second quarter of fiscal 2027
Filed Nov 4, 2026Eagle Materials reported record second-quarter fiscal 2027 revenue of $652.7 million, while net earnings declined to $111.5 million and Adjusted EBITDA declined to $202.7 million amid higher operating and freight costs.
Revenue reached a record and volume trends were positive in several businesses, but gross profit, earnings before interest and income taxes, net earnings, diluted earnings per share, Adjusted EBITDA, and operating earnings in both reportable sectors declined from the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, quarter ended September 30GAAP | $652.7M | – | – |
| Cost of Goods Sold, quarter ended September 30GAAP | 478,014 | – | – |
| Gross Profit, quarter ended September 30GAAP | 174,734 | – | – |
| Equity in Earnings of Unconsolidated JV, quarter ended September 30GAAP | 6,574 | – | – |
| Corporate General and Administrative Expenses, quarter ended September 30GAAP | (26,929 ) | – | +26% |
| Other Non-Operating Income, quarter ended September 30GAAP | 1,074 | – | – |
| Earnings before Interest and Income Taxes, quarter ended September 30GAAP | 155,453 | – | – |
| Interest Expense, net, quarter ended September 30GAAP | (11,908 ) | – | – |
| Earnings before Income Taxes, quarter ended September 30GAAP | 143,545 | – | – |
| Income Tax Expense, quarter ended September 30GAAP | (32,014 ) | – | – |
| Net Earnings, quarter ended September 30GAAP | $111.5M | – | – |
| Basic Net Earnings Per Share, quarter ended September 30GAAP | $ 3.64 | – | – |
| Diluted Net Earnings Per Share, quarter ended September 30GAAP | $ 3.63 | – | – |
| Average Shares Outstanding, Basic, quarter ended September 30GAAP | 30,610,694 | – | – |
| Average Shares Outstanding, Diluted, quarter ended September 30GAAP | 30,754,610 | – | – |
| EBITDA, quarter ended September 30non-GAAP | $197.2M | – | – |
| Stock-based Compensation, quarter ended September 30non-GAAP | 5,433 | – | – |
| Adjusted EBITDA, quarter ended September 30non-GAAP | $202.7M | – | – |
| Revenue, six months ended September 30GAAP | $1.30B | – | – |
| Cost of Goods Sold, six months ended September 30GAAP | 967,735 | – | – |
| Gross Profit, six months ended September 30GAAP | 335,979 | – | – |
| Earnings before Interest and Income Taxes, six months ended September 30GAAP | 300,085 | – | – |
| Net Earnings, six months ended September 30GAAP | $213.7M | – | – |
| Basic Net Earnings Per Share, six months ended September 30GAAP | $ 6.94 | – | – |
| Diluted Net Earnings Per Share, six months ended September 30GAAP | $ 6.91 | – | – |
| Adjusted EBITDA, six months ended September 30non-GAAP | $393.2M | – | – |
| Cash and Cash Equivalents, September 30, 2026GAAP | $241.2M | – | – |
| Total debt, excluding debt issuance costs, September 30, 2026other | $1.77B | – | – |
| Net Debt, September 30, 2026non-GAAP | $1.53B | – | – |
| Trailing Twelve Months Adjusted EBITDA, September 30, 2026non-GAAP | $719.3M | – | – |
| Net Debt to Adjusted EBITDA, September 30, 2026non-GAAP | 2.1x | – | – |
| Cement sales volume, quarter ended September 30other | 2,206 | – | 0 % |
| Concrete sales volume, quarter ended September 30other | 365 | – | +5 % |
| Aggregates sales volume, quarter ended September 30other | 1,874 | – | -6 % |
| Gypsum Wallboard sales volume, quarter ended September 30other | 696 | – | +7 % |
| Recycled Paperboard sales volume, quarter ended September 30other | 86 | – | +5 % |
| Cement average net sales price, quarter ended September 30other | $ 154.58 | – | 0 % |
| Gypsum Wallboard average net sales price, quarter ended September 30other | $ 209.37 | – | -10 % |
| Recycled Paperboard average net sales price, quarter ended September 30other | $ 622.90 | – | +4 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Heavy Materials: Cement, Concrete and AggregatesPublic infrastructure and large private non-residential construction projects continued to support demand. Higher operating costs in Cement and Concrete and Aggregates reduced sector operating earnings 12% to $113.0 million. | $477.8M | – | +2% |
| CementAverage gross Cement sales price increased 1%, while average net sales price declined slightly to $154.58 per ton as higher freight costs affected results. Cement sales volume increased slightly to a record 2.2 million tons; higher fixed costs, purchased raw material costs, and freight expenses reduced operating earnings 9% to $108.8 million. | $390.5M | – | +1% |
| Concrete and AggregatesOperating earnings declined 47% to $4.2 million, reflecting higher maintenance, diesel, and production costs. Aggregates sales volume was down 6% to 1.9 million tons. | $87.2M | – | +7% |
| Light Materials: Gypsum Wallboard and PaperboardHigher sales volume in both business segments supported revenue. Operating earnings declined 13% to $68.3 million, primarily reflecting lower Gypsum Wallboard net sales prices and higher freight costs. | $216.4M | – | +2% |
| Gypsum WallboardSales volume increased 7% to 696 million square feet. Average gross Wallboard price was down 6% and average net sales price decreased 10%, with higher freight costs primarily driven by rising diesel fuel prices. | $185.7M | – | – |
| Recycled PaperboardSales volume increased 5% to 86,000 tons. Average net sales price increased 4% to $622.90 per ton, consistent with long-term sales-agreement pricing provisions that account for changes in input costs. | $30.73M | – | – |
Capital returns
- Repurchased 304,881 shares of Eagle’s common stock for approximately $62 million during the second quarter.
- Repurchased 711,381 shares of common stock for approximately $146.0 million during the first half of fiscal 2027.
What drove it
- Public infrastructure and large private non-residential construction projects supported Heavy Materials demand.
- Higher diesel fuel prices raised transportation costs across all business lines.
- Cement operating earnings were affected by higher fixed costs, including labor and depreciation, higher purchased raw material costs, and higher freight expenses.
- Light Materials revenue benefited from higher sales volume in both Gypsum Wallboard and Recycled Paperboard.
- Corporate General and Administrative Expenses increased primarily because of health insurance costs and costs associated with implementing the new enterprise resource planning system.
Concerns
- Elevated interest rates placed additional pressure on an already challenging residential construction market.
- Gypsum Wallboard average net sales price decreased 10% to $209.37 per MSF.
- Heavy Materials operating earnings declined 12% to $113.0 million and Light Materials operating earnings declined 13% to $68.3 million.
- The enterprise resource planning system implementation is expected to continue in future quarters as the system is implemented across remaining businesses.
- Net Debt to Adjusted EBITDA increased to 2.1x from 1.9x at March 31, 2026.
What to watch
- Residential construction activity amid elevated interest rates.
- Diesel fuel, freight, raw-material, labor, maintenance, and depreciation costs.
- Gypsum Wallboard pricing and freight costs.
- Execution and benefits of the Mountain Cement and Duke, Oklahoma Gypsum Wallboard facility modernizations.
- Further share repurchases and leverage levels under the company's disciplined capital allocation strategy.
Balance sheet and cash flow
- Cash and cash equivalents were $ 241,168 at September 30, 2026.
- Total debt, excluding debt issuance costs, was $ 1,773,750 at September 30, 2026.
- Net Debt was $ 1,532,582 at September 30, 2026.
- Net Debt to Adjusted EBITDA was 2.1x at September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Eagle Materials delivered record quarterly revenue of $652.7 million, compared with $638.9 million in the prior-year quarter, supported by a 2% increase in Heavy Materials revenue to $477.8 million and a 2% increase in Light Materials revenue to $216.4 million. Demand for Heavy Materials continued to receive support from public infrastructure and large private non-residential projects. Cement volume increased slightly to a record 2.2 million tons, Gypsum Wallboard volume increased 7% to 696 million square feet, and Recycled Paperboard volume increased 5% to 86,000 tons.
Profitability weakened despite the revenue record. Gross profit was $174.7 million versus $199.7 million, earnings before interest and income taxes were $155.5 million versus $185.8 million, and net earnings were $111.5 million versus $137.4 million. Diluted net earnings per share were $3.63 versus $4.23. Adjusted EBITDA was $202.7 million versus $233.3 million. Heavy Materials operating earnings declined 12% to $113.0 million, while Light Materials operating earnings declined 13% to $68.3 million.
The principal pressure points were costs and price realization. Cement operating earnings reflected higher labor, depreciation, purchased raw-material, and freight costs, with average net Cement sales price at $154.58 per ton. Concrete and Aggregates operating earnings declined 47% to $4.2 million amid higher maintenance, diesel, and production costs. Gypsum Wallboard average net sales price declined 10% to $209.37 per MSF, while higher freight costs also weighed on Light Materials earnings. Recycled Paperboard was a relative pricing offset, with average net sales price up 4% to $622.90 per ton.
Capital allocation remained active. The company repurchased 304,881 shares for approximately $62 million during the quarter and 711,381 shares for approximately $146.0 million during the first half. At September 30, cash and cash equivalents were $241.2 million, total debt excluding debt issuance costs was $1.8 billion, net debt was $1.5 billion, and net debt to Adjusted EBITDA was 2.1x. Management also cited continued investment in the Mountain Cement and Duke, Oklahoma Gypsum Wallboard facility modernizations.
The release provided no quantitative forward guidance. Management identified higher interest rates, economic and geopolitical uncertainty, and elevated diesel fuel prices as near-term factors affecting construction activity and costs. The central operating issues entering subsequent quarters are residential construction softness, freight and input-cost pressure, Wallboard pricing, and execution of modernization and enterprise resource planning investments.
Management, verbatim
Eagle’s businesses continued to perform well during the quarter despite a challenging operating environment characterized by elevated diesel fuel prices and higher interest rates driven by ongoing macroeconomic and geopolitical uncertainty.
Michael Haack, President and Chief Executive Officer
While higher interest rates, broader economic uncertainty, and evolving geopolitical conditions may continue to affect construction activity in the near term, we remain focused on the factors within our control.
Michael Haack, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward guidance was not provided.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Non-GAAP earnings per share was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend declaration or payment information was not reported.
- A quarterly tax rate was not reported.
- Prior-quarter comparisons for income-statement and segment metrics were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.