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Mar 31, 2021
Eagle Materials Q4 2021 Earnings Report
Eagle Materials reported record revenue and earnings for Q4 2021, driven by strong performance in both Heavy and Light Materials segments.
Key Takeaways
Eagle Materials Inc. reported record revenue of $343 million for Q4 2021, a 12% increase compared to the prior year. Net earnings were $66 million, down 9% from the previous year, and diluted earnings per share from continuing operations were $1.56, a 7% decrease. The company's performance was affected by a severe winter storm in February 2021, which impacted cement and light materials operating earnings.
Record Q4 revenue of $343 million, up 12% year-over-year.
Net earnings of $66 million, down 9% year-over-year.
Diluted earnings per share from continuing operations of $1.56, down 7% year-over-year.
Cement revenue increased 17% to $171.0 million, while Gypsum Wallboard and Paperboard revenue increased 15% to $176.9 million.
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
Eagle Materials is well-positioned geographically and financially, with ample raw material reserves to capitalize on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near and long-term. The company remains confident in its prospects for continued growth and sustainable value creation for all shareholders.
Positive Outlook
- Strong operating cash flow enabled reduction of leverage to under 1.5 times net debt-to-EBITDA.
- Ample raw material reserves to capitalize on the underlying demand fundamentals.
- Expected to support steady and sustainable construction activity growth over the near and long-term.
- Streamlined business portfolio including the divestiture of its Oil and Gas Proppants business and other non-core assets.
- Reinstatement of quarterly dividend reflects strong operational and financial performance.
Challenges Ahead
- Severe winter storm during February 2021 had a significant impact on Texas and the broader Southern United States.
- Cement facilities in Texas, Missouri and Oklahoma were forced to curtail production during the storm and energy prices spiked.
- Estimated storm's impact on Cement operating earnings was approximately $6 million primarily due to higher costs during the quarter.
- Oklahoma paper mill was forced to curtail production during the week of the storm and also experienced higher energy costs during the shutdown.
- Wallboard shipments were significantly affected by the harsh winter conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income