Eagle Materials Reports 4% Revenue Increase to $634.7 Million in Q1 Fiscal 2026

Eagle Materials Inc. reported a revenue increase of 4% for the first quarter of fiscal 2026, reaching $634.7 million compared to $608.7 million in the same period last year. The company’s net earnings decreased by 8% to $123.4 million, down from $133.8 million, resulting in diluted earnings per share of $3.76, a decline from $3.94 in the prior year. The increase in revenue was attributed to higher sales volumes, which contributed $19.1 million, although this was partially offset by lower gross sales prices that negatively impacted revenue by approximately $4.5 million.

The cost of goods sold rose by 6% to $449.1 million, primarily due to increased sales volume and operating costs. Excluding the impact of recent acquisitions, the cost of goods sold increased by 4%. Gross profit saw a slight decline of 1% to $185.6 million, with the gross margin decreasing to 29%. The decrease in gross profit was largely due to lower sales prices and higher operating costs, which were partially mitigated by increased sales volumes. Additionally, the equity in earnings from unconsolidated joint ventures fell by 51% to $3.8 million, reflecting lower sales volumes and increased operating costs.

Strategically, Eagle Materials completed the acquisition of Bullskin Stone & Lime LLC for approximately $150 million, which is expected to enhance its Concrete and Aggregates segment. This acquisition contributed $7.2 million in revenue and $1.6 million in operating earnings during the quarter. The company also reported a significant increase in capital expenditures, totaling $76.1 million, compared to $33.1 million in the previous year, primarily for the modernization and expansion of its facilities.

Operationally, Eagle Materials reported a slight increase in sales volume across its Cement segment, with a total of 1.993 million tons sold, up from 1.947 million tons. The Concrete and Aggregates segment experienced a 20% revenue increase, driven by higher sales prices and volumes, particularly in Northern Colorado and Northern Kentucky. The Gypsum Wallboard segment saw a modest revenue increase of 2%, while the Recycled Paperboard segment reported a 6% decline in revenue, attributed to lower sales prices.

Looking ahead, Eagle Materials anticipates steady demand for its products, bolstered by ongoing federal and state infrastructure projects. The company expects to benefit from the remaining funds from the Infrastructure Investment and Jobs Act, which have yet to be allocated. However, challenges such as rising energy costs and labor constraints may impact operational efficiency. The company remains focused on managing its cost structure and leveraging its geographic footprint to capitalize on market opportunities.