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 ...

Core Insights - Eagle Materials reported quarterly earnings of $3.59 per share, missing the Zacks Consensus Estimate of $4 per share, and showing a decline from $3.72 per share a year ago, resulting in an earnings surprise of -10.25% [1] - The company posted revenues of $558.03 million for the quarter, which was 3.77% below the Zacks Consensus Estimate and slightly lower than the $558.83 million reported a year ago [2] - The stock has gained approximately 4.7% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.82 on revenues of $502.91 million, and for the current fiscal year, it is $15.11 on revenues of $2.31 billion [7] - The estimate revisions trend for Eagle Materials is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Building Products - Concrete and Aggregates industry, to which Eagle Materials belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Eagle Materials' stock performance [5]

EXHIBIT 99.1 Contact at 214-432-2000 Michael R. Haack President and CEO D. Craig Kesler Executive Vice President & CFO Alex Haddock Senior Vice President Segment Financial Results News For Immediate Release EAGLE MATERIALS REPORTS THIRD QUARTER RESULTS DALLAS, TX (January 29, 2025) Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2025 ended December 31, 2024. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with ...

Eagle Materials Inc. (EXP) has entered into a definitive agreement to acquire Bullskin Stone & Lime, LLC for a purchase price of $152.5 million.The acquisition of this pure-play aggregates business located in Western Pennsylvania will expand EXP’s market reach in the Pittsburgh and Western Pennsylvania markets. The closure of this strategic transaction is expected in the next 60 days, subject to the satisfaction of customary closing conditions.Per Michael Haack, Eagle Materials’ president and CEO, “The acqu ...

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, 2024 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 - Q2 2025 revenue reached a record $624 million, a slight increase from the prior year, driven by higher cement and wallboard sales prices and volume, partially offset by lower cement sales volume [30][31] - Earnings per share (EPS) for the quarter was $4.26, flat compared to the prior year, reflecting lower earnings offset by a 5% reduction in fully diluted shares due to the share buyback program [31] - Operating cash flow increased by 35% to $233 million, reflecting strong working capital management [34] - Capital spending increased to $66 million, including $27 million for the modernization and expansion project at the Laramie, Wyoming cement plant and $25 million for a small aggregates acquisition [35] - The company repurchased 253,000 shares for $61 million and paid a quarterly dividend, returning a total of $69 million to shareholders [36] - Net debt-to-capital ratio was 41%, and net debt-to-EBITDA leverage ratio was 1.2x at the end of the quarter [37] Business Segment Performance Heavy Materials (Cement, Concrete, and Aggregates) - Revenue declined by 2%, primarily due to lower cement sales volume, partially offset by cement price increases implemented earlier in the year [32] - Operating earnings decreased by 9%, driven by lower cement sales volume and higher maintenance costs [32] - Volumes were down 5% overall, with significant impacts in Denver and Kansas City due to reduced demand and a work stoppage, respectively [12][13] Light Materials (Wallboard and Recycled Paperboard) - Revenue increased by 5%, driven by higher wallboard and recycled paperboard sales volume and a 1% increase in wallboard prices [33] - Operating earnings rose by 5% to $98 million, supported by higher sales volume and prices [33] - Wallboard demand remained steady despite a restrictive rate environment, with margins holding up well due to cost pressures and constrained industry capacity [24] Market and Demand Outlook - Infrastructure demand visibility remains strong due to the $1 trillion Federal infrastructure bill (IIJA), though spending has been slower than anticipated, with 75% of funds yet to be spent [16][17] - Non-residential construction demand varies by sub-sector, with large-scale manufacturing and industrial projects expected to remain strong [18] - Residential construction has held up well, with potential for a rebound supported by lower interest rates and underlying builder demand [19] - Heavy Materials volumes have underperformed expectations in 2024, with industry forecasts now predicting a year-over-year decline in cement volumes [20][21] - The company announced a price increase for early January 2025 across most markets, reflecting favorable demand conditions in the U.S. Heartland [22] Strategic Initiatives and Industry Positioning - The company continues to invest in sustainability, including the commissioning of a slag grinding facility in Houston, which will provide over 500,000 tons of low-carbon intensity slag [8] - Alternative fuel feeders have been expanded to reduce coal and coke usage, and water usage at the Republic Paperboard facility has been reduced by 40% [9] - The company is modernizing its Mountain Cement plant and has a robust pipeline of M&A opportunities, including a recent small aggregates acquisition in Kentucky [28][29] - Eagle Materials is positioned as a low-cost producer with high barriers to entry, a healthy balance sheet, and a focus on long-term investments to sustain industry-leading margins [26][27] Management Commentary on Operating Environment and Future Prospects - Management highlighted the impact of weather and labor constraints on infrastructure spending, but remains optimistic about the long-term demand tailwinds from IIJA and a rebound in construction activity [16][17][21] - The company expects a more accommodative monetary policy to support residential construction and wallboard demand, with pricing increases planned for early 2025 [22][25] - Maintenance costs are expected to increase in the upcoming quarter due to planned outages at Texas Lehigh and Tulsa Cement facilities, but these are one-off projects that will improve plant reliability [14][15] Other Important Information - The company held its Annual Health, Safety, and Environment (HSE) Conference, showcasing progress in safety and sustainability, including a below-industry-average TRIR rate and reduced CO2 emissions [5][6][7] - The blended cement production surpassed 90% of sales, reflecting the company's focus on sustainability and efficiency [9] Q&A Session Summary Question 1: Impact of Weather and Volume Trends - Hurricanes did not impact equipment but affected volumes in some Eastern markets, particularly cement and wallboard [39] - October volumes have improved due to drier weather [40] Question 2: Wallboard Pricing and Demand - Wallboard pricing was up year-over-year but down slightly sequentially, with a price increase delayed to early 2025 [41][42] - Demand for wallboard remains steady, with expectations of improved pricing as single-family construction activity increases [43] Question 3: Cement Demand and IIJA Impact - Cement demand has been slower than expected due to weather and project delays, but management remains optimistic about future demand from IIJA and industrial projects [47][48][49] - The company does not carry a significant backlog but sees a positive demand picture across its markets [48] Question 4: Maintenance Costs and Cement Margins - Maintenance costs for Texas Lehigh and Tulsa Cement facilities are expected to add $6-8 million in costs for Q3 [55] - Long-term cement margins are expected to remain strong due to supply constraints and high-quality assets [53][54] Question 5: Wallboard Cost Structure - Wallboard costs are primarily driven by paper and natural gas, with the company hedged at around 50% for natural gas [69] - OCC prices have been elevated but are expected to stabilize, with potential for cost benefits in future quarters [79][80] Question 6: Aggregates Acquisition and CapEx - The recent aggregates acquisition contributed $1.7 million in revenue and 100,000 tons in volume for the quarter [66] - CapEx for FY25 is expected to be between $280-310 million, with similar levels anticipated for FY26 due to ongoing investments in the Laramie project [81] Question 7: Denver and Kansas City Issues - Denver volumes were impacted by reduced demand in the oil field services sector, but the company is diversifying its customer base [73] - The Kansas City work stoppage has been resolved, with the business now focused on non-union markets [74]

For the quarter ended September 2024, Eagle Materials (EXP) reported revenue of $623.62 million, up 0.2% over the same period last year. EPS came in at $4.31, compared to $4.28 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $658.03 million, representing a surprise of -5.23%. The company delivered an EPS surprise of -9.26%, with the consensus EPS estimate being $4.75. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Eagle Materials (EXP) came out with quarterly earnings of $4.31 per share, missing the Zacks Consensus Estimate of $4.75 per share. This compares to earnings of $4.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.26%. A quarter ago, it was expected that this maker of gypsum wallboard and cement would post earnings of $3.57 per share when it actually produced earnings of $3.94, delivering a surprise of 10.36%.Over the last ...