Eagle Materials Reports Record First-Quarter Fiscal 2027 Revenue Despite Lower Earnings

Eagle Materials Inc. (NYSE: EXP) reported record first-quarter fiscal 2027 revenue of US$651.0 million, a 3% increase from the prior-year period, driven primarily by higher cement sales volumes. However, quarterly profitability declined as higher operating costs, elevated diesel prices and an unexpected equipment failure at its Mountain Cement facility weighed on earnings.

Net earnings for the quarter ended June 30, 2026, fell 17% to US$102.1 million, while diluted earnings per share declined 13% to US$3.29. Adjusted EBITDA decreased 11% to US$190.5 million, although operating cash flow increased 13% to US$154 million. During the quarter, the company repurchased approximately 406,500 shares for about US$84 million.

President and Chief Executive Officer Michael Haack said Eagle's diversified portfolio continued to perform well despite geopolitical, trade and fiscal policy uncertainty. Cement sales volume increased 8% to a record 2.1 million tons, supported by strong public infrastructure activity and large private non-residential construction projects. However, the company estimated that unexpected downtime at its Mountain Cement facility reduced quarterly earnings by approximately US$6 million, although customer deliveries continued uninterrupted through Eagle's broader manufacturing network.
The company said work continues on modernization projects at its Laramie, Wyoming cement plant and Duke, Oklahoma gypsum wallboard plant, investments intended to improve long-term operational reliability and strengthen Eagle's competitive position.

In its Heavy Materials segment, revenue increased 8% to US$454.1 million, while operating earnings declined 11% to US$77.6 million due to higher cement operating costs. Cement revenue rose 9% to US$377.9 million, reflecting stronger sales volumes despite increased maintenance expenses, higher raw material costs and production inefficiencies related to the Mountain Cement outage.

The Light Materials segment reported revenue of US$238.2 million, down 5% from the previous year, reflecting softer residential construction demand. Gypsum wallboard sales volume declined 2% to 772 million square feet, while average net wallboard prices fell 10% because of higher freight costs. Recycled paperboard reached a record 92,000 tons in sales volume, up 2%, with average net selling prices increasing 6% under long-term pricing agreements.

Eagle Materials ended the quarter with US$1.8 billion in debt, net debt of US$1.5 billion, and a net leverage ratio of 2.1x, which the company said provides flexibility to support its capital allocation strategy and future growth investments.
Dallas-based Eagle Materials manufactures heavy construction products and light building materials, including Portland cement and gypsum wallboard, through a network of more than 70 facilities across 21 U.S. states.