Eagle Materials reports record revenue as costs weigh on earnings
The building materials provider saw revenue reach $651.0 million in the first quarter of 2027 [1].
Eagle Materials (EXP), the building materials provider, reported record first-quarter revenue of $651.0 million, a 3% increase from the same period last year.
Despite the top-line growth, the company faced a decline in profitability. Net earnings fell 17% year-over-year to $102.1 million, while Adjusted EBITDA decreased 11% to $190.5 million.
Cement sales volume rose 8% to a record 2.1 million tons. However, operating earnings for the segment decreased 9% to $73.6 million as higher operating costs offset the volume gains. Net sales prices for cement declined 2% to $154.09 per ton, a trend attributed to freight costs increasing by $3 per ton.
Performance in other segments was mixed. Concrete and Aggregates operating earnings fell 35% to $4.0 million due to lower concrete sales volume and higher operating costs. Gypsum Wallboard sales volume decreased 2% to 772 million square feet, and average net sales prices for the segment declined 10% to $209.65 per MSF.
Recycled Paperboard provided a point of growth, with sales volume reaching a record 92,000 tons, up 2% year-over-year. Net sales prices for the segment increased 6% to $600.44 per ton.
Earnings were further impacted by an unexpected equipment failure at the Mountain Cement facility. The company reported a $6 million impact on earnings and $7.4 million in specific inefficiencies resulting from the event.
Eagle Materials' net leverage ratio, measured as net debt to Adjusted EBITDA, rose to 2.1x as of June 30, 2026, from 1.9x as of March 31, 2026.
The company increased its share repurchases during the quarter. Eagle Materials repurchased 406,500 shares for approximately $84 million in the first quarter of 2027, compared with 338,000 shares for $71.5 million in the preceding quarter.