Eagle Materials (EXP) investor relations material

Executive summary

• Record first quarter revenue of $635M (rounded from $634.7M), up 4% year-over-year, despite weather and macroeconomic challenges.

• Diluted EPS was $3.76, down 5% year-over-year, with net earnings declining 8% to $123.4M due to higher costs and lower margins.

• Operational focus, low-cost producer status, and strategic initiatives—including plant modernization and sustainability—supported resilience.

• Returned $87M to shareholders through dividends and share repurchases, including 358,000 shares repurchased for $79M.

• Safety performance remained strong, with incident rates well below industry average.

Financial highlights

• Revenue increased 4% year-over-year to $635M, with $11.4M contributed by recent acquisitions.

• Gross profit margin was 29.2%, with gross profit at $185.6M.

• Diluted EPS declined 5% to $3.76, mainly due to higher cement operating costs and lower gross margins.

• Operating cash flow grew 3% to $137M, and free cash flow was $61M after $76M in capital expenditures.

• Net earnings decreased 8% to $123.4M.

Outlook and guidance

• Cement demand expected to remain stable, supported by infrastructure spending and healthy state DOT budgets.

• Wallboard demand outlook remains subdued due to housing affordability constraints; recovery tied to lower interest rates or home prices.

• Long-term fundamentals for cement, concrete, aggregates, and wallboard remain favorable due to aging infrastructure and housing stock.

• Capital expenditures for FY26 projected at $475M–$525M, including major facility upgrades.

• Integration of recent aggregates acquisitions is advancing market position.