Eagle Materials (EXP) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue was $556 million, with EPS at $3.22 and net earnings of $102.9 million, reflecting solid results despite a mixed market environment and a 14% year-over-year earnings decline.

• Heavy materials (cement, aggregates) saw strong volume and revenue growth, while light materials (wallboard, paperboard) faced volume and price declines.

• Major modernization projects at Mountain Cement (Laramie, WY) and Duke wallboard plants (OK) are progressing, expected to enhance cost structure and returns.

• Shareholder returns neared $150 million in Q3 via dividends and share repurchases, with 648,000–1.4 million shares repurchased during the nine months.

• Strategic focus remains on operational efficiency, safety, and disciplined capital allocation.

Financial highlights

• Revenue was $556 million, nearly flat year-over-year, with gross profit margin at 28.9% and net earnings of $102.9 million.

• EPS was $3.22, down from $3.56 in the prior year, mainly due to lower wallboard sales volume and higher costs.

• Operating cash flow for the first nine months rose 5% to $512 million.

• Adjusted EBITDA for the quarter was $190.1 million, with a margin of approximately 34%.

• Returned nearly $150 million to shareholders in Q3 via dividends and share repurchases.

Outlook and guidance

• Optimism for continued growth in heavy materials, supported by infrastructure and non-residential markets, with cement price increases announced for early 2026.

• Wallboard demand expected to remain soft in the near term due to affordability issues in residential construction.

• Capital spending for FY2026 projected at $430–$450 million, lower than previous forecasts due to timing.

• Ongoing capital investments are expected to strengthen cost structure and competitive positioning.