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Dec 31, 2022

Eagle Materials Q3 2023 Earnings Report

Eagle Materials reported record third quarter results with EPS growth of 26%.

Key Takeaways

Eagle Materials Inc. reported record revenue of $511 million, a 10% increase, and record EPS of $3.20, a 26% increase, for the third quarter of fiscal 2023. The company's gross margins expanded by 110 bps to 31.0%, led by the Gypsum Wallboard business, which saw margins expand by 400 bps.

Record Revenue of $511 million, up 10%.

Record Net Earnings of $117 million, up 14%, and Net Earnings per share of $3.20, up 26%.

Adjusted EBITDA of $199 million, up 14%.

Repurchased 824,000 shares of Eagle’s common stock for $103 million.

Total Revenue
$511M
Previous year: $463M
+10.5%
EPS
$3.2
Previous year: $2.53
+26.5%
Cement Avg Net Price
$134
Previous year: $118
+13.4%
Gypsum Volume (MMSF)
728M
Previous year: 695M
+4.7%
Gypsum Avg Net Price
$239
Previous year: $191
+24.6%
Gross Profit
$159M
Previous year: $139M
+14.6%
Cash and Equivalents
$60.9M
Previous year: $17.4M
+250.4%
Free Cash Flow
$162M
Previous year: $139M
+16.5%
Total Assets
$2.73B
Previous year: $2.56B
+6.6%

Eagle Materials

Eagle Materials

Eagle Materials Revenue by Segment

Forward Guidance

Eagle's heartland geographic footprint is well-positioned for long-term growth, supported by population-growth trends, shortages of residential units, and a multi-year federal highway bill further enhanced by state-level infrastructure spending. In the near term, the strength in private non-residential and infrastructure construction activity is expected to lessen the impact of affordability-driven headwinds in single-family residential construction.

Positive Outlook

  • Population-growth trends.
  • Shortages of residential units.
  • Multi-year federal highway bill.
  • State-level infrastructure spending.
  • Strength in private non-residential construction activity.

Challenges Ahead

  • Affordability-driven headwinds in single-family residential construction.
  • Cyclical and seasonal nature of the Company’s businesses.
  • Fluctuations in public infrastructure expenditures.
  • Adverse weather conditions.
  • Prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control.

Revenue & Expenses

Visualization of income flow from segment revenue to net income