[PART I. FINANCIAL INFORMATION (Unaudited)](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION%20(Unaudited)) This section presents Eagle Materials Inc.'s unaudited consolidated financial statements and management's discussion for the three months ended June 30, 2025 [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents Eagle Materials Inc.'s unaudited consolidated financial statements for Q1 FY2026, including earnings, balance sheets, cash flows, and detailed notes [Consolidated Statements of Earnings](index=3&type=section&id=Consolidated%20Statements%20of%20Earnings) This section provides the consolidated statements of earnings for the three months ended June 30, 2025, and 2024 **Consolidated Statements of Earnings (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Revenue | $634,690 | $608,689 | 4.27% | | Cost of Goods Sold | $449,091 | $421,821 | 6.46% | | Gross Profit | $185,599 | $186,868 | -0.68% | | Equity in Earnings of Unconsolidated Joint Venture | $3,804 | $7,716 | -50.70% | | Corporate General and Administrative Expense | $(20,783) | $(15,649) | 32.81% | | Interest Expense, net | $(11,716) | $(10,684) | 9.66% | | Earnings Before Income Taxes | $157,858 | $170,934 | -7.65% | | Net Earnings | $123,362 | $133,842 | -7.83% | | Basic EPS | $3.78 | $3.97 | -4.79% | | Diluted EPS | $3.76 | $3.94 | -4.57% | | Cash Dividends Per Share | $0.25 | $0.25 | 0.00% | [Consolidated Statements of Comprehensive Earnings](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Earnings) This section presents the consolidated statements of comprehensive earnings for the three months ended June 30, 2025, and 2024 **Consolidated Statements of Comprehensive Earnings (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Net Earnings | $123,362 | $133,842 | | Net Actuarial Change in Defined Benefit Plans: Amortization of Net Actuarial Loss | $53 | $60 | | Net Actuarial Change in Defined Benefit Plans: Tax Expense | $(12) | $(15) | | Comprehensive Earnings | $123,403 | $133,887 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section details the consolidated balance sheets as of June 30, 2025, and March 31, 2025 **Consolidated Balance Sheets (as of):** | Metric | June 30, 2025 (thousands) | March 31, 2025 (thousands) | | :--------------------------------- | :------------------------ | :----------------------- | | **ASSETS** | | | | Cash and Cash Equivalents | $59,739 | $20,401 | | Accounts Receivable, net | $263,398 | $212,332 | | Inventories | $393,401 | $415,175 | | Total Current Assets | $732,365 | $668,657 | | Property, Plant, and Equipment, net | $1,840,845 | $1,792,982 | | Total Assets | $3,397,314 | $3,264,588 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total Current Liabilities | $268,358 | $245,004 | | Long-Term Debt | $1,294,883 | $1,223,316 | | Total Liabilities | $1,905,540 | $1,807,888 | | Total Stockholders' Equity | $1,491,774 | $1,456,700 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the consolidated statements of cash flows for the three months ended June 30, 2025, and 2024 **Consolidated Statements of Cash Flows (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Net Cash Provided by Operating Activities | $136,634 | $132,636 | | Net Cash Used in Investing Activities | $(76,097) | $(33,128) | | Net Cash Used in Financing Activities | $(21,199) | $(87,893) | | Net Increase in Cash and Cash Equivalents | $39,338 | $11,615 | | Cash and Cash Equivalents at End of Period | $59,739 | $46,540 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section presents the changes in consolidated stockholders' equity for the three months ended June 30, 2025, and 2024 **Changes in Stockholders' Equity (Three Months Ended June 30, 2025):** | Item | Amount (thousands) | | :--------------------------------- | :--------------- | | Balance at March 31, 2025 | $1,456,700 | | Net Earnings | $123,362 | | Stock Compensation Expense | $4,822 | | Shares Redeemed to Settle Employee Taxes | $(5,579) | | Purchase and Retirement of Common Stock | $(79,403) | | Dividends to Stockholders | $(8,169) | | Unfunded Pension Liability, net of tax | $41 | | Balance at June 30, 2025 | $1,491,774 | **Changes in Stockholders' Equity (Three Months Ended June 30, 2024):** | Item | Amount (thousands) | | :--------------------------------- | :--------------- | | Balance at March 31, 2024 | $1,308,535 | | Net Earnings | $133,842 | | Stock Option Exercises and Restricted Share Vesting | $56 | | Stock Compensation Expense | $4,539 | | Shares Redeemed to Settle Employee Taxes | $(1,421) | | Purchase and Retirement of Common Stock | $(86,345) | | Dividends to Stockholders | $(8,453) | | Unfunded Pension Liability, net of tax | $45 | | Balance at June 30, 2024 | $1,350,798 | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining accounting policies, acquisitions, revenue recognition, and other financial details - The financial statements are unaudited and prepared in accordance with SEC rules, condensing or omitting certain GAAP disclosures[16](index=16&type=chunk)[17](index=17&type=chunk] - Management makes estimates and assumptions, and actual results may differ[18](index=18&type=chunk] - Two recent FASB ASUs (2023-09 on Income Tax Disclosures and 2024-03 on Expense Disaggregation) are pending adoption, with ASU 2023-09 having no impact on financial results and ASU 2024-03 currently being evaluated[19](index=19&type=chunk)[20](index=20&type=chunk] **Supplemental Cash Flow Information (Three Months Ended June 30):** | Item | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Cash Payments: Interest | $7,948 | $3,678 | | Cash Payments: Income Taxes | $734 | $780 | | Cash Payments: Operating Leases | $1,498 | $2,287 | | Noncash Financing Activities: Right-of-Use Assets Obtained for Capitalized Operating Leases | $3,325 | $855 | | Noncash Financing Activities: Excise Tax on Share Repurchases | $787 | $719 | - On January 7, 2025, Eagle Materials acquired Bullskin Stone & Lime, LLC, an aggregates business in Western Pennsylvania, for approximately **$150.0 million**, funded by its Revolving Credit Facility[22](index=22&type=chunk] - The acquisition contributed **$7.2 million in revenue** and **$1.6 million in operating earnings** for the three months ended June 30, 2025[27](index=27&type=chunk] **Preliminary Purchase Price Allocation for Bullskin Stone & Lime, LLC (as of June 30, 2025):** | Asset/Liability | Fair Value (thousands) | | :--------------------------------- | :--------------------- | | Accounts Receivable | $1,443 | | Inventories | $3,354 | | Property, Plant, and Equipment | $35,097 | | Intangible Assets | $39,400 | | Total Net Assets Acquired | $78,404 | | Goodwill | $71,543 | | Total Purchase Price | $149,947 | - Revenue is primarily from product sales (cement, concrete, aggregates, gypsum wallboard, recycled paperboard), recognized upon shipment or transfer of control[28](index=28&type=chunk] - Rebates and incentives are treated as variable consideration[29](index=29&type=chunk] - Freight and delivery charges are fulfillment activities, with billed fees recorded as revenue and costs as Cost of Goods Sold[30](index=30&type=chunk)[31](index=31&type=chunk] - Other Non-Operating Income includes lease/rental income, asset sales, and trucking income[32](index=32&type=chunk] - Accounts Receivable, net of a **$6.6 million allowance for doubtful accounts** at June 30, 2025, are subject to ongoing credit evaluations with no significant credit risk concentration[33](index=33&type=chunk] - Inventories are valued at the lower of average cost or net realizable value, totaling **$393.4 million** at June 30, 2025, down from **$415.2 million** at March 31, 2025[34](index=34&type=chunk] **Accrued Expenses (as of):** | Item | June 30, 2025 (thousands) | March 31, 2025 (thousands) | | :--------------------------------- | :------------------------ | :----------------------- | | Payroll and Incentive Compensation | $20,083 | $31,918 | | Benefits | $16,724 | $16,950 | | Interest | $12,541 | $7,689 | | Dividends | $8,378 | $8,463 | | Property Taxes | $8,399 | $5,836 | | Total Accrued Expenses | $87,677 | $96,077 | - Total lease cost for operating and short-term leases increased to **$2.8 million** for the three months ended June 30, 2025, from **$2.4 million** in the prior year[37](index=37&type=chunk] - Operating Lease Right-of-Use Assets were **$31.9 million** and Total Operating Lease Liabilities were **$39.8 million** at June 30, 2025, with a weighted-average remaining lease term of **11.8 years** and a discount rate of **4.42%**[38](index=38&type=chunk] - The 2023 Equity Incentive Plan reserves **1,425,000 shares** for awards[39](index=39&type=chunk] - In May 2025, **29,273 performance stock units** and **14,712 performance stock options** were awarded, vesting based on return on equity and total stockholder return over three years[40](index=40&type=chunk] - Additionally, **14,712 time-vesting stock options** and **29,273 time-vesting restricted stock units** were granted, vesting ratably over three years[41](index=41&type=chunk] - Total unrecognized compensation cost for stock options was **$3.7 million** (2.4 years weighted-average period) and for restricted stock units/shares was **$30.2 million** (1.8 years weighted-average period) at June 30, 2025[43](index=43&type=chunk)[45](index=45&type=chunk][50](index=50&type=chunk] **Stock Option Activity (Three Months Ended June 30, 2025):** | Item | Number of Shares | Weighted Average Exercise Price | | :--------------------------------- | :--------------- | :---------------------------- | | Outstanding Options at March 31, 2025 | 184,233 | $95.75 | | Granted | 29,424 | $213.66 | | Outstanding Options at June 30, 2025 | 213,657 | $111.99 | | Options Exercisable at June 30, 2025 | 164,778 | $88.26 | | Weighted-Average Fair Value of Options Granted During the Year | N/A | $90.94 | **Restricted Stock Units and Nonvested Restricted Stock Activity (Three Months Ended June 30, 2025):** | Item | Number of Shares | Weighted Average Grant Date Fair Value | | :--------------------------------- | :--------------- | :----------------------------------- | | At March 31, 2025 | 194,099 | $150.56 | | Granted | 58,546 | $213.66 | | Vested | (62,204) | $91.22 | | At June 30, 2025 | 190,441 | $126.88 | **Earnings Per Share Calculation (Three Months Ended June 30):** | Item | 2025 | 2024 | | :--------------------------------- | :--------------- | :--------------- | | Weighted-Average Shares of Common Stock Outstanding | 32,624,075 | 33,734,280 | | Weighted-Average Common Stock and Dilutive Securities Outstanding | 32,808,568 | 33,993,023 | | Shares Excluded Due to Anti-Dilution Effects | 64,216 | 56,641 | - The company sponsors fully funded defined benefit and defined contribution plans, with defined benefit plans frozen to new participants and benefits[53](index=53&type=chunk] - Expected pension expense for fiscal 2026 is less than **$0.1 million**[54](index=54&type=chunk] - The effective income tax rate for the three months ended June 30, 2025, was approximately **22%**, consistent with the prior year, primarily due to state income taxes partially offset by percentage depletion[55](index=55&type=chunk] - The company is assessing the impact of the One Big Beautiful Bill Act (OBBBA) signed on July 4, 2025[56](index=56&type=chunk] **Long-Term Debt (as of):** | Item | June 30, 2025 (thousands) | March 31, 2025 (thousands) | | :--------------------------------- | :------------------------ | :----------------------- | | Revolving Credit Facility | $275,000 | $200,000 | | 2.500% Senior Unsecured Notes Due 2031 | $750,000 | $750,000 | | Term Loan | $292,500 | $296,250 | | Total Debt | $1,317,500 | $1,246,250 | | Long-term Debt (net of current portion, discount, and costs) | $1,294,883 | $1,223,316 | - The company has a **$750.0 million Revolving Credit Facility** (expiring Feb 2030) with **$275.0 million outstanding** and **$9.9 million in letters of credit**, leaving **$465.1 million available**[58](index=58&type=chunk][63](index=63&type=chunk] - It also has a **$300.0 million Term Loan** (expiring Feb 2030) with **$292.5 million outstanding**[64](index=64&type=chunk] - The **2.500% Senior Unsecured Notes ($750.0 million principal)** are due July 2031[65](index=65&type=chunk] - The company was in compliance with all financial covenants at June 30, 2025[65](index=65&type=chunk] - Eagle Materials operates in two sectors: Heavy Materials (Cement, Concrete and Aggregates) and Light Materials (Gypsum Wallboard, Recycled Paperboard), across **70+ facilities in 21 states**[67](index=67&type=chunk][68](index=68&type=chunk] - Segment performance is assessed based on operating earnings[69](index=69&type=chunk] - The company proportionately consolidates its **50% share** of the Texas Lehigh Cement Company LP joint venture for segment reporting[70](index=70&type=chunk][71](index=71&type=chunk] **Segment Revenue from External Customers (Three Months Ended June 30):** | Segment | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Cement | $310,326 | $299,572 | | Concrete and Aggregates | $73,716 | $61,038 | | Gypsum Wallboard | $221,516 | $217,826 | | Recycled Paperboard | $29,132 | $30,253 | | Total Consolidated Revenue | $634,690 | $608,689 | **Segment Profit (Three Months Ended June 30):** | Segment | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Cement | $81,084 | $89,125 | | Concrete and Aggregates | $6,175 | $2,980 | | Gypsum Wallboard | $92,641 | $93,976 | | Recycled Paperboard | $9,503 | $8,503 | | Total Segment Profit | $189,403 | $194,584 | **Capital Expenditures by Segment (Three Months Ended June 30):** | Segment | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Cement | $45,995 | $18,794 | | Concrete and Aggregates | $5,603 | $6,589 | | Gypsum Wallboard | $21,995 | $3,280 | | Recycled Paperboard | $1,315 | $3,561 | | Corporate and Other | $1,189 | $904 | | Total Capital Expenditures | $76,097 | $33,128 | **Joint Venture Summarized Financial Information (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | | :--------------------------------- | :--------------- | :--------------- | | Revenue | $54,567 | $58,620 | | Gross Margin | $10,942 | $16,424 | | Earnings Before Income Taxes | $7,608 | $15,548 | - Net interest expense increased by **10% to $11.7 million** for the three months ended June 30, 2025, primarily due to higher interest on the Revolving Credit Facility[79](index=79&type=chunk] - The company has contingent liabilities of **$9.9 million** under outstanding letters of credit and **$47.9 million** in performance bonds, but management believes these will not have a material adverse effect[80](index=80&type=chunk][82](index=82&type=chunk] - The fair value of the **2.500% Senior Unsecured Notes Due 2031** was **$664.0 million** at June 30, 2025, based on quoted prices of similar debt instruments[84](index=84&type=chunk] [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, market conditions, and operational results for Q1 FY2026 [EXECUTIVE SUMMARY](index=27&type=section&id=EXECUTIVE%20SUMMARY) This section provides an overview of Eagle Materials Inc.'s business, product segments, and recent strategic acquisitions - Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products (Cement, Concrete and Aggregates) and light building materials (Gypsum Wallboard, Recycled Paperboard), operating over **70 facilities in 21 states**[86](index=86&type=chunk)[87](index=87&type=chunk] - The company accounts for its **50% interest** in the Texas Lehigh Cement Company LP joint venture using proportionate consolidation for segment reporting[88](index=88&type=chunk] - Recent acquisitions include an aggregates business in Northern Kentucky (August 2024 for **$24.9 million**) and Bullskin Stone & Lime LLC (January 2025 for **$150.0 million**), both integrated into the Concrete and Aggregates segment[89](index=89&type=chunk)[90](index=90&type=chunk][91](index=91&type=chunk] [MARKET CONDITIONS AND OUTLOOK](index=27&type=section&id=MARKET%20CONDITIONS%20AND%20OUTLOOK) This section discusses the macroeconomic environment, product demand, and cost management strategies for the company's segments - The macroeconomic environment supports product demand, with steady cement demand expected from public infrastructure projects (Infrastructure Investment and Jobs Act funds yet to be spent) and continued construction spending[93](index=93&type=chunk)[94](index=94&type=chunk] - Residential construction remains steady despite higher interest rates, supported by a chronic housing shortage and aging housing stock, with a full recovery tied to declining mortgage rates[95](index=95&type=chunk] - The company's geographic footprint in the U.S. heartland and Sun Belt positions it to capitalize on market dynamics[96](index=96&type=chunk] - The company is well-positioned to manage costs due to substantial raw material reserves near manufacturing facilities[97](index=97&type=chunk] - Energy costs are expected to remain stable, while freight costs for Gypsum Wallboard and Cement segments increased slightly in Q1 fiscal 2026 and are expected to remain at current levels[98](index=98&type=chunk] - Labor constraints could affect Concrete and Aggregates[99](index=99&type=chunk] - Recycled fiber prices for paperboard are subject to fluctuation, with contractual price adjustments partially offsetting changes[100](index=100&type=chunk] - Maintenance costs are expected to see a **low single-digit increase** due to high equipment and contractor costs[100](index=100&type=chunk] [RESULTS OF OPERATIONS](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the consolidated and segment-specific financial performance for the three months ended June 30, 2025 **Consolidated Financial Performance (Three Months Ended June 30, 2025 vs. 2024):** | Metric | 2025 (thousands) | 2024 (thousands) | Change ($) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | :--------- | | Revenue | $634,690 | $608,689 | $26,001 | 4% | | Cost of Goods Sold | $(449,091) | $(421,821) | $(27,270) | 6% | | Gross Profit | $185,599 | $186,868 | $(1,269) | (1)% | | Equity in Earnings of Unconsolidated Joint Venture | $3,804 | $7,716 | $(3,912) | (51)% | | Corporate General and Administrative | $(20,783) | $(15,649) | $(5,134) | 33% | | Other Non-Operating Income | $954 | $2,683 | $(1,729) | (64)% | | Interest Expense, net | $(11,716) | $(10,684) | $(1,032) | 10% | | Earnings Before Income Taxes | $157,858 | $170,934 | $(13,076) | (8)% | | Net Earnings | $123,362 | $133,842 | $(10,480) | (8)% | | Diluted Earnings per Share | $3.76 | $3.94 | $(0.18) | (5)% | - Consolidated Revenue increased **4% to $634.7 million**, driven by higher sales volumes (**$19.1 million**) partially offset by lower gross sales prices (**$4.5 million**)[102](index=102&type=chunk] - Excluding acquisitions, revenue increased **2%**[103](index=103&type=chunk] - Cost of Goods Sold increased **6% to $449.1 million**, primarily due to higher sales volume and operating costs in the Cement business[104](index=104&type=chunk] - Gross Profit decreased **1% to $185.6 million**, with gross margin declining to **29%** due to lower gross sales prices and higher operating costs[105](index=105&type=chunk] - Equity in Earnings of Unconsolidated Joint Venture decreased **51%** due to lower sales volume, average gross sales prices, and increased operating costs (energy, freight, fixed costs)[106](index=106&type=chunk] - Corporate General and Administrative expenses rose **33%** due to higher salary, incentive compensation, professional fees, and IT costs[108](index=108&type=chunk] - Net Interest Expense increased **10%** due to higher average outstanding borrowings on the Revolving Credit Facility[109](index=109&type=chunk] - Net Earnings decreased **8% to $123.4 million**[110](index=110&type=chunk][111](index=111&type=chunk] **Cement Segment Performance (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Revenue (including Intersegment and Joint Venture) | $347,622 | $339,162 | 2% | | Revenue (External) | $310,326 | $299,572 | 4% | | Sales Volume (M Tons) | 1,993 | 1,947 | 2% | | Average Net Sales Price, per ton | $156.72 | $156.10 | 0% | | Operating Earnings | $81,084 | $89,125 | (9)% | | Operating Margin, per ton | $40.68 | $45.78 | (11)% | - Cement Revenue increased **2% to $347.6 million** due to higher gross sales prices (**$0.8 million**) and sales volume (**$7.6 million**)[114](index=114&type=chunk] - Operating Earnings decreased **9% to $81.1 million**, primarily due to higher operating costs (**$11.0 million**) from increased freight, energy, labor, fixed costs, and purchased raw materials, partially offset by higher sales volume and gross sales prices[115](index=115&type=chunk] - Operating Margin declined from **26% to 23%**[115](index=115&type=chunk] **Concrete and Aggregates Segment Performance (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Revenue (including Intersegment) | $77,568 | $64,815 | 20% | | Revenue (External) | $73,716 | $61,038 | 21% | | Concrete Sales Volume (M Cubic Yards) | 322 | 343 | (6)% | | Aggregate Sales Volume (M Tons) | 1,731 | 799 | 117% | | Average Net Sales Price, Concrete (Per Cubic Yard) | $150.43 | $148.56 | 1% | | Average Net Sales Price, Aggregates (Per Ton) | $14.24 | $12.61 | 13% | | Operating Earnings | $6,175 | $2,980 | 107% | - Concrete and Aggregates Revenue increased **20% to $77.6 million**, driven by higher gross sales prices (**$1.4 million**) and higher Aggregates Sales Volume (**$3.1 million**), partially offset by lower Concrete Sales Volume (**$3.1 million**)[116](index=116&type=chunk] - Excluding acquisitions, revenue increased **2%**[117](index=117&type=chunk] - Operating Earnings surged **107% to $6.2 million**, primarily due to higher gross sales prices and Aggregates Sales Volume, partially offset by increased operating costs (materials and maintenance)[117](index=117&type=chunk] **Gypsum Wallboard Segment Performance (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Revenue | $221,516 | $217,826 | 2% | | Sales Volume (MMSF) | 784 | 757 | 4% | | Average Net Sales Price, per MSF | $232.40 | $239.43 | (3)% | | Operating Earnings | $92,641 | $93,976 | (1)% | | Operating Margin, per MSF | $118.16 | $124.14 | (5)% | - Gypsum Wallboard Revenue increased **2% to $221.5 million**, driven by higher sales volume (**$7.8 million**) partially offset by lower gross sales prices (**$4.1 million**)[119](index=119&type=chunk] - Operating Earnings decreased **1% to $92.6 million** due to lower gross sales prices and higher operating costs (freight, energy), partially offset by higher sales volume and lower input costs (fiber)[120](index=120&type=chunk] - Operating Margin decreased to **42%**[120](index=120&type=chunk] **Recycled Paperboard Segment Performance (Three Months Ended June 30):** | Metric | 2025 (thousands) | 2024 (thousands) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :--------- | | Revenue (including Intersegment) | $51,104 | $54,240 | (6)% | | Revenue (External) | $29,132 | $30,253 | (4)% | | Sales Volume (M Tons) | 90 | 91 | (1)% | | Average Net Sales Price, per ton | $566.33 | $597.41 | (5)% | | Operating Earnings | $9,503 | $8,503 | 12% | | Operating Margin, per ton | $105.59 | $93.44 | 13% | - Recycled Paperboard Revenue decreased **6% to $51.1 million** due to lower gross sales prices (**$2.8 million**) and sales volume (**$0.3 million**)[123](index=123&type=chunk] - Operating Earnings increased **12% to $9.5 million**, primarily due to lower operating costs (**$3.8 million**), mainly from reduced fiber input costs, partially offset by lower gross sales prices[124](index=124&type=chunk] - Operating Margin increased to **19%**[124](index=124&type=chunk] [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=35&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section outlines the company's key accounting policies requiring significant judgment and estimates, including long-lived assets and goodwill - The company's critical accounting policies, requiring significant judgment and estimates, relate to long-lived assets, goodwill, and business combinations[126](index=126&type=chunk] - These policies are reviewed with the Audit Committee[127](index=127&type=chunk] - Information on recently issued accounting pronouncements is detailed in Note (A) to the Unaudited Consolidated Financial Statements[128](index=128&type=chunk] [LIQUIDITY AND CAPITAL RESOURCES](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section details the company's financial resources, cash flow, debt, dividends, and capital expenditure plans - The company believes it has sufficient financial resources to fund operations, capital expenditures, and debt service for at least the next twelve months, monitoring potential economic disruptions[129](index=129&type=chunk] - Net cash provided by operating activities increased by **$4.0 million to $136.6 million**, primarily due to higher cash flows from changes in working capital and noncash activity, partially offset by lower operating earnings[131](index=131&type=chunk] - Working Capital increased by **$40.3 million to $464.0 million** at June 30, 2025, driven by higher cash and accounts receivable, partially offset by lower inventories and higher income tax payable[132](index=132&type=chunk] - Accounts Receivable increased due to higher June revenue, but collectability remains strong[133](index=133&type=chunk] - Inventory decreased by **$21.8 million**, consistent with seasonal business cycles and completion of scheduled outages[134](index=134&type=chunk] - Net cash used in investing activities increased by **$43.0 million to $76.1 million**, mainly due to the modernization and expansion of the Mountain Cement facility[135](index=135&type=chunk] - Net cash used in financing activities decreased by **$66.7 million to $21.2 million**, primarily due to higher net borrowings and lower common stock repurchases, partially offset by increased shares redeemed for employee taxes[136](index=136&type=chunk] - The debt-to-capitalization ratio was **46.9%** and net-debt-to-capitalization ratio was **45.7%** at June 30, 2025[137](index=137&type=chunk] - The company has **$465.1 million** of available borrowings under its **$750.0 million Revolving Credit Facility** and **$47.9 million** in performance bonds[138](index=138&type=chunk][139](index=139&type=chunk] - There is no off-balance sheet debt or outstanding debt guarantees[140](index=140&type=chunk] - The company may purchase or repay outstanding debt securities as market conditions warrant[141](index=141&type=chunk] - Future liquidity depends on market conditions, compliance with debt covenants, competition, and economic factors[142](index=142&type=chunk] - Dividends paid were **$8.3 million** for the three months ended June 30, 2025, with quarterly payments subject to Board approval[144](index=144&type=chunk] - The company repurchased **357,938 shares** of common stock for approximately **$78.6 million** during the quarter at an average price of **$219.64 per share**, with **4,311,559 shares** remaining under authorization[145](index=145&type=chunk][146](index=146&type=chunk] - Capital expenditures for fiscal 2026 are projected to be **$475.0 million to $525.0 million**, including major projects at Mountain Cement and a gypsum wallboard plant in Oklahoma[149](index=149&type=chunk] [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations on its variable-rate debt and commodity price changes for key inputs - A hypothetical **100 basis point increase** in interest rates on the **$275.0 million Revolving Credit Facility** and **$292.5 million Term Loan** would increase annual interest expense by approximately **$5.7 million**[153](index=153&type=chunk] - The company currently does not use derivative financial instruments[153](index=153&type=chunk] - Commodity risk from price changes in coal, coke, natural gas, and power is managed by entering into contracts or increasing the use of alternative fuels[154](index=154&type=chunk] [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[155](index=155&type=chunk] - No material changes to internal control over financial reporting occurred during the three months ended June 30, 2025[156](index=156&type=chunk] [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, but management believes the ultimate outcome will not have a material adverse effect - Management does not believe that the ultimate outcome of any currently pending legal proceeding will have a material effect on the company's consolidated financial condition, results of operations, or liquidity[158](index=158&type=chunk] [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section references the detailed risk factors affecting the company's operations, financial condition, and liquidity - Risk factors are detailed in Part 1, Item 1A of the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025[160](index=160&type=chunk] [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section refers to the disclosure on unregistered equity sales and proceeds within the Management's Discussion and Analysis - Information on unregistered sales of equity securities and use of proceeds is provided in the 'Share Repurchases' section of the MD&A[161](index=161&type=chunk] [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates where information regarding mine safety violations and regulatory matters can be found - Mine safety disclosures are included in Exhibit 95 of this report[162](index=162&type=chunk] [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the quarter[163](index=163&type=chunk] [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents and certifications - Exhibits include Restated Certificate of Incorporation, Bylaws, various forms of Management Restricted Stock Unit and Stock Option Agreements, Salaried Incentive Compensation Programs for Fiscal 2026, CEO and CFO certifications (pursuant to Rules 13a-14/15d-14 and 18 U.S.C. Section 1350), Mine Safety Disclosure, and Inline XBRL documents[165](index=165&type=chunk] [SIGNATURES](index=45&type=section&id=SIGNATURES) This section confirms the report's official signing by key executives of Eagle Materials Inc. as of July 29, 2025 - The report was signed on July 29, 2025, by Michael R. Haack (President and CEO), D. Craig Kesler (EVP – Finance and Administration and CFO), and William R. Devlin (SVP – Controller and Chief Accounting Officer)[169](index=169&type=chunk]

Core Insights - Eagle Materials reported revenue of $634.69 million for the quarter ended June 2025, marking a year-over-year increase of 4.3% and a surprise of +4.64% over the Zacks Consensus Estimate of $606.57 million [1] - The company's EPS for the same period was $3.76, compared to $3.94 a year ago, with an EPS surprise of +0.8% against the consensus estimate of $3.73 [1] Financial Performance Metrics - Average Net Sales Price for Gypsum Wallboard was $232.40, below the estimated $238.22 [4] - Average Net Sales Price for Cement was $156.72, also below the estimated $159.24 [4] - Revenue from Heavy Materials - Concrete & Aggregates was $73.72 million, exceeding the average estimate of $67.04 million, representing a year-over-year change of +20.8% [4] - Revenue from Light Materials - Gypsum Paperboard was $29.13 million, slightly below the estimated $29.51 million, reflecting a -3.7% change year-over-year [4] - Total Revenue from Heavy Materials was $384.04 million, surpassing the estimated $366.11 million, with a year-over-year increase of +6.5% [4] - Revenue from Heavy Materials - Cement (Wholly Owned) was $310.33 million, exceeding the estimate of $298.09 million, with a year-over-year increase of +3.6% [4] - Revenue from Light Materials - Gypsum Wallboard was $221.52 million, above the estimated $207.66 million, showing a year-over-year change of +1.7% [4] - Total Revenue from Light Materials was $250.65 million, exceeding the estimated $237.17 million, with a year-over-year increase of +1% [4] Segment Operating Earnings - Segment Operating Earnings for Light Materials - Recycled Paperboard was $9.5 million, above the estimated $9.19 million [4] - Segment Operating Earnings for Light Materials - Gypsum Wallboard was $92.64 million, compared to the average estimate of $87.16 million [4] - Total Segment Operating Earnings for Light Materials was $102.14 million, exceeding the average estimate of $96.35 million [4] - Segment Operating Earnings for Heavy Materials - Cement (Wholly Owned) was $77.28 million, below the average estimate of $80.69 million [4] Stock Performance - Shares of Eagle Materials have returned +9.3% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $634.7 million, an increase of 4% year-over-year, primarily driven by higher cement and wallboard sales volume, as well as contributions from recently acquired aggregates businesses [4][14] - Diluted net earnings per share decreased by 5% to $3.76, attributed to lower earnings in cement due to higher operating costs, partially offset by a 3% reduction in fully diluted shares from the share buyback program [4][14] Business Line Data and Key Metrics Changes - In the heavy materials sector, revenue increased by 5%, driven by increased cement sales volume and a 21% increase in concrete and aggregates revenue. Aggregates sales volume surged by 117%, including contributions from recently acquired businesses, with organic aggregates sales volume up 29% [15] - The light materials sector saw a 1% increase in revenue, reflecting higher wallboard sales volume, but was partially offset by lower wallboard sales prices. Operating earnings in this sector decreased slightly due to lower net sales prices, despite lower input costs [16] Market Data and Key Metrics Changes - Aggregate volumes improved significantly year-over-year, aided by the integration of two recently acquired quarries and organic growth [8] - Cement volumes also improved year-over-year, marking the first quarter since December 2023 with an increase in cement sales volumes, despite weather disruptions in several markets [9] Company Strategy and Development Direction - The company continues to focus on operational improvement and sustainability initiatives, aiming to enhance its competitive advantage as a low-cost producer [5][6] - Strategic investments are being made in modernization and expansion projects, including the Laramie, Wyoming cement plant and the Duke, Oklahoma wallboard facility, with a total capital spending expectation of $475 million to $525 million for fiscal 2026 [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand trends, noting stable order trends across major business lines despite macroeconomic uncertainties [8] - The company anticipates that high capacity utilization rates in the cement industry will lead to an improved pricing environment as cement sales volumes rebound [9][11] Other Important Information - The company generated operating cash flow of $137 million, reflecting improved working capital management, and repurchased 358,000 shares for $79 million during the first quarter [16][17] - The net debt to capitalization ratio remained at 46%, with a net debt to EBITDA leverage ratio of 1.6 times, indicating significant financial flexibility [18] Q&A Session Summary Question: Wallboard performance and demand drivers - Management noted that geographic positioning and trailing twelve-month volume analysis are key factors in outperforming the market, despite ongoing affordability issues in housing [20][21] Question: Cost expectations for wallboard - Natural gas prices have stabilized, and the company has sufficient natural gypsum reserves, indicating no immediate cost concerns [22][23] Question: Impact of ramp-up at new facilities - The ramp-up at the new facility has been a drag on earnings, but improvements are expected as operations stabilize [26][27] Question: Future wallboard margins - Margins are expected to have natural seasonality, but no one-time issues are anticipated moving forward [28][29] Question: Cement volume trends and regional dynamics - Cement volume trends have been consistent, driven by infrastructure spending, with no significant deviations noted across regions [34][36] Question: Outlook for wallboard volumes - Demand for wallboard is expected to remain under pressure due to housing affordability issues, but long-term prospects are viewed positively [41][42] Question: Cement pricing outlook - Management is optimistic about mid to long-term pricing potential as supply-demand dynamics tighten, although short-term price increases may be challenging [49][50]

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $634.7 million, an increase of 4% year-over-year, primarily driven by higher cement and wallboard sales volume, as well as contributions from recently acquired aggregates businesses [4][15] - Diluted net earnings per share decreased by 5% to $3.76, mainly due to lower earnings in cement from higher operating costs, partially offset by a 3% reduction in fully diluted shares due to the share buyback program [15] - Operating cash flow increased by 3% to $137 million, reflecting improved working capital management [17] Business Line Data and Key Metrics Changes - In the heavy materials sector, revenue increased by 5%, driven by increased cement sales volume and a 21% increase in concrete and aggregates revenue [16] - Aggregates sales volume surged by 117%, including contributions from recently acquired businesses, with organic aggregates sales volume up by 29% [16] - The light materials sector saw a 1% increase in revenue, reflecting higher wallboard sales volume, but was partially offset by lower wallboard sales prices [17] Market Data and Key Metrics Changes - Cement volumes improved year-over-year, marking the first quarter since December 2023 with a year-over-year increase in cement sales volumes, despite major weather disruptions [9] - Aggregate volumes improved significantly, aided by the integration of two recently acquired quarries [8] - Wallboard volumes remain subdued due to ongoing affordability challenges in the housing market, with structural constraints on adding supply in cement and wallboard [11][12] Company Strategy and Development Direction - The company continues to focus on operational improvement and sustainability initiatives, aiming to enhance its competitive advantage as a low-cost producer [5][6] - Strategic investments are being made in modernization and expansion projects, including the Laramie, Wyoming cement plant and the Duke, Oklahoma wallboard facility [13] - The company plans to continue investing in strategic projects and opportunistic share repurchases to create value [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand trends, noting stable order trends across major business lines despite macroeconomic uncertainties [8] - The company anticipates that high capacity utilization rates in the cement industry will lead to an improved pricing environment as cement sales volumes rebound [10] - Long-term demand fundamentals are expected to favor the consumption of the company's products due to aging infrastructure and housing stock [12] Other Important Information - The company repurchased 358,000 shares for $79 million and paid a quarterly dividend, returning $87 million to shareholders during the first quarter [19] - The net debt to capitalization ratio remained at 46%, and the net debt to EBITDA leverage ratio was 1.6 times, indicating significant financial flexibility [20] Q&A Session Summary Question: Wallboard performance and demand drivers - Management noted that geographic positioning and trailing twelve-month volume analysis are key factors in outperforming the market, despite ongoing affordability issues in housing [22][23] Question: Cost dynamics in wallboard - Natural gas prices have stabilized, and the company has sufficient natural gypsum reserves, indicating no immediate cost concerns [24] Question: Joint venture operating earnings and ramp-up - Earnings were impacted by the ramp-up of a new facility and weather issues in Texas, but improvements are expected as the year progresses [27][28] Question: Cement volume cadence and regional dynamics - Cement volume demand has been consistent throughout the quarter, driven by infrastructure spending, with no significant regional deviations noted [35][38] Question: Wallboard volume outlook - Management expects wallboard demand to remain under pressure due to affordability issues, but believes the market is underbuilt in the medium to long term [41][42] Question: Cement pricing outlook - Management is optimistic about mid to long-term pricing potential as demand remains stable, but short-term pricing increases may be more challenging [49][50] Question: Wallboard pricing dynamics - Wallboard pricing has been range-bound, with expectations for similar trends until there is a meaningful increase in volume [59]

Group 1 - Eagle Materials reported quarterly earnings of $3.76 per share, exceeding the Zacks Consensus Estimate of $3.73 per share, but down from $3.94 per share a year ago, representing an earnings surprise of +0.80% [1] - The company posted revenues of $634.69 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.64% and up from $608.69 million year-over-year [2] - Over the last four quarters, Eagle Materials has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Group 2 - The stock has underperformed the market, losing about 10.5% since the beginning of the year compared to the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $4.32 on revenues of $632.49 million, and for the current fiscal year, it is $14.38 on revenues of $2.3 billion [7] Group 3 - The Zacks Industry Rank indicates that the Building Products - Concrete and Aggregates sector is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8] - The estimate revisions trend for Eagle Materials was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Performance - Revenue increased by 4% to a record $635 million in Fiscal Quarter 1 2026[6], compared to $609 million in the same period of the previous year[9] - Gross profit margin was 29.2%[6] - Earnings per share (EPS) decreased by 5% to $3.76[6], compared to $3.94 in the same period of the previous year[13] - Operating cash flow generated was $137 million[6], a 3% increase compared to $133 million in the same quarter of the previous year[21] Segment Results - Heavy Materials (including Cement, Concrete, and Aggregates) revenue increased to $421 million[17] from $400 million[17], with cement sales volume up by 2%[17] and aggregates sales volume up by 117%[17] - Light Materials (Wallboard) revenue increased to $251 million[20] from $248 million[20], with wallboard sales volume up by 4%[20], but wallboard net sales prices decreased by 3%[20] Capital Allocation - $87 million was returned to shareholders[6] - 358,000 shares were repurchased for $79 million[6] - Quarterly dividend was paid[6] Financial Position - Net Debt to Adjusted EBITDA ratio was 1.6x as of June 30, 2025[24], compared to 1.5x as of March 31, 2025[24] - Net Debt was $1,258 million as of June 30, 2025[35], compared to $1,226 million as of March 31, 2025[35]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Eagle Materials Inc. achieved record revenue and maintained strong financial flexibility in Q1 FY2026, despite a slight decline in net earnings [First Quarter Fiscal 2026 Overview](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Overview) Eagle Materials Inc. reported a solid start to fiscal 2026 with record revenue and strong gross margins, despite macroeconomic and weather challenges. The company maintained substantial financial flexibility through share repurchases and a healthy net leverage ratio, supporting long-term growth and capital allocation - Eagle had a solid start to fiscal 2026, with **record revenue of $634.7 million**, **EPS of $3.76**, and **gross margins of 29.2%**[3](index=3&type=chunk) - Repurchased **358,000 shares of our common stock for $78.6 million** and ended the quarter with **debt of $1.3 billion** and a **net leverage ratio of 1.6x**, giving us **substantial financial flexibility**[3](index=3&type=chunk) - **The nation's aging infrastructure continues to need renovation and expansion, which should benefit us as a U.S. domestic-only manufacturer of construction products and buildings materials**[4](index=4&type=chunk) [Key Financial Highlights (Q1 FY2026 vs. Q1 FY2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q1%20FY2026%20vs.%20Q1%20FY2025%29) This section provides a concise overview of Eagle Materials' key financial performance indicators for the first quarter of fiscal 2026, showing revenue growth alongside declines in net earnings, diluted EPS, and Adjusted EBITDA compared to the prior year Q1 FY2026 Key Financial Highlights (YoY Comparison) | Metric | Q1 FY2026 | Q1 FY2025 | | :----------------------------- | :--------- | :--------- | | Revenue | $634.7 million | $608.7 million | | Net Earnings | $123.4 million | $133.8 million | | Net Earnings per diluted share | $3.76 | $3.94 | | Adjusted EBITDA | $215.0 million | $224.5 million | | Shares Repurchased | ~358,000 | N/A | | Repurchase Value | $79 million | N/A | [Segment Performance](index=2&type=section&id=Segment%20Performance) The Heavy Materials segment saw revenue growth driven by cement and aggregates, while Light Materials revenue increased due to gypsum wallboard volume, despite price declines [Heavy Materials Segment](index=2&type=section&id=Heavy%20Materials%20Segment) The Heavy Materials sector experienced a 5% revenue increase to $421.3 million, primarily driven by higher Cement sales volume and contributions from recent aggregates acquisitions. However, operating earnings decreased 5% to $87.3 million due to elevated Cement operating costs - **Revenue in the Heavy Materials sector increased 5% to $421.3 million**, primarily because of **higher Cement sales volume** and the **contribution from the recently acquired aggregates businesses**[6](index=6&type=chunk) - **Heavy Materials operating earnings decreased 5% to $87.3 million** primarily because of **higher Cement operating costs**, which were partially offset by **higher Cement sales volume** and the **contribution from the recently acquired aggregates businesses**[6](index=6&type=chunk) [Cement Performance](index=2&type=section&id=Cement%20Performance) Cement revenue increased due to higher sales volume, despite a decrease in operating earnings from elevated costs - **Cement revenue, including Joint Venture and intersegment revenue, was up 2% to $347.6 million**[7](index=7&type=chunk) - **Operating earnings decreased 9% to $81.1 million**, because of **higher Cement operating costs** partially offset by **higher Cement sales volume**[7](index=7&type=chunk) Cement Sales Volume and Price (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :-------------------- | :--------- | :--------- | | Sales Volume (M Tons) | 1,993 | 1,947 | | Average Net Sales Price (per ton) | $156.72 | $156.10 | [Concrete and Aggregates Performance](index=2&type=section&id=Concrete%20and%20Aggregates%20Performance) Concrete and Aggregates revenue and operating earnings significantly increased, driven by higher sales volumes and prices - **Concrete and Aggregates revenue was up 21% to $73.7 million**, and **operating earnings increased 107% to $6.2 million**, reflecting **increased Aggregates sales volume** and **Concrete and Aggregates sales prices**[8](index=8&type=chunk) - **Excluding the recently acquired aggregates businesses, Revenue increased 2%** and **Aggregates sales volume was up 29%**[8](index=8&type=chunk) Concrete and Aggregates Sales Volume and Price (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :-------------------- | :--------- | :--------- | | Concrete Sales Volume (M Cubic Yards) | 322 | 343 | | Aggregates Sales Volume (M Tons) | 1,731 | 799 | | Concrete Average Net Sales Price (per Cubic Yard) | $150.43 | $148.56 | | Aggregates Average Net Sales Price (per Ton) | $14.24 | $12.61 | [Light Materials Segment](index=2&type=section&id=Light%20Materials%20Segment) The Light Materials sector reported a 1% increase in revenue to $250.6 million, primarily driven by higher Gypsum Wallboard sales volume, despite a decline in sales prices. Operating earnings for the segment were slightly down at $102.1 million - **Revenue in the Light Materials sector increased 1% to $250.6 million**, primarily because of **higher Gypsum Wallboard sales volume**, partially offset by **lower Gypsum Wallboard sales prices**[9](index=9&type=chunk) - Operating earnings in the Light Materials sector were $102.1 million, down slightly, reflecting **lower Gypsum Wallboard sales prices**, partially offset by **higher Gypsum Wallboard sales volume**[10](index=10&type=chunk) [Gypsum Wallboard Performance](index=2&type=section&id=Gypsum%20Wallboard%20Performance) Gypsum Wallboard sales volume increased, partially offset by a decline in average net sales price - **Gypsum Wallboard sales volume increased 4% to 784 million square feet (MMSF)**[9](index=9&type=chunk) - **The average net sales price declined 3% to $232.40 per MSF**[9](index=9&type=chunk) Gypsum Wallboard Sales Volume and Price (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :-------------------- | :--------- | :--------- | | Sales Volume (MMSFs) | 784 | 757 | | Average Net Sales Price (per MSF) | $232.40 | $239.43 | [Paperboard Performance](index=2&type=section&id=Paperboard%20Performance) Paperboard sales volume and average net sales price both decreased, consistent with long-term agreements - **Paperboard sales volume was down 1% to 90,000 tons**[10](index=10&type=chunk) - **The average Paperboard net sales price in the quarter was $566.33 per ton, down 5%**, **consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs**[10](index=10&type=chunk) Recycled Paperboard Sales Volume and Price (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :-------------------- | :--------- | :--------- | | Sales Volume (M Tons) | 90 | 91 | | Average Net Sales Price (per ton) | $566.33 | $597.41 | [Corporate Financials & Operations](index=3&type=section&id=Corporate%20Financials%20%26%20Operations) Corporate general and administrative expenses rose significantly, while joint venture accounting practices ensure consistent internal performance assessment [Corporate General and Administrative Expenses](index=3&type=section&id=Corporate%20General%20and%20Administrative%20Expenses) Corporate General and Administrative Expenses increased by approximately 33% year-over-year, primarily driven by higher compensation, information technology upgrades to ERP systems, and increased outside professional services costs - **Corporate General and Administrative Expenses increased by 33% compared with the prior year**[11](index=11&type=chunk) - The increase was primarily related to **higher compensation**, **information technology upgrades to our enterprise resource planning systems** and **outside professional services costs of $2.2 million, $1.1 million and $1.1 million**, respectively[11](index=11&type=chunk) [Joint Venture Accounting](index=3&type=section&id=Joint%20Venture%20Accounting) Eagle Materials accounts for its 50% interest in the Texas Lehigh Cement Company LP joint venture using the equity method. For internal segment reporting, the company proportionately consolidates its share of the joint venture's revenue and operating earnings to align with management's operational decision-making and performance assessment - We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture)[12](index=12&type=chunk) - We use the equity method of accounting for our 50% interest in the Joint Venture[12](index=12&type=chunk) - For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture's revenue and operating earnings, which is consistent with the way management organizes the segments within the Company for making operating decisions and assessing performance[12](index=12&type=chunk) [Company Information & Outlook](index=3&type=section&id=Company%20Information%20%26%20Outlook) This section provides an overview of Eagle Materials' business, outlines forward-looking statement risks, and details the upcoming conference call [About Eagle Materials Inc.](index=3&type=section&id=About%20Eagle%20Materials%20Inc.) Eagle Materials Inc. is a leading U.S. manufacturer of essential heavy construction products (Portland Cement) and light building materials (Gypsum Wallboard). The company operates extensively across 21 states, providing materials crucial for national infrastructure and building renovation projects - Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials[14](index=14&type=chunk) - Eagle's primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America[14](index=14&type=chunk) - Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note, detailing that forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially. It enumerates a comprehensive list of potential factors, including market conditions, operational challenges, regulatory changes, and economic shifts - This press release 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[16](index=16&type=chunk) - **Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements**[16](index=16&type=chunk) - **The principal risks and uncertainties that may affect the Company's actual performance include the following: the cyclical and seasonal nature of the Company's businesses; fluctuations in public infrastructure expenditures; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability of and fluctuations in the cost of raw materials; changes in the costs of energy...; changes in the cost and availability of transportation; unexpected operational difficulties...; material nonpayment or non-performance by any of our key customers; consolidation of our customers; interruptions in our supply chain; inability to timely execute or realize capacity expansions or efficiency gains from capital improvement projects; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy...; changes in trade policy...; possible losses or other adverse outcomes from pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; competition; cyber-attacks or data security breaches...; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities...; risks related to pursuit of acquisitions, joint ventures and other transactions...; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products**[16](index=16&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Eagle Materials' senior management will host a conference call on July 29, 2025, to discuss the first quarter financial results and provide forward-looking insights. The event will be webcast live and archived on the company's website for a year - Eagle's senior management will conduct a conference call to discuss the financial results, forward-looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Tuesday, July 29, 2025[15](index=15&type=chunk) - The conference call will be webcast simultaneously on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the site for one year[15](index=15&type=chunk) [Financial Statements & Reconciliations (Attachments)](index=5&type=section&id=Financial%20Statements%20%26%20Reconciliations%20%28Attachments%29) This section provides detailed unaudited financial statements, including earnings, balance sheets, segment performance, and non-GAAP reconciliations [Consolidated Statement of Earnings](index=5&type=section&id=Consolidated%20Statement%20of%20Earnings) This attachment provides the unaudited consolidated statement of earnings for the first quarter of fiscal years 2026 and 2025, detailing revenue, cost of goods sold, gross profit, operating expenses, and net earnings, along with basic and diluted earnings per share Consolidated Statement of Earnings (Q1 FY2026 vs. Q1 FY2025) | Metric | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | | :---------------------------------- | :-------------------------- | :-------------------------- | | Revenue | $634,690 | $608,689 | | Cost of Goods Sold | $449,091 | $421,821 | | Gross Profit | $185,599 | $186,868 | | Equity in Earnings of Unconsolidated JV | $3,804 | $7,716 | | Corporate General and Administrative Expenses | $(20,783) | $(15,649) | | Other Non-Operating Income | $954 | $2,683 | | Earnings before Interest and Income Taxes | $169,574 | $181,618 | | Interest Expense, net | $(11,716) | $(10,684) | | Earnings before Income Taxes | $157,858 | $170,934 | | Income Tax Expense | $(34,496) | $(37,092) | | Net Earnings | $123,362 | $133,842 | | NET EARNINGS PER SHARE - Basic | $3.78 | $3.97 | | NET EARNINGS PER SHARE - Diluted | $3.76 | $3.94 | [Revenue and Earnings by Business Segment](index=6&type=section&id=Revenue%20and%20Earnings%20by%20Business%20Segment) This attachment provides a detailed breakdown of revenue and operating earnings for Eagle Materials' Heavy Materials (Cement, Concrete and Aggregates) and Light Materials (Gypsum Wallboard, Recycled Paperboard) segments for the first quarter of fiscal years 2026 and 2025 Revenue and Earnings by Business Segment (Q1 FY2026 vs. Q1 FY2025) | Segment/Metric | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | | **Revenue** | | | | Heavy Materials: | | | | Cement (Wholly Owned) | $310,326 | $299,572 | | Concrete and Aggregates | $73,716 | $61,038 | | Light Materials: | | | | Gypsum Wallboard | $221,516 | $217,826 | | Recycled Paperboard | $29,132 | $30,253 | | **Total Revenue** | $634,690 | $608,689 | | **Segment Operating Earnings** | | | | Heavy Materials: | | | | Cement (Wholly Owned) | $77,280 | $81,409 | | Cement (Joint Venture) | $3,804 | $7,716 | | Concrete and Aggregates | $6,175 | $2,980 | | Light Materials: | | | | Gypsum Wallboard | $92,641 | $93,976 | | Recycled Paperboard | $9,503 | $8,503 | | **Sub-total Operating Earnings** | $189,403 | $194,584 | [Sales Volume, Net Sales Prices and Intersegment and Cement Revenue](index=7&type=section&id=Sales%20Volume,%20Net%20Sales%20Prices%20and%20Intersegment%20and%20Cement%20Revenue) This attachment provides detailed sales volumes and average net sales prices for key products (Cement, Concrete, Aggregates, Gypsum Wallboard, Recycled Paperboard) for the first quarter of fiscal years 2026 and 2025, along with a breakdown of intersegment and total Cement revenue Sales Volume, Net Sales Prices and Intersegment and Cement Revenue (Q1 FY2026 vs. Q1 FY2025) | Product/Metric | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | | **Sales Volume** | | | | Cement (M Tons) | 1,993 | 1,947 | | Concrete (M Cubic Yards) | 322 | 343 | | Aggregates (M Tons) | 1,731 | 799 | | Gypsum Wallboard (MMSFs) | 784 | 757 | | Recycled Paperboard (M Tons) | 90 | 91 | | **Average Net Sales Price** | | | | Cement (Ton) | $156.72 | $156.10 | | Concrete (Cubic Yard) | $150.43 | $148.56 | | Aggregates (Ton) | $14.24 | $12.61 | | Gypsum Wallboard (MSF) | $232.40 | $239.43 | | Recycled Paperboard (Ton) | $566.33 | $597.41 | | **Intersegment Revenue** | | | | Total Intersegment Revenue | $35,837 | $38,044 | | **Cement Revenue** | | | | Wholly Owned | $310,326 | $299,572 | | Joint Venture | $27,283 | $29,310 | | Total Cement Revenue | $337,609 | $328,882 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This attachment presents the unaudited consolidated balance sheets for Eagle Materials Inc. as of June 30, 2025, and the audited balance sheet as of March 31, 2025, detailing the company's assets, liabilities, and stockholders' equity Consolidated Balance Sheets (June 30, 2025 vs. March 31, 2025) | Item | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :-------------- | :-------------- | | **ASSETS** | | | | Cash and Cash Equivalents | $59,739 | $20,401 | | Total Current Assets | $732,365 | $668,657 | | Property, Plant and Equipment, net | $1,840,845 | $1,792,982 | | Investments in Joint Venture | $143,893 | $140,089 | | Goodwill and Intangibles | $593,163 | $595,752 | | **Total Assets** | $3,397,314 | $3,264,588 | | **LIABILITIES** | | | | Total Current Liabilities | $268,358 | $245,004 | | Bank Credit Facility | $275,000 | $200,000 | | Bank Term Loan | $277,500 | $281,250 | | 2.500% Senior Unsecured Notes due 2031 | $742,383 | $742,066 | | **Total Liabilities** (approx) | $2,005,540 | $1,808,000 | | **STOCKHOLDERS' EQUITY** | | | | Retained Earnings | $1,494,532 | $1,459,495 | | **Total Stockholders' Equity** | $1,491,774 | $1,456,700 | [Depreciation, Depletion and Amortization by Business Segment](index=9&type=section&id=Depreciation,%20Depletion%20and%20Amortization%20by%20Business%20Segment) This attachment provides a breakdown of depreciation, depletion, and amortization expenses for each business segment (Cement, Concrete and Aggregates, Gypsum Wallboard, Recycled Paperboard, Corporate and Other) for the first quarter of fiscal years 2026 and 2025 Depreciation, Depletion and Amortization by Business Segment (Q1 FY2026 vs. Q1 FY2025) | Segment | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | | :---------------------- | :-------------------------- | :-------------------------- | | Cement | $22,838 | $22,917 | | Concrete and Aggregates | $6,791 | $4,530 | | Gypsum Wallboard | $6,519 | $6,473 | | Recycled Paperboard | $3,672 | $3,690 | | Corporate and Other | $824 | $740 | | **Total DDA** | $40,644 | $38,350 | [Reconciliation of Non-GAAP Financial Measures (EBITDA & Adjusted EBITDA)](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%28EBITDA%20%26%20Adjusted%20EBITDA%29) This attachment defines and reconciles the non-GAAP financial measures of EBITDA and Adjusted EBITDA to net earnings for the quarters ended June 30, 2025, and 2024, and for the trailing twelve months. These metrics are used by management for evaluating operating performance and for budgeting Reconciliation of Non-GAAP Financial Measures (EBITDA & Adjusted EBITDA) | Metric | Q1 FY2026 (June 30, 2025) | Q1 FY2025 (June 30, 2024) | Trailing Twelve Months Ended June 30, 2025 | Trailing Twelve Months Ended March 31, 2025 | | :------------------------------------ | :-------------------------- | :-------------------------- | :--------------------------------------- | :---------------------------------------- | | Net Earnings, as reported | $123,362 | $133,842 | $452,936 | $463,416 | | Income Tax Expense | $34,496 | $37,092 | $125,473 | $128,069 | | Interest Expense | $11,716 | $10,684 | $41,558 | $40,526 | | Depreciation, Depletion and Amortization | $40,644 | $38,350 | $161,196 | $158,902 | | **EBITDA** | $210,218 | $219,968 | $781,163 | $790,913 | | Acquisition accounting and related expenses | — | — | $6,318 | $6,318 | | Litigation Loss | — | — | $700 | $700 | | Stock-based Compensation | $4,822 | $4,539 | $19,026 | $18,743 | | **Adjusted EBITDA** | $215,040 | $224,507 | $807,207 | $816,674 | [Reconciliation of Net Debt to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Debt%20to%20Adjusted%20EBITDA) This attachment provides a reconciliation of Net Debt, defined as total debt minus cash and cash equivalents, and calculates the Net Debt to Adjusted EBITDA ratio. This non-GAAP metric is used by the company and the investment community to assess leverage and liquidity Reconciliation of Net Debt to Adjusted EBITDA | Metric | As of June 30, 2025 | As of March 31, 2025 | | :-------------------------- | :------------------ | :------------------- | | Total debt, excluding debt issuance costs | $1,317,500 | $1,246,250 | | Cash and cash equivalents | $59,739 | $20,401 | | **Net Debt** | $1,257,761 | $1,225,849 | | Trailing Twelve Months Adjusted EBITDA | $807,207 | $816,674 | | **Net Debt to Adjusted EBITDA** | 1.6x | 1.5x |

Core Viewpoint - Eagle Materials (EXP) is expected to report quarterly earnings of $3.76 per share, a decline of 4.6% year-over-year, with revenues projected at $617.71 million, reflecting a 1.5% increase compared to the previous year [1] Earnings Projections - Analysts have maintained the consensus EPS estimate for the quarter over the last 30 days, indicating stability in earnings projections [1][2] - Changes in earnings projections are crucial for predicting investor reactions to the stock [2] Revenue Estimates - Revenue from Gypsum Wallboard is estimated at $208.05 million, showing a year-over-year decline of 4.5% [4] - Revenue from Heavy Materials - Concrete & Aggregates is projected to reach $67.04 million, indicating a year-over-year increase of 9.8% [4] - Total Revenue from Light Materials is expected to be $237.17 million, reflecting a decline of 4.4% year-over-year [4] - Total Revenue from Heavy Materials is forecasted at $366.11 million, representing a 1.5% increase from the previous year [5] - Revenue from Light Materials - Gypsum Paperboard is projected at $29.51 million, indicating a year-over-year decline of 2.5% [5] - Revenue from Light Materials - Gypsum Wallboard is expected to be $207.66 million, reflecting a 4.7% decline year-over-year [5] - Revenue from Heavy Materials - Cement (Wholly Owned) is estimated at $298.09 million, showing a slight decline of 0.5% year-over-year [6] Pricing and Earnings Metrics - The Average Net Sales Price for Gypsum Wallboard is projected at $238.22, down from $239.43 in the same quarter last year [6] - The Average Net Sales Price for Cement is expected to be $159.24, up from $156.10 in the same quarter last year [7] - Segment Operating Earnings for Light Materials - Recycled Paperboard is projected at $9.19 million, compared to $8.50 million in the same quarter last year [7] - Segment Operating Earnings for Light Materials - Gypsum Wallboard is expected to be $87.16 million, down from $93.98 million year-over-year [8] - The consensus estimate for Segment Operating Earnings for Light Materials stands at $96.35 million, compared to $102.48 million in the previous year [8] Stock Performance - Over the past month, Eagle Materials shares have increased by 10.5%, outperforming the Zacks S&P 500 composite's increase of 4.9% [8]

Part I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) The company is a leading US manufacturer of heavy construction and light building materials, focusing on low-cost production and strategic growth - The company is a leading U.S. manufacturer of heavy construction products like Portland Cement and light building materials like Gypsum Wallboard, operating through a network of over 70 facilities in 21 states[12](index=12&type=chunk) - Key competitive strengths include strategically located plants, a decentralized operating structure, substantial raw material reserves, production flexibility, and a position as a low-cost producer[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Capital allocation priorities are growth investments, maintaining a low-cost position, and returning cash to shareholders, with **$1.8 billion returned** over the past five years[32](index=32&type=chunk) - The company had approximately **2,500 employees** as of March 31, 2025, with about 600 unionized hourly workers[41](index=41&type=chunk) - In fiscal 2025, all business segments recorded a total recorded incident rate (TRIR) average that was **lower than the applicable industry average**, highlighting a strong safety performance[43](index=43&type=chunk) Fiscal 2025 Financial Highlights | Metric | Value | Change vs FY2024 | | :--- | :--- | :--- | | Revenue | $2.3 billion | Up slightly (Record) | | Net Earnings | $463.4 million | Down 3% | | Diluted EPS | $13.77 | Up 1% (Record) | | Share Repurchases | 1.2 million shares ($298.0M) | - | - Strategic highlights for FY2025 include acquisitions in Kentucky and Pennsylvania, the start-up of a new slag-cement facility in Texas, and the commencement of major modernization and expansion projects in Wyoming and Oklahoma[34](index=34&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) Fiscal 2025 Revenue and Earnings by Business Segment | Sector | Business Segment | Revenue ($ millions) | Operating Earnings ($ millions) | | :--- | :--- | :--- | :--- | | Heavy Materials | Cement | $1,053.6 | $319.5 | | | Concrete and Aggregates | $237.7 | $(8.8) | | Light Materials | Gypsum Wallboard | $846.5 | $350.8 | | | Recycled Paperboard | $122.7 | $38.1 | [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company is exposed to risks from construction industry cycles, regulations, commodity prices, operational challenges, and cybersecurity threats - **Industry Risks:** Demand is tied to the cyclical construction industry, government funding for public projects, and seasonal weather patterns[133](index=133&type=chunk)[136](index=136&type=chunk)[140](index=140&type=chunk) - **Regulatory & Legal Risks:** Operations are subject to extensive and costly environmental, health, and safety regulations, with potential impacts from climate change legislation[143](index=143&type=chunk)[148](index=148&type=chunk)[157](index=157&type=chunk) - **Financial & Operational Risks:** The business is capital-intensive and faces risks from rising input costs, transportation availability, and debt covenants[167](index=167&type=chunk)[173](index=173&type=chunk)[177](index=177&type=chunk) - **Cybersecurity Risks:** The company is vulnerable to cyber attacks and data breaches that could negatively impact operations and result in liability[163](index=163&type=chunk)[164](index=164&type=chunk) - **Growth & Strategic Risks:** The company may face challenges in identifying and integrating acquisitions and completing capital projects on time or within budget[191](index=191&type=chunk)[196](index=196&type=chunk) [Item 1B. Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved comments from the SEC Staff - There are no unresolved Staff comments[200](index=200&type=chunk) [Item 1C. Cybersecurity](index=40&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity program and has experienced no material incidents to date - The company's cybersecurity risk management is integrated into its broader risk management framework and overseen by the Director of Information Security[202](index=202&type=chunk)[207](index=207&type=chunk) - The Audit Committee of the Board of Directors is responsible for overseeing cyber risk and receives quarterly updates[209](index=209&type=chunk) - To the company's knowledge, it has not been subject to any cybersecurity incidents that have materially affected its business, operations, or financial standing[205](index=205&type=chunk) [Item 2. Properties](index=42&type=section&id=Item%202.%20Properties) The company owns and leases numerous facilities with substantial, long-term mineral reserves ensuring operational viability Limestone Reserves and Resources (as of March 31, 2025) | Category | Tons (millions) | | :--- | :--- | | Proven & Probable Reserves | 321.2 | | Measured & Indicated Resources | 728.4 | Aggregate Reserves and Resources (as of March 31, 2025) | Category | Tons (millions) | | :--- | :--- | | Proven & Probable Reserves | 191.7 | | Measured & Indicated Resources | 212.6 | Gypsum Reserves and Resources (as of March 31, 2025) | Category | Tons (millions) | | :--- | :--- | | Proven & Probable Reserves | 67.2 | | Measured & Indicated Resources | 149.7 | [Item 3. Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are expected to have a material financial impact - Management believes that the ultimate outcome of any currently pending legal proceedings will not have a material effect on the company's consolidated financial condition[236](index=236&type=chunk) - The company is in litigation with the EPA over the disapproval of State Implementation Plans (SIPs) for several states related to ozone standards[237](index=237&type=chunk) [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation information is included in Exhibit 95 of the Form 10-K report - Information concerning mine safety violations required by the Dodd-Frank Act is included in Exhibit 95 to this Annual Report[239](index=239&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, and it maintains an active share repurchase program with significant remaining authorization Share Repurchases by Fiscal Year | Fiscal Year | Shares Repurchased | Average Price | Total Cost | | :--- | :--- | :--- | :--- | | 2025 | 1,214,173 | $245.67 | ~$298.3M | | 2024 | 1,863,534 | $184.21 | ~$343.3M | | 2023 | 3,075,788 | $126.05 | ~$387.7M | - As of March 31, 2025, a total of approximately **4.7 million shares** remain available for repurchase under the Board's authorization[242](index=242&type=chunk) [Item 6. Reserved](index=53&type=section&id=Item%206.%20Reserved) This item is not required - Not required[250](index=250&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 saw record revenue amid resilient markets, with significant investments in growth projects and a strong liquidity position - The macroeconomic environment is viewed as constructive, with cement demand expected to remain steady due to **infrastructure spending from the IIJA**[262](index=262&type=chunk) - Residential construction activity has remained steady, supported by a chronic housing shortage, though a full recovery is not expected until mortgage rates decline[263](index=263&type=chunk) - Cost outlook for fiscal 2026 includes stable to slightly increasing freight costs and continued high maintenance and energy costs[265](index=265&type=chunk)[267](index=267&type=chunk) - **Cement operating earnings decreased 6%** to $319.5 million, driven by lower sales volume and higher operating costs[282](index=282&type=chunk) - **Gypsum Wallboard operating earnings increased 5%** to $350.8 million, benefiting from higher sales prices and lower operating expenses[287](index=287&type=chunk) - Key critical accounting policies include impairment of long-lived assets, goodwill, and business combinations, with **no goodwill impairment recognized in fiscal 2025**[293](index=293&type=chunk)[296](index=296&type=chunk)[363](index=363&type=chunk) - Capital expenditures for fiscal 2026 are expected to range from **$475.0 million to $525.0 million** to fund major plant expansions[330](index=330&type=chunk) - As of March 31, 2025, the company had **$1.25 billion in total debt** and $540.1 million of available borrowings under its Revolving Credit Facility[322](index=322&type=chunk)[405](index=405&type=chunk) - The debt-to-capitalization ratio was **46.1%** at March 31, 2025, compared to 45.7% at March 31, 2024[319](index=319&type=chunk) Consolidated Results of Operations (Fiscal Year Ended March 31) | (in thousands, except per share) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $2,260,508 | $2,259,297 | 0% | | Gross Profit | $673,137 | $685,321 | (2)% | | Net Earnings | $463,416 | $477,639 | (3)% | | Diluted Earnings per Share | $13.77 | $13.61 | 1% | Summary of Cash Flows (Fiscal Year Ended March 31) | Cash Flow ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $548,548 | $563,938 | | Net Cash Used in Investing Activities | $(370,131) | $(175,358) | | Net Cash Used in Financing Activities | $(192,941) | $(368,897) | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations and commodity price changes for key inputs - The company is exposed to interest rate risk on its variable-rate debt with a combined outstanding balance of **$496.3 million** at March 31, 2025[339](index=339&type=chunk) - A hypothetical **100 basis point increase** in interest rates on outstanding variable-rate borrowings would increase annual interest expense by **$5.0 million**[339](index=339&type=chunk) - The company is subject to commodity risk from price changes in coal, natural gas, and power, and attempts to limit this exposure through contracts and alternative fuels[340](index=340&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements, notes, and the independent auditor's unqualified opinion - **Acquisitions (Note B):** In fiscal 2025, the company completed two acquisitions for a combined ~$174.9M, adding **$77.3M to goodwill**[388](index=388&type=chunk)[390](index=390&type=chunk)[395](index=395&type=chunk) - **Indebtedness (Note F):** As of March 31, 2025, total debt was **$1.25 billion**, consisting of a Revolving Credit Facility, a Term Loan, and Senior Unsecured Notes[405](index=405&type=chunk) - **Equity Awards (Note K):** The company granted various performance-based and time-vesting stock awards, with **1,344,678 shares available** for future grants under its 2023 plan[443](index=443&type=chunk)[456](index=456&type=chunk) - The auditor, Ernst & Young LLP, issued an **unqualified opinion** on the consolidated financial statements and on the effectiveness of internal controls[476](index=476&type=chunk)[477](index=477&type=chunk) - A **Critical Audit Matter** was identified related to the existence of raw materials and materials-in-progress inventory due to measurement complexity[482](index=482&type=chunk) Consolidated Statements of Earnings (Year Ended March 31) | (in thousands) | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Revenue | $2,260,508 | $2,259,297 | $2,148,069 | | Gross Profit | $673,137 | $685,321 | $639,266 | | Net Earnings | $463,416 | $477,639 | $461,540 | | Diluted EPS | $13.77 | $13.61 | $12.46 | Consolidated Balance Sheets (As of March 31) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Current Assets | $668,657 | $627,693 | | Total Assets | $3,264,588 | $2,947,019 | | Total Current Liabilities | $245,004 | $239,409 | | Total Liabilities | $1,807,888 | $1,638,484 | | Total Stockholders' Equity | $1,456,700 | $1,308,535 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - None[484](index=484&type=chunk) [Item 9A. Controls and Procedures](index=118&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal controls were effective - Based on an evaluation as of the end of the fiscal year, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[485](index=485&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of March 31, 2025, based on the COSO 2013 framework[487](index=487&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, also issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[490](index=490&type=chunk) [Item 9B. Other Information](index=121&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the fourth fiscal quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal fourth quarter[497](index=497&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=121&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[498](index=498&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=122&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the 2025 Proxy Statement - The required information is incorporated by reference from the Company's 2025 Proxy Statement[500](index=500&type=chunk) - The company's code of ethics, "The Eagle Way – A Guide to Decision-Making on Business Conduct Issues," is published on its website[501](index=501&type=chunk) [Item 11. Executive Compensation](index=123&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the 2025 Proxy Statement - The required information is incorporated by reference from the Company's 2025 Proxy Statement[503](index=503&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with details provided on equity compensation plans - The required information is incorporated by reference from the Company's 2025 Proxy Statement[504](index=504&type=chunk) Equity Compensation Plan Information as of March 31, 2025 | Plan Category | Securities to be issued upon exercise of outstanding options | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | 184,233 | $95.75 | 1,344,678 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=123&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the 2025 Proxy Statement - The required information is incorporated by reference from the Company's 2025 Proxy Statement[507](index=507&type=chunk) [Item 14. Principal Accounting Fees and Services](index=123&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Required information is incorporated by reference from the 2025 Proxy Statement - The required information is incorporated by reference from the Company's 2025 Proxy Statement[508](index=508&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=124&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K report, including financial statements and exhibits - This item lists the financial statements, financial statement schedules (omitted as not applicable), and exhibits filed as part of the report[509](index=509&type=chunk)[510](index=510&type=chunk)[511](index=511&type=chunk) [Item 16. Form 10-K Summary](index=130&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary under this item - None[520](index=520&type=chunk)

Core Insights - Eagle Materials reported revenue of $470.18 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.4% and an EPS of $2.08, down from $2.24 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $477.78 million, resulting in a surprise of -1.59%, while the EPS also missed the consensus estimate of $2.34 by -11.11% [1] Financial Performance Metrics - Average Net Sales Price for Gypsum Wallboard was $231.54, below the $240.74 estimate, while Cement's average net sales price was $157.62, slightly above the $157.28 estimate [4] - Revenue from Heavy Materials - Concrete & Aggregates was $54.35 million, exceeding the $52.27 million estimate, marking an 11.6% year-over-year increase [4] - Revenue from Heavy Materials - Cement (Wholly Owned) was $180.59 million, below the $185.88 million estimate, representing a -4.7% change year-over-year [4] - Total Revenue from Heavy Materials was $234.94 million, slightly below the $238.25 million estimate, indicating a -1.3% year-over-year change [4] - Revenue from Light Materials - Gypsum Paperboard was $31.03 million, surpassing the $28.05 million estimate, reflecting a +9.4% year-over-year change [4] - Revenue from Light Materials - Gypsum Wallboard was $204.21 million, below the $198.60 million estimate, showing a -2.9% year-over-year change [4] - Total Revenue from Light Materials was $235.24 million, below the $238.70 million estimate, indicating a -1.4% year-over-year change [4] Segment Operating Earnings - Segment Operating Earnings for Light Materials - Recycled Paperboard was $10.49 million, exceeding the $9.20 million estimate [4] - Segment Operating Earnings for Light Materials - Gypsum Wallboard was $80.25 million, slightly below the $81.51 million estimate [4] - Segment Operating Earnings for Light Materials totaled $90.75 million, below the $93.69 million estimate [4] - Segment Operating Earnings for Heavy Materials - Concrete and Aggregates was -$9.35 million, significantly worse than the -$0.47 million estimate [4] Stock Performance - Shares of Eagle Materials have returned +15.8% over the past month, outperforming the Zacks S&P 500 composite's +13.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]