Eagle Materials Posts Record Sales as Profit Falls

The Tip Desk · November 10, 2026 · 3 min read

Second-quarter fiscal 2027 revenue hit a record $652.7 million while net earnings were $111.5 million, or $3.63 a share.

Eagle Materials Inc. (EXP) posted record revenue of $652.7 million in the second quarter of fiscal 2027 ended September 30, 2026, up 2% from $638.9 million a year earlier.

Net earnings were $111.5 million, or $3.63 a share, compared with $137.4 million, or $4.23 a share, a year earlier. Adjusted EBITDA, a non-GAAP measure, declined to $202.7 million from $233.3 million. Gross profit compressed to $174.7 million from $199.7 million.

President and Chief Executive Officer Michael Haack said the businesses continued to perform despite elevated diesel fuel prices and higher interest rates. Public infrastructure and large private non-residential construction continued to support demand for Heavy Materials, he said, while higher rates added pressure to an already challenging residential construction market. Higher diesel prices increased transportation costs across all business lines.

Heavy Materials, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement, generated $477.8 million of revenue, up 2%. Operating earnings in the sector declined 12% to $113.0 million, reflecting higher operating costs in both Cement and Concrete and Aggregates.

Cement revenue including Joint Venture and intersegment sales rose 1% to $390.5 million. Cement operating earnings fell 9% to $108.8 million. The company attributed the earnings decline to higher fixed costs including labor and depreciation, increased purchased raw material costs, and higher freight expenses driven primarily by rising diesel fuel prices. Average gross Cement sales price increased 1%. Average net sales price slipped slightly to $154.58 a ton as freight costs rose. Cement sales volume increased slightly to a record 2.2 million tons.

Concrete and Aggregates revenue rose 7% to $87.2 million. Operating earnings in that line fell 47% to $4.2 million, reflecting higher maintenance, diesel, and production costs. Aggregates sales volume declined 6% to 1.9 million tons.

Light Materials, which includes Gypsum Wallboard and Recycled Paperboard, generated $216.4 million of revenue, up 2%, primarily because of higher sales volume in both businesses. Light Materials operating earnings declined 13% to $68.3 million, primarily reflecting lower Gypsum Wallboard net sales prices and higher freight costs.

Gypsum Wallboard sales volume rose 7% to 696 million square feet. The company said the quarterly increase reflected both a favorable prior-year comparison and steady end-market demand, despite continued softness in residential housing activity. Average gross Wallboard price before the effect of higher freight costs was down 6%. Average net sales price decreased 10% to $209.37 per thousand square feet, reflecting higher freight costs, primarily driven by rising diesel fuel prices.

Recycled Paperboard sales volume rose 5% to 86,000 tons. Average net sales price increased 4% to $622.90 a ton, consistent with pricing provisions in long-term sales agreements that account for changes in input costs, the company said.

Corporate general and administrative expenses increased 26% to $26.9 million from $21.3 million, primarily because of increased health insurance costs and costs associated with implementing a new enterprise resource planning system. The company said those ERP costs are expected to continue in future quarters as the system is implemented across the remaining businesses.

Eagle repurchased 304,881 shares of common stock for approximately $62 million in the quarter. For the first half of the fiscal year, it repurchased 711,381 shares for approximately $146.0 million. The company said it continued to progress on modernizations of its Mountain Cement and Duke, Oklahoma gypsum wallboard facilities.

The company ended the quarter with debt of $1.8 billion, net debt of $1.5 billion, and a net leverage ratio of 2.1 times trailing-twelve-month Adjusted EBITDA. Net debt was $1.53 billion at September 30, 2026.

Haack said higher interest rates, broader economic uncertainty, and evolving geopolitical conditions may continue to affect construction activity in the near term. The company said it remains focused on factors within its control.