Eagle Materials (EXP) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 FY2025 revenue of $624 million, with adjusted EPS of $4.31 and operating cash flow up 35% to $233 million, despite weather and project delays impacting heavy materials volumes.

• Net earnings for the quarter were $143.5 million, down 5% year-over-year; gross profit margin was 32.7%.

• Wallboard business maintained strong demand and steady margins, while light materials revenue and operating earnings rose 5%.

• Announced price increases for cement (January 2025) and wallboard (early 2025).

• Advanced growth and sustainability initiatives, including new projects and acquisitions.

Financial highlights

• Revenue reached $624 million, up slightly from the prior year, with adjusted EPS at $4.31 and diluted EPS at $4.26.

• Operating cash flow rose 35% to $233 million; capital spending was $66 million, including $27 million for the Laramie cement plant project.

• Repurchased 253,000 shares for $61 million and paid $8 million in dividends, returning $69 million to shareholders.

• Gross profit for Q2 was $203.8 million, with gross margin at 32.7%.

• Adjusted EBITDA for the quarter was $242.2 million; trailing twelve months adjusted EBITDA was $840 million.

Outlook and guidance

• Infrastructure demand remains robust, with 75% of IIJA funds yet to be spent, supporting future growth.

• Non-residential and residential construction expected to rebound, aided by accommodative monetary policy and housing shortages.

• Maintenance outages at Texas Lehigh and Tulsa cement plants will add $6–$8 million in Q3 costs but are one-time events.

• Energy costs expected to be lower in FY2025 but remain above historical levels; freight and maintenance costs anticipated to rise.

• Capital expenditures for FY25 projected at $280–$310 million, including Mountain Cement facility expansion.