Item 2. Properties
Item 2
Properties
AGGREGATES
As the largest U.S. supplier of construction aggregates, we have mining properties across the U.S. and in the Bahamas, Canada, Honduras, Mexico and the U.S. Virgin Islands. We principally serve markets in 23 states, the U.S. Virgin Islands, Washington D.C., and the local markets surrounding our operations in Freeport, Bahamas; British Columbia, Canada; and previously Puerto Cortés, Honduras and Quintana Roo, Mexico (see the NAFTA Arbitration section in Note 12 “ Commitments and Contingencies ” in Item 8 “ Financial Statements and Supplementary Data ”). Our primary focus is serving states and metropolitan markets in the U.S. that are expected to experience the most significant growth in population, households and employment. These three demographic factors are significant drivers of demand for aggregates.
Our mining properties are categorized as follows: (1) Production Stage – properties with reported proven or probable reserves where we are actively mining aggregates, (2) Development Stage – properties with reported proven or probable reserves where we are not actively mining aggregates, and (3) Exploration Stage – properties with no reported reserves. The following map illustrates the location of our 248 aggregates production stage properties and 81 development stage properties. Our 35 aggregates exploration stage properties are excluded from this map.
Production and sales are currently halted at our Calica operations in Mexico and our Puerto Cort é s operations in Honduras. For additional information, see Note 12 “ Commitments and Contingencies ” in Item 8 “ Financial Statements and Supplementary Data .”
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Form 10-K
Part I
Production stage properties generally include one or more scale houses, office buildings, maintenance shops and processing plants.
Our aggregates resources and reserves are our foundation and fundamental to our success. However, no individual mining property is individually material to our business. As of December 31, 2025, we directly operated substantially all of our aggregates production facilities.
Our aggregates resources and reserves estimates are calculated in accordance with subpart 1300 of Regulation S-K under the Exchange Act. Our proven and probable aggregates reserves may not be comparable to similar information regarding aggregates reserves disclosed in accordance with the guidance of other countries. We conduct ongoing studies of our deposits to optimize economic values and to manage risk.
We revise our mine plans and estimates of proven and probable aggregates reserves as required and in accordance with the latest available studies. Once mine plans are initially established, the ongoing viability of the plan is reviewed regularly with the benefit of hindsight. Discussions between mine planning, operations and management determine the need for adjustments, additional resources, drilling information or other key information. While construction aggregates reserves and resources are relatively consistent, conditions can change with time that require a newly tailored solution. Examples of changes include fluctuations in physical or chemical parameters of the product, sales product shifts, overburden removal or placement management, structural changes, entitlement changes and land additions.
Our estimates of proven and probable aggregates reserves are prepared by and are the responsibility of our employees. The methodology employed takes a systematic approach to collecting sufficient information to estimate the reserves and resources. Each of our reserve and resource bearing properties is evaluated with supporting information to identify its geological, mining and economic viability. The supporting information includes aerial photography, topography, geologic maps, aggregates rock quality information (including core drilling, hand samples, bulk sample testing and/or geophysical data), hydrology, archaeology, biology, property boundary information, zoning information, and relevant municipal and environmental permitting information. The information is collected by experienced mining engineers and geologists who determine the extent of a resource using a combination of methods including ordinary planimetric based measurements to computer aided design 3-dimensional models.
The results of the supporting information are reviewed by various levels of management, including our “qualified person” (as defined by subpart 1300). This qualified person then verifies that the information adheres to regulatory mandated quantification methods. The economic viability of our reserves is evaluated taking into account historical performance of relevant operations and sales forecasts, among other factors.
Measurements of our proven and probable aggregates reserves have inherent risks. These risks include the accuracy and completeness of geologic information, the interpretation of the data, operational execution, market shifts, structural events and the uncertainty of uncovered material. Management and the qualified person work together to assess these risks regularly and amend the reserves assessments with new information as appropriate. New information can yield site changes that require capital expenditures or cause production performance changes that have financial impacts.
Aggregates Resources
Mineral resources are defined as a concentration or occurrence of material of economic interest in or on the earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for its economic extraction. Mineral resources are classified into three categories, in decreasing level of confidence, as follows:
• Measured — based on conclusive geological evidence and sampling, meaning that evidence is sufficient to test and confirm geological and grade or quality continuity. After applying modifying factors (as noted in the Aggregates Reserves section below), measured resources may be converted to either proven or probable reserves.
• Indicated — based on adequate geological evidence and sampling, meaning that evidence is sufficient to establish geological and grade or quality continuity with reasonable certainty. After applying modifying factors, indicated resources may be converted to probable reserves.
• Inferred — based on limited geological evidence and sampling, meaning that evidence is only sufficient to establish that geological and grade or quality continuity is more likely than not. Inferred resources may not be converted to reserves.
Form 10-K
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Part I
Our reported aggregates resources do not include amounts that have been identified as mineral reserves. Our 2025 measured, indicated and inferred aggregates resources are based on an initial assessment using an average sales price assumption ranging from approximately $14.30 to $28.10 per ton depending on the location/market. The table below presents, by division, details of our aggregates resources as of December 31, 2025.
Aggregates Resources
millions of tons Stone 2
Sand & Gravel
Division 1
Measured (M) Resources Indicated (I) Resources Total (M)+(I) Resources Measured (M) Resources Indicated (I) Resources Total (M)+(I) Resources Total (M)+(I) Resources Inferred
Resources
Central 1,136.1 1,300.4 2,436.5 7.8 3.9 11.7 2,448.2 760.7
East 1,666.0 626.0 2,292.0 0.0 0.0 0.0 2,292.0 289.1
International 0.0 311.1 311.1 0.0 0.0 0.0 311.1 0.0
Northeast 1,673.9 222.9 1,896.8 31.8 0.0 31.8 1,928.6 25.4
South 556.6 497.2 1,053.8 32.5 52.4 84.9 1,138.7 384.4
Southwest 593.0 49.5 642.5 135.1 52.1 187.2 829.7 540.7
Western 385.1 767.1 1,152.2 198.7 884.3 1,083.0 2,235.2 962.7
Total 6,010.7 3,774.2 9,784.9 405.9 992.7 1,398.6 11,183.5 2,963.0
1. The divisions are defined by states/countries as follows:
Central Division — Alabama, Illinois, Kentucky and Tennessee
East Division — South Carolina and North/Central Georgia
International Division — Nova Scotia (Canada), Puerto Cortés (Honduras) and Quintana Roo (Mexico)
Northeast Division — Delaware, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Virginia and Washington D.C.
South Division — Florida (excluding panhandle), South Georgia, Freeport (Bahamas) and the U.S. Virgin Islands
Southwest Division — Arkansas, Florida Panhandle, Louisiana, Mississippi, Oklahoma and Texas
Western Division — Arizona, California, New Mexico and British Columbia (Canada)
2. Stone: amphibolite, argillite, gneiss, granite, limestone, marble, quartzite and sandstone
Aggregates Reserves
Mineral reserves are defined as the economically mineable part of a measured or indicated mineral resource. Mineral reserves are classified into two categories, in decreasing level of confidence, as follows:
• Proven — those reserves for which the quantity is computed from dimensions revealed by drill data, together with other direct and measurable observations, such as outcrops, trenches and quarry faces. The grade and quality of those reserves are computed from the results of detailed sampling, and the sampling and measurement data are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well established.
• Probable — those reserves for which quantity, grade and quality are computed partly from specific measurements and partly from projections based on reasonable, though not drilled, geologic evidence. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
Reported proven and probable reserves include only quantities that are owned in fee or under lease and for which all appropriate zoning and permitting have been obtained through permit, contract or grandfathered status. We apply modifying factors to establish the economic viability of the reserves, as follows:
• Contractual and governmental regulations (for example, leases, zoning, permits and reclamation plans) often set limits on the areas, depths and lengths of time allowed for mining, stipulate setbacks and slopes that must be left in place, and designate which areas may be used for surface facilities, berms, and overburden or waste storage, among other requirements and restrictions.
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Form 10-K
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• Technical and economic factors affect the estimates of reported reserves regardless of what might otherwise be considered proven or probable based on a geologic analysis. For example, excessive overburden or weathered rock, rock quality issues, excessive mining depths, groundwater issues, overlying wetlands, endangered species habitats, and rights of way or easements may effectively limit the quantity of reserves considered proven and probable.
• Mining and processing waste are also factored in our computations for proven and probable reserves.
Our 2025 proven and probable aggregates reserves were estimated by internal experts (i.e. geologists or engineers). The economic viability of our reserves were determined using average aggregates prices ranging from approximately $14.30 to $28.10 per ton depending on the location/market.
The table below presents, by division, details of our aggregates reserves and production as of December 31, 2025.
Aggregates Reserves
millions of tons Stone 3
Sand & Gravel
Division 1
Proven
Reserves Probable Reserves Total
Reserves Proven
Reserves Probable Reserves Total
Reserves Total
Reserves 2025 2
Production
Central 3,447.3 1,073.3 4,520.6 4.8 4.2 9.0 4,529.6 50.0
East 4
1,994.0 487.7 2,481.7 0.0 0.0 0.0 2,481.7 37.4
International 5
470.9 0.0 470.9 0.0 0.0 0.0 470.9 0.2
Northeast 2,545.4 1,107.1 3,652.5 69.7 34.3 104.0 3,756.5 44.0
South 833.7 358.9 1,192.6 167.6 27.3 194.9 1,387.5 28.4
Southwest 1,572.3 180.1 1,752.4 146.9 0.0 146.9 1,899.3 35.3
Western 994.6 142.0 1,136.6 460.8 432.8 893.6 2,030.2 32.4
Total 11,858.2 3,349.1 15,207.3 849.8 498.6 1,348.4 16,555.7 227.7
1. The divisions are defined geographically in the first table within this Item 2 - Properties.
2. Production totals for the two prior years were as follows: 2024 – 224.2 million tons and 2023 – 236.0 million tons.
3. Stone: amphibolite, argillite, gneiss, granite, limestone, marble, quartzite and sandstone.
4. Includes a maximum of 243.8 million tons of reserves encumbered by volumetric production payments as defined in Note 2 “ Revenues ” in Item 8 “ Financial Statements and Supplementary Data .”
5. Includes 407.6 million tons of reserves at our Calica quarry subject to the NAFTA Arbitration disclosed in Note 12 “ Commitments and Contingencies ” in Item 8 “ Financial Statements and Supplementary Data ” as well as 63.3 million tons of reserves at our Puerto Cort é s quarry at which production and sales are currently halted.
Our current estimate of 16.6 billion tons of proven and probable aggregates reserves reflects an increase of 0.1 billion tons from the prior year’s estimate. Estimates of reserves are of recoverable stone, sand and gravel of suitable quality for economic extraction, based on drilling and studies by our geologists and engineers, recognizing reasonable economic and operating constraints as to maximum depth of overburden and stone excavation, and subject to permit or other restrictions.
Of the 16.6 billion tons of estimated proven and probable aggregates reserves reported at the end of 2025, 13.8 billion tons or 83% are located on production stage properties, and 2.8 billion tons or 17% are located on development stage properties. We do not report aggregates reserves for exploration stage sites.
Of the 16.6 billion tons of aggregates reserves at December 31, 2025, 10.5 billion tons or 63% are located on owned land and 6.1 billion tons or 37% are located on leased land. Our land portfolio consists of approximately 310,000 acres.
Our Aggregates segment includes a production stage, leased calcium operation located in Brooksville, Florida. This limestone quarry produces a supplement for end-use products such as animal feed and plastics and has an average calcium carbonate content of 97%. As of December 31, 2025, this quarry had 10.3 million tons of proven and probable reserves (there are no mineral resources at this quarry).
Form 10-K
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Part I
In addition to our aggregates mining properties, we operate aggregates sales yards, recycled concrete plants and landfill sites. The table below presents, by division, the count of active aggregates facilities and the types of facilities operated during the year ended December 31, 2025.
Count of Active Aggregates Operating Facilities
Production Stage Mining Properties 1
Recycle and Landfill Sites
Division 2
Stone Sand & Gravel Total Sales Yards Total
Central 75 1 76 7 14 97
East 36 0 36 7 2 45
International 1 0 1 0 0 1
Northeast 39 5 44 27 12 83
South 15 8 23 21 0 44
Southwest 22 11 33 39 2 74
Western 16 19 35 6 36 77
Total 204 44 248 107 66 421
1. The facility counts above only include mining properties with production in the current year (for example, mining properties with sales from existing stockpiles with no current year production are excluded).
2. The divisions are defined geographically in the first table within this Item 2 - Properties.
ASPHALT AND CONCRETE
As of December 31, 2025, we operated a number of facilities producing asphalt mix and ready-mixed concrete in several of our divisions as reflected in the table below:
Division 1
Asphalt
Facilities Concrete
Facilities
Central 2
14 0
East 0 0
International 0 0
Northeast 0 38
South 0 1
Southwest 15 0
Western 42 37
Total 71 76
1. The divisions are defined geographically in the first table within this Item 2 - Properties.
2. Asphalt facilities for the Central Division are comprised of constructing paving businesses in addition to asphalt mix facilities.
The asphalt and concrete facilities are able to meet their needs for raw material inputs with a combination of internally sourced and purchased raw materials.
HEADQUARTERS
Our headquarters are located in an office complex in Birmingham, Alabama. The office space consists of approximately 184,000 square feet and is leased through December 31, 2038. The annual rental cost for the current term of the lease is approximately $4.7 million.
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Form 10-K
Part I