Eagle Materials (NYSE:EXP) Issues Earnings Results

Eagle Materials (NYSE:EXP) announced its quarterly earnings data on Wednesday. The construction company reported $3.29 EPS for the quarter, missing analysts’ consensus estimates of $3.37 by ($0.08), FiscalAI reports. The firm had revenue of $650.97 million during the quarter, compared to the consensus estimate of $620.35 million. Eagle Materials had a net margin of 18.36% and a return on equity of 28.27%. The business’s revenue was up 2.6% on a year-over-year basis. During the same period last year, the business earned $3.76 EPS.

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

• Record revenue and resilient demand: First-quarter revenue rose 3% year over year to $651 million, supported by stronger cement, aggregates, and recycled paperboard volumes. Infrastructure spending and data-center-related construction continued to support heavy-materials demand.
• Profitability was pressured by costs and downtime: EPS fell 13% to $3.29, while heavy-materials operating earnings declined 11% and light-materials earnings fell 16%. Higher freight and raw-material costs, along with an approximately $6 million impact from unexpected Mountain Cement equipment downtime, were the primary factors.
• Housing and wallboard remain stable but subdued: Wallboard demand held up better than expected despite weak housing activity, although light-materials revenue declined 5% because of lower wallboard volumes and pricing. Eagle implemented a June 1 wallboard price increase mainly to offset elevated freight costs.
• Modernization projects remain on schedule: The Laramie cement modernization is expected to be completed late this year and commissioned in early 2027, with targeted operating-cost reductions of 25%. The Duke Oklahoma wallboard modernization is expected to commission in the latter half of 2027 and reduce operating costs by 20%.
• Strong cash generation supports capital returns: Operating cash flow increased 13% to $154 million, while Eagle returned $92 million to shareholders through dividends and share repurchases. Management said its balance sheet, with $234 million in cash and nearly $1 billion of liquidity, provides flexibility for additional buybacks, high-return projects, and disciplined M&A.

Eagle Materials Stock Performance

EXP stock traded down $9.61 during trading hours on Wednesday, hitting $212.44. 528,593 shares of the stock were exchanged, compared to its average volume of 464,048. Eagle Materials has a 12 month low of $171.99 and a 12 month high of $245.53. The company has a current ratio of 3.66, a quick ratio of 2.09 and a debt-to-equity ratio of 1.18. The firm has a market capitalization of $6.56 billion, a P/E ratio of 16.19 and a beta of 1.37. The company has a 50-day simple moving average of $214.70 and a two-hundred day simple moving average of $211.10.

Eagle Materials Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Monday, June 15th were paid a dividend of $0.25 per share. The ex-dividend date was Monday, June 15th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. Eagle Materials’s dividend payout ratio (DPR) is 7.62%.

Hedge Funds Weigh In On Eagle Materials

Several institutional investors and hedge funds have recently modified their holdings of the business. Caisse de depot et placement du Quebec boosted its holdings in Eagle Materials by 3.6% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 1,426 shares of the construction company’s stock valued at $332,000 after purchasing an additional 50 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of Eagle Materials by 102.4% in the second quarter. EverSource Wealth Advisors LLC now owns 172 shares of the construction company’s stock worth $35,000 after purchasing an additional 87 shares during the period. Russell Investments Group Ltd. raised its stake in Eagle Materials by 0.3% in the fourth quarter. Russell Investments Group Ltd. now owns 26,029 shares of the construction company’s stock valued at $5,382,000 after purchasing an additional 87 shares in the last quarter. Kestra Private Wealth Services LLC lifted its position in Eagle Materials by 5.2% during the third quarter. Kestra Private Wealth Services LLC now owns 1,802 shares of the construction company’s stock worth $420,000 after purchasing an additional 89 shares during the period. Finally, Sprott Inc. lifted its position in Eagle Materials by 3.7% during the fourth quarter. Sprott Inc. now owns 2,578 shares of the construction company’s stock worth $533,000 after purchasing an additional 92 shares during the period. 96.07% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on EXP shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Eagle Materials in a research note on Tuesday, June 16th. Royal Bank Of Canada boosted their price target on Eagle Materials from $208.00 to $219.00 and gave the stock a “sector perform” rating in a research report on Wednesday, May 20th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $200.00 price objective on shares of Eagle Materials in a research report on Wednesday, May 20th. Wells Fargo & Company decreased their target price on Eagle Materials from $246.00 to $240.00 and set an “overweight” rating on the stock in a report on Wednesday, July 8th. Finally, Zacks Research cut Eagle Materials from a “strong-buy” rating to a “hold” rating in a research note on Monday. One investment analyst has rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $226.00.

Eagle Materials Company Profile

Eagle Materials Inc (NYSE:EXP) is a Dallas, Texas–based manufacturer of building materials serving construction and heavy industry markets across the United States. The company’s primary products include portland and masonry cements, gypsum wallboard, lightweight aggregate, paperboard packaging, and roofing granules. These product lines support a wide range of end uses—from residential and commercial buildings to infrastructure projects and industrial applications.

Since its spin-off from a major homebuilding company in 2004, Eagle Materials has grown through targeted facility expansions and strategic acquisitions.