Eagle Materials (NYSE:EXP) Posts Earnings Results, Misses Estimates By $0.19 EPS

Key Points

• Eagle Materials reported quarterly revenue of $652.75 million, up 2.2% year over year and ahead of estimates, but EPS of $3.63 missed the $3.82 consensus by $0.19 and fell from $4.23 a year earlier.
• Higher freight and operating costs pressured margins. Cement demand remained supported by infrastructure and data-center projects, while residential construction and wallboard demand stayed weak.
• The company maintained its quarterly dividend at $0.25 per share. It also returned $162 million to shareholders in the first half through dividends and share repurchases.

Eagle Materials (NYSE:EXP - Get Free Report) released its quarterly earnings results on Wednesday. The construction company reported $3.63 earnings per share for the quarter, missing the consensus estimate of $3.82 by ($0.19), FiscalAI reports. The firm had revenue of $652.75 million for the quarter, compared to the consensus estimate of $633.08 million. Eagle Materials had a net margin of 17.32% and a return on equity of 26.87%. The company's revenue for the quarter was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.23 earnings per share.

Here are the key takeaways from Eagle Materials' conference call:

• Second-quarter revenue reached a record $653 million, up 2%, but EPS fell 14% to $3.63 as higher diesel-related freight and other operating costs weighed on margins.
• Cement demand remained supported by infrastructure and data-center projects, and Eagle announced price increases of roughly $10–$15 per ton in most cement markets effective January 2027. Residential construction and wallboard demand remain weak amid affordability and interest-rate pressures.
• Mountain Cement’s aging plant experienced another operational disruption, and commissioning its replacement may temporarily increase freight costs; management said it expects to maintain customer service during the transition. The modernization remains on schedule, with savings expected to build from the latter part of fiscal 2028.
• Operating cash flow rose 7% to $364 million in the first half, and Eagle returned $162 million to shareholders through dividends and share repurchases. Capital spending is expected to peak in fiscal 2027, with a significant step-down anticipated in fiscal 2028 as the Laramie project is completed.

Eagle Materials Stock Performance

Shares of NYSE EXP traded up $7.95 during midday trading on Wednesday, hitting $200.71. 366,959 shares of the stock traded hands, compared to its average volume of 454,391. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.91 and a current ratio of 3.23. Eagle Materials has a one year low of $160.02 and a one year high of $245.53. The firm has a market capitalization of $6.16 billion, a P/E ratio of 15.87 and a beta of 1.29. The firm has a 50-day moving average of $179.76 and a two-hundred day moving average of $202.36.

Eagle Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, January 11th. Shareholders of record on Monday, December 14th will be paid a dividend of $0.25 per share. The ex-dividend date is Monday, December 14th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. Eagle Materials's payout ratio is currently 7.91%.

Analyst Ratings Changes

EXP has been the subject of a number of recent research reports. Zacks Research cut shares of Eagle Materials from a "hold" rating to a "strong sell" rating in a research report on Friday, October 16th. Citigroup reduced their price objective on Eagle Materials from $232.00 to $190.00 and set a "neutral" rating for the company in a research report on Friday, October 2nd. Weiss Ratings reissued a "hold (c)" rating on shares of Eagle Materials in a research note on Friday, September 11th. DA Davidson reduced their price target on Eagle Materials from $220.00 to $207.00 and set a "neutral" rating for the company in a report on Monday, September 14th. Finally, Royal Bank Of Canada decreased their target price on shares of Eagle Materials from $219.00 to $170.00 and set a "sector perform" rating for the company in a report on Friday, October 9th. Ten equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $195.22.

Key Stories Impacting Eagle Materials

Here are the key news stories impacting Eagle Materials this week:

• Positive Sentiment: Revenue of $652.75 million topped the $633.08 million analyst estimate and rose 2.2% year over year, indicating modest sales growth. Eagle Materials quarterly results
• Neutral Sentiment: The company kept its quarterly dividend at $0.25 per share, equivalent to $1.00 annually and a yield of about 0.5%. Eagle Materials maintains dividend
• Negative Sentiment: EPS was $3.63, below analyst expectations of roughly $3.71–$3.82 and down from $4.23 a year earlier. Reports pointed to surging costs, which outweighed the revenue beat and may pressure profitability. Eagle Materials Q2 results and costs

Insider Transactions at Eagle Materials

In other news, SVP Tony Thompson sold 3,074 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $203.96, for a total transaction of $626,973.04. Following the completion of the sale, the senior vice president owned 10,142 shares of the company's stock, valued at $2,068,562.32. This represents a 23.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 1.70% of the company's stock.

Eagle Materials Company Profile

Eagle Materials Inc NYSE: EXP is a U.S.-based manufacturer of building materials used in residential, commercial, infrastructure and industrial construction. The company's principal products include cement, gypsum wallboard, concrete and aggregates.

Its cement business produces and distributes Portland cement and related cement products, while its gypsum wallboard business supplies panels used in interior construction. Eagle Materials also provides ready-mixed concrete and construction aggregates, including crushed stone, sand and gravel, for building and infrastructure projects.

The company traces its history to Centex Construction Products, which was spun off from Centex Corporation in 1994 and later adopted the Eagle Materials name.

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