Financial Data and Key Metrics Changes - Revenue for fiscal year 2022 increased by 15% to a record $1.9 billion, with gross profit margin rising by 270 basis points to 27.9% [7][24] - Earnings per share (EPS) from continuing operations rose by 14% to a record $9.14, with fourth quarter EPS up by 22% [8][25] - Operating cash flow for fiscal 2022 was $517 million, down 20% from the prior year due to timing of working capital [30] Business Line Data and Key Metrics Changes - Heavy Materials sector revenue increased by 6%, driven by higher cement sales volume and pricing, with operating earnings up by 10% [26] - Light Materials sector revenue surged by 27%, with operating earnings increasing by 42% to $274 million, reflecting improved wallboard sales volume and prices [29] Market Data and Key Metrics Changes - Demand for housing continues to outpace supply, with steady order trends across major business lines despite rising interest rates [21][22] - Public infrastructure spending is supported by improving state and local government revenues, with federal infrastructure spending expected to boost cement demand [22] Company Strategy and Development Direction - The company emphasizes resilience through owning manufacturing facilities and controlling raw materials, which has proven effective during supply chain disruptions [11][12] - A commitment to sustainability is highlighted by the introduction of limestone cement, which reduces carbon intensity and enhances clinker manufacturing capacity [15] - The company plans to increase capital spending to $115 million to $125 million in fiscal 2023 to expand production of Portland Limestone Cement [33] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about fiscal 2023, expecting it to be another record year, supported by midyear price increases in wallboard, cement, and aggregates [23] - The company is closely monitoring inflationary pressures on energy and transportation costs, with multiple price increases planned to offset these pressures [39][75] Other Important Information - The company returned $620 million to shareholders through share repurchases and dividends, with an additional 7.5 million shares authorized for repurchase [17][32] - The acquisition of an aggregates-led business in Colorado for $120 million is expected to complement existing operations and provide sustainable growth [12][33] Q&A Session Summary Question: How are you thinking about raw material and energy-related costs? - Management noted that OCC prices have plateaued and natural gas needs are partially hedged, indicating a cautious but optimistic outlook on margins [36][37][39] Question: How is housing demand expected to evolve? - Despite rising interest rates, management believes housing demand remains strong due to reasonable affordability and a lack of inventory [41][42] Question: Can you discuss wallboard volume trends? - Management indicated that previous volume declines were due to supply chain issues, but improvements are expected as these issues resolve [45][46] Question: How do you view wallboard margins in a potential downturn? - Management expressed confidence in their position due to controlled raw material costs and a strong supply contract, suggesting resilience in margins [50][52] Question: What are your thoughts on capital allocation in a recession? - The company is positioned to manage cycles and continue growth, with a focus on strategic opportunities and returning cash to shareholders [58][60] Question: Any updates on cement capacity and pricing? - Management confirmed multiple price increases due to tight market conditions and indicated ongoing projects to enhance cement production capacity [68][75]

Part I [Business](index=3&type=section&id=Item%201.%20Business) Eagle Materials Inc. manufactures heavy and light construction materials, emphasizing low-cost production, decentralized operations, and profitable growth in key US markets [Overview](index=3&type=section&id=Overview) Eagle Materials Inc. manufactures essential construction materials, leveraging its integrated network, low-cost position, and strategic growth initiatives - The company's primary products are Portland Cement and Gypsum Wallboard, which are essential commodities for commercial, residential, and public construction[5](index=5&type=chunk) - Key competitive strengths include a broad geographic reach in high-growth U.S. markets, a low-cost producer position, production flexibility, and substantial raw material reserves (**25 to 50 years** for cement and wallboard facilities)[7](index=7&type=chunk) - The company's strategy focuses on being a low-cost producer, maintaining a decentralized operating structure, operating in diverse U.S. markets, and achieving growth through acquisitions and organic development[9](index=9&type=chunk) - Capital allocation priorities are: 1) growth opportunities, 2) investments to maintain low-cost positions, and 3) returning cash to shareholders. Over the past three years, the company invested nearly **$700 million** in acquisitions, **$260 million** in capex, and returned **$956 million** to shareholders[18](index=18&type=chunk) [Fiscal 2022 Events](index=5&type=section&id=Fiscal%202022%20Events) Fiscal 2022 saw record revenue and earnings, significant share repurchases, debt refinancing, and a post-year-end acquisition Fiscal 2022 Financial Highlights (vs. Fiscal 2021) | Metric | Fiscal 2022 | Change | |---|---|---| | Revenue | $1,861.5 million | +15% | | Net Earnings from Continuing Operations | $374.2 million | +12% | | Diluted EPS from Continuing Operations | $9.14 | +14% | | Gross Profit Margin | 27.9% | +270 bps | | Shares Repurchased | ~4.0 million | - | - In July 2021, the company refinanced its debt by issuing **$750.0 million** of **2.5% 10-year senior notes**, replacing existing **4.5% notes** and a term loan[22](index=22&type=chunk) - Subsequent to fiscal year-end, on April 22, 2022, the company acquired a readymix concrete and aggregates business in northern Colorado for approximately **$121.2 million**[24](index=24&type=chunk) [Human Capital](index=6&type=section&id=Human%20Capital) Eagle Materials employed approximately 2,200 people as of March 31, 2022, prioritizing employee health and safety, which resulted in a total recordable incident rate below industry averages - The company had approximately **2,200 employees** as of March 31, 2022, with about **700 hourly employees** represented by unions[25](index=25&type=chunk) - Management prioritizes employee health and safety, implementing initiatives that resulted in a total recordable incident rate (TRIR) below the industry average for all business segments in fiscal 2022[26](index=26&type=chunk)[27](index=27&type=chunk) [Industry Segment Information](index=6&type=section&id=Industry%20Segment%20Information) The company operates in two sectors: Heavy Materials (Cement, Concrete and Aggregates) serving infrastructure, and Light Materials (Gypsum Wallboard, Recycled Paperboard) serving residential construction - The business is organized into two sectors: Heavy Materials (Cement, Concrete and Aggregates) and Light Materials (Gypsum Wallboard, Recycled Paperboard)[28](index=28&type=chunk) [Heavy Materials](index=7&type=section&id=Heavy%20Materials) The Heavy Materials sector, comprising Cement and Concrete & Aggregates, supplies essential materials for infrastructure and construction, benefiting from strong demand [Cement](index=7&type=section&id=Cement) The Cement segment produces portland cement for public infrastructure, operating eight plants with substantial limestone reserves and facing significant environmental regulations - The company operates eight cement plants with a net annual clinker capacity of **6.7 million tons** and net annual grinding capacity of **8.15 million tons**[43](index=43&type=chunk)[45](index=45&type=chunk) Limestone Reserves and Resources (as of March 31, 2022) | Category | Tons (in millions) | |---|---| | Proven & Probable Reserves | 321.0 | | Measured & Indicated Resources (exclusive of reserves) | 679.2 | - Total net cement sales were **7.5 million short tons** in both fiscal 2022 and 2021[46](index=46&type=chunk) - The business faces environmental risks from regulations on Cement Kiln Dust (CKD), potential Greenhouse Gas (GHG) rules, and air quality standards for ozone, which could require significant capital outlays[64](index=64&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) [Concrete and Aggregates](index=15&type=section&id=Concrete%20and%20Aggregates) The Concrete and Aggregates segment produces readymix concrete and construction aggregates, with operations expanded by a recent **$121.2 million** acquisition in Colorado - As of March 31, 2022, the company operated **26 readymix concrete plants** with **213 trucks**[75](index=75&type=chunk) Aggregate Reserves and Resources (as of March 31, 2022) | Category | Tons (in millions) | |---|---| | Proven & Probable Reserves | 90.9 | | Measured & Indicated Resources (exclusive of reserves) | 20.8 | - Net aggregates sales were **1.5 million tons** in fiscal 2022, down from **2.0 million tons** in fiscal 2021, primarily due to project delays in Central Texas[80](index=80&type=chunk) - On April 22, 2022, the company acquired a concrete and aggregates business in northern Colorado for approximately **$121.2 million**, adding three concrete plants and two aggregate mining operations[74](index=74&type=chunk) [Light Materials](index=17&type=section&id=Light%20Materials) The Light Materials sector, comprising Gypsum Wallboard and Recycled Paperboard, serves residential and commercial markets, benefiting from vertical integration [Gypsum Wallboard](index=18&type=section&id=Gypsum%20Wallboard) The Gypsum Wallboard segment manufactures wallboard for residential construction, operating five plants with **3.875 billion square feet** annual capacity and significant gypsum reserves - The company operates five gypsum wallboard plants with a total approximate annual capacity of **3.875 billion square feet (MMSF)**[94](index=94&type=chunk) Gypsum Reserves and Resources (as of March 31, 2022) | Category | Tons (in millions) | |---|---| | Proven & Probable Reserves | 62.5 | | Measured & Indicated Resources (exclusive of reserves) | 141.9 | - Total Gypsum Wallboard sales were **2,944 MMSF** in fiscal 2022, an increase from **2,857 MMSF** in fiscal 2021[95](index=95&type=chunk) - Two customers accounted for approximately **30%** of the Gypsum Wallboard segment's sales during fiscal 2022[99](index=99&type=chunk) [Recycled Paperboard](index=22&type=section&id=Recycled%20Paperboard) The Recycled Paperboard segment operates a paper mill with **390,000 tons** annual capacity, producing gypsum liner from recycled paper, with **40%** internal consumption - The paper mill has an estimated annual capacity of **390,000 tons** and produces lighter-weight gypsum liner from **100% recycled fiber**[113](index=113&type=chunk)[114](index=114&type=chunk) - In fiscal 2022, approximately **40%** of the recycled paperboard sold was consumed internally by the company's Gypsum Wallboard operations[115](index=115&type=chunk) - The primary raw material is old corrugated containers (OCC), the price of which increased approximately **50%** during fiscal 2022[116](index=116&type=chunk)[118](index=118&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including cyclical industry demand, commodity pricing, public health emergencies, extensive environmental regulations, operational challenges, financial covenants, and cybersecurity threats - **COVID-19 Risk:** A pandemic could adversely affect business, operations, and financial conditions through supply chain disruptions, reduced demand, and market volatility[125](index=125&type=chunk)[127](index=127&type=chunk) - **Industry Risks:** The business is affected by the cyclical demand in the construction industry, seasonality, unfavorable weather, and commodity price fluctuations[129](index=129&type=chunk)[131](index=131&type=chunk)[137](index=137&type=chunk) - **Regulatory & Legal Risks:** Operations are subject to extensive and costly governmental regulations, particularly environmental laws concerning emissions (including GHGs), land use, and potential cleanup liabilities. Climate change legislation could disproportionately affect the capital-intensive cement business[139](index=139&type=chunk)[141](index=141&type=chunk)[145](index=145&type=chunk) - **Financial & Operational Risks:** The cement business is capital intensive and sensitive to volume changes. The company faces risks from rising costs of fuel, energy, and transportation, as well as potential equipment failures. Debt agreements contain restrictive covenants that limit flexibility[165](index=165&type=chunk)[170](index=170&type=chunk)[180](index=180&type=chunk) - **Cyber Risk:** A cyber-attack or data security breach could negatively affect business operations, leading to reputational harm, financial loss, and regulatory scrutiny[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Properties](index=36&type=section&id=Item%202.%20Properties) The company owns most of its operating facilities across the U.S., with no properties pledged as security for debts - The company's operating facilities are located across the U.S. and are all owned, except for the leased Dallas headquarters and certain terminals. No facilities are pledged as security for debts[207](index=207&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) Management believes no currently pending legal proceedings will materially affect the company's financial condition, results of operations, or liquidity - Management believes that no currently pending legal proceedings will have a material effect on the company's financial condition, results, or liquidity[210](index=210&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation disclosures, as required by the Dodd-Frank Act, are included in Exhibit 95 of this Form 10-K - Mine safety violation disclosures required by Section 1503(a) of the Dodd-Frank Act are included in Exhibit 95 to this Form 10-K[212](index=212&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=38&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Eagle Materials' common stock trades on the NYSE under EXP, with the Board authorizing additional share repurchases and the company repurchasing **4.0 million shares** in fiscal 2022 - On May 17, 2022, the Board authorized the repurchase of an additional **7.5 million shares** of common stock[215](index=215&type=chunk) - During fiscal 2022, the company repurchased **3,982,657 shares** at an average price of **$148.08 per share**. No shares were repurchased in fiscal 2021[216](index=216&type=chunk) Share Repurchases for Quarter Ended March 31, 2022 | Period | Total Shares Purchased | Average Price Paid Per Share | |---|---|---| | Jan 2022 | 362,211 | $155.98 | | Feb 2022 | 418,000 | $142.16 | | Mar 2022 | 286,000 | $132.34 | | **Q4 Total** | **1,066,211** | **$144.22** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes fiscal 2022 performance, highlighting strong revenue growth driven by price and volume, a positive outlook supported by infrastructure spending, and strategic debt management [Market Conditions and Outlook](index=41&type=section&id=Market%20Conditions%20and%20Outlook) The company anticipates strong cement demand from infrastructure and robust gypsum wallboard demand from housing, despite expected increases in energy and freight costs - Cement demand is expected to be supported by the Infrastructure Investment and Jobs Act, with the PCA forecasting a slight increase in consumption for calendar 2022[235](index=235&type=chunk) - Gypsum Wallboard demand is expected to remain strong, driven by favorable demographics, an undersupply of homes, and a population shift to the suburbs, despite rising inflation and mortgage rates[236](index=236&type=chunk) - The company anticipates further increases in energy and freight costs throughout fiscal 2023 due to global supply disruptions and limited transportation capacity[238](index=238&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Fiscal 2022 revenue increased **15%** to **$1.86 billion**, with gross profit up **27%** and net earnings from continuing operations rising **12%**, driven by higher prices and volumes Consolidated Results of Operations (Fiscal Year Ended March 31) | (in thousands, except per share) | 2022 | 2021 | % Change | |---|---|---|---| | Revenue | $1,861,522 | $1,622,642 | 15% | | Gross Profit | $519,614 | $408,355 | 27% | | Net Earnings From Continuing Operations | $374,247 | $334,166 | 12% | | Diluted EPS from Continuing Operations | $9.14 | $7.99 | 14% | - Revenue increased by **$238.9 million (15%)**, primarily due to higher gross sales prices (**$211.2 million**) and sales volume (**$27.7 million**)[242](index=242&type=chunk) - Gross margin increased to **28%** from **25%** in fiscal 2021, mainly due to higher gross sales prices[245](index=245&type=chunk) - Interest expense decreased by **30%** to **$30.9 million**, primarily due to debt refinancing at a lower interest rate[251](index=251&type=chunk) [Results by Segment](index=45&type=section&id=Results%20by%20Segment) Heavy Materials saw Cement earnings rise **11%** while Concrete and Aggregates declined; Light Materials had Gypsum Wallboard earnings surge **56%**, offset by a **50%** drop in Recycled Paperboard earnings due to higher costs Cement Segment Performance (FY2022 vs FY2021) | Metric | FY2022 | FY2021 | % Change | |---|---|---|---| | Revenue (incl. JV) | $1,007.1M | $944.6M | +7% | | Sales Volume (M Tons) | 7.53 | 7.47 | +1% | | Avg. Net Sales Price/ton | $119.13 | $111.19 | +7% | | Operating Earnings | $259.6M | $234.0M | +11% | Concrete and Aggregates Segment Performance (FY2022 vs FY2021) | Metric | FY2022 | FY2021 | % Change | |---|---|---|---| | Revenue | $177.1M | $168.7M | +5% | | Operating Earnings | $18.5M | $19.1M | -3% | Gypsum Wallboard Segment Performance (FY2022 vs FY2021) | Metric | FY2022 | FY2021 | % Change | |---|---|---|---| | Revenue | $692.2M | $539.0M | +28% | | Sales Volume (MMSF) | 2,944 | 2,857 | +3% | | Avg. Net Sales Price/MSF | $190.76 | $149.62 | +27% | | Operating Earnings | $261.5M | $167.3M | +56% | Recycled Paperboard Segment Performance (FY2022 vs FY2021) | Metric | FY2022 | FY2021 | % Change | |---|---|---|---| | Revenue (incl. intersegment) | $194.1M | $163.5M | +19% | | Operating Earnings | $12.6M | $25.4M | -50% | [Critical Accounting Policies](index=49&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgment, including impairment testing of long-lived assets and goodwill, and the valuation of assets and liabilities in business combinations - Key critical accounting policies include impairment of long-lived assets, goodwill impairment testing, and accounting for business combinations[278](index=278&type=chunk) - Goodwill is assessed for impairment annually in Q4. For fiscal 2022, a qualitative assessment was performed on all reporting units, and it was determined that it was not more likely than not that an impairment existed[280](index=280&type=chunk)[363](index=363&type=chunk) - The total goodwill on the balance sheet as of March 31, 2022, was **$329.1 million**, allocated across the Cement, Concrete and Aggregates, Gypsum Wallboard, and Paperboard segments[286](index=286&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, actively managing its capital structure through debt refinancing and credit facility amendments, with projected capital expenditures of **$115.0 million to $125.0 million** for fiscal 2023 - Net cash provided by operating activities was **$517.2 million** in FY2022, a decrease from **$643.1 million** in FY2021, mainly because FY2021 included a **$125.6 million** income tax refund[296](index=296&type=chunk) - Subsequent to year-end, on May 5, 2022, the company amended its credit facility to add a **$200 million term loan**, extend the maturity to May 2027, and switch from a LIBOR-based to a SOFR-based reference rate[307](index=307&type=chunk)[420](index=420&type=chunk) - The debt-to-capitalization ratio was **45.6%** at March 31, 2022, compared to **42.8%** at March 31, 2021[303](index=303&type=chunk) - Capital expenditures are expected to be between **$115.0 million** and **$125.0 million** in fiscal 2023[315](index=315&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk on variable-rate debt, where a **100 basis point** increase would raise annual interest expense by **$3.6 million**, and commodity price risk for key inputs - The company is exposed to interest rate risk on its variable-rate debt. A hypothetical **100 basis point** increase in rates would increase annual interest expense by **$3.6 million**[325](index=325&type=chunk) - The company is subject to commodity price risk for key inputs like coal, petroleum coke, natural gas, and power[326](index=326&type=chunk) [Financial Statements and Supplementary Data](index=59&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the consolidated financial statements for fiscal years 2020-2022, including an unqualified auditor's opinion from Ernst & Young LLP, and details on the Texas Lehigh Cement Company LP joint venture Consolidated Financial Summary (Fiscal Year 2022) | Metric | Amount (in thousands) | |---|---| | **Total Revenue** | $1,861,522 | | **Net Earnings** | $374,247 | | **Total Assets** | $2,579,652 | | **Total Liabilities** | $1,446,096 | | **Total Stockholders' Equity** | $1,133,556 | - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements, stating they are presented fairly in all material respects[487](index=487&type=chunk) - The auditor's report identified the existence of raw materials and materials-in-progress inventory as a critical audit matter due to the complex judgments involved in measuring stockpile volumes and converting them to tonnage[493](index=493&type=chunk)[494](index=494&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=114&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported during the period - None reported[568](index=568&type=chunk) [Controls and Procedures](index=114&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2022, a conclusion affirmed by Ernst & Young LLP's unqualified opinion - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[569](index=569&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of March 31, 2022. This assessment was audited by Ernst & Young LLP, who also issued an unqualified opinion[571](index=571&type=chunk)[573](index=573&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=117&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the 2022 Proxy Statement, and the company has adopted a code of ethics, 'The Eagle Way' - Most information for this item is incorporated by reference from the 2022 EXP Proxy Statement[583](index=583&type=chunk) - The company has a code of ethics, 'The Eagle Way,' which is published on the corporate governance section of its website[584](index=584&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=117&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2022 Proxy Statement, detailing securities available for issuance under the 2013 Incentive Plan Equity Compensation Plan Information as of March 31, 2022 | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | |---|---|---|---| | Equity compensation plans approved by stockholders | 456,849 | $83.81 | 3,377,416 | Part IV [Exhibits, Financial Statement Schedules](index=119&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, referencing financial statements and noting the omission of inapplicable schedules - This section contains the index to all exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications[594](index=594&type=chunk) [Form 10-K Summary](index=125&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[615](index=615&type=chunk)

Eagle Materials Inc.'s (NYSE:EXP) Q3 2022 Earnings Conference Call January 27, 2022 8:30 AM ET Company Participants Michael Haack – President and CEO Craig Kesler – Chief Financial Officer Conference Call Participants Trey Grooms – Stephens Brent Thielman – D.A. Davidson Adrian Huerta – JP Morgan Anthony Pettinari – Citi Jerry Revich – Goldman Sachs Josh Wilson – Raymond James Philip Ng – Jefferies Operator Good day, everyone and welcome to Eagle Materials, Third Quarter of fiscal 2022, Earnings Conferenc ...

January 27, 2022 Third Quarter Fiscal 2022 Earnings Release and Conference Call Forward-Looking Statements Forward‐Looking Statements. This presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward‐looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimate ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended December 31, 2021 Commission File Number 1-12984 EAGLE MATERIALS INC. (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 75-2520779 (I.R.S. Employer Identification No.) 5960 Berkshire Lane, Suite 900, Dallas, Texas 75225 (Address of principal executive offices) (214) 432-2 ...

October 28, 2021 Second Quarter Fiscal 2022 Earnings Release and Conference Call Forward-Looking Statements Forward‐Looking Statements. This presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward‐looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimat ...

Financial Data and Key Metrics Changes - Second quarter revenue reached a record $510 million, reflecting a 14% increase from the prior year, driven by higher sales prices and sales volume across each business unit [28] - Diluted earnings per share from continuing operations was $2.46, a 14% increase year-on-year, while adjusted EPS was $2.73, marking a 26% improvement [28] - Operating cash flow for the first six months was $262 million, a 20% decrease year-on-year due to prior year tax benefits [32] Business Line Data and Key Metrics Changes - Heavy Materials sector revenue increased by 5%, driven by higher cement sales prices and sales volume, with price increases ranging from $6 to $8 per ton [29] - Light Materials sector revenue surged by 28%, with operating earnings increasing by 39% to $67 million, reflecting higher wallboard sales volume and prices [31] Market Data and Key Metrics Changes - Housing construction remains strong, particularly in the Southern U.S., which is crucial for the company as it represents a significant portion of housing starts [10] - The company noted that cement imports will be increasingly required to meet demand due to high capacity utilization in domestic plants, with the Baltic Dry Index up 135% from a year ago [14][71] Company Strategy and Development Direction - The company aims to ramp up its milestone cement product offerings, potentially creating another cement plant's worth of product when fully implemented [18] - The company is focused on maintaining high utilization rates and exploring growth opportunities while adhering to strict financial return criteria for investments [63] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong job creation and consumer spending as positive economic indicators, despite challenges from COVID-19 and supply chain issues [7][8] - The company expects continued strong demand in housing and commercial construction, with a favorable demand profile across all end markets [56] Other Important Information - The company has restarted its share repurchase program, returning $259 million to shareholders during the first half of the year [32] - An alliance with Chart Industries for carbon capture technology at the Sugar Creek cement plant was announced, marking a significant step towards a net carbon zero future [25][26] Q&A Session Summary Question: Can you elaborate on the ramp-up in cement product offerings? - Management explained that the ramp-up involves adding limestone to cement, which could increase capacity by 10% to 15% across facilities, with a three-year timeline for implementation [37][39] Question: How do you view cost inflation and its impact on margins? - Management acknowledged cost inflation but noted that pricing mechanisms allow for passing on higher costs, with expectations for margin recovery in Q4 [46][68] Question: What is the outlook for cement demand and pricing? - Management indicated consistent demand across markets, with double-digit price increases for cement effective January 1, 2022 [43][74] Question: How is the company addressing supply chain challenges? - Management stated that while supply chain issues have caused delays, they expect demand to increase once these challenges are resolved [72] Question: Can you provide insights on the M&A pipeline? - Management confirmed that they are actively looking for M&A opportunities but will only pursue those that meet their strategic and financial criteria [64][69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021 Commission File Number 1-12984 EAGLE MATERIALS INC. (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 75-2520779 (I.R.S. Employer Identification No.) 5960 Berkshire Lane, Suite 900, Dallas, Texas 75225 (Address of principal executive offices) (214) 432- ...

Financial Data and Key Metrics Changes - First quarter revenue reached a record $476 million, an increase of 11% from the prior year, driven by higher wallboard and cement sales prices, as well as increased wallboard and paperboard sales volume [16] - First quarter earnings per share was $2.25, a 3% decrease from the prior year, primarily due to a $0.93 per share gain from the sale of Northern California businesses in the previous year [16] - Operating cash flow increased 17% to $111 million, reflecting strong earnings and disciplined working capital management [20] Business Line Data and Key Metrics Changes - Heavy Materials sector revenue increased 3%, driven by higher cement sales prices, which rose by $6.00 to $8.00 per ton, although lower cement sales volume was noted due to heavy rainfall in Texas [17] - Light Materials sector revenue increased 25%, reflecting higher wallboard sales volume and prices, with operating earnings increasing 51% to $67 million, and wallboard margins improved to 38% from 32% in the prior year [19] Market Data and Key Metrics Changes - Residential construction remains a significant demand driver, accounting for approximately 80% of gypsum wallboard demand and about 30% of cement demand, with a strong outlook for housing starts [5][6] - The National Association of Realtors reported a cumulative demand supply gap of 6.8 million homes, indicating a robust outlook for gypsum wallboard demand [8] Company Strategy and Development Direction - The company is well-positioned to take advantage of current market opportunities, with a strong balance sheet providing substantial financial firepower for growth opportunities [14] - The company has restarted its share repurchase program and completed the issuance of 2.5% 10-year senior notes to strengthen its capital structure [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand picture is robust for both gypsum wallboard and cement, with sustainable factors driving this strength expected to last through the mid-term [10] - The company is largely insulated from the diminishing supply of synthetic gypsum and is positioned to benefit from supply dynamics in the industry [12] Other Important Information - The company completed full maintenance outages at each facility during the quarter, which increased maintenance spending by approximately $10 million compared to the previous year [18] - The company has a considerable amount of shares available for repurchase, with nearly 7 million shares under repurchase authorization [31] Q&A Session Summary Question: Expectations for a bounce back in JV volumes in Q2 after Texas weather impact - Management confirmed that as weather improves, cement shipments are expected to resume at a faster pace [23] Question: Status of midyear price increases in the cement market - Management stated that they are currently implementing a cement price increase and evaluating other markets for potential increases [24] Question: Details on cost inflation and its impact on margins - Management indicated that while costs for paper and energy are rising, they are able to pass most of these costs through to customers [27] Question: Insights on wallboard pricing and demand - Management confirmed that wallboard prices increased significantly during the quarter and that demand remains strong [35][36] Question: Capital deployment opportunities in the wallboard industry - Management indicated a focus on maximizing production from existing facilities rather than pursuing M&A opportunities in the wallboard sector [43] Question: Current CapEx expectations for the year - Management expects capital expenditures to be in the range of $90 million to $100 million for the full year [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021 Commission File Number 1-12984 EAGLE MATERIALS INC. (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 75-2520779 (I.R.S. Employer Identification No.) 5960 Berkshire Lane, Suite 900, Dallas, Texas 75225 (Address of principal executive offices) (214) 432-2000 ...