Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached a record $2.3 billion, slightly up from the previous year, primarily due to higher prices across all business lines, partially offset by lower sales volumes in Cement, Concrete, and Aggregates [21][22] - Diluted earnings per share for the full fiscal year increased by 1% to $13.77, attributed to a reduced share count from the share repurchase program [21][22] - Fourth quarter revenue decreased by 1% to $470 million, mainly due to lower sales volumes in Cement and Gypsum Wallboard, offset by higher prices [21][22] Business Line Data and Key Metrics Changes - Heavy Materials sector revenue declined by 2% to $1.4 billion, reflecting a 5% decrease in cement sales volume, partially offset by higher prices [23] - Light Materials sector revenue increased by 3% to $969 million, driven by higher wallboard sales prices and record recycled paperboard sales volume [24] Market Data and Key Metrics Changes - Adverse weather conditions in the fourth quarter caused production interruptions, impacting Cement and Concrete and Aggregates businesses [15][22] - Despite recent challenges, demand and supply dynamics in the sector remain favorable, with no material disruption in public infrastructure project funding [15][16] Company Strategy and Development Direction - The company is focused on health, safety, sustainability, and strategic investments to enhance its competitive position [19][20] - Significant capital investments include modernization projects at the Mountain Cement plant and the Duke wallboard facility, expected to improve energy efficiency and production capacity [12][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, emphasizing a steady focus on investing through cycles [13][19] - The outlook for cement and wallboard demand remains cautiously optimistic, with expectations for a rebound in single-family housing starts despite current pressures [16][18] Other Important Information - The company completed over $175 million in M&A transactions and returned $332 million to shareholders through share repurchases and dividends [13][27] - The appointment of David Rush to the Board of Directors was announced, bringing valuable industry experience [20] Q&A Session Summary Question: Thoughts on capital deployment for modernization and expansion projects - Management highlighted a focus on high-return projects with internal hurdle rates of 15% cash on cash after tax [29][31] Question: Impact of alternative fuels on cost management - The company is utilizing alternative fuels like tire chips to enhance flexibility and reduce CO2 emissions [34][36] Question: Wallboard pricing trends and freight costs - Management noted that higher freight costs contributed to sequential pricing declines, with plans for a price increase in the spring [39][40] Question: Demand outlook for private non-residential markets - The private non-residential market remains steady, with a variety of large multi-year projects ongoing [48][49] Question: Expectations for cement pricing and cost visibility - Management anticipates continued margin improvement, driven by volume recovery and stable energy costs [55][56] Question: Production downtimes during Duke Wallboard facility modernization - Existing lines will operate normally until the new line is complete [81] Question: Future acquisition plans in aggregates - The company remains open to aggregate acquisitions that align with its strategic criteria [82]

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

Financial Performance - Fiscal Year 2025 saw record revenue of $2.3 billion[4] - Record diluted EPS of $13.77 was achieved in Fiscal Year 2025[4] - The company returned $332 million to shareholders[4] - Fiscal Q4 2025 revenue was $470 million compared to $477 million in Fiscal Q4 2024[8] - Fiscal Year 2025 revenue was $2.261 billion compared to $2.259 billion in Fiscal Year 2024[8] - Fiscal Q4 2025 Diluted EPS was $2.00 compared to $2.24 in Fiscal Q4 2024[12] - Fiscal Year 2025 Diluted EPS was $13.77 compared to $13.61 in Fiscal Year 2024, up 1%[12] Business Segments - Cement sales volume decreased by 5%, but net sales prices increased by 4% in Fiscal Year 2025[15] - Cement revenue was $1.439 billion in FY2025 compared to $1.466 billion in FY2024[15] - Cement operating earnings were $311 million in FY2025 compared to $351 million in FY2024[15] - Wallboard net sales prices were up 1%, and record Recycled Paperboard sales volume was up 5% in Fiscal Year 2025[19] - Light Materials revenue was $969 million in FY2025 compared to $941 million in FY2024[18] - Light Materials operating earnings were $389 million in FY2025 compared to $366 million in FY2024[18] Strategic Initiatives - The company acquired two aggregates businesses, leading to a 50% increase in annual aggregates production capacity[5]

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

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

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

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

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

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

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