Eagle Materials Inc.

Fiscal 2026 revenue was a record $2.3 billion, up 2% year over year; fourth-quarter revenue was a record $479 million, also up 2%. Annual EPS was $13.16, down 4%. Heavy materials revenue increased 10%, driven by an 8% increase in cement sales volume and a 19% increase in concrete and aggregates revenue; aggregate sales volume reached a record 6.6 million tons, up 70%, with organic aggregate volume up 24%. Light materials revenue fell 9% to $881 million and operating earnings fell 15% to $331 million, reflecting lower wallboard and recycled paperboard volume and a 4% decline in wallboard pricing. Operating cash flow rose 12% to $614 million, capex was $417 million, and the company returned $414 million to shareholders. Looking ahead, fiscal 2027 capex is expected to be $490 million to $525 million, with Mountain Cement commissioning expected in late calendar 2026 and Duke in the second half of calendar 2027 / mid-fiscal 2028.

Michael Haack framed the year as one of solid execution despite unusual macro uncertainty, emphasizing that Eagle continued to invest in its assets and returned significant cash to shareholders. He highlighted the strategic importance of the Mountain Cement and Duke wallboard modernizations, saying they should lower costs, improve reliability and expand capacity. His tone was constructive on the long-term demand backdrop, pointing to infrastructure, aging housing stock, lack of substitutes and supply constraints as structural supports for the business.

Craig Kesler emphasized that the record revenue and strong cash flow were driven by higher cement volume and the acquired aggregates businesses, partly offset by softer wallboard. He said operating cash flow increased 12% to $614 million, capex totaled $417 million, and shareholder returns were $414 million, including $382 million for repurchases of about 1.7 million shares. He also noted the company issued $750 million of 10-year senior notes at 5%, ended with $298 million of cash, about $1 billion of committed liquidity, net debt-to-capital of 50%, and net debt-to-EBITDA of 1.9x.

Analysts focused on margin drivers, cement pricing, freight and diesel inflation, data center demand, wallboard pricing, and the scale of the capex program. Management said cement margins benefited from strong volume, better plant efficiencies, and fuel being largely locked in for fiscal 2027, while wallboard pricing and volumes were hurt by freight costs and soft residential demand. They said data centers are a meaningful and still-early demand driver in many of their markets, and that April 1 cement price increases and a June 1 wallboard price increase are underway to offset cost pressure.