Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2026 ended September 30, 2025. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal second quarter):

Second Quarter Fiscal 2026 Highlights

• Record Revenue of $638.9 million
• Net Earnings of $137.4 million
• Net Earnings per diluted share of $4.23
• Adjusted EBITDA of $233.3 million
  • Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6
• Repurchased 395,500 shares of Eagle’s common stock for approximately $89 million

Commenting on the second quarter results, Michael Haack, President and CEO, said, “Eagle’s portfolio of businesses continued to perform well during the quarter, generating record revenue of $639 million, EPS of $4.23 and gross margins of 31.3%. We repurchased 395,500 shares of our common stock for approximately $89 million and ended the quarter with debt of $1.3 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.6x, giving us substantial financial flexibility that supports disciplined capital allocation and long-term growth.” (Net debt is a non-GAAP financial measure calculated by subtracting cash and cash equivalents from debt as described in Attachment 6).

Mr. Haack continued, “Our Cement sales volume was up 8% and our organic Aggregates sales volume increased 35%, as demand for these products remained strong, driven primarily by federal, state, and local spending on public infrastructure projects and continued elevated spending across private non-residential construction end markets. Our Wallboard sales volume was down 14% as new residential construction activity remained constrained by housing affordability concerns driven by persistently elevated mortgage rates, as well as other macroeconomic uncertainties.

“We enter the second half of fiscal 2026 well-positioned to capitalize on near-and-longer-term growth opportunities, including the future recovery of the housing market, given our strong balance sheet and continued investments in upgrading our assets and network. During the second quarter, we continued to make good progress on modernizing and expanding our Mountain Cement plant, and the project remains on-time and within budget. Recently, we began to pour foundations to modernize our Duke, OK Gypsum Wallboard plant. These investments will lower each plant’s cost structure, improve their reliability and expand their production capabilities, which will strengthen our already low-cost competitive position. Our strong balance sheet and free cash flow should position us to favorably pursue additional high-return investments and deliver attractive shareholder value consistently through economic cycles.”

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $466.5 million, an 11% increase. Heavy Materials operating earnings were also up 11% to $127.7 million. Both increases resulted from higher sales volume and the contribution from the recently acquired aggregates businesses in Western Pennsylvania and Northern Kentucky.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 9% to $384.9 million, and operating earnings were up 3% to $119.8 million. These increases reflect higher Cement sales volume, partially offset by lower Cement net sales prices. The average net sales price for the quarter was down 1% to $155.10 per ton. Cement prices in our wholly owned cement business were flat. Cement sales volume increased by 8% to 2.2 million tons.

Concrete and Aggregates revenue was up 24% to $81.6 million, and operating earnings increased to a record $7.9 million, reflecting record Aggregates sales volume of 2.0 million tons, up 103%, increased Concrete and Aggregates sales prices, and the contribution from the recently acquired aggregates businesses. Excluding the recently acquired aggregates businesses, revenue increased 6% and Aggregates sales volume was up 35%.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 13% to $212.6 million, primarily reflecting lower Wallboard and Paperboard sales volume. Gypsum Wallboard sales volume declined 14% to 648 million square feet (MMSF), while the average Gypsum Wallboard net sales price decreased 2% to $232.94 per MSF.

Paperboard sales volume for the quarter was down 4% to 82,000 tons. The average Paperboard net sales price was $598.48 per ton, up 1%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were $78.3 million, a decrease of 20%, primarily reflecting lower Wallboard and Paperboard sales volume.

Corporate General and Administrative Expenses

Corporate General and Administrative Expenses during the second quarter includes approximately $1.5 million of costs associated with implementing our new enterprise resource planning system across a portion of our businesses this quarter.

Details of Financial Results

We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use the equity method of accounting for our 50% interest in the Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenue and operating earnings, which is consistent with the way management organizes the segments within the Company for making operating decisions and assessing performance.

In addition, for segment reporting purposes, we report intersegment revenue as a part of a segment’s total revenue. Intersegment sales are eliminated on the consolidated income statement. Refer to Attachment 3 for a reconciliation of these amounts.

About Eagle Materials Inc.

Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.

Eagle’s senior management will conduct a conference call to discuss the financial results, forward-looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, October 30, 2025. The conference call will be webcast on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the website for one year.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Company’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside the Company’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; fluctuations in public infrastructure expenditures; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability of and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; interruptions in our supply chain; inability to timely execute or realize capacity expansions or efficiency gains from capital improvement projects; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); changes in trade policy, including tariffs and the effects of any increases in tariffs on our business, including increases in cost of inputs used in our facility expansion and modernization projects; possible losses or other adverse outcomes from pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; competition; cyber-attacks or data security breaches, together with the costs of protecting our systems against such incidents and the possible effects thereof on our operations; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates (including mortgage rates) and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s results of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and subsequent quarterly and annual reports upon filing. These reports are filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.

Attachment 1 Statement of Consolidated Earnings

Attachment 2 Revenue and Earnings by Business Segment

Attachment 3 Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue

Attachment 4 Consolidated Balance Sheets

Attachment 5 Depreciation, Depletion and Amortization by Business Segment

Attachment 6 Reconciliation of Non-GAAP Financial Measures

View source version on businesswire.com: https://www.businesswire.com/news/home/20251030421957/en/