Eagle Materials (EXP) investor relations material

Executive summary

• Achieved record Q2 FY2026 revenue of $639 million, gross margin of 31.3%, and EPS of $4.23, despite headwinds from residential construction and lower Wallboard demand.

• Net earnings for the quarter were $137.4 million, down 4% year-over-year, with strong operational performance and continued investments in plant modernization and expansion.

• Returned $97 million to shareholders through dividends and share repurchases, including 395,500 shares repurchased for $89 million.

• Maintained an industry-leading safety record and advanced key strategic initiatives, including major plant upgrades in Laramie, Wyoming (Cement) and Duke, Oklahoma (Wallboard).

• Completed the acquisition of Bullskin Stone & Lime LLC for $149.9 million, expanding the aggregates business in Western Pennsylvania.

Financial highlights

• Q2 revenue up 2% year-over-year to $639 million, driven by higher Cement sales and Aggregates acquisitions.

• EPS of $4.23, down 1% from prior year, reflecting lower Wallboard volume but offset by share buybacks.

• Operating cash flow for the quarter was $205 million, with free cash flow of $96 million.

• Gross margin was 31.3% for the quarter.

• Capital expenditures for the quarter were $109 million, mainly for plant modernization and expansion.

Outlook and guidance

• Cement and Aggregates volumes expected to remain favorable, supported by unspent Infrastructure and Jobs Act funds and strong state DOT budgets.

• Wallboard demand remains subdued in the near term due to high interest rates and affordability concerns, but the long-term outlook is positive due to underbuilt housing.

• Announced Cement price increases effective January 1, 2026.

• Capital spending for FY2026 expected at $475–$500 million, stepping down in subsequent years as projects complete.

• Energy and freight costs expected to remain stable; maintenance costs projected to see low single-digit inflation.