Eagle Materials(US:EXP)2025-10-30 20:30Revenue and Earnings - Revenue for the three months ended September 30, 2025, increased by $15.3 million, or 2%, to $638.9 million, with higher sales volumes contributing $5.0 million [100]. - Net Earnings for the three months ended September 30, 2025, decreased by 4% to $137.4 million, with diluted earnings per share at $4.23 [110]. - Revenue for the six months ended September 30, 2025, increased by $41.3 million, or 3%, to $1,273.6 million, with higher sales volumes contributing $24.0 million [113]. - Net Earnings decreased by 6% to $260.7 million for the six months ended September 30, 2025 [122]. - Earnings Before Income Taxes decreased to $334.3 million during the six months ended September 30, 2025, primarily due to lower Gross Profit and higher Corporate General and Administrative expenses [120]. Costs and Expenses - Cost of Goods Sold for the same period rose by $19.4 million, or 5%, to $439.2 million, primarily due to higher sales volume and operating costs [101]. - Cost of Goods Sold for the six months rose by $46.7 million, or 6%, to $888.3 million, driven by higher sales volume and operating costs [114]. - Corporate General and Administrative expenses increased by 19% for the three months and 26% for the six months, mainly due to higher salary and professional fees [105][117]. - Operating Earnings decreased 13% to $159.9 million due to lower gross sales prices and sales volume, along with higher operating costs [142]. Gross Profit and Margins - Gross Profit decreased by 2% to $199.7 million, with a gross margin decline to 28% attributed to lower gross sales prices [102]. - Gross Profit for the six months decreased by 1% to $385.3 million, with a gross margin decline to 26% due to higher operating costs and lower gross sales prices [115]. - Operating Earnings for Cement decreased by 2% to $200.9 million for the six months ended September 30, 2025, due to higher operating costs [130]. - Operating Earnings for Concrete and Aggregates increased by 610% to approximately $14.1 million for the six months ended September 30, 2025 [136]. - Operating Margin for Recycled Paperboard increased to 23% due to a decrease in operating costs, despite lower sales volume [146]. Revenue by Segment - Cement Revenue increased by 6% to $732.5 million for the six months ended September 30, 2025, driven by higher Sales Volume and gross sales prices [129]. - Concrete and Aggregates Revenue increased by 21% to $163.4 million for the six months ended September 30, 2025, with a significant contribution from higher Aggregates Sales Volume [135]. - Gypsum Wallboard Revenue decreased by 6% to $405.0 million for the six months ended September 30, 2025, impacted by lower gross sales prices and Sales Volume [141]. - Recycled Paperboard Revenue decreased 4% to $48.6 million for the three months ended September 30, 2025, primarily due to lower sales volume [144]. Cash Flow and Capital Expenditures - Net Cash Provided by Operating Activities decreased by $24.7 million to $341.2 million during the six months ended September 30, 2025 [154]. - Net Cash Used in Investing Activities increased to approximately $184.6 million, primarily for the modernization and expansion of the Mountain Cement facility [158]. - Total capital expenditures for the six months ended September 30, 2025, were $184.6 million, significantly higher than $99.6 million in 2024 [172]. - Capital expenditures for fiscal 2026 are expected to range from $475.0 million to $500.0 million, focusing on facility expansions and modernization projects [172]. Debt and Financial Management - Debt-to-capitalization ratio was 45.7% at September 30, 2025, compared to 46.1% at March 31, 2025 [160]. - The company had $255.0 million outstanding under the Revolving Credit Facility, leaving $485.1 million of available borrowings [162]. - The company has a $750.0 million Revolving Credit Facility with variable interest rates, impacting financial management strategies [176]. - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by approximately $5.4 million on existing borrowings [176]. - Interest Expense, net decreased by approximately $0.3 million, or 1%, during the six months ended September 30, 2025, primarily due to increased capitalized interest [119]. Shareholder Returns and Stock Activity - Dividends paid were $16.6 million for the six months ended September 30, 2025, compared to $17.0 million for the same period in 2024 [167]. - The company repurchased a total of 753,438 shares year-to-date at an average price of $222.58 per share, with a maximum of 3,916,059 shares remaining under the repurchase plan [169]. - The company has repurchased approximately 52.0 million shares since becoming publicly held in April 1994 [169]. - The company withheld 23,968 shares from employees to satisfy tax withholding requirements upon vesting of Restricted Shares [171]. Risk Management - The company is exposed to commodity risk related to price changes in coal, coke, natural gas, and power, and attempts to limit exposure through contracts and alternative fuels [177]. - The company believes cash flow from operations and available borrowings should be sufficient to meet anticipated operating needs for at least the next 12 months [164].