Executive Summary & Highlights 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 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 - 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 flexibility3 - 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 materials4 Key Financial Highlights (Q1 FY2026 vs. Q1 FY2025) 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 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 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 businesses6 - 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 businesses6 Cement Performance 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 million7 - Operating earnings decreased 9% to $81.1 million, because of higher Cement operating costs partially offset by higher Cement sales volume7 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 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 prices8 - Excluding the recently acquired aggregates businesses, Revenue increased 2% and Aggregates sales volume was up 29%8 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 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 prices9 - 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 volume10 Gypsum Wallboard Performance 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 - The average net sales price declined 3% to $232.40 per MSF9 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 Paperboard sales volume and average net sales price both decreased, consistent with long-term agreements - Paperboard sales volume was down 1% to 90,000 tons10 - 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 costs10 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 Corporate general and administrative expenses rose significantly, while joint venture accounting practices ensure consistent internal performance assessment Corporate General and Administrative Expenses 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 year11 - 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, respectively11 Joint Venture Accounting 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 - We use the equity method of accounting for our 50% interest in the Joint Venture12 - 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 performance12 Company Information & Outlook This section provides an overview of Eagle Materials' business, outlines forward-looking statement risks, and details the upcoming conference call About Eagle Materials Inc. 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 materials14 - 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 America14 - Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas14 Forward-Looking Statements 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 199516 - Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements16 - 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 products16 Conference Call Information 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, 202515 - 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 year15 Financial Statements & Reconciliations (Attachments) This section provides detailed unaudited financial statements, including earnings, balance sheets, segment performance, and non-GAAP reconciliations Consolidated Statement of Earnings 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 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 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 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 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) 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 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 |
Eagle Materials(EXP) - 2026 Q1 - Quarterly Results