Eagle Materials Inc. Q1 FY2026 earnings call

• Michael Haack noted record first quarter revenue of $634.7 million and diluted net earnings per share of $3.76 despite challenging weather. Highlighted safety progress with total recordable incident rate well below industry average. Mentioned sustainability initiatives, including early meeting of 2030 midterm cement CO2e intensity goal and investment in Terra CO2. Discussed business environment with stable order trends, improved aggregates and cement volumes, and subdued wallboard volumes due to housing constraints. Announced investments in modernizing Laramie cement plant and Duke wallboard plant, and continued share repurchases. • Craig Kesler reported first quarter revenue at $635 million (4% increase), earnings per share down 5% to $3.76. Talked about cash flow increase, capital spending details, and capital structure with net debt-to-cap ratio at 46% and net debt-to-EBITDA leverage ratio at 1.6x.

Heavy Materials sector (includes Cement, Concrete, and Aggregates): Revenue up 5%, driven by increased cement sales volume and 21% increase in concrete and aggregates revenue. Aggregate sales volume up 117% (including acquired businesses) and organic aggregate sales volume up 29%. Operating earnings down 5% due to lower production volumes affecting fixed costs and increased raw material costs. Light Materials sector (Wallboard): Revenue up 1% due to higher wallboard sales volume but lower sales prices. Operating earnings slightly down reflecting lower net sales prices partially offset by lower input costs for recycled fiber.

• Expect total company capital spending in fiscal 2026 to be in range of $475 million to $525 million. • Plan to continue opportunistic share repurchases. • Believe long-term demand fundamentals favor consumption of products with U.S. infrastructure and housing stock aging requiring their use, allowing continued growth and margin expansion.

• Weather conditions impacting volumes in certain segments, e.g., Texas weather issues affecting slag facility volumes. • Seasonality in concrete and aggregates segments. • Temporary higher operating costs in cement due to annual maintenance programs lowering production volumes and affecting fixed cost absorption.

Q: Wallboard volumes going forward.

A: Housing under pressure due to interest rates and affordability, no major change expected soon but medium/long-term if affordability improves, volumes can move.

Q: Cement price evolution.

A: Midterm demand good, shorter-term may have challenges, fall timeframe to see pricing moves.

Q: Wallboard pricing mix and near-term outlook.

A: Year-over-year decline, sequentially flat, range-bound until volume move.