Key Takeaways EXP saw its EPS estimates fall again after its Q3 FY26 release, resulting in a Zacks Rank #5 (Strong Sell).EXP's recent downward revisions are part of a long-term run of negative EPS revisions.Eagle Materials Inc. (EXP)  builds heavy construction products and light building materials that are critical for both road construction as well as commercial and residential construction.Eagle Materials’ earnings outlook faded again after it reported its Q3 fiscal 2026 results on January 29, landing EXP ...

Eagle Materials Inc.'s ( EXP ) latest quarterly results come against a mixed profile of the construction landscape. On the one hand, you have decent demand coming from infrastructure spending, nonresidential projects like data centers, and public worksI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, ...

Eagle Materials Inc.'s ( EXP ) latest quarterly results come against a mixed profile of the construction landscape. On the one hand, you have decent demand coming from infrastructure spending, nonresidential projects like data centers, and public worksI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, ...

TORONTO, Feb. 03, 2026 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) has awarded a US$6.1 million (C$8.3 million) contract to EXP Services Inc. ("EXP") to provide engineering, project management, and construction management services during the construction phase of Electra’s Ontario battery materials refinery project. "Partnering with EXP provides Electra with the additional project and construction management support needed as we move int ...

Core Insights - Eagle Materials reported solid performance in fiscal Q3 2026, with revenue of $556 million and earnings per share of $3.22, despite a mixed construction environment [4] - The heavy materials sector saw an 11% revenue increase, driven by a 9% rise in cement sales volume and a significant 81% increase in aggregate sales volume [2][6] - The company is focused on operational efficiency, cost control, and maintaining a strong balance sheet while navigating a challenging market [3][19] Financial Performance - Revenue for the quarter was $556 million, with a gross profit margin of 28.9% [4][6] - Operating earnings in heavy materials increased by 9%, while light materials experienced a 16% revenue decline to $203 million, primarily due to lower wallboard volumes and pricing [2][8] - The company returned nearly $150 million to shareholders through dividends and share repurchases during the quarter [18] Market Trends - Demand trends in Eagle's markets are broadly positive, supported by infrastructure spending and growth in non-residential sectors like data centers [1] - Wallboard demand is under pressure due to a challenging residential construction environment, with a noted 14% shipment decline across the company's footprint [11][9] - Cement pricing is expected to increase by approximately $8 per ton in most markets, with timing varying regionally [6] Operational Initiatives - The company is implementing operational initiatives to enhance its position as a low-cost producer, including recycling waste streams and modernizing facilities [14][15] - Major plant modernizations are underway, with the Mountain Cement plant expected to be commissioned late in the current calendar year and the Duke facility in the second half of 2027 [20] Capital Management - Eagle issued $750 million in 10-year notes at a 5% interest rate to strengthen its capital structure and improve liquidity, now totaling approximately $1.2 billion [5][16] - As of December 31, 2025, the company reported a net debt-to-EBITDA ratio of 1.8x and no significant near-term debt maturities [17]

Revenue Performance - Revenue for the three months ended December 31, 2025, decreased by $2.0 million to $556.0 million, with a decline in sales volume primarily affecting the Gypsum Wallboard segment [110]. - Revenue for the nine months ended December 31, 2025, increased by $39.3 million, or 2%, to $1,829.6 million, with higher sales volumes contributing positively [122]. - Cement Revenue was $1,053.7 million, a 7% increase for the nine months ended December 31, 2025, driven by higher gross sales prices and Sales Volume [137]. - Concrete and Aggregates Revenue increased 21% to $236.9 million for the nine months ended December 31, 2025 [142]. - Gypsum Wallboard Revenue was $580.9 million, a 10% decrease for the nine months ended December 31, 2025, due to lower gross sales prices and Sales Volume [148]. - Recycled Paperboard Revenue decreased 15% to $47.8 million for the three months ended December 31, 2025, attributed to lower sales volume and gross sales prices [151]. - Recycled Paperboard Revenue decreased 8% to $147.5 million for the nine months ended December 31, 2025, driven by lower gross sales prices and sales volume [153]. Cost and Earnings Analysis - Cost of Goods Sold increased by $14.9 million, or 4%, to $395.1 million for the same period, driven by higher operating costs [111]. - Gross Profit decreased by 10% to $160.9 million, with a gross margin decline to 29% due to lower sales prices and increased operating costs [112]. - Net Earnings for the three months ended December 31, 2025, decreased by 14% to $102.9 million [120]. - Cost of Goods Sold for the nine months increased by $61.5 million, or 5%, to $1,283.3 million, primarily due to higher sales volume and operating costs [123]. - Gross Profit for the nine months decreased by 4% to $546.2 million, with a gross margin decline to 30% attributed to higher operating costs [124]. - Net Earnings decreased 8% to $363.6 million for the nine months ended December 31, 2025 [131]. - Operating Earnings decreased 18% to $221.3 million due to lower gross sales prices and sales volume, along with higher operating costs [149]. Operating Performance - Operating Earnings for Concrete and Aggregates were approximately $15.5 million, a 2,532% increase for the nine months ended December 31, 2025 [143]. - Cement Operating Earnings increased by $0.4 million to $292.2 million for the nine months ended December 31, 2025 [138]. - Operating Margin for Gypsum Wallboard decreased to 35% for the three months ended December 31, 2025, primarily due to lower gross sales prices and higher operating costs [147]. - Operating Earnings for the three months increased 2% to $11.2 million, primarily due to lower operating costs, which increased earnings by $4.3 million [152]. - Operating Earnings for the nine months increased 15% to $31.8 million, mainly due to lower operating costs, which increased earnings by $11.3 million [154]. Cash Flow and Capital Management - Net Cash Provided by Operating Activities increased by $26.3 million to $512.0 million during the nine months ended December 31, 2025 [160]. - Working Capital increased by $367.0 million to $790.6 million at December 31, 2025, primarily due to higher cash and lower accounts payable [161]. - Net Cash Used in Investing Activities was approximately $294.7 million, compared to $171.9 million during the same period in 2024, mainly for facility modernization [165]. - Net Cash Provided by Financing Activities was $181.2 million, a significant increase from a net cash used of $317.7 million in the prior year [166]. Debt and Share Repurchase - The debt-to-capitalization ratio increased to 54.4% at December 31, 2025, compared to 46.1% at March 31, 2025 [167]. - Share repurchases totaled 1,401,886 shares at an average price of $221.34 per share for the nine months ended December 31, 2025 [177]. - The company has repurchased approximately 52.6 million shares since becoming publicly held in April 1994, with a cumulative total of 55.9 million shares authorized for repurchase [177]. - The average price per share for repurchases in Quarter 1 was $219.64, in Quarter 2 was $225.24, and in Quarter 3 was $219.90 [177]. Capital Expenditures and Future Projections - Capital expenditures for the nine months ended December 31, 2025, amounted to $294.68 million, a significant increase from $146.98 million in the same period of 2024 [180]. - Estimated capital expenditures for fiscal 2026 are projected to range from $430.0 million to $450.0 million, focusing on facility expansions and modernization projects [180]. Risk Factors - A hypothetical 100 basis point increase in interest rates on $285.0 million of borrowings under the Term Loan would increase annual interest expense by approximately $2.9 million [184]. - The company is exposed to commodity price risks, particularly in coal, coke, natural gas, and power, and aims to mitigate this through contracts and alternative fuels [185]. - The company’s operations are subject to various risks, including fluctuations in public infrastructure expenditures and changes in economic conditions, which may impact future performance [182]. - The company has not utilized derivative financial instruments to manage interest rate risks as of December 31, 2025 [184].

For the quarter ended December 2025, Eagle Materials (EXP) reported revenue of $555.96 million, down 0.4% over the same period last year. EPS came in at $3.22, compared to $3.59 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $553.98 million, representing a surprise of +0.36%. The company delivered an EPS surprise of -2.92%, with the consensus EPS estimate being $3.32.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Financial Data and Key Metrics Changes - Revenue for the third quarter was $556 million, down slightly from the prior year, reflecting lower wallboard and paperboard sales volume, partially offset by higher cement sales volume and contributions from the recently acquired aggregates business [11] - Earnings per share were $3.22, down 10% from the third quarter of fiscal 2025, primarily due to lower net earnings from wallboard sales volume, despite a 5% reduction in fully diluted shares from the share buyback program [11] - Gross profit margin was reported at 28.9% [3] Business Line Data and Key Metrics Changes - Heavy materials sector revenue increased by 11%, driven by a 9% increase in cement sales volume and a 22% increase in concrete and aggregates revenue [11] - Aggregate sales volume reached a record 1.6 million tons, up 81%, reflecting a 34% increase in organic aggregate sales volume [13] - Light materials sector revenue decreased by 16% to $203 million, primarily due to lower wallboard and recycled paperboard sales volume and a 5% decline in wallboard sales prices [13] Market Data and Key Metrics Changes - Cement and aggregate sales volumes grew last quarter, supported by federal, state, and local infrastructure spending, as well as solid growth in key non-residential end markets [8] - Residential construction, which drives wallboard volumes, faced challenges, with current housing data reflecting affordability issues in the home building industry [9] Company Strategy and Development Direction - The company aims to maintain operational flexibility and efficiency through economic cycles, focusing on health and safety, cost control, and customer support [3][4] - Strategic projects include the modernization of the Mountain Cement plant and the Duke wallboard facility, expected to lower cost structures and strengthen competitive positions [7] - The company plans to continue investing in return-focused projects or acquisitions while ensuring a strong balance sheet [3] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about infrastructure and non-residential markets as they head into calendar 2026, despite the mixed construction environment [19] - The company remains focused on operations rather than predicting demand, emphasizing their ability to operate effectively in various economic conditions [9] - Management noted that while wallboard pricing has seen a downward trend, they expect prices to stabilize and potentially recover as housing construction activity improves [26] Other Important Information - The company returned nearly $150 million to shareholders through dividends and share repurchases during the fiscal third quarter [14] - A total of $750 million in 10-year senior notes was issued to enhance financial flexibility and align capital structure with long-term investments [15] Q&A Session Summary Question: Is cement demand widespread across markets? - Management indicated that demand is broad-based across markets, with optimism for infrastructure and non-residential markets as they enter calendar 2026 [19] Question: What is driving the margins in cement? - Margins were impacted by slight declines in pricing, with raw material costs being largely in line and maintenance costs under control [21][22] Question: What is the outlook for wallboard pricing? - Management noted that wallboard pricing has seen a downward trend but remains range-bound relative to historical cycles, with expectations for stabilization as housing recovers [26][60] Question: How is the company addressing winter storm impacts? - The company has prepared facilities for extreme cold temperatures, ensuring operations are ready for winter storms [41] Question: What is the status of the Lehigh JV? - The plant is performing better, but Texas remains a challenged market due to pricing and demand pressures [31] Question: What are the expectations for capital expenditures? - Capital spending expectations were adjusted due to timing of large projects, with a focus on prioritizing sustaining capital [46]

Eagle Materials (NYSE:EXP) Q3 2026 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsAdam Thalhimer - Director of ResearchAsher Sohnen - Equity Research Senior AssociateCraig Kesler - CFOGarrett Greenblatt - Equity Research AssociateKeith Hughes - Managing DirectorMichael Haack - President and CEOPhilip Ng - Managing DirectorConference Call ParticipantsBrent Thielman - Managing Director and Senior Research AnalystTimna Tanners - Equity Research AnalystTrey Grooms - Equity Research AnalystOperat ...

Eagle Materials (NYSE:EXP) Q3 2026 Earnings call January 29, 2026 08:30 AM ET Speaker0Good day, everyone, and welcome to Eagle Materials' third quarter of Fiscal 2026 earnings conference call. The call is being recorded. At this time, I would like to turn the call over to Eagle's President and Chief Executive Officer, Mr. Michael Haack. Mr. Haack, please go ahead, sir.Speaker1Thank you, Drew. Good morning. Welcome to Eagle Materials' conference call for our third quarter of fiscal year 2026. This is Michael ...