Eagle Materials (EXP) risk factors, 2025 10-K

Other

1. 01We are affected by the level of demand in the construction industry and are dependent on funding by federal, state and local governments
2. 02Our business is seasonal and subject to the risk of unfavorable weather conditions, as well as other unexpected operational difficulties, which could have a material adverse effect on us
3. 03Similarly, operational difficulties, such as those resulting from required maintenance, capital improvement projects, loss of power, or pandemics, epidemics, or other public health emergencies can interrupt our business activities, increase our costs and reduce our production
4. 04We and our customers participate in cyclical industries and regional markets, which are subject to industry downturns
5. 05Many of our products are commodities, which are subject to significant changes in supply and demand and price fluctuations
6. 06Our businesses operate in highly competitive industries, which contain many competitors and competition from alternative products
7. 07Our and our customers’ operations are subject to extensive governmental regulation, including environmental, health, and safety laws, which can be costly and burdensome
8. 08successful in preventing injuries or violations of health and safety laws and regulations. Any failure to maintain safe work sites or violations of applicable health and safety standards and laws could have a material adverse effect on our business
9. 09Climate change and climate change legislation or regulations may adversely affect our business, including potential physical and financial impacts
10. 10Regulatory, stakeholder, and societal environmental, social, governance, and other sustainability matters and our response to these matters could negatively affect our business
11. 11Changes in U.S. Trade Policy, including tariffs and other trade restrictions, could have a material adverse effect on our business, financial position, or results of operations
12. 12We may become subject to significant cleanup, remediation, reclamation, and other liabilities under applicable environmental laws
13. 13Our operations are dependent on our rights and ability to mine our properties and on our having renewed or received the required permits and approvals from governmental authorities and other third parties
14. 14We may incur significant costs in connection with pending and future litigation
15. 15Although we maintain insurance coverage against various risk, this coverage may not be adequate or protect us against the relevant risks
16. 16We are dependent on information technology. A disruption, cyber attack or data security breach affecting our information technology systems may negatively affect our businesses, financial condition, and operating results
17. 17Our Cement business is capital-intensive, resulting in significant fixed and semi-fixed costs. Therefore, our earnings are sensitive to changes in volume
18. 18Any material nonpayment or nonperformance by any of our key customers could have a material adverse effect on our business and results of operations
19. 19Consolidation of our customers could adversely affect our results of operations
20. 20Our production facilities may experience unexpected equipment failures, catastrophic events, and scheduled maintenance
21. 21Our results of operations are subject to significant changes in the cost and availability of fuel, energy, and other raw materials, including raw materials supplied by third parties
22. 22also have the potential to give rise to disputes with contractual counterparties, which can be complex and difficult to resolve. In the event of large or rapid increases in prices, we may not be able to pass the increases through to our customers in full, which would reduce our operating margin
23. 23Significant changes in the cost and availability of transportation could adversely affect our business, financial condition, and results of operations
24. 24Our debt agreements contain restrictive covenants and require us to meet certain financial ratios and tests, which limit our flexibility and could give rise to a default if we are unable to remain in compliance
25. 25enter into sale/leaseback transactions
26. 26We have incurred or may incur substantial indebtedness, which could adversely affect our business, limit our ability to plan for or respond to changes in our business, and reduce our profitability
27. 27Our flexibility in planning for, or reacting to, changes in our business and industry may be limited, thereby placing us at a competitive disadvantage compared with our competitors that have less indebtedness
28. 28Volatility and disruption of financial markets could affect access to credit
29. 29terms, our other sources of funds, including available cash and cash flow from operations, may not be adequate to fund our operations and contractual commitments and refinance existing debt
30. 30Increases in interest rates and inflation could adversely affect our business and demand for our products, which would have a negative effect on our results of operations
31. 31Increases in our effective income tax rate may harm our results of operations
32. 32We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our businesses
33. 33We could experience disruption to our business operations due to disputes with organized labor
34. 34the inability to achieve other intended objectives of the transaction
35. 35Our Cement business has grown largely through acquisitions, and there is no assurance that we will be able to continue to acquire cement plans to support future growth
36. 36We may experience delays in completing capital improvement projects, and there is no assurance that we will achieve the anticipated benefits of such projects
37. 37Certain provisions in our restated certificate of incorporation and bylaws may prevent or delay an acquisition of our company, which could decrease the trading price of the common stock
38. 38Our bylaws include a forum selection clause, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us