(I) Income Taxes

The components of pre-tax earnings from continuing operations are noted below.



	For the Years Ended March 31,


	2026		2025		2024


	(dollars in thousands)


Domestic	$	541,976	$	591,485	$	617,937


Total	$	541,976	$	591,485	$	617,937

Income tax expense (benefit) from continuing operations includes the following components.



	For the Years Ended March 31,


	2026		2025			2024


	(dollars in thousands)


Current Provision (Benefit)


Federal	$	80,325	$	114,606		$	111,690


State		14,710		18,411			20,689


		95,035		133,017			132,379


Deferred Provision (Benefit)


Federal		20,925		(5,117	)		5,607


State		2,207		169			2,312


		23,132		(4,948	)		7,919


Provision for Income Taxes	$	118,167	$	128,069		$	140,298

Income tax expense (benefit) varies from the federal statutory rate due to the items listed below.



	For the Years Ended March 31,


	2026					2025					2024


	(dollars in thousands)


Income Tax Expense / U.S. Federal Statutory Tax Rate	$	113,815		21.0	%	$	124,212		21.0	%	$	129,766		21.0	%


State and Local Income Taxes, Net of Federal Income Tax Effect (1)		13,365		2.5	%		14,680		2.5	%		18,172		2.9	%


Tax Credits		(2,423	)	(0.4	)%		(975	)	(0.2	)%		-		0.0	%


Nontaxable or Nondeductible Items:


Limitation on Officer's Compensation		3,385		0.6	%		4,843		0.8	%		6,513		1.1	%


Other		649		0.1	%		662		0.1	%		702		0.1	%


Other Adjustments:


Statutory Depletion in Excess of Cost		(10,079	)	(1.9	)%		(9,927	)	(1.7	)%		(9,883	)	(1.6	)%


Other		(545	)	(0.1	)%		(5,426	)	(0.8	)%		(4,972	)	(0.8	)%


Total Income Tax Expense / Effective Tax Rate	$	118,167		21.8	%	$	128,069		21.7	%	$	140,298		22.7	%

(1) The following states comprised the majority (greater than 50%) of the tax effect in this category for the years ending March 31:

2026: California, Colorado, Pennsylvania, Oklahoma, Iowa, Michigan, Tennessee, Nebraska

2025: Illinois, Colorado, Kentucky, Oklahoma, Missouri

2024: Illinois, California, Colorado, Kentucky, Tennessee



	For the Years Ended March 31,


	2026		2025		2024


	(dollars in thousands)


Income taxes paid (net of refunds received)


Federal	$	75,000	$	123,000	$	104,000


State (1)		16,771		17,786		20,482


Total	$	91,771	$	140,786	$	124,482

(1) All state jurisdictions below threshold for period presented.

Components of deferred income taxes are as follows.



	For the Years Ended March 31,


	2026			2025


	(dollars in thousands)


Items Giving Rise to Deferred Tax Liabilities


Excess Tax Depreciation and Amortization	$	(271,694	)	$	(256,999	)


Depletable Assets		(4,532	)		(4,455	)


Investment in Joint Venture Basis Differences		(11,746	)		(6,436	)


Right-of-Use Assets		(7,699	)		(7,996	)


Inventory		—			(1,276	)


Other		(3,679	)		—


Total Deferred Tax Liabilities	$	(299,350	)	$	(277,162	)


Items Giving Rise to Deferred Tax Assets


Change in Accruals	$	7,902		$	12,866


Bad Debts		1,500			1,551


Long-Term Incentive Compensation Plan		5,898			4,609


Credits and Other Carryforwards		9,436			9,905


Lease Liability		9,475			9,303


Inventory		5,182			—


Pension		1,395			984


Other		—			1,002


Subtotal		40,788			40,220


Valuation Allowance		(4,100	)		(3,000	)


Total Deferred Tax Assets		36,688			37,220


Deferred Income Taxes, net	$	(262,662	)	$	(239,942	)

We record Deferred Tax Assets and Liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a Valuation Allowance, we consider both positive and negative evidence related to the likelihood of realization of the Deferred Tax Assets. If, based on the weight of available evidence, it is more likely than not that a Deferred Tax Asset will not be realized, we record a Valuation Allowance.

We had state net operating loss carryforward deferred tax assets of $1.6 million at both March 31, 2026 and 2025, net of Valuation Allowances. We have state income tax credit carryforward deferred tax assets

of $7.9 million at March 31, 2026, and $8.3 million at March 31, 2025, net of Valuation Allowances. The state income tax credits may be carried forward indefinitely.

We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2023, and forward.

On July 4, 2025, H.R.1 - One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA, among other provisions, makes permanent 100% bonus depreciation and restores expensing of domestic research expenditures. Changes in tax laws are recognized in the period of enactment. OBBBA did not have a material impact on the Company’s annual income tax rate or income tax expense, but the bonus depreciation provisions of the act have affected the timing of income tax payments in current periods and will affect the timing of income tax payments in future periods.

Uncertain Tax Positions

We are subject to audit examinations at federal, state, and local levels by tax authorities in those jurisdictions who may challenge the treatment or reporting of any return item. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of these challenges is subject to uncertainty.

We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when the more-likely-than-not threshold is met. The changes in unrecognized tax benefits for the years ended March 31, 2026, 2025, and 2024 were as follows.



	For the Years Ended March 31,


	2026		2025			2024


	(dollars in thousands)


Balance at Beginning of Year	$	—	$	1,284		$	1,284


Increase for Tax Positions Related to


Current Year		600		—			—


Prior Year		600		—			—


Decrease Related to Prior Tax Positions


Prior Year		—		(1,284	)		—


Settlements		—		—			—


Expirations		—		—			—


Balance at End of Year	$	1,200	$	—		$	1,284

We classify interest and penalties related to uncertain tax positions as current income tax expense.

Historical Timeline

Fiscal Year	Filed
2026	May 19, 2026	Showing above
2025	May 20, 2025

2024	May 22, 2024

2023	May 19, 2023

2022	May 20, 2022

2021	May 21, 2021

2020	May 22, 2020

2019	May 23, 2019

2018	May 23, 2018

2017	May 24, 2017

2016	May 25, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

EAGLE MATERIALS INC Income Taxes Disclosure

Historical Timeline

About Income Taxes Disclosures

Other Available Disclosures