Eagle Materials (EXP) Q2 2027 earnings summary

Executive summary

• Record Q2 FY2027 revenue was $652.748 million, up 2% YoY; net earnings fell 19% to $111.5 million and diluted EPS declined 14% to $3.63.

• Record Cement volume and higher Wallboard and Recycled Paperboard volumes were offset by higher freight and operating costs and lower Wallboard prices.

Financial highlights

• Q2 gross profit fell 13% to $174.734 million; gross margin declined to 27% from 31%, primarily on $27.2 million of higher operating costs.

• Q2 Adjusted EBITDA was $202.682 million versus $233.293 million YoY; diluted EPS was $3.63 versus $4.23.

• H1 revenue increased 2% to $1.304 billion; net earnings declined 18% to $213.658 million.

• H1 operating cash flow rose 7% to $364.3 million; capital expenditures were $249.7 million, versus $184.6 million a year earlier.

Outlook and guidance

• FY2027 capital expenditures are expected at $490 million-$525 million, with spending expected to peak in FY2027 and step down in FY2028 after Laramie construction.

• Cement demand outlook remains supported by infrastructure budgets and private nonresidential construction, including data centers; ~40% of IIJA funds remained to be spent.

• Laramie modernization is on track for completion by end-CY2026; Duke wallboard upgrade construction is expected to finish in H2 CY2027.

• Mountain Cement commissioning is expected to take about two quarters; cost savings are expected to benefit margins later in FY2028, with full 25% savings dependent on selling full capacity.

• Cement and aggregates price increases of $10-$15 per ton, depending on market, are planned for early January 2027 in most markets.