Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached a record $2,300 million, up slightly from the prior year, primarily due to higher prices across all business lines, partially offset by lower sales volume in Cement and Concrete and Aggregates [22][24] - Diluted earnings per share for the full fiscal year increased 1% to $13.77, driven by a reduced share count from the share repurchase program [22][23] - Fourth quarter revenue decreased 1% to $470 million, mainly due to lower Cement and Gypsum Wallboard sales volumes, offset by higher prices [22][23] Business Line Data and Key Metrics Changes - Heavy materials sector revenue declined 2% to $1,400 million, reflecting a 5% decrease in cement sales volume, partially offset by higher sales prices [24] - Light materials sector revenue increased 3% to $969 million, driven by higher wallboard sales prices and record recycled paperboard sales volume [25] Market Data and Key Metrics Changes - The cement sector experienced no material disruption in public infrastructure project funding, with healthy bidding activities reported by customers [16][17] - Residential market pressures from high mortgage rates and housing affordability challenges continue, but there is pent-up demand for new housing [17][19] Company Strategy and Development Direction - The company is focused on health, safety, sustainability, and strategic investments to enhance operational efficiency and competitive positioning [20][21] - Significant capital investments include the modernization of the Mountain Cement plant and the Duke wallboard facility, expected to enhance capacity and efficiency [26][28] Management's Comments on Operating Environment and Future Outlook - Management noted that adverse weather impacted fourth quarter performance but underlying fundamentals in the sector remain solid [16][19] - There is optimism regarding a rebound in single-family housing starts, with expectations that demand and supply dynamics will support business growth in the coming years [17][19] Other Important Information - The company completed over $175 million in M&A transactions and returned $332 million to shareholders through share repurchases and dividends [14][29] - The appointment of David Rush to the Board of Directors was announced, bringing valuable industry experience [20][21] Q&A Session Summary Question: Capital deployment philosophy for modernization and expansion projects - Management emphasized a focus on high return projects with internal hurdle rates of 15% cash on cash after tax [31][33] Question: Alternative fuels utilization in cement operations - Management discussed the use of tires and other alternative fuels to improve cost management and reduce CO2 emissions [35][37] Question: Wallboard pricing trends and freight costs - Management indicated that higher freight costs contributed to sequential pricing declines, but a price increase is planned for spring [41][42] Question: Demand outlook for private non-residential markets - Management noted steady demand in private non-residential sectors, with large multi-year projects contributing to growth [49][50] Question: Cement pricing and cost visibility - Management expects to improve margins over the next year, despite some cost pressures, with a focus on volume recovery [54][56] Question: Production downtimes during Duke Wallboard facility modernization - Existing lines will continue to operate until the new line is complete, similar to the Mountain Cement project [82][83] Question: Future acquisition plans in aggregates - Management remains open to pursuing aggregate acquisitions that align with strategic criteria and offer strong financial returns [84]

MAY 20, 2025 Fiscal Year and Fourth Quarter 2025 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 statements and generally arise when the Company is discussing its beliefs, e ...

Financial Performance - Record annual revenue of $2.3 billion, up slightly from the prior year[4] - Net earnings of $463.4 million, down 3%, with record net earnings per diluted share of $13.77, up 1%[4] - Adjusted EBITDA of $816.7 million, down 2%[4] - Fourth quarter revenue of $470.2 million, down 1%, with net earnings of $66.5 million, down 14%[4] - Fiscal 2025 revenue in the Heavy Materials sector down 2% to $1.4 billion, with operating earnings decreasing 11% to $310.7 million[9] - Fiscal 2025 revenue in the Light Materials sector increased 3% to $969.2 million, driven by higher sales volume and prices[16] - Total revenue for the quarter ended March 31, 2025, was $470.175 million, a decrease of 1.1% from $476.707 million in the same quarter of 2024[30] - Net earnings for the quarter were $66.480 million, down 13.7% from $77.099 million year-over-year[30] - The company reported a gross profit of $104.612 million for the quarter, compared to $119.680 million in the prior year, reflecting a decrease of 12.6%[30] - The total revenue for the fiscal year ended March 31, 2025, was $2.260 billion, slightly up from $2.259 billion in the previous fiscal year[30] - Adjusted EBITDA for the fiscal year ended March 31, 2025, was $816,674,000, down from $834,494,000 in 2024, a decrease of 2.1%[41] Investments and Acquisitions - Completed acquisitions of two aggregates businesses for a combined investment of $175 million[6] - Announced a $330 million investment to modernize and expand the Duke, OK Gypsum Wallboard plant, expected to increase capacity by 300 million square feet (25%)[6] Expenses and Costs - Corporate General and Administrative Expenses increased by approximately 24% due to higher IT spending and acquisition-related costs[20] - The company’s corporate general and administrative expenses increased to $19.596 million for the quarter, compared to $17.339 million in the same quarter of 2024[32] - The company incurred $3,359,000 in acquisition accounting and related expenses for the quarter ended March 31, 2025[40] Debt and Leverage - Maintained a net leverage ratio of 1.5x, ending the year with debt of $1.2 billion[5] - Total debt, excluding debt issuance costs, rose to $1,246,250,000 in 2025 from $1,102,500,000 in 2024, an increase of 13.1%[43] - Net Debt to Adjusted EBITDA ratio increased to 1.5x in 2025 from 1.3x in 2024, indicating a higher leverage position[43] Sales and Pricing - The average net sales price for cement increased by 2% to $157.62 per ton compared to $154.59 per ton in the previous year[34] - Cement sales volume decreased by 5% to 1.081 million tons for the quarter, while the total sales volume for the fiscal year decreased by 6% to 6.237 million tons[34] - Revenue from recycled paperboard increased by 9% year-over-year to $604.02 per ton for the fiscal year ended March 31, 2025[34] Assets and Equity - Total current assets increased to $668,657,000 in 2025 from $627,693,000 in 2024, representing a growth of 6.5%[36] - The company reported a total stockholders' equity of $1,456,700,000 in 2025, up from $1,308,535,000 in 2024, an increase of 11.3%[36] Cash Flow - Cash and cash equivalents decreased to $20,401,000 in 2025 from $34,925,000 in 2024, a decline of 41.5%[43] Depreciation and Amortization - Depreciation, depletion, and amortization for the quarter ended March 31, 2025, totaled $42,241,000, an increase from $38,485,000 in 2024, reflecting a rise of 9.2%[38] Interest Expense - The company’s interest expense for the fiscal year was $40.526 million, down from $42.257 million in the previous year[30] Earnings Per Share - Adjusted net earnings per diluted share (Adjusted EPS) for the fiscal year ended March 31, 2025, was $13.94, slightly up from $13.71 in 2024, an increase of 1.7%[40]

Core Viewpoint - Analysts forecast that Eagle Materials (EXP) will report quarterly earnings of $2.34 per share, reflecting a year-over-year increase of 4.5%, with revenues expected to reach $477.78 million, a slight increase of 0.2% compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 3.3%, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Estimates - The consensus estimate for 'Revenue- Heavy Materials- Concrete & Aggregates' is $52.27 million, indicating a year-over-year change of +7.3% [5]. - 'Revenue- Gypsum Wallboard' is expected to be $207.84 million, suggesting a decline of -1.1% year over year [5]. - 'Revenue- Heavy Materials- Cement (Wholly Owned)' is projected to reach $185.88 million, reflecting a decrease of -1.9% from the previous year [5]. - Total Revenue for Heavy Materials is forecasted at $238.25 million, with a year-over-year change of +0.1% [6]. - 'Revenue- Light Materials- Gypsum Wallboard' is expected to be $198.60 million, indicating a decline of -5.5% year over year [6]. - Total Revenue for Light Materials is estimated at $238.70 million, suggesting no change year over year [7]. Pricing and Earnings Metrics - The Average Net Sales Price for Gypsum Wallboard is projected to be $240.74, compared to $232.62 from the previous year [7]. - The Average Net Sales Price for Cement is expected to reach $157.28, up from $154.59 in the same quarter last year [8]. - Segment Operating Earnings for Light Materials- Gypsum Wallboard is estimated at $81.51 million, down from $82.91 million year over year [9]. - Segment Operating Earnings for Light Materials is projected at $93.69 million, compared to $92.21 million from the previous year [9]. Stock Performance - Shares of Eagle Materials have increased by +8.3% over the past month, compared to a +9% increase in the Zacks S&P 500 composite [9]. - With a Zacks Rank 4 (Sell), Eagle Materials is expected to underperform the overall market in the near future [10].

Core Viewpoint - The market anticipates Eagle Materials (EXP) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Eagle Materials is expected to report quarterly earnings of $2.34 per share, reflecting a year-over-year increase of 4.5%, with revenues projected at $477.78 million, a slight increase of 0.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.3% over the last 30 days, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Eagle Materials is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.98%, suggesting a bearish sentiment among analysts [10][11]. Historical Performance - In the last reported quarter, Eagle Materials was expected to post earnings of $4 per share but only achieved $3.59, resulting in a surprise of -10.25%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Conclusion - Eagle Materials does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [16].

Company Overview - Eagle Materials (EXP) shares increased by 9.4% to close at $225.17, following a notable trading volume and contrasting with a 2.6% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $2.50 per share, reflecting an 11.6% year-over-year increase, with revenues projected at $492.36 million, up 3.3% from the previous year [2] Earnings Estimates and Trends - The consensus EPS estimate for Eagle Materials has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Eagle Materials operates within the Zacks Building Products - Concrete and Aggregates industry, where another company, Martin Marietta (MLM), saw a 6.4% increase in its stock price, closing at $481.63 [3] - Martin Marietta's consensus EPS estimate has decreased by 1.2% over the past month to $1.85, representing a 4.2% decline compared to the previous year's EPS [4]

Core Insights - The investment approach is based on fundamental analysis, focusing on companies with a strong competitive moat and consistent growth in free cash flow [1] - The philosophy emphasizes long-term investing over short-term trading tactics, aiming to unlock value through informed strategies [1] - The goal is to provide insightful and actionable advice on both undervalued and overvalued stocks to the investment community [1] Company and Industry Analysis - The analyst has a solid educational background in business and economics, which supports their investment analysis [1] - The current role is within a local brokerage firm, indicating active engagement in the financial markets [1] - Writing for Seeking Alpha is viewed as a contribution to a community that values deep analytical insights, enhancing collective investment wisdom [1]

Core Insights - Eagle Materials Inc. reported disappointing third-quarter fiscal 2025 results, with adjusted earnings and revenues missing estimates and declining year over year [1][4]. Financial Performance - Adjusted earnings per share were $3.59, missing the Zacks Consensus Estimate of $4.00 by 10.3%, down from $3.72 in the same quarter last year [4]. - Total revenues were $558 million, lagging behind the consensus mark of $580 million by 3.8% and showing a slight decline of 0.1% year over year [4]. - Gross profit decreased to $177.8 million from $180.6 million in the previous year, primarily due to higher operating costs and lower sales volume, although partially offset by higher gross sales prices [5]. - Adjusted EBITDA was $208.8 million, down from $218.6 million reported a year ago [5]. Segment Performance - Heavy Materials segment revenues declined by 4% year over year to $351.8 million, with operating earnings down 20% to $85.4 million [6]. - Light Materials segment revenues increased to $241.7 million from $226.9 million year over year, with operating earnings rising to $97.4 million from $82.6 million [7]. Balance Sheet and Shareholder Actions - As of December 31, 2024, cash and cash equivalents were $31.2 million, down from $34.9 million at the end of fiscal 2024, while long-term debt increased to $85.6 million from $71 million [8]. - The company repurchased approximately 195,000 shares for a total of $55 million during the quarter [8].

Revenue and Earnings - Revenue for the three months ended December 31, 2024, decreased by $0.8 million to $558.0 million, with lower sales volume adversely affecting revenue by approximately $18.1 million[98] - Net earnings for the three months ended December 31, 2024, decreased by 7% to $119.6 million[108] - Revenue for the nine months ended December 31, 2024, increased by $7.7 million to $1,790.3 million, driven by higher gross sales prices[111] - Net Earnings decreased by 1% to $396.9 million for the nine months ended December 31, 2024[120] Gross Profit and Operating Earnings - Gross profit for the same period decreased by 2% to $177.8 million, primarily due to higher operating costs and lower sales volume[100] - Gross profit for the nine months ended December 31, 2024, increased by 1% to $568.5 million, with a consistent gross margin of 32%[113] - Cement Operating Earnings decreased by 18% to $86.8 million for the three months ended December 31, 2024, attributed to lower Sales Volume and higher operating costs[126] - Gypsum Wallboard Operating Earnings increased by 8% to $270.5 million for the nine months ended December 31, 2024, supported by higher gross sales prices and lower operating costs[138] - Operating Earnings rose 47% to $11.0 million, primarily due to higher gross sales prices and sales volume, despite a $3.1 million increase in operating costs[142] - Operating Earnings for the nine months increased 24% to $27.6 million, with higher gross sales prices and sales volume contributing $15.5 million and $1.7 million, respectively[144] Revenue by Segment - Cement Revenue for the three months ended December 31, 2024, was $295.4 million, a 4% decrease from the prior-year period, primarily due to lower Sales Volume[125] - Concrete and Aggregates Revenue declined by 1% to $60.7 million for the three months ended December 31, 2024, with a notable decrease in Sales Volume[130] - Gypsum Wallboard Revenue increased by 4% to $209.5 million for the three months ended December 31, 2024, driven by higher gross sales prices and Sales Volume[135] - Concrete and Aggregates Revenue for the nine months ended December 31, 2024, declined by 3% to $195.5 million, primarily due to lower Sales Volume[132] - Recycled Paperboard Revenue increased 19% to $56.2 million for the three months ended December 31, 2024, driven by higher gross sales prices and sales volume[141] - For the nine months ended December 31, 2024, Recycled Paperboard Revenue also increased 19% to $161.2 million, with gross sales prices contributing $15.5 million and sales volume contributing $10.3 million[143] Expenses and Tax - Corporate general and administrative expenses increased by approximately $11.8 million, or 28%, for the nine months ended December 31, 2024[115] - Income Tax Expense for the nine months ended December 31, 2024, was $113.6 million, a slight decrease from $115.7 million in the prior-year period, with an effective tax rate of 22% remaining consistent[119] Cash Flow and Capital Expenditures - Net Cash Provided by Operating Activities decreased by $14.7 million to $485.8 million during the nine months ended December 31, 2024[152] - Net Cash Used in Investing Activities was approximately $171.9 million, an increase of $29.0 million compared to the same period in fiscal 2024, mainly due to higher capital expenditures[156] - Capital expenditures for the nine months ended December 31, 2024, totaled $146.975 million, a significant increase from $60.951 million in the same period of 2023[171] - The company expects capital expenditures for fiscal 2025 to range from $215.0 million to $235.0 million, reflecting ongoing construction of the Mountain Cement facility[171] Share Repurchases and Dividends - Dividends paid were $25.4 million for the nine months ended December 31, 2024, compared to $26.7 million for the same period in 2023[166] - Total share repurchases for the nine months ended December 31, 2024, amounted to 795,719 shares at an average price of $252.95 per share[168] - Approximately 50.8 million shares have been repurchased since the company became publicly held in April 1994, with a cumulative total of 55.9 million shares authorized for repurchase[168] Debt and Financial Ratios - The debt-to-capitalization ratio improved to 40.3% at December 31, 2024, down from 45.7% at March 31, 2024[158] - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by approximately $2.6 million on existing borrowings[174] Risks and Economic Environment - The macroeconomic environment remains constructive for cement demand, with only approximately 25% of federal funding from the Infrastructure Investment and Jobs Act spent to date[90] - The company faces various risks including fluctuations in public infrastructure expenditures and changes in economic conditions that could adversely affect revenue and operating earnings[172] - The company is exposed to commodity price risks, particularly in coal, coke, natural gas, and power, and attempts to mitigate this through contracts and alternative fuels[175] Acquisitions - The company finalized the acquisition of an aggregates operation in Battletown, Kentucky, for approximately $24.9 million on August 9, 2024[86] - The company purchased Bullskin Stone & Lime, LLC for approximately $152.5 million on January 7, 2025, which will be included in the Concrete and Aggregates business segment[87] Stock and Employee Compensation - The company withheld 5,636 shares from employees for tax withholding upon the vesting of Restricted Shares during the nine months ended December 31, 2024[170] - The average price paid for shares repurchased in Quarter 3 was $282.56, with a total of 194,986 shares repurchased[168] - The company has utilized derivative instruments, including interest rate swaps, to manage debt subject to interest rate fluctuations[174]

January 29, 2025 Positive performance in challenging environment 3 2 Fiscal Year 2025 Third Quarter Highlights Third Quarter Fiscal 2025 Earnings Release and Conference Call Executed on strategic priorities and long-term growth initiatives — Achieved lowest Total Recordable Incident Rate in company history (calendar year) — Continued investments to advance goals of 100% construction-grade blended cement production, and 50% lower water usage at Republic Paperboard — Acquired pure-play aggregates business, ex ...