Eagle Materials Inc. announced financial results for the second quarter of fiscal 2026 ended Sept. 30, reporting record revenue of $638.9 million and net earnings of $137.4 million.
Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $466.5 million, an 11% increase. Heavy Materials operating earnings were also up 11% to $127.7 million. Both increases resulted from higher sales volume and the contribution from the recently acquired aggregates businesses in western Pennsylvania and northern Kentucky.
Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 9% to $384.9 million, and operating earnings were up 3% to $119.8 million. These increases reflect higher Cement sales volume, partially offset by lower Cement net sales prices. The average net sales price for the quarter was down 1% to $155.10 per ton. Cement prices in our wholly owned cement business were flat. Cement sales volume increased by 8% to 2.2 million tons.
Concrete and Aggregates revenue was up 24% to $81.6 million, and operating earnings increased to a record $7.9 million, reflecting record Aggregates sales volume of 2.0 million tons, up 103%, increased Concrete and Aggregates sales prices, and the contribution from the recently acquired aggregates businesses. Excluding the recently acquired aggregates businesses, revenue increased 6% and Aggregates sales volume was up 35%.
- Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 13% to $212.6 million, primarily reflecting lower Wallboard and Paperboard sales volume.
- Paperboard sales volume for the quarter was down 4% to 82,000 tons.
Commenting on the second quarter results, Michael Haack, president and CEO, said, “Eagle’s portfolio of businesses continued to perform well during the quarter, generating record revenue of $639 million, EPS of $4.23 and gross margins of 31.3%. We repurchased 395,500 shares of our common stock for approximately $89 million and ended the quarter with debt of $1.3 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.6x, giving us substantial financial flexibility that supports disciplined capital allocation and long-term growth.”
Haack continued, “Our Cement sales volume was up 8% and our organic Aggregates sales volume increased 35%, as demand for these products remained strong, driven primarily by federal, state, and local spending on public infrastructure projects and continued elevated spending across private non-residential construction end markets. Our Wallboard sales volume was down 14% as new residential construction activity remained constrained by housing affordability concerns driven by persistently elevated mortgage rates, as well as other macroeconomic uncertainties.
“We enter the second half of fiscal 2026 well-positioned to capitalize on near- and long-term growth opportunities, including the future recovery of the housing market, given our strong balance sheet and continued investments in upgrading our assets and network. During the second quarter, we continued to make good progress on modernizing and expanding our Mountain Cement plant, and the project remains on time and within budget. Recently, we began to pour foundations to modernize our Duke, Okla., Gypsum Wallboard plant. These investments will lower each plant’s cost structure, improve their reliability and expand their production capabilities, which will strengthen our already low-cost competitive position. Our strong balance sheet and free cash flow should position us to favorably pursue additional high-return investments and deliver attractive shareholder value consistently through economic cycles,” Haack concluded.
