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Mar 31, 2020

Eagle Materials Q4 2020 Earnings Report

Eagle Materials' Q4 2020 earnings were released, showing record revenue and a significant increase in net earnings per share compared to the prior year.

Key Takeaways

Eagle Materials reported record fourth-quarter revenue of $315.4 million, an 11% increase year-over-year. Net earnings per diluted share were $1.74, a significant improvement from a loss of $2.82 in the prior year. The company's performance was driven by higher sales volume and net sales prices, particularly in the Heavy Materials sector, although expenses related to the Kosmos Acquisition partially offset these gains.

Record fourth-quarter revenue of $315.4 million, up 11% year-over-year.

Net earnings per diluted share of $1.74, compared to a loss of $2.82 in the prior year.

Cement sales volume increased by 25% to a record 1.2 million tons.

The Kosmos Cement Business contributed $7.9 million to fourth-quarter revenue.

Total Revenue
$315M
Previous year: $285M
+10.8%
EPS
$1.28
Previous year: $0.87
+47.1%
Cement Avg Net Price
$111
Previous year: $109
+1.8%
Gypsum Volume (MMSF)
684M
Gypsum Avg Net Price
$147
Previous year: $156
-6.2%
Gross Profit
$63.9M
Previous year: $56.6M
+13.0%
Cash and Equivalents
$119M
Previous year: $8.6M
+1279.5%
Free Cash Flow
$30.6M
Previous year: $13.8M
+122.6%
Total Assets
$2.96B
Previous year: $2.17B
+36.5%

Eagle Materials

Eagle Materials

Eagle Materials Revenue by Segment

Forward Guidance

Given the risks posed by the COVID-19 pandemic and its possible future effects on our business, we are managing our balance sheet and cash flow for stability today and in the future.

Positive Outlook

  • Limiting capital spending to critical projects only.
  • Managing inventory levels to improve working capital.
  • Suspending share repurchases.
  • Suspending future dividends to maximize free cashflow.
  • Sale of our concrete and aggregates business in Northern California.

Challenges Ahead

  • Risks posed by the COVID-19 pandemic.
  • Possible future effects on our business.
  • Managing our balance sheet and cash flow for stability today and in the future.
  • Market conditions in Oil and Gas Proppants segment deteriorated in the latter part of March and into April
  • Planned Separation of Heavy Materials and Light Materials Businesses timing is uncertain

Revenue & Expenses

Visualization of income flow from segment revenue to net income