Eagle Materials (EXP) investor relations material

Executive summary

• Achieved record quarterly revenue of $651 million, up 3% year-over-year, with diluted EPS of $3.29 and gross margin of 24.8%, despite higher operating costs and market volatility.

• Net earnings declined 17% to $102.1 million, reflecting increased maintenance, freight, and raw material costs, as well as equipment downtime at Mountain Cement.

• Heavy Materials sector saw volume growth, while Light Materials sector experienced declines, particularly in gypsum wallboard due to housing market headwinds.

• Cash flow from operations increased 13% to $154 million, supporting ongoing investments and shareholder returns.

• Returned $92 million to shareholders through dividends and repurchase of 406,500 shares for $84 million.

Financial highlights

• Revenue rose 3% year-over-year to $651 million, driven by higher cement, Aggregates, and record Recycled Paperboard sales volumes.

• EPS declined 13% to $3.29, impacted by higher operating costs and Mountain Cement downtime.

• Operating cash flow increased to $154 million; capital expenditures were $121 million, mainly for modernization projects.

• Gross profit margin was 24.8%; gross profit fell to $161.2 million.

• Adjusted EBITDA for the quarter was $190.5 million, down 11% year-over-year.

Outlook and guidance

• Fiscal 2027 capital expenditures expected between $490 million and $525 million, peaking as major projects near completion.

• Cement demand expected to remain steady, supported by infrastructure and nonresidential construction; residential outlook remains uncertain.

• Management anticipates improved net cement price realization over the medium term as energy costs normalize.

• Ongoing disciplined capital allocation, balancing growth investments, M&A, and shareholder returns.

• Insurance recovery expected for a portion of Mountain Cement facility loss.