Eagle Materials (EXP) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter revenue of $609 million, up 1% year-over-year, and record net earnings of $133.8 million, with diluted EPS up 16% to $3.94, driven by higher prices, operational efficiency, and share repurchases.

• Gross profit margin improved by 140 basis points to 30.7%, with adjusted EBITDA rising 5% to $224.5 million.

• Operational discipline and proactive maintenance enabled strong performance despite challenging weather conditions that delayed construction activity.

• Continued focus on safety, efficiency, and sustainability, including investments in alternative fuels, water reduction, and modernization of the Laramie, WY cement plant.

• Repurchased approximately 348,000 shares for $85.5 million, returning $94 million to shareholders and maintaining a net leverage ratio of 1.3x.

Financial highlights

• Revenue reached a record $609 million, a 1% increase year-over-year, with gross margin at 30.7%.

• Diluted EPS rose 16% to $3.94, aided by higher earnings and share repurchases.

• Operating cash flow was $133 million, with free cash flow at $100 million.

• Capital expenditures totaled $33 million, with full-year CapEx guidance of $310–$340 million.

• Ended the quarter with $1.1 billion in debt and $46.5 million in cash.

Outlook and guidance

• Cement demand outlook remains strong, supported by federal infrastructure and non-residential projects, with limited new supply expected.

• Residential construction activity remains resilient due to housing shortages and underlying demand, though near-term wallboard demand is less predictable.

• Industry capacity constraints persist in both cement and wallboard markets.

• Anticipates lower energy costs but higher freight and maintenance expenses in fiscal 2025.

• CapEx for fiscal 2025 projected at $310–$340 million, with spending expected to accelerate.