Eagle Materials reports third quarter financial results

Third Quarter Fiscal 2025 Highlights

• Revenue of US$558.0 million Net Earnings of US$119.6 million
• Net Earnings per share of US$3.56
• Adjusted net earnings per share (Adjusted EPS) of US$3.59
• Adjusted EBITDA of US$208.8 million
• Repurchased approximately 195 000 shares of Eagle’s common stock for US$55 million

Commenting on the third quarter results, Michael Haack, President and CEO, said, “Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather in our Midwest and Great Plains markets, where rainfall in November was 250% higher than normal. The excessive rainfall affected sales volume in our Cement and Concrete and Aggregates businesses, although we achieved higher sales volume in Gypsum Wallboard and Recycled Paperboard. On a company-wide basis, we generated revenue of US$558 million and achieved a gross profit margin of 31.9%. Eagle also continued advancing their long-term growth and value-creation strategies: during the quarter, Eagle announced the acquisition of Bullskin Stone and Lime, LLC, a pure-play aggregates business in Western Pennsylvania; returned US$63 million of cash to shareholders through share repurchases and dividends; and maintained the balance sheet strength, ending the quarter with debt of US$1.0 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.2x.”

Mr. Haack continued, “While the path to lower interest rates and improved home-buying affordability is less certain today, we remain optimistic about our businesses and our ability to execute on the opportunities in front of us. Steady employment, housing supply that remains chronically short, and our cost-structure advantages continue to provide favorable conditions for our Gypsum Wallboard business in this dynamic environment. On the cement side, spending from the Infrastructure Investment and Jobs Act (IIJA) is still in the beginning phases, which should support multiple years of strong cement demand.”

“Our balance sheet and cash-flow generation remain healthy, supporting our capital allocation priorities, and our consistent, disciplined operational and strategic approach should position us to continue to perform well through economic cycles and deliver value over the long term.”

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was down 4% to US$351.8 million. Heavy Materials operating earnings decreased 20% to US$85.4 million. Both declines resulted from lower sales volume partially offset by higher sales prices.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was down 4% to US$295.4 million, and operating earnings were down 18% to $86.8 million. These declines reflect lower Cement sales volume and an US$8 million increase in Cement maintenance costs, partially offset by higher Cement net sales prices. The increase in Cement maintenance costs primarily relates to nontypical planned outages at the Oklahoma and Texas cement plants that were necessary to maintain and extend plant reliability. This maintenance was completed during the quarter. The average net sales price for the quarter was up 4% to US$156.82 per t, a result of Cement price increases implemented earlier this calendar year. Cement sales volume decreased 7% to 1.7 million t. Sales volume was affected by ongoing adverse weather during the quarter, particularly in the Midwest and Great Plains markets during November.

Concrete and Aggregates revenue decreased 2% to $56.4 million, reflecting lower Concrete and Aggregates sales volume, partially offset by higher Concrete and Aggregates pricing and US$3.1 million of revenue contribution from the recently acquired aggregates business in Kentucky. The third quarter operating loss of US$1.4 million reflects lower Concrete and Aggregates sales volume.

Light Materials: Gypsum Wallboard and Recycled Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Recycled Paperboard, increased 6% to US$241.7 million, reflecting higher Wallboard and Paperboard sales volume and prices. Gypsum Wallboard sales volume was up 2% to 737 million square feet (MMSF), and the average Gypsum Wallboard net sales price increased 4% to US$236.11 per MSF.

Paperboard sales volume for the quarter was up 7% to 90 000 t. The average Paperboard net sales price was US$627.04 per t, up 12%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were US$97.4 million, an increase of 18%, reflecting higher Wallboard and Paperboard sales volume and pricing.

Corporate General and Administrative Expenses

Corporate General and Administrative Expenses increased by approximately 47% compared with the prior year. The increase was primarily related to increases in information technology spending of US$1.9 million for technology upgrades, and US$1.3 million of costs associated with business-development and transaction-related activities.

Read the article online at: https://www.worldcement.com/the-americas/03022025/eagle-materials-reports-third-quarter-financial-results/