Eagle Materials Reports Fourth Quarter and Fiscal Year 2025 Results

Eagle Materials Inc. (NYSE: EXP) announced its financial results for the fourth quarter and fiscal year 2025, showcasing a record annual revenue despite challenges in the fourth quarter. The company has made significant strides in growth initiatives while maintaining a strong capital structure.

Eagle Materials Reports Revenue of $470.2 Million for Q4 FY’25

In the fourth quarter of fiscal year 2025, Eagle Materials reported revenue of $470.2 million, marking a 1% decrease from the previous year. The quarter’s net earnings were $66.5 million, a significant drop of 14% year over year. Net earnings per diluted share were $2.00, down 11%, while the adjusted net earnings per diluted share were $2.08, a 7% decrease.

The company’s adjusted EBITDA for the quarter was $141.2 million, reflecting a 9% decline. These results fell short of the expectations, which projected an adj. EPS of $2.58 and revenue of $487.58 million.

Comparing the actual results with the expectations, it is clear that Eagle Materials faced challenges in meeting the anticipated performance. The adverse weather conditions impacted the Cement and Concrete and Aggregates businesses, especially in February, which contributed to the lower-than-expected revenue.

Furthermore, the company experienced higher production costs due to the forward scheduling of the annual maintenance outage at the Texas Lehigh cement facility and weather-related production interruptions at other facilities.

Despite these challenges, Eagle Materials achieved a record annual revenue of $2.3 billion, slightly up from the prior year. The company’s net earnings for the fiscal year were $463.4 million, a decrease of 3%, while the record net earnings per diluted share were $13.77, up 1%.

The adjusted EPS for the year was $13.94, a 2% increase. These figures highlight the company’s ability to maintain strong financial performance over the fiscal year, despite the challenges faced in the fourth quarter.

Join our Telegram group and never miss a breaking digital asset story.

Eagle Materials Remains Optimistic on Future Performance

Looking ahead, Eagle Materials remains optimistic about its future performance and strategic direction. The company has outlined several growth initiatives that are expected to drive future success. A significant investment of $330 million has been announced to modernize and expand the Duke, OK Gypsum Wallboard plant. This expansion is expected to increase the plant’s capacity by 300 million square feet annually, reduce operating costs, and leverage nearby natural gypsum reserves. Construction is set to begin soon, with startup scheduled for the second half of 2027.

Additionally, Eagle Materials has invested $175 million in acquiring two pure-play aggregates businesses in Kentucky and Western Pennsylvania. These acquisitions are part of the company’s strategy to expand its operational footprint and improve its service capabilities in growing markets. The company has also made progress in expanding and modernizing its Wyoming cement plant and starting up a new slag-cement facility in Houston through a joint venture.

In terms of capital allocation, Eagle Materials continues to focus on disciplined investments that align with its strategic priorities. The company has invested $388 million in acquisitions and $546 million in organic capital expenditures over the past five fiscal years. Shareholder returns remain a priority, with $1.8 billion returned through share repurchases and dividends during the same period.

With a strong balance sheet and a net leverage ratio of 1.5x, Eagle Materials is well-positioned to navigate economic cycles and pursue growth opportunities that meet its financial return standards.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.