Eagle Materials 2026 Q1 Earnings Revenue Up 4.3% Amid Net Income Decline

Eagle Materials (EXP) reported its fiscal 2026 Q1 earnings on Jul 29th, 2025. The company experienced a 4.3% increase in revenue, amounting to $634.69 million, compared to the previous year. Despite this, the earnings per share (EPS) and net income fell short of expectations, with EPS declining by 4.8% to $3.78 and net income dropping by 7.8% to $123.36 million. The company maintained its guidance, focusing on long-term growth opportunities and strategic execution. Eagle Materials' management remains confident in their positioning to leverage infrastructure needs and housing market recovery.

Revenue

Eagle Materials saw its total revenue rise by 4.3% in 2026 Q1, reaching $634.69 million from $608.69 million in 2025 Q1. The Cement segment contributed $310.33 million, showcasing its continued demand. Concrete and Aggregates followed with $73.72 million, while Gypsum Wallboard brought in $221.52 million. Recycled Paperboard rounded out the segments with $29.13 million, collectively driving the overall revenue increase.

Earnings/Net Income

The company's EPS declined 4.8% to $3.78 in 2026 Q1 from $3.97 in 2025 Q1, with net income falling 7.8% to $123.36 million. The EPS figures indicate challenges in maintaining profitability.

Price Action

The stock price of Eagle Materials edged down 1.56% during the latest trading day, climbed 4.56% during the most recent full trading week, and jumped 12.11% month-to-date.

Post Earnings Price Action Review

The strategy of purchasing Eagle Materials shares after a quarterly revenue increase on the earnings release date and holding for 30 days has not yielded returns over the past three years. The strategy recorded a compound annual growth rate (CAGR) of 0.00%, with an excess return of -0.97%, underperforming the benchmark by 0.97%. Despite this underperformance, the strategy noted a maximum drawdown of 0.00% and volatility of 0.00%, indicating a risk-free but low-return approach. This suggests a need for reevaluation of the strategy to enhance its effectiveness in generating returns.

CEO Commentary

Eagle had a solid start to fiscal 2026, achieving record revenue of $634.7 million and EPS of $3.76, despite facing macroeconomic and policy uncertainties and adverse weather conditions. Our businesses performed well, and we repurchased approximately 358,000 shares for $78.6 million, maintaining a net leverage ratio of 1.6x, which supports our financial flexibility. We are positioned for long-term growth, benefiting from the nation’s aging infrastructure needs. While the housing market faces challenges, our geographic footprint positions us well for recovery. We continue to invest in our assets, with ongoing projects at our Mountain Cement and Duke Gypsum Wallboard plants.

Guidance

We expect to leverage our strong balance sheet and significant cash flow generation to enhance shareholder value. Our modernization projects remain on-time and on-budget, and we anticipate that our disciplined operational and strategic execution will enable us to capitalize on long-term growth opportunities. Despite current market challenges, we believe we will be well-positioned as the housing market recovers.

Additional News

Eagle Materials announced significant plans to modernize and expand its Gypsum Wallboard plant in Oklahoma, investing $330 million to increase capacity by 25%. This initiative is expected to enhance operational efficiency and reduce costs, leveraging nearby natural gypsum reserves. Additionally, Eagle Materials declared a quarterly dividend and appointed David Rush to its Board of Directors, signaling strategic governance and commitment to shareholder returns. The company remains focused on disciplined capital allocation and continues to explore growth opportunities in line with its strategic priorities.