EXP - Takeaways From Truist Securities Industrials & Services Conference

Research evidence excerpt

EXP - Takeaways From Truist Securities Industrials & Services Conference

Float 6.7%

comments that typically, price reacts to last year's volume. Volume for calendar 2026 is Dividend/Yield $1.00/0.5%

expected in the 2-4% range for the industry even without a recovery in residential. Pricing

Enterprise Value ($M) $8,279 is increasingly looking like a 2027 story however.

Cash & Equivalents ($M) $298

Total Debt ($M) $1,860 Capex Spend is at Peak Levels. Two plant modernization projects in Laramie, WY (cement)

and Duke, OK (wallboard) have elevated capex spend to peak levels. The Laramie plant is

EXP's oldest cement plant, with the highest maintenance costs and lowest energy efficiency.

6 Page Document Its two production lines are being replaced with a single, more efficient line. The project

is expected to improve fuel consumption and expand capacity by approximately 400k tons

Reasons for this report and will serve the undersupplied Northern Colorado market. Completion is targeted for late calendar 2026. In parallel, the Duke wallboard plant is undergoing a modernization process

expected to take another 15 months, aimed at both reducing system costs and adding ✓ Truist Securities Conference Takeaways

incremental production capacity. Capex spending is projected at $500 million for FY27 and

$250 million for FY28, with 2H of FY28 back to its maintenance run rate of roughly $150M.

Management Reiterates Value of Combined Business. Management reiterated that the

current combined business delivers superior returns relative to a standalone separation.

Also, the cement and wallboard business lines together keep the business investment

grade for cost of capital purposes while also allowing for shared mining techniques, calcine

technologies, and overhead efficiencies.