Eagle Materials Reports Third Quarter Results

DALLAS--( BUSINESS WIRE)--Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2026 ended December 31, 2025. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal third quarter).

Third Quarter Fiscal 2026 Highlights

Commenting on the third quarter results, Michael Haack, President and CEO, said, “Despite a mixed construction environment, Eagle’s portfolio of businesses continued to perform well during the quarter, generating revenue of $556 million, EPS of $3.22 and gross margins of 28.9%. While the residential construction market was challenged, federal, state, and local spending on public infrastructure projects and private non-residential construction remained elevated, supporting strong demand for our Heavy construction products. Our Cement sales volume was up 9% and our organic Aggregates sales volume increased 34%.”

Mr. Haack continued, “During the quarter, we strengthened our financial position, issuing $750 million of 10-year senior notes with an interest rate of 5.00%, which extended our total debt maturity schedule and increased committed liquidity. A portion of the proceeds were used to repay our bank credit facility. We also significantly increased our distribution of cash to shareholders, returning nearly $150 million through our quarterly cash dividend and the repurchase of approximately 648,000 shares of our common stock. We ended the quarter with debt of $1.8 billion, net debt of $1.4 billion, and a net leverage ratio (net debt to Adjusted EBITDA) of 1.8x, giving us substantial financial flexibility that supports disciplined, value-enhancing 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 concluded, “Our low-cost operations continue to generate strong cashflow that we are investing to advance our operational efficiency and our low-cost position. We continued to make good progress this quarter on our projects to modernize our Laramie, Wyoming Cement plant and our Duke, Oklahoma Gypsum Wallboard plant. These growth 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. We are highly confident that our strong market position, advantaged capital structure, and rigorous operating discipline position us for continued success 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 up 11% to $390.2 million. Heavy Materials operating earnings increased by 9% to $92.7 million. Both increases resulted from higher Cement and Aggregates sales volume and the contribution from the recently acquired aggregates business in Western Pennsylvania.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 9% to $321.2 million, and operating earnings were up 5% to $91.3 million. These increases reflect higher Cement sales volume, partially offset by a 1% decline in Cement net sales prices. Cement sales volume increased 9% to 1.9 million tons.

Concrete and Aggregates revenue was up 22% to $69.0 million, and operating earnings increased to $1.4 million, reflecting higher Aggregates sales volume, increased Concrete and Aggregates pricing, and $7.6 million of revenue contribution from the recently acquired aggregates business. Excluding the recently acquired business, Aggregates revenue increased 9%, and sales volume was up 34%.

Light Materials: Gypsum Wallboard and Recycled Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Recycled Paperboard, decreased 16% to $203.5 million, reflecting lower Wallboard and Paperboard sales volume and prices. Gypsum Wallboard sales volume was down 14% to 637 million square feet (MMSF), and the average Gypsum Wallboard net sales price decreased 5% to $225.19 per MSF.

Paperboard sales volume for the quarter was down 10% to 81,000 tons. The average Paperboard net sales price was $588.77 per ton, down 6%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were $72.6 million, a decrease of 25%, reflecting lower Wallboard and Paperboard sales volume and pricing.

Corporate General and Administrative Expenses

Corporate General and Administrative Expenses increased by approximately 15% compared with the prior year. The increase was primarily related to increases in information technology costs of $1.2 million for technology upgrades, and $1.4 million of costs associated with business-development and professional services.

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 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, January 29, 2026. 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

Attachment 1

Eagle Materials Inc.

Statement of Consolidated Earnings

(dollars in thousands, except per share data)

(unaudited)

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Revenue

555,956

558,025

1,829,552

1,790,333

Cost of Goods Sold

395,050

380,212

1,283,335

1,221,808

Gross Profit

160,906

177,813

546,217

568,525

Equity in Earnings of Unconsolidated JV

4,420

4,987

14,533

21,979

Corporate General and Administrative Expenses

(24,010

)

(20,818

)

(66,109

)

(54,346

)

Other Non-Operating Income

1,644

1,381

3,729

4,788

Earnings before Interest and Income Taxes

142,960

163,363

498,370

540,946

Interest Expense, net

(13,712

)

(9,061

)

(34,790

)

(30,459

)

Earnings before Income Taxes

129,248

154,302

463,580

510,487

Income Tax Expense

(26,345

)

(34,728

)

(99,932

)

(113,551

)

Net Earnings

102,903

119,574

363,648

396,936

NET EARNINGS PER SHARE

Basic

3.23

3.59

11.28

11.85

Diluted

3.22

3.56

11.21

11.75

AVERAGE SHARES OUTSTANDING

Basic

31,824,706

33,317,168

32,247,333

33,493,382

Diluted

32,005,925

33,608,538

32,429,251

33,771,660

Attachment 2

Eagle Materials Inc.

Revenue and Earnings by Business Segment

(dollars in thousands)

(unaudited)

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Revenue*

Heavy Materials:

Cement (Wholly Owned)

283,496

259,890

938,475

873,033

Concrete and Aggregates

68,999

56,405

224,361

183,373

352,495

316,295

1,162,836

1,056,406

Light Materials:

Gypsum Wallboard

175,874

209,493

580,872

642,294

Recycled Paperboard

27,587

32,237

85,844

91,633

203,461

241,730

666,716

733,927

Total Revenue

555,956

558,025

1,829,552

1,790,333

Segment Operating Earnings

Heavy Materials:

Cement (Wholly Owned)

86,923

81,776

277,668

269,842

Cement (Joint Venture)

4,420

4,987

14,533

21,979

Concrete and Aggregates

1,380

(1,397

)

15,479

588

92,723

85,366

307,680

292,409

Light Materials:

Gypsum Wallboard

61,357

86,393

221,305

270,510

Recycled Paperboard

11,246

11,041

31,765

27,585

72,603

97,434

253,070

298,095

Sub-total

165,326

182,800

560,750

590,504

Corporate General and Administrative Expense

(24,010

)

(20,818

)

(66,109

)

(54,346

)

Other Non-Operating Income

1,644

1,381

3,729

4,788

Earnings before Interest and Income Taxes

142,960

163,363

498,370

540,946

* Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

Attachment 3

Eagle Materials Inc.

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

(unaudited)

Sales Volume

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

Change

2025

2024

Change

Cement (M Tons):

Wholly Owned

1,687

1,541

+9%

5,543

5,156

+8%

Joint Venture

174

161

+8%

507

517

-2%

1,861

1,702

+9%

6,050

5,673

+7%

Concrete (M Cubic Yards)

298

967

989

-2%

Aggregates (M Tons)

1,612

893

+81%

5,328

2,671

+99%

Gypsum Wallboard (MMSFs)

637

737

-14%

2,069

2,246

-8%

Recycled Paperboard (M Tons):

Internal

-11%

102

111

-8%

External

-9%

151

155

-3%

-10%

253

266

-5%

Average Net Sales Price*

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

Change

2025

2024

Change

Cement (Ton)

154.52

156.82

-1%

155.46

156.46

-1%

Concrete (Cubic Yard)

153.44

147.53

+4%

152.52

148.46

+3%

Aggregates (Ton)

14.19

13.19

+8%

14.25

12.83

+11%

Gypsum Wallboard (MSF)

225.19

236.11

-5%

230.35

237.49

-3%

Recycled Paperboard (Ton)

588.77

627.04

-6%

583.87

606.68

-4%

*Net of freight and delivery costs billed to customers.

Intersegment and Cement Revenue

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Intersegment Revenue:

Cement

8,309

9,084

28,226

29,748

Concrete and Aggregates

4,500

4,311

12,530

12,138

Recycled Paperboard

20,251

23,921

61,694

69,542

33,060

37,316

102,450

111,428

Cement Revenue:

Wholly Owned

283,496

259,890

938,475

873,033

Joint Venture

29,366

26,426

86,961

84,561

312,862

286,316

1,025,436

957,594

Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

December 31,

March 31,

2025

2024

2025*

ASSETS

Current Assets –

Cash and Cash Equivalents

418,999

31,173

20,401

Accounts and Notes Receivable, net

208,511

182,379

212,332

Inventories

384,879

392,266

415,175

Federal Income Tax Receivable

8,123

1,743

10,020

Prepaid and Other Assets

11,603

10,901

10,729

Total Current Assets

1,032,115

618,462

668,657

Property, Plant and Equipment, net

1,984,828

1,736,159

1,792,982

Investments in Joint Venture

154,622

135,672

140,089

Operating Lease Right-of-Use Assets

30,108

34,227

29,313

Goodwill and Intangibles

588,019

487,388

595,752

Other Assets

53,743

31,762

37,795

3,843,435

3,043,670

3,264,588

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities –

Accounts Payable

124,241

118,718

129,895

Accrued Liabilities

96,247

86,999

96,077

Income Taxes Payable

1,774

3,090

Current Portion of Long-Term Debt

15,000

10,000

15,000

Operating Lease Liabilities

4,241

5,074

4,032

Total Current Liabilities

241,503

223,881

245,004

Long-term Liabilities

99,228

85,647

99,626

Bank Credit Facility

85,000

200,000

Bank Term Loan

270,000

165,000

281,250

2.500% Senior Unsecured Notes due 2031

743,014

741,749

742,066

5.000% Senior Unsecured Notes due 2036

735,165

Deferred Income Taxes

260,900

246,254

239,942

Stockholders’ Equity –

Preferred Stock, Par Value $0.01; Authorized 5,000,000 Shares; None Issued

Common Stock, Par Value $0.01; Authorized 100,000,000 Shares; Issued and Outstanding 31,554,877; 33,391,155 and 32,973,121 Shares, respectively

316

334

330

Capital in Excess of Par Value

Accumulated Other Comprehensive Losses

(3,002

)

(3,238

)

(3,125

)

Retained Earnings

1,496,311

1,499,043

1,459,495

Total Stockholders’ Equity

1,493,625

1,496,139

1,456,700

3,843,435

3,043,670

3,264,588

*From audited financial statements

Attachment 5

Eagle Materials Inc.

Depreciation, Depletion and Amortization by Business Segment

(dollars in thousands)

(unaudited)

The following table presents Depreciation, Depletion and Amortization by business segment for the quarters and nine months ended December 31, 2025 and 2024:

Depreciation, Depletion and Amortization

Quarter Ended

December 31,

Nine Months Ended

December 31,

2025

2024

2025

2024

Cement

24,169

23,029

70,231

68,853

Concrete and Aggregates

6,999

5,261

20,927

15,074

Gypsum Wallboard

5,663

6,414

18,676

19,338

Recycled Paperboard

3,295

3,723

10,873

11,082

Corporate and Other

1,484

807

3,536

2,314

41,610

39,234

124,243

116,661

Attachment 6

Eagle Materials Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

EBITDA and Adjusted EBITDA

We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide additional measures of operating performance and allow for more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that further excludes the impact from Non-routine Items and stock-based compensation. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance or liquidity in accordance with GAAP. The following shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters and nine months ended December 31, 2025, and 2024, and the trailing twelve months ended December 31, 2025, and March 31, 2025:

Quarter Ended

Nine Months Ended

December 31,

2025

2024

2025

2024

Net Earnings, as reported

102,903

119,574

363,648

396,936

Income Tax Expense

26,345

34,728

99,932

113,551

Interest Expense

13,712

9,061

34,790

30,459

Depreciation, Depletion and Amortization

41,610

39,234

124,243

116,661

EBITDA

184,570

202,597

622,613

657,607

Acquisition accounting and related expenses 1

1,341

2,959

Litigation Loss

700

Stock-based Compensation

5,514

4,818

15,804

14,221

Adjusted EBITDA

190,084

208,756

638,417

675,487

Twelve Months Ended

December 31,

March 31,

2025

Net Earnings, as reported

430,128

463,416

Income Tax Expense

114,450

128,069

Interest Expense

44,857

40,526

Depreciation, Depletion and Amortization

166,484

158,902

EBITDA

755,919

790,913

Acquisition accounting and related expenses 1

3,359

6,318

Litigation loss

700

Stock-based Compensation

20,326

18,743

Adjusted EBITDA

779,604

816,674

1 Represents the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and business development costs

Attachment 6, continued

Reconciliation of Net Debt to Adjusted EBITDA

GAAP does not define “Net Debt” and it should not be considered as an alternative to debt as defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses “Net Debt to Adjusted EBITDA,” which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months, as an alternative metric to assist it in understanding its leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.

As of

December 31, 2025

March 31, 2025

Total debt, excluding debt issuance costs

1,785,000

1,246,250

Cash and cash equivalents

418,999

20,401

Net Debt

1,366,001

1,225,849

Trailing Twelve Months Adjusted EBITDA

779,604

816,674

Net Debt to Adjusted EBITDA

1.8x

1.5x