Eagle Materials Q1 FY2027: Record Revenue but Earnings Dip 17% on Cost Pressures
EXP sits 22% above its 52-week low of $171.99 on elevated volume (2.4× avg).
Summary
Eagle Materials reported record Q1 revenue of $651M but a 17% drop in net earnings to $102.1M, as higher costs and lower wallboard pricing offset volume gains. Heavy capex and buybacks continued.
Key Events · Earnings and Guidance · EXP
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Record Revenue, Lower Earnings
Q1 FY2027 revenue reached a record $651.0M, up 3% YoY, but net earnings fell 17% to $102.1M. Diluted EPS was $3.29 vs. $3.76 a year ago.
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Margin Compression
Gross profit declined 13% to $161.2M, with gross margin contracting to 25% from 29%. Higher operating costs (+$25.7M) and lower wallboard prices (-$3.5M) were the primary drivers.
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Segment Weakness in Light Materials
Gypsum Wallboard operating earnings fell 21% to $73.4M on a 10% drop in average net sales price and 2% lower volumes. Cement operating earnings declined 9% to $73.6M despite 8% volume growth, due to higher maintenance and downtime costs.
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Heavy Capital Investment
Capital expenditures surged 59% to $120.8M, focused on modernizing the Mountain Cement facility in Wyoming and a gypsum wallboard plant in Oklahoma. FY2027 capex guidance is $490-$525M.
Analysis · EXP · Manufacturing
Eagle Materials posted record quarterly revenue of $651 million, but net earnings fell 17% to $102.1 million as higher operating costs and lower wallboard prices compressed margins. Cement volumes rose 8%, yet operating earnings in that segment declined 9% due to maintenance and downtime costs. Gypsum Wallboard saw a 21% drop in operating earnings on a 10% decline in net sales price. The company continues to invest heavily in plant modernizations, with capex up 59% year-over-year. Share repurchases remained aggressive at $83.8 million. The results show a company navigating cost inflation and mixed end-market demand, with infrastructure spending providing a tailwind but residential construction still soft.
At the time of this filing, EXP was trading at $209.91 on NYSE in the Manufacturing sector, with a market capitalization of approximately $6.5B. The 52-week trading range was $171.99 to $245.53. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.