Good day, everyone, and welcome to Eagle Materials Fourth Quarter and Fiscal 2025 Earnings Conference Call. This call is being recorded. And at this time, I'd like to turn the floor over to Eagle's President and Chief Executive Officer, Mr. Michael Haack. Mr. Haack, please go ahead, sir.

Thank you, Jamie, and welcome, everyone. Joining me today are Craig Kesler, our Chief Financial Officer; and Alex Haddock, Senior Vice President of Investor Relations, Strategy and Corporate Development. There will be a slide presentation made in connection with this call. To access it, please go to eaglematerials.com and click on the link to the webcast. While you're accessing the slides, please note that the first slide covers our cautionary disclosure regarding forward-looking statements made during this call. These statements are subject to risks and uncertainties that could cause results to differ from those discussed during the call. For further information, please refer to this disclosure, which is also included at the end of our press release. As our fiscal year ends, it allows me some time to look back on our performance and reflect on the year in totality. There is no question that this year has had its challenges. The true measure of an individual or a company is how they respond to those challenges. I'm extremely grateful to lead a company that has dedicated employees that have made this company stronger. Without this dedication, Eagle would not have been successful. So I want to thank every Eagle employee for making Eagle a better company. I also want to spend a few minutes highlighting what Eagle was able to accomplish this past fiscal year. I want to start these comments with a topic that is Eagle's top priority, employee health and safety. You have heard me state in the past that we are proud of our industry-leading safety record. But this year, I am more impressed that we were able to achieve our lowest total recordable injury rate or TRIR in company history. This was coupled with a 25% increase in our hazard observation or near miss reporting, showing that our safety culture is well established and self-sustaining. Over this next year, we will continue to progress our safety culture with the rollout of a program called Eagle Safe, a series of standardized company-wide best practices and procedures to focus our efforts on critical safety issues. I'm a true believer that if you have diligence around safety, then you have a culture that strives for diligence around every other aspect in the business, leading to improved results holistically. This is the case for Eagle, where I am proud to say that this year marks our fourth consecutive year of record financial results, having generated record fiscal year revenue of $2.3 billion and record earnings per share of $13.77. This was accomplished with day-to-day headline noise surrounding the economy, but with focus, our businesses have continued to perform well and operate efficiently. Next, I want to talk about the efforts we have made with regards to sustainability. You will see a lot of information on the projects we have in process or that are completed in our sustainability report that will be published this summer. For now, let me share a few highlights. We are on track to complete an upgrade of our wastewater treatment facility at our papermill this summer. This $22 million project, when completed, will reduce our water consumption by approximately 50% through a more closed-loop system. It will also allow us to return water that is already heated to the process, hence, reducing our energy consumption and improving our efficiency. In our Cement business, we completed our Illinois Cement plant's alternative fuel feeder that will enable the plant to run more alternative fuels. We are also nearing completion of a project at Kosmos Cement facility to expand the use of recycled tires that would otherwise be landfilled. All our environmental projects are similar to these examples. They have meaningful economic benefits, driving efficiency and lowering costs as we reduce usage of water, solid fuels and other raw materials. Additionally, our deployment of capital in fiscal 2025 allowed us to strategically expand our ability to serve our customers across our geographic footprint. These investments are both acquisitions and organic investments. I will highlight a few of these. Within Aggregates, a key growth area for us, we acquired two pure-play aggregate operations, one in Kentucky and the other in Western Pennsylvania, enhancing our ability to serve these markets, which are complementary to our existing heavy side footprint. Integration of both operations is going well, and both businesses are already contributing to Eagle. These two additions will increase Eagle's aggregate production capacity by 50%. In Cement, we completed commissioning of our Texas Lehigh slag facility this winter, and production will ramp up throughout this upcoming fiscal year, providing additional cementitious tons to the Texas market. In Northern Colorado area, our Mountain Cement plant expansion continues to be on time and on budget. This next fiscal year, we'll see a major ramp-up in construction efforts and capital expenditure. Like the other projects I mentioned above, the Mountain Cement modernization will have meaningful economic benefits as well as environmental benefits, utilizing alternative fuels and lowering our CO2 intensity per ton. Lastly, we announced last week, we have initiated a project to modernize and expand our Duke, Oklahoma gypsum wallboard facility. The modernized plant takes advantage of our decades-long natural gypsum position at Duke and upgrades the facility with state-of-the-art technology, enhancing Eagle's low-cost producer position and strengthening our competitive advantage as the rest of the industry continues to struggle to source synthetic gypsum. Duke is advantaged geographically, allowing the plant to serve customers throughout the high-growth South and Southeast markets. The project is expected to cost about $330 million and start-up is scheduled for the second half of calendar 2027. Our ability to execute on these investment opportunities is underpinned by our capital allocation principles and our balance sheet strength. In fiscal 2025, we completed over $175 million of M&A transactions and increased our capital expenditure for the Mountain Cement project while ending the year with a net leverage ratio of 1.5 times. And even while investing our excess free cash flow in these high-return projects, we continue to return capital to shareholders, distributing $332 million of cash to shareholders through share repurchases and dividends. In summary, FY 2025 was a good year for Eagle. We held to our strategy that has always served us well and demonstrates that in periods of uncertainty like we're facing today, Eagle's steady focus on investing through cycles, not just for a point in the cycle, enables us to navigate through turbulence, continue to perform well and position ourselves for the future. In fact, as a 100% U.S. domestic manufacturer, we feel well equipped to weather the variety of potential tariff outcomes and the uncertainty it has created for the U.S. economy more broadly. Let me now give some color on our fourth quarter performance and outlook. Our fourth quarter results reflect the impact of adverse weather on our Cement and Concrete and Aggregates businesses, which was severe enough to cause production interruptions at some of our facilities. We made the decision to constructively use the downtime caused by the poor weather to pull forward the annual maintenance outage at our Texas Lehigh Cement facility. Despite the recent choppiness in our Heavy Materials financial performance, we believe the underlying fundamentals in the sector remain solid. Demand and supply dynamics remain favorable across all of our business lines, and we are positioned to benefit from these dynamics. In the cement sector, we have seen no material disruption in award funding for public infrastructure projects. Our customers report healthy bidding activities and are anticipating a rebound from the softer 2023 and 2024 demand realization. Looking out further, there's continued bipartisan support for infrastructure funding, which should be additive to cement consumption for the next several years. Turning to the residential outlook, which is a primary end market driver for our wallboard businesses. In many ways, we are in a similar place to where we've been for the last several years. While high mortgage rates and housing affordability challenges continue to exert downward pressure on single-family housing starts, this pressure is mitigated somewhat by the clear need for new housing and overall pent-up buyer demand. Ultimately, new home construction will be needed to address the affordability issue. Thus, we believe it's a matter of when, not if single-family housing starts will rebound. Turning to supply. We believe the outlook in both cement and Wallboard is unlikely to change in the medium term. Significant capacity constraints persist in both cement and wallboard. As a result, even in an environment like last year, where cement volumes were down and wallboard volumes remain subdued versus historical figures, both sectors continue to see relatively elevated utilization rates. As we look forward three to five years and beyond, we believe both the demand and supply dynamics will continue to support our business. Our strategy of steady investment through economic cycles and volatile market conditions positions us well to capture the benefits of these dynamics. We are committed to health, safety, sustainability, investing in every one of our plants to maintain our reserves position and keep them in like-new condition, expanding our geographic and customer footprint through compelling organic and M&A investments and maintaining capital allocation discipline. Those are just some of the reasons why we've been able to outperform and provide value for our shareholders through varied economic cycles and why we continue to do so. Lastly, before I turn it over to Craig, I want to highlight a governance-related announcement we made earlier this month. On May 15, we announced the appointment of David Rush to our Board of Directors. Dave is the retired CEO of Builders FirstSource. And prior to being CEO at Builders, he held a variety of senior executive roles over his nearly 30-year career there. Dave brings a wealth of valuable industry and management experience, and we are thrilled to add him to the Board. With that, I'll turn it over to Craig.

Thank you, Michael. Fiscal year 2025 revenue was a record $2.3 billion, up slightly from the prior year. The increase primarily reflects higher prices across all of our business lines, partially offset by lower cement and concrete and aggregate sales volume. Revenue for the fourth quarter was down 1% to $470 million, primarily reflecting lower cement and gypsum wallboard sales volumes, partially offset by higher cement and aggregate prices. Diluted earnings per share for the full fiscal year increased 1% to $13.77. The increase was due to the reduced share count resulting from our share repurchase program, which more than offset the net earnings decline. Fully diluted shares were down 4% from the prior year and are down 20% in the last five years. Fourth quarter earnings per share was down 11%, largely because of heavy materials results in the quarter when the Cement and Concrete and Aggregates businesses were affected by adverse weather and maintenance costs in the cement business increased. Our quarterly results were also affected by approximately $3.4 million of acquisition accounting and related expenses. Adjusting for these items, fourth quarter diluted earnings per share were down 7%. Turning now to segment performance highlighted on the next slide. In our Heavy Materials sector, which includes our Cement and Concrete and Aggregates segments, annual revenue declined 2% to $1.4 billion. The decline reflects lower cement sales volume, which was down 5% and was partially offset by higher sales prices. The two aggregates businesses acquired during the year contributed approximately $12 million to annual revenue. Annual operating earnings in the heavy materials sector declined 11% to $311 million, again, reflecting lower sales volume, partially offset by higher cement prices. During the fourth quarter, Heavy Materials operating earnings declined 50% to $18.3 million. As Michael mentioned, adverse weather conditions during the fourth quarter, most notably in February, caused disruption to not only cement sales opportunities, but also to cement operations. We estimate the operational impact from equipment downtime to be $4 million to $5 million. In addition, we pulled forward our annual maintenance outage at the joint venture to March versus April in the prior year, and the joint venture started up its new slag cement facility in Houston. The combined impact on joint venture results from the timing change of the annual outage and the commissioning cost for the new facility was approximately $4 million. Our fourth quarter cement price was up 2%. Moving to the Light Materials sector on the next slide. Annual revenue in our Light Materials sector increased 3% to $969 million, driven by higher wallboard sales prices and record recycled paperboard sales volume. Annual operating earnings increased 3% to $389 million, also because of higher wallboard sales prices and record paperboard sales volume, plus lower energy and freight costs. Looking now at our cash flow. We continue to generate healthy cash flow and allocate capital in line with our strategic priorities and rigorous financial return criteria. Operating cash flow in fiscal 2025 totaled $549 million. Capital spending increased to $195 million as we continue to invest in and improve our operations. Most of the increase in capital spending was associated with the modernization and expansion of our Mountain Cement plant, which began construction in July. As a reminder, the plant is being upgraded from the existing two long dry kilns to a single modern pre-calciner kiln line, which will significantly improve energy efficiency and simplify maintenance programs, resulting in cost savings of approximately 25%. The project will also increase plant capacity by 50%, enhancing our ability to serve the growing Northern Colorado market. And as Michael mentioned, last week, we announced plans to modernize our Oklahoma Wallboard plant, which will further improve its competitive position. The total investment is $330 million and construction is expected to start later this year. Considering these two projects as well as our sustaining capital spending, we expect total company capital spending in fiscal 2026 to increase to a range of $475 million to $525 million. During fiscal 2025, we acquired two aggregates businesses for approximately $175 million. The previously announced acquisition of Bullskin Stone & Lime was completed in early January and was funded with cash on hand and borrowings under our bank credit facility. Also during the year, we paid $34 million in dividends and repurchased approximately 1.2 million shares of our common stock or 4% of the outstanding for $298 million. We have 4.7 million shares remaining under our current repurchase authorization. Finally, a look at our capital structure, which continues to give us significant financial flexibility. At March 31, 2025, our net debt-to-cap ratio was 46%, and our net debt-to-EBITDA leverage ratio was 1.5 times. We ended the year with $20 million of cash on hand. Total liquidity at the end of the fiscal year was approximately $560 million, and we have no meaningful near-term debt maturities, giving us substantial financial flexibility. Thank you for attending today's call. Jamie, we will now move to the question-and-answer session.

Our first question today comes from Brian Brophy from Stifel. Please go ahead with your question.

Yes. Thanks. Good morning, everybody. Appreciate you taking the question. So just at a high level, you guys have had a number of large modernization expansion efforts here recently. Can you remind us how you philosophically think about deploying capital into these projects? How do you think about return on capital hurdles, payback periods or anything else we should keep in mind? Thanks.

Yes, I'll answer part of that, and Craig will probably jump in with some is, we've always been pretty open on how we look at our operations and how we keep them in as good a condition as possible and in favorable markets. We've run strategies on basically every single one of our facilities, and these two have just shown themselves as great investments for us. We like to invest in assets we know and markets we know, and we think both of these are high-return projects that will add significant value to our customers.

Yes, and Brian, I would like to add that these are two important projects with good returns. We have internal target rates of 15% cash-on-cash after-tax returns. We have previously undertaken similar projects that have yielded fantastic returns for us, significantly enhancing the competitive standing of both facilities in strong markets. Additionally, considering our current balance sheet at around 1.5 times, these projects do not hinder us from pursuing M&A opportunities or returning capital. We have positioned ourselves very well.

Thanks. Yes, that's really helpful. And then in the deck, you talked about and in your comments you talked about some expansion to utilize alternative fuels on the cement side of the business. Can you add any more color here? What type of alternative fuels are you able to utilize? And how should we be thinking about that impacting your ability to manage costs on the energy side? Thanks.

Yes. So we look at all of our facilities for what we're burning as fuels. The two that mentioned today are really using tires at our Kosmos cement facility and an alternative fuel feeder at Illinois Cement. That feeder will allow us to burn multiple different products. Right now, we're burning tire chips at that facility with it. How we view these projects is for a CO2 benefit and also for flexibility in the fuel source themselves that we could switch from one fuel source to another opportunistically as the pricing looks beneficial for us at the facilities. We will continue to look for other alternative fuel source projects across our cement plants.

That's really helpful. I'll pass it on. Thank you.

And our next question comes from Trey Grooms from Stephens. Please go ahead with your question.

Hey, good morning, Craig and Michael. Thanks for taking my questions. So if we could maybe dive into the wallboard pricing down a few dollars sequentially in the quarter. You mentioned increased freight costs. And clearly, your wallboard prices are reported net of freight, so that makes sense. But how did the like-for-like wallboard pricing trend through the quarter and maybe thus far through your fiscal 1Q? And should this higher kind of freight costs in the quarter, should that continue here?

Yes. Look, Trey, I would tell you the kind of exit price was not that far off of what the quarterly average was. And we are moving forward on a price increase in Wallboard here this spring. And so I really won't talk much about kind of post the quarter pricing until we get to the next call in July where we can talk about the realization of that. But look, it's interesting. The freight cost being higher, that's at least half of the sequential decline. We've seen that in a couple of markets where things are a little busier than I think people expected, at least on the trucking side. So that was the majority of the change there.

Yes, I understand. It makes sense. With wallboard volume performing better than some industry estimates during the quarter, can you share your expectations for volume as we approach the busier season? Should we expect it to remain at this level of change, or will there be any shifts? Additionally, do you have any updates regarding what you're observing in terms of demand?

Yes. Trey, as we've said for years, I think we are well positioned geographically in better-than-average markets. So we look at the performance of our business, not just quarterly but over a trailing 12-month basis. And I think our markets maybe outperform slightly, but pretty much in line with the marketplace. Look, as it comes to the overall demand picture, it's been interesting. Homebuilding, which has been pretty tepid for the last three or four years, and annual consumption of wallboard in the U.S. has been pretty flat for several years now. Sitting here today, our outlook is for homebuilding to kind of remain in the same level. Michael mentioned it, and we've talked a lot about interest rates and the sensitivities around homebuilding affordability. The demand is there. It's just how do you have people being able to afford getting to these homes. But we're underbuilt in the U.S., and we've been underbuilt for quite some time. But until you can fix the interest rate and affordability issue, I think you're range-bound here for a while.

Okay. All right. That makes sense. Thanks, Craig. I’ll pass it on.

Our next question comes from Anthony Pettinari from Citigroup. Please go ahead with your question.

Hi. This is Asher Sohnen on for Anthony. Thank you for taking my question. I think you mentioned that there wasn't really any impact on public demand from macro uncertainty. But I was wondering what that might look like for your private non-res or commercial end markets and what you're seeing there right now quarter-to-date?

Yes. And good question. It really is a bigger driver on the cement side. Private non-res is not a big driver for wallboard, but it's probably, call it, 25% or so for the cement demand. And the private non-res has so many different subcategories, including data centers and warehouses and large manufacturing facilities in addition to hospitals and commercial office buildings and the like. So very different. And then geographically, the answer can be very different. But as we look at the overall picture, there's a large number of big projects that are multi-years in length. So again, it's been a growing market for us for a while. I think it remains a pretty steady business for us, especially in our geographic markets.

Got it. That's helpful. And then just switching gears, and forgive me if I missed this, but how should we think about the cadence of spending for the Duke modernization?

As we said, we should start up construction sometime later this year, late summer, fall time frame. And the cadence will be pretty heavy here in fiscal 2026 in the $475 million to $525 million level for total company capital spending. Obviously, that includes Mountain Cement plus the Duke Wallboard facility and our sustaining capital. And then I would expect to see that start to trail off a little bit into fiscal 2027 as the Mountain Cement project will complete late calendar 2026 or late fiscal 2027.

Okay. That’s very helpful. I’ll turn it over.

Our next question comes from Jerry Revich from Goldman Sachs. Please go ahead with your question.

Yes. Hi, good morning, everyone. I'm wondering if you could just talk about in cement, obviously, the cadence of pricing for the industry is slowing a bit. Can you folks just talk about based on the pricing and cost visibility that you see over the next three to six months, do you expect pricing to be ahead of inflation? I know we've got moving pieces in terms of maintenance timing, et cetera. But conceptually, how do you feel about price cost in cement over the next three to six months?

Yes, Jerry, I think I would tell you rather than looking at just the next three to six months because our primary outage season is April and May. So the June quarter always has quite a bit of costs associated with that program. But as you look at the year, on the cost side, energy prices or costs have been pretty flat here for a little while. Electricity costs are up slightly. But on the balance, I think as we look across our network, we think we can continue to improve margins from here. The exact cadence of that over the next year or two years to be determined. And obviously, a lot of that is going to be driven by the volume outlook as well. The incrementals on additional volume are important. And whereas we've come off of two years in a row with lower volume across the country for the U.S. Cement business. So a rebound in volumes would also go a long way towards improving the margins of the business.

And then in terms of the Wallboard business in Texas, there's a significant importer of wallboard from Mexico. Can you just talk about what impact you're seeing on pricing from tariffs in wallboard? And then in cement, can you just talk about what benefits you could see from tariff exclusions?

Jerry, when we look at it for both Mexico and Canada, wallboard and cement are both excluded. So there is no tariff impact to any imports coming in from either of those countries. So really, the tariffs are very low impact to us as a domestic manufacturer, and there's not really a lot of other imports other than the cement side. When you look at the tariffs on cement, most of the countries right now are at a 10% tariff for their product. That's off the cost loaded into the ship. So when you're looking at a large component of a cement ton landing in the United States is the shipping cost. So when you back that out, a lot of the cement coming into the U.S. only has a $4 to $5, maybe $6 tariff associated with it. So it's not a substantial impact to the business one way or the other.

Appreciate it. And then lastly, can I ask in terms of wallboard, really attractive margins considering we're sitting at just north of 1.3 million starts. As you folks think about price cost in that business over the next, call it, three to six months, can you just talk about the ebbs and flows? And how do you expect margins to play out on a year-over-year basis? You've got some tough comps coming up in the June quarter.

Yes. Look, similar, Jerry, I would say looking at it over a longer time period, I think we're very well positioned as an overall business, given the certainty that we have around our raw material reserves, notably on the gypsum side. And so I think that is well positioned for us as homebuilding, when it does recover in a more meaningful way, to continue to see some margin expansion from here. But I mean, look, in the immediate term, homebuilding, a lot of uncertainty, again, back around interest rates. And so the question is when does homebuilding recover? And that's when the real big opportunity to move pricing and therefore, margins. On the shorter end of the curve, natural gas has come down here recently. OCC prices are down recently. So those are all favorable from that perspective. But we're more focused on the longer term and when does homebuilding actually turn in our favor and therefore, wallboard demand really meaningfully move higher. I'd point out, Jerry, we've shipped in this country 36 billion square feet of product before, and we're shipping at an annual pace for the last four years around 28 billion square feet, plus or minus a couple of percent. So we're well off historical type of higher levels of shipments.

That’s clear. Thank you.

Our next question comes from Adam Thalhimer from Thompson Davis. Please go ahead with your question.

Thank you. Good morning, guys. Craig, the operating loss in concrete and aggregates in Q4, are you looking at that basically as a one-off?

Yes, good question, Adam. We had an acquisition close during the fourth quarter, which involved some purchase accounting that introduced additional costs. Additionally, we experienced a full quarter of depreciation and amortization related to that business. I recommend focusing on the Concrete and Aggregates business from an EBITDA perspective. There is a lot of noise this fourth quarter due to the acquisition closing. However, on an EBITDA basis, we're actually quite pleased with our position in the aggregates business, and we've increased production capacity there by 50% with these two acquisitions this year. This is really starting to make a significant impact.

Okay. And then at the cement joint venture, are you looking at fiscal year 2026 as a nice recovery year for that business?

Yes. We certainly put some investments into that business over the last 12 to 18 months. If you recall, we had a pretty large clinker cooler work done in the fall. We started up the slag business during the winter. That's been a drag on earnings as that business really starts to improve here with the paving season this summer, we would expect to see a meaningful improvement there.

And then just lastly, for modeling purposes, is there anything more to come from purchase accounting? So an impact there in the first half of 2026? And then how much is left in the ERP costs you called out?

Yes. From a purchase accounting perspective, no, that was all contained really in our fourth quarter. And then on the IT side with our ERP system implementation, that will continue here into fiscal 2026. So I would model the corporate SG&A at the same level.

Perfect. Thanks, Craig.

Our next question comes from Philip Ng from Jefferies. Please go ahead with your question.

Hi, guys. Cement volumes have been pretty muted the last few quarters, and part of that is weather-related. So any update and color in terms of what activity you're seeing right now? Have you seen demand kind of bounce back with weather clearing out? Any color on orders, backlogs. Helpful to kind of get a little perspective on how demand is shaping up thus far on your heavy material side of things? Thanks.

Yes. No, you're right, Phil. It's been a slog for a couple of years, quite frankly, on the U.S. cement side. Some of it's certainly weather, but there's no doubt, infrastructure spending has been very slow to materialize. We spent not quite even 35% of the infrastructure bill at this point. That's several years old. We would have expected those dollars to have benefited the business well before now. But encouragingly, as the weather has improved here in March and April, we've seen volumes start to improve. So that's been very encouraging from our perspective.

Okay. So you're seeing positive year volumes at this point in April and March, correct?

That's right.

Okay. Super. And then on the cement price increases, I believe you guys had some in the marketplace in April. Any update on how that has progressed? I know weather has been a little choppy. Cement is very regional in nature. So any color on how that's kind of shaping up across your portfolio?

Yes. Most of those were scheduled for April. We prefer not to provide too much insight into future pricing. We will certainly give you an update during our July call when we discuss our first fiscal quarter.

Okay. Helpful. And then from a wallboard demand standpoint, volumes were certainly down, call it, 3 points in the fourth quarter. Spring selling season has been pretty muted. Are you seeing choppy orders from your distributors? And any color on how we should think about inventory in the channel because we cover some other housing-related sectors like insulation, for example, order patterns do seem to be very choppy there. So curious if you're seeing any of that as well.

Yes, Phil, I'd tell you, it's been choppy for a couple of years, just with a very muted single-family housing environment here in the U.S. And so not a lot of visibility. As you said, though, volumes have hung in there reasonably well in the grand scheme of things. So I would tell you, inventory in the channel, not as big of a thing in wallboard given that it's a perishable product, so you're not going to store it outside. And so not a lot of inventory in the grand scheme of things within the channel, either at the manufacturer or even at the distributor level. But look, I think we're all waiting for the turnaround of affordability and interest rates to kind of move the needle.

Okay. Thank you. Appreciate all the great color.

And our next question comes from Jonathan Bettenhausen from Truist. Please go ahead with your question.

Hi, guys. I'm on for Keith Hughes this morning. Thanks for taking my question. What kind of production downtimes, if any, do you expect from the existing lines at the Duke Wallboard facility while you work on that plant?

The existing lines will continue to operate as they have until the new line is complete. So very similar to the Mountain Cement project.

Okay. Got it. And then what are your thoughts on the Aggregates deal pipeline? Are you guys going to target to do more of those acquisitions here in fiscal 2026?

Yes, we always consider aggregate deals when they arise. The pipeline tends to be cyclical, and we receive a few opportunities occasionally. Based on our history, we are willing to make acquisitions in that area if they meet our established criteria, which we strictly adhere to. We prefer deals that integrate with our network and provide strong financial returns while benefiting the entire network. As opportunities arise, we will keep exploring that area along with other sectors we are interested in.

Great. Thanks.

Ladies and gentlemen, with that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Michael Haack for any closing comments.

Thank you, Jamie, and thanks to all of you for joining the call today. Before we conclude, I want to acknowledge the hard work of our dedicated team members. It's their daily focus on operational excellence, safety and incremental efficiency gains that enables us to perform steadily in economic cycles. Regardless of the day-to-day noise around us, we will continue to invest wisely in our businesses and capitalize on high value-enhancing opportunities in the year ahead and beyond. We look forward to talking to you in the summer.

Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.