Eagle Materials Reports Slight Revenue Decline and Net Earnings Drop in Q3 2024

Eagle Materials Inc. reported its financial results for the third quarter and nine months ended December 31, 2024, revealing a slight decline in revenue and net earnings compared to the previous fiscal year. For the three months ended December 31, 2024, the company generated revenue of $558.0 million, a decrease of 0.1% from $558.8 million in the same period last year. Net earnings fell by 7% to $119.6 million, down from $129.1 million, resulting in diluted earnings per share of $3.56, compared to $3.72 in the prior year. For the nine-month period, revenue increased marginally to $1.79 billion from $1.78 billion, while net earnings decreased slightly to $396.9 million from $400.5 million.

The company noted several operational changes that impacted its financial performance. The Kentucky Acquisition, completed in August 2024, contributed $3.1 million to revenue in the latest quarter. However, excluding this acquisition, revenue would have decreased by $3.9 million, primarily due to lower sales volume, which negatively impacted revenue by approximately $18.1 million. This decline was partially offset by higher gross sales prices, which increased revenue by $14.2 million. The cost of goods sold rose by 1% to $380.2 million, influenced by higher operating costs, particularly in the Cement and Concrete and Aggregates segments.

Eagle Materials also reported strategic developments, including the acquisition of Bullskin Stone & Lime, LLC, a pure-play aggregates business in Pennsylvania, for approximately $152.5 million, which is expected to enhance its Concrete and Aggregates segment. The company has been actively expanding its operations, with capital expenditures for the nine months ended December 31, 2024, totaling $147.0 million, significantly higher than the $60.9 million spent in the same period last year. This increase reflects ongoing investments in facility expansions and modernization projects.

In terms of operational metrics, the company reported a decrease in cement sales volume, which fell to 1.7 million tons for the three months ended December 31, 2024, down from 1.8 million tons in the prior year. The Concrete and Aggregates segment experienced a revenue decline of 1% to $60.7 million, while the Gypsum Wallboard segment saw a revenue increase of 4% to $209.5 million, driven by higher sales prices and volume. The company’s overall gross profit margin remained stable at 32%, despite fluctuations in sales volume and operating costs.

Looking ahead, Eagle Materials expressed a cautiously optimistic outlook, anticipating steady demand for cement supported by federal infrastructure spending and ongoing residential construction activity. The company expects to benefit from its geographic footprint across the U.S. heartland and the Sun Belt region, positioning it well to capitalize on market dynamics. However, it acknowledged potential challenges, including rising energy costs and maintenance expenses, which could impact profitability in the near term.