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Sep 30, 2023
Eagle Materials Q2 2024 Earnings Report
Eagle Materials reported record results with a 15% increase in EPS.
Key Takeaways
Eagle Materials Inc. reported record second quarter results for fiscal 2024. Revenue reached a record $622.2 million, up 3%, and net earnings also hit a record of $150.6 million, up 8%. EPS grew by 15% to $4.26. Market conditions for construction materials remained resilient, offsetting higher interest rates.
Record Revenue of $622.2 million, up 3%.
Record Net Earnings of $150.6 million, up 8%.
Record Net Earnings per diluted share of $4.26, up 15%.
Gross margins expanded by 150 bps to 33.6%.
Eagle Materials
Eagle Materials
Eagle Materials Revenue by Segment
Revenue by Segment
Cement Revenue
CapyFin.comConcrete & Aggregates Revenue
CapyFin.comGypsum Wallboard Revenue
CapyFin.comRecycled Paperboard Revenue
CapyFin.com Forward Guidance
The company expects to be well-positioned for the second half of fiscal 2024, despite potential impacts from increased interest rates on residential construction.
Positive Outlook
- Demand remained strong in Heavy Materials business.
- Implemented a second round of cement price increases in early July across half our markets.
- Announced the next round of cement price increases for early January 2024.
- Backlog of housing construction supported resilient wallboard shipments and orders.
- Portfolio of businesses will remain well-positioned for the second half of fiscal 2024.
Challenges Ahead
- Significant increase in interest rates may have an impact on residential construction activity in the future.
- Cement sales volume decreased 1% to 2.1 million tons.
- Excluding the recently acquired Stockton Terminal, Cement sales volume declined 5%, because of wet weather in several markets and extreme heat in our southern markets throughout the quarter.
- Concrete and Aggregates revenue decreased 5% to $66.1 million, reflecting lower Concrete sales volume partially offset by higher Concrete pricing.
- Gypsum Wallboard sales volume declined 6% to 733 million square feet (MMSF).
Revenue & Expenses
Visualization of income flow from segment revenue to net income