Eagle Materials Inc
NYSE:EXP
Eagle Materials Inc
Eagle Materials Inc., a captivating entity within the industrial sector, finds its story rooted in the robust landscape of construction and infrastructure. The company began its journey as a part of Centex Corporation, spinning off in 2004 to carve its own path. This decisive split allowed Eagle Materials to hone its focus on manufacturing, marketing, and distributing critical building materials. At the heart of its operations lies the production of cement, gypsum wallboard, recycled paperboard, concrete, and aggregates. These materials are indispensable components in housing, commercial buildings, and infrastructure projects. Eagle Materials harnesses a vertically integrated business model, which enhances its control over supply chains and cost structures, enabling the company to maintain competitive pricing and quality standards—a vital edge in a cyclical industry.
Eagle Materials' profitability story primarily unfolds through its adeptness at capitalizing on construction trends and the burgeoning demand for infrastructure development. Revenue streams flow steadily from its diverse portfolio, driven by both private sector demand and public infrastructure projects. Efficiently located production facilities, mainly in high-growth markets across the United States, ensure reduced logistical costs and prompt delivery, amplifying the company’s outreach and market presence. Furthermore, its strategic acquisitions and successful land-margin improvements have strengthened its market position and operational efficiency. This places Eagle Materials in a commendable position to withstand economic fluctuations, as it continues to be a pivotal player in fulfilling the foundational needs of the built environment.
Eagle Materials Inc., a captivating entity within the industrial sector, finds its story rooted in the robust landscape of construction and infrastructure. The company began its journey as a part of Centex Corporation, spinning off in 2004 to carve its own path. This decisive split allowed Eagle Materials to hone its focus on manufacturing, marketing, and distributing critical building materials. At the heart of its operations lies the production of cement, gypsum wallboard, recycled paperboard, concrete, and aggregates. These materials are indispensable components in housing, commercial buildings, and infrastructure projects. Eagle Materials harnesses a vertically integrated business model, which enhances its control over supply chains and cost structures, enabling the company to maintain competitive pricing and quality standards—a vital edge in a cyclical industry.
Eagle Materials' profitability story primarily unfolds through its adeptness at capitalizing on construction trends and the burgeoning demand for infrastructure development. Revenue streams flow steadily from its diverse portfolio, driven by both private sector demand and public infrastructure projects. Efficiently located production facilities, mainly in high-growth markets across the United States, ensure reduced logistical costs and prompt delivery, amplifying the company’s outreach and market presence. Furthermore, its strategic acquisitions and successful land-margin improvements have strengthened its market position and operational efficiency. This places Eagle Materials in a commendable position to withstand economic fluctuations, as it continues to be a pivotal player in fulfilling the foundational needs of the built environment.
Revenue: Eagle Materials reported third quarter revenue of $556 million, slightly down from the prior year.
EPS: Earnings per share were $3.22, down 10% from the third quarter of fiscal 2025, mainly due to lower wallboard sales volume.
Margins: Gross profit margin was 28.9%. Cement margins were impacted by higher raw material costs, but maintenance and fuel costs remained in check.
Cement Volumes: Cement and aggregates saw strong volume growth, with aggregates up 81% to a record 1.6 million tons.
Wallboard Weakness: Wallboard sales volume fell 14% and prices dropped 5%, reflecting ongoing softness in residential construction.
CapEx & Projects: Capital spending for fiscal 2026 is projected at $430–450 million, lowered due to timing on major projects in Wyoming and Oklahoma.
Shareholder Returns: Nearly $150 million was returned to shareholders through dividends and buybacks in the quarter.
Financial Position: The company issued $750 million in 10-year notes, ending the quarter with $419 million cash and a 1.8x leverage ratio.