681 3,785 6,681 18,147 Six months ended June 30, 2025 in $ millions Americas Materials Solutions Americas Building Solutions International Solutions Total Principal activities and products Essential Materials 2,241 2,438 4,679 Road Solutions (i) 4,511 2,527 7,038 Building & Infrastructure Solutions (ii) 1,265 1,091 2,356 Outdoor Living Solutions 2,576 313 2, …

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10. Fair value measurement Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured using inputs in one of the following three categories: Level 1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment. Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities. Level 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. The carrying values of the Companys Long-term debt were $17,821 million, $17,533 million, and $15,706 million as of June 30, 2026, December 31, 2025, and June 30, 2025, respectively. The fair values of the Companys Long-term debt were $17,608 million, $17,502 million, and $15,587 million as of June 30, 2026, December 31, 2025, and June 30, 2025, respectively. The Companys Long-term debt obligations are Level 2 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

11. Income taxes The Companys income tax provision for interim periods is calculated using an estimated annual effective tax rate based on the expected full-year results which is applied to ordinary year-to-date income or loss. The income tax provision is adjusted for discrete items that occur in the applicable interim period to arrive at the effective income tax rate. The summary of the income tax expense from operations was: Three months ended Six months ended June 30 June 30 in $ millions 2026 2025 2026 2025 Total tax expense 661 425 606 367 Effective income tax rate 31% 24% 31% 23% The increase in effective tax rate for the three and six months ended June 30, 2026 respectively, is mainly driven by the divestiture of the lawn and garden and construction accessories operations. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New accounting standards Refer to the audited Consolidated Financial Statements included in the Company's 2025 Form 10-K for impacts of new accounting standards. There were no material impacts from the adoption of new accounting standards to the Company's Condensed Consolidated Financial Statements for the six months ended June 30, 2026.

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15. Pension and other postretirement benefits Components of Net Periodic Benefit Cost The components of net periodic benefit cost recognized in the Condensed Consolidated Statements of Income for the Pension and Other Postretirement Benefit (OPEB) Plans were: U.S. Non-U.S. Three months ended Six months ended Three months ended Six months ended June 30 June 30 June 30 June 30 in $ millions 2026 2025 2026 2025 2026 2025 2026 2025 Service cost 1 1 1 1 8 10 17 20 Interest cost 6 6 12 12 23 22 46 42 Expected return on assets (6) (6) (12) (11) (25) (26) (51) (49) Amortization of: Prior service credit (3) (3) (6) (6) Actuarial loss 1 1 1 2 2 3 Curtailment gain (1) (1) Settlement gain (i) (9) (9) Net periodic benefit cost (ii) (iii) 2 1 2 2 (6) 5 (2) 10 (i) Settlement gain of $9 million for the three and six months ended June 30, 2026 relates to pension plans divested as part of the sale of the Company's construction accessories operations (see Note 3) and is included within Other nonoperating income (expense), net. (ii) Includes net periodic benefit cost of $2 million and $1 million related to OPEB plans for the three months ended June 30, 2026 and June 30, 2025, respectively, and $3 million and $2 million for the six months ended June 30, 2026 and June 30, 2025, respectively. (iii) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating income (expense), net. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

2. Revenue The Company disaggregates revenue based on its operating and reportable segments. The Companys operating and reportable segments are: (1) Americas Materials Solutions, (2) Americas Building Solutions, and (3) International Solutions. Revenue is disaggregated by principal activities and products and by primary geographic market. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The Essential Materials businesses manufacture and supply aggregates and cementitious materials for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions provide products that connect and protect critical water, energy and data infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. Three months ended June 30, 2026 in $ millions Americas Materials Solutions Americas Building Solutions International Solutions Total Principal activities and products Essential Materials (i) 1,638 1,589 3,227 Road Solutions (i) 3,319 1,350 4,669 Building & Infrastructure Solutions (ii) 764 566 1,330 Outdoor Living Solutions 1,353 198 1,551 Total reven …

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14. Segment information The Company has the following three operating and reportable segments: Americas Materials Solutions; Americas Building Solutions; and International Solutions The Americas Materials Solutions segment provides building materials, products and services for the construction and maintenance of public infrastructure and commercial and residential buildings in North America. The primary materials produced by this segment include aggregates, cementitious materials, readymixed concrete and asphalt. This segment also provides paving and construction services for customers. The Americas Building Solutions segment manufactures, supplies and delivers building products for the built environment in communities across North America. Our subsidiaries within this segment offer building and infrastructure solutions serving complex critical infrastructure (such as water, energy, transportation and data projects) and outdoor living solutions for enhancing private and public spaces. The International Solutions segment provides building materials, products and services across Europe and Australia, for use in the construction of critical infrastructure, commercial and residential buildings and outdoor living spaces. Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, Loss on impairments, gain/loss on divestitures and investments, Income/loss from equity method investments, substantial acquisition-rel …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent events The Company has evaluated subsequent events occurring through to the date the Condensed Consolidated Financial Statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the Condensed Consolidated Financial Statements except as noted below. Term Loan Facility On July 17, 2026, the Company entered into a three-year $2.5 billion term loan facility to support the financing of its pending acquisition of Arcosa. As a result of entering into the Term Loan Facility, the commitments under the Bridge Loan Facility were reduced to $3.3 billion. For additional information, see Note 9 to the Condensed Consolidated Financial Statements.

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