Highlights

  • First quarter fiscal 2027 revenue rose 3% to $651.0 million, while gross profit fell 13% to $161.2 million.
  • Net earnings declined 17% to $102.1 million, and diluted earnings per share fell to $3.29 from $3.76.
  • Cement revenue grew 9%, but operating earnings fell to $73.6 million after maintenance costs and unexpected downtime at Mountain Cement.
  • Eagle repurchased 406,500 shares for about $84 million, and expects fiscal 2027 capital spending of $490 million to $525 million.

Eagle Materials (NYSE:EXP) shares were trading near their 52-week low at USD 172.82 on October 21, 2026, up 0.06%. The building materials producer reported fiscal 2027 first quarter results for the period ended June 30, 2026 in a Form 10-Q filed July 29, showing higher sales volume in heavy materials, softer wallboard pricing and lower profit.

Based in Dallas, Texas, Eagle is a Delaware corporation and describes itself as a leading U.S. manufacturer of heavy construction products and light building materials, operating more than 70 facilities across 21 states. Its Heavy Materials sector includes the Cement and Concrete and Aggregates segments, and its Light Materials sector includes Gypsum Wallboard and Recycled Paperboard. It owns 50% of the Texas Lehigh Cement joint venture in Buda, Texas. Its fiscal year ends March 31.

Higher Volumes, Lower Margins in the First Quarter

Revenue for the three months ended June 30, 2026 rose 3% to $651.0 million, which the company called a record. Higher sales volume added $19.8 million, while lower gross sales prices subtracted about $3.5 million. Cost of goods sold rose 9% to $489.7 million, including $25.7 million of higher operating costs, so gross profit fell 13% to $161.2 million and gross margin slipped to 25%.

Below the gross line, equity earnings from the joint venture fell 25% to $2.8 million, and net interest expense rose 11% to $12.9 million, largely reflecting the 5.000% senior notes issued in November 2025. Earnings before income taxes decreased 17% to $131.7 million. Net earnings were $102.1 million, down from $123.4 million, and diluted EPS was $3.29 against $3.76.

Segment Picture: Cement Up, Wallboard Down

Cement revenue increased 9% to $377.9 million on higher volume and prices, but operating earnings declined $7.5 million to $73.6 million, and operating margin fell to 19% from 23%. Eagle cited higher maintenance, purchased raw materials and about $6.0 million of inefficiencies from unexpected downtime at its Mountain Cement facility.

Gypsum Wallboard revenue fell 8% to $204.7 million as lower prices cut revenue by about $13.4 million and volume slipped 2% to 772 million square feet. Operating earnings dropped 21% to $73.4 million, and margin eased to 36%. The company said builders have pulled back on production amid mixed demand signals.

Recycled Paperboard was a bright spot, with revenue up 8% to $55.4 million and operating earnings up 38% to $13.1 million. Concrete and Aggregates revenue rose 4% to $80.7 million, but operating earnings fell 35% to $4.0 million on higher costs.

Cash Flow, Debt and Capital Returns

Operating cash flow rose to $154.4 million from $136.6 million, while capital spending increased to $120.8 million, mainly for the Mountain Cement expansion. Cash and equivalents ended the quarter at $233.5 million, compared with $297.9 million at March 31, 2026.

Total debt was $1.78 billion, made up of $750.0 million of 2.500% notes due 2031, $750.0 million of 5.000% notes due 2036 and a $277.5 million term loan. The $750.0 million revolving credit facility was undrawn, leaving $740.1 million available after letters of credit.

Eagle bought back 406,500 shares at an average of $206.23 during the quarter, using $83.8 million, and paid dividends of $0.25 per share, or $8.0 million.

Outlook and Cost Commentary

Management expects fiscal 2027 capital expenditures of $490.0 million to $525.0 million, covering the Mountain Cement expansion in Wyoming, the gypsum wallboard plant in Duke, Oklahoma, and maintenance and safety projects. It expects cement demand to stay steady in the near term, supported by public infrastructure funding and some private nonresidential projects such as data centers.

On residential construction, the company calls the backdrop challenging given affordability concerns and elevated mortgage rates and says the timing of any pickup in new-home building is uncertain. It expects freight costs for wallboard and cement to rise in fiscal 2027. The filing does not give revenue or earnings guidance.