Eagle Materials Announces Fourth Quarter and Fiscal Year 2024 Results

Rhea-AI Summary

Eagle Materials (NYSE: EXP) announced record financial results for fiscal year 2024, ending March 31, 2024. The company achieved record revenue of $2.3 billion (+5%), net earnings of $477.6 million (+3%), and diluted EPS of $13.61 (+9%). Adjusted EBITDA rose 7% to $834.5 million. The fourth quarter saw a modest revenue increase (+1%) to $476.7 million, but net earnings and diluted EPS declined by 23% and 20%, respectively. The company repurchased 1.9 million shares for $343 million over the year. Fiscal 2024 revenue in the Heavy Materials sector grew 12% to $1.5 billion, with operating earnings up 18%. Light Materials sector revenue fell 4% to $941.4 million, with operating earnings down 3%. Notable initiatives include a $430 million investment in Wyoming and a new slag-cement facility in Texas to bolster growth.

Positive

• Record revenue of $2.3 billion for fiscal year 2024, up 5%.
• Record net earnings of $477.6 million, up 3%.
• Record diluted EPS of $13.61, up 9%.
• Adjusted EBITDA of $834.5 million, up 7%.
• Gross margins expanded by 50 bps to 30.3%.
• Repurchased 1.9 million shares for $343 million.
• Heavy Materials sector revenue increased by 12% to $1.5 billion.
• Cement revenue, including Joint Venture and intersegment revenue, was up 14% to $1.2 billion.
• Cement operating earnings increased by 21% to $338.3 million.
• Operating cash flow of $564 million.

Negative

• Fourth quarter net earnings declined by 23% to $77.1 million.
• Fourth quarter diluted EPS decreased by 20% to $2.24.
• Fourth quarter adjusted EBITDA fell by 10% to $154.4 million.
• Light Materials sector revenue decreased by 4% to $941.4 million.
• Light Materials operating earnings down by 3% for fiscal 2024.
• Fourth quarter Light Materials operating earnings fell by 7%.
• Higher operating costs and lower organic sales volume in the fourth quarter.
• Maintenance costs increased by approximately $7 million in the fourth quarter.
• Concrete and Aggregates operating earnings decreased by 32% for fiscal 2024.
• Fourth quarter Concrete and Aggregates revenue decreased by 8%.

Insights

Financial Analyst

The financial performance of Eagle Materials in fiscal year 2024 shows a mixed picture. On the one hand, the company achieved record annual revenue of $2.3 billion, representing a 5% increase from the previous year. This is a positive sign, suggesting effective strategies in driving sales growth. Additionally, the record net earnings of $477.6 million favorably highlight the company's operational efficiency. However, the 23% decline in net earnings for the fourth quarter raises some concerns. This drop is attributed to adverse weather conditions and increased maintenance costs. Despite these short-term challenges, the company's strong annual performance underscores resilience and effective long-term planning.

The substantial share repurchase activity, including 1.9 million shares for $343 million, indicates a robust capital allocation strategy aimed at enhancing shareholder value. This move is typically viewed favorably by investors as it signals confidence in the company's future growth prospects. However, it's worth noting the company's debt stands at $1.1 billion, although mitigated by a low net leverage ratio of 1.3x, which indicates manageable levels of debt relative to earnings.

Market Research Analyst

Eagle Materials' focus on the Heavy Materials segment, particularly cement, is critical for understanding market dynamics. Revenue for this segment increased by 12%, reaching $1.5 billion. Notably, higher net sales prices and increased sales volume contributed to this growth. The acquisition of the Stockton Import Terminal added $39 million to the annual revenue. This strategic acquisition is a clear indicator of the company's commitment to expanding its market footprint and enhancing production capabilities.

The company's strategic expansion in blended cement products and its environmental initiatives, such as the increase in the production and sale of Portland Limestone Cement, align with broader industry trends toward sustainability. Additionally, plans for the startup of a slag-cement facility in Houston and the modernization of the Mountain Cement facility in Wyoming further highlight Eagle Materials' proactive approach to growth and market adaptation.

Environmental Analyst

Eagle Materials' emphasis on environmental stewardship and safety is noteworthy. The company's increased production of blended cement products, such as Portland Limestone Cement, represents a strategic move towards reducing carbon intensity—a significant factor given the industry's environmental impact. Additionally, the forthcoming slag-cement facility in Houston and the modernization of the Mountain Cement facility in Wyoming are likely to reduce manufacturing costs and carbon intensity, aligning with global trends toward sustainable industrial practices.

The enhanced disclosures in their Corporate Sustainability Report and milestones in employee health and safety underscore a commitment to Environmental, Social and Governance (ESG) principles. For investors, these efforts not only mitigate environmental risks but also potentially enhance the company’s reputation and comply with increasing regulatory requirements.

Achieved Record Annual Revenue and Profitability

Announced Heavy Materials Organic Growth Initiatives

Well-Positioned Capital Structure Supports Growth and Disciplined Capital Allocation

DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for fiscal year 2024 and the fiscal fourth quarter ended March 31, 2024. Notable items for the fiscal year and quarter are highlighted below. (Unless otherwise noted, all comparisons are with the prior fiscal year or prior year’s fiscal fourth quarter, as applicable.)

Full Year Fiscal 2024 Highlights

• Record Revenue of $2.3 billion, up 5%
• Record Net Earnings of $477.6 million, up 3%
• Record diluted earnings per share of $13.61, up 9%
• Adjusted EBITDA of $834.5 million, up 7%
  • Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6
• Repurchased 1.9 million shares of Eagle’s common stock for $343 million

Fourth Quarter Fiscal 2024 Highlights

• Revenue of $476.7 million, up 1%
• Net Earnings of $77.1 million, down 23%
• Diluted earnings per share of $2.24, down 20%
• Adjusted EBITDA of $154.4 million, down 10%
  • Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6
• Repurchased 388,534 shares of Eagle’s common stock for $94 million

Commenting on the annual results, Michael Haack, President and CEO, said, “We are pleased to announce another year of superior performance at Eagle. We achieved record financial results and made strong progress on our strategic priorities. During the fiscal year, we expanded gross margins by 50 bps to 30.3%, reported record earnings per share of $13.61, generated operating cash flow of $564 million, and repurchased 1.9 million shares of our common stock for $343 million. We also recently initiated several growth investments in our Heavy Materials business which we expect to be in line with our capital return standards and to strengthen our low-cost producer position. We ended the year with debt of $1.1 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.3x, giving us substantial financial flexibility that supports disciplined capital allocation and sustainable long-term growth (Net debt is a non-GAAP financial measure calculated by subtracting cash and cash equivalents from debt as described in Attachment 7). Our results and financial position reflect the talent and dedication of our employees and our culture of continuous improvement.”

“Employee health and safety and environmental stewardship remain paramount objectives, and we achieved milestones in these areas over the year. Our safety performance continued to outpace the industry average, and we had a 10% increase in hazard observation reporting, which is the most useful leading indicator to prevent incidents. We also increased the production and sale of blended cement products, including Portland Limestone Cement, to 75% of our total manufactured product sales, advancing our efforts to reduce the carbon intensity of our cement.”

“In February 2024, we meaningfully enhanced our disclosures related to all our environmental, health and safety initiatives. Our updated and expanded Corporate Sustainability Report is available on our website.”

“Recently, we announced the planned start-up this summer of a slag-cement facility in Houston which will have a manufacturing capacity of 500,000 tons to meet increasing demand in the fast-growing Texas market. The slag-cement facility will be operated through Texas Lehigh Cement Company, our 50/50 joint venture with Heidelberg Materials. And, last week we announced a $430 million investment to modernize and expand our Mountain Cement facility in Wyoming, which we expect will add 500,000 tons of production, lower the plant’s manufacturing costs by approximately 25%, and reduce the carbon intensity of the facility. The project is scheduled to be completed in the second half of 2026.”

Mr. Haack concluded, “While in the fourth quarter both Cement and Concrete and Aggregates results were affected by adverse weather conditions and Cement results by increased maintenance costs, we expect underlying fundamentals to remain solid in our markets during fiscal 2025. Large-scale infrastructure spending and domestic manufacturing projects should support strong demand for cement. We also anticipate increased residential construction activity as mortgage rates stabilize and the well-documented housing supply shortage continues. We remain positioned to capitalize on these market dynamics given our geographical footprint across the U.S. heartland and fast-growing Sun Belt region. Our financial strength and flexibility are the key factors that should enable us to drive shareholder returns through shifting macroeconomic cycles.”

Capital Allocation Priorities

Eagle remains dedicated to a disciplined capital allocation process to enhance shareholder value. Our allocation priorities remain unchanged: 1. Investing in growth opportunities that are consistent with our strategic focus and meet our strict financial return standards; 2. Operating capital investments to maintain and strengthen our low-cost producer position; and 3. Returning excess cash to shareholders, primarily through our share repurchase program.

Over the past five fiscal years, we have invested $913 million in acquisitions, $486 million in organic capital expenditures, and $1.8 billion in share repurchases and dividends.

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Fiscal 2024 revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was $1.5 billion, a 12% increase. Heavy Materials annual operating earnings increased 18% to $350.8 million, primarily because of higher Cement net sales prices.

Fiscal 2024 Cement revenue, including Joint Venture and intersegment revenue, was up 14% to $1.2 billion, and Cement operating earnings increased 21% to $338.3 million. These increases reflect higher Cement sales volume and net sales prices as well as the contribution of approximately $39 million of revenue from the Stockton Import Terminal acquired in the first quarter of the fiscal year.

The average annual net Cement sales price for the year increased 12% to $150.99 per ton. Cement sales volume for the year was up 2% to 7.3 million tons. Excluding the sales volume from the acquired Stockton Import Terminal, Cement sales volume declined 2%.

Fourth quarter Cement revenue, including Joint Venture and intersegment revenue, was up 6% to $227.6 million, reflecting higher Cement sales prices as well as the contribution of approximately $9 million of revenue from the Stockton Import Terminal acquired in the first quarter of the fiscal year. Operating earnings declined 18% to $37.3 million, reflecting lower organic sales volume and higher operating costs, namely approximately $7 million in maintenance costs, partially offset by higher net sales prices. The increase in maintenance costs was a result of our proactive approach to maintenance during a seasonally slower quarter. The average net Cement sales price for the quarter increased 5% to $154.59 per ton. Cement sales volume for the quarter was up 2% to 1.3 million tons. Excluding the sales volume from the acquired Stockton Import Terminal, Cement sales volume declined 3%, primarily as a result of adverse weather conditions, particularly in January.

Fiscal 2024 revenue from Concrete and Aggregates increased slightly to $240.0 million, reflecting higher Concrete sales prices and Aggregates sales volume as well as the contribution of approximately $7 million from the acquired aggregates business in Kentucky. Concrete and Aggregates reported fiscal 2024 operating earnings of $12.4 million, down 32%, because of lower Concrete sales volume and higher input costs primarily related to concrete raw materials.

Fourth quarter Concrete and Aggregates revenue was $48.7 million, a decrease of 8%, due to lower Concrete sales volume. Revenue included the contribution of approximately $1 million from the acquired aggregates business in Kentucky. The fourth quarter operating loss was $1.0 million, reflecting lower Concrete sales volume due to difficult weather conditions during the quarter, most notably in our Austin and Kansas City concrete markets.

Light Materials: Gypsum Wallboard and Paperboard

Fiscal 2024 revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 4% to $941.4 million, reflecting lower Wallboard sales volume and Paperboard pricing partially offset by record Paperboard sales volume. Gypsum Wallboard annual sales volume was 3.0 billion square feet (BSF), down 3% reflecting a modest slowdown in residential construction activity, and the average Gypsum Wallboard net sales price was up slightly to $232.75 per MSF. Paperboard annual sales volume was up 2% to 333,000 tons.

Fiscal 2024 Light Materials operating earnings were $366.2 million, a decrease of 3%, driven principally by lower Wallboard sales volume.

Fourth quarter Light Materials revenue declined 2% to $238.6 million, reflecting lower Wallboard pricing and sales volume. Gypsum Wallboard sales volume decreased 1% to 747 million square feet (MMSF), while the average Gypsum Wallboard net sales price declined 3% to $232.62 per MSF. Paperboard sales volume for the quarter was up 8% to 86,000 tons. The average Paperboard net sales price for the fourth quarter was $567.55 per ton, up 3%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Fourth quarter operating earnings in the sector were $92.2 million, a decrease of 7%, reflecting lower Wallboard sales volume and pricing.

Details of Financial Results

We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use the equity method of accounting for our 50% interest in the Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenue and operating earnings, which is consistent with the way management organizes the segments within Eagle for making operating decisions and assessing performance.

In addition, for segment reporting purposes, we report intersegment revenue as a part of a segment’s total revenue. Intersegment sales are eliminated on the Consolidated Statement of Earnings. Refer to Attachment 3 for a reconciliation of these amounts.

About Eagle Materials Inc.

Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.

Eagle’s senior management will conduct a conference call to discuss the financial results, forward looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Tuesday, May 21, 2024. The conference call will be webcast on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the site for one year.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Company’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside the Company’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; fluctuations in public infrastructure expenditures; adverse weather conditions; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; inability to timely execute announced capacity expansions; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; severe weather conditions (such as winter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s result of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent quarterly and annual reports upon filing. These reports are filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.

Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenue and Earnings by Lines of Business
Attachment 3 Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue
Attachment 4 Consolidated Balance Sheets
Attachment 5 Depreciation, Depletion and Amortization by Lines of Business
Attachment 6 Reconciliation of Non-GAAP Financial Measures
Attachment 7 Reconciliation of Net Debt to Adjusted EBITDA

Attachment 1
Eagle Materials Inc.
Consolidated Statement of Earnings
(dollars in thousands, except per share data)
(unaudited)
	Quarter Ended March 31,								Fiscal Year Ended March 31,
	2024				2023				2024				2023
Revenue	$	476,707			$	470,127			$	2,259,297			$	2,148,069
Cost of Goods Sold		357,027				334,736				1,573,976				1,508,803
Gross Profit		119,680				135,391				685,321				639,266
Equity in Earnings of Unconsolidated JV		8,791				11,843				31,581				35,474
Corporate General and Administrative Expenses		(17,339	)			(15,686	)			(59,795	)			(53,630	)
Other Non-Operating Income		250				1,743				3,087				2,654
Earnings Before Interest and Income Taxes		111,382				133,291				660,194				623,764
Interest Expense, net		(9,686	)			(10,329	)			(42,257	)			(35,171	)
Earnings Before Income Taxes		101,696				122,962				617,937				588,593
Income Tax Expense		(24,597	)			(22,606	)			(140,298	)			(127,053	)
Net Earnings	$	77,099			$	100,356			$	477,639			$	461,540
NET EARNINGS PER SHARE
Basic	$	2.26			$	2.81			$	13.72			$	12.54
Diluted	$	2.24			$	2.79			$	13.61			$	12.46

AVERAGE SHARES OUTSTANDING
Basic	34,066,929		35,724,101		34,811,560		36,798,354
Diluted	34,391,722		36,012,770		35,097,871		37,052,942

Attachment 2
Eagle Materials Inc.
Revenue and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
	Quarter Ended March 31,								Fiscal Year Ended March 31,
	2024				2023				2024				2023
Revenue*
Heavy Materials:
Cement (Wholly Owned)	$	189,386			$	172,784			$	1,077,918			$	927,637
Concrete and Aggregates		48,721				53,109				240,012				239,516
		238,107				225,893				1,317,930				1,167,153
Light Materials:
Gypsum Wallboard		210,231				219,490				839,530				872,471
Recycled Paperboard		28,369				24,744				101,837				108,445
		238,600				244,234				941,367				980,916
Total Revenue	$	476,707			$	470,127			$	2,259,297			$	2,148,069
Segment Operating Earnings
Heavy Materials:
Cement (Wholly Owned)	$	28,502			$	33,477			$	306,768			$	243,288
Cement (Joint Venture)		8,791				11,843				31,581				35,474
Concrete and Aggregates		(1,033	)			2,559				12,401				18,259
		36,260				47,879				350,750				297,021
Light Materials:
Gypsum Wallboard		82,911				91,335				334,536				352,499
Recycled Paperboard		9,300				8,020				31,616				25,220
		92,211				99,355				366,152				377,719
Sub-total		128,471				147,234				716,902				674,740
Corporate General and Administrative Expense		(17,339	)			(15,686	)			(59,795	)			(53,630	)
Other Non-Operating Income		250				1,743				3,087				2,654
Earnings Before Interest and Income Taxes	$	111,382			$	133,291			$	660,194			$	623,764
*Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

Attachment 3
Eagle Materials Inc.
Sales Volume, Net Sales Prices and Intersegment and Cement Revenue
(unaudited)
	Sales Volume
	Quarter Ended March 31,						Fiscal Year Ended March 31,
	2024		2023		Change		2024		2023		Change
Cement (M Tons):
Wholly Owned	1,140		1,086		+5%		6,610		6,399		+3%
Joint Venture	183		210		-13%		679		734		-7%
	1,323		1,296		+2%		7,289		7,133		+2%
Concrete (M Cubic Yards)	273		335		-19%		1,328		1,545		-14%
Aggregates (M Tons)	702		576		+22%		4,064		2,909		+40%
Gypsum Wallboard (MMSFs)	747		756		-1%		2,965		3,065		-3%
Recycled Paperboard (M Tons):
Internal	35		37		-5%		145		152		-5%
External	51		43		+19%		188		174		+8%
	86		80		+8%		333		326		+2%

	Average Net Sales Price*
	Quarter Ended March 31,								Fiscal Year Ended March 31,
	2024			2023			Change		2024			2023			Change
Cement (Ton)	$	154.59		$	147.50		+5%		$	150.99		$	134.36		+12%
Concrete (Cubic Yard)	$	148.60		$	136.51		+9%		$	145.98		$	133.34		+9%
Aggregates (Ton)	$	11.53		$	13.07		-12%		$	11.26		$	11.53		-2%
Gypsum Wallboard (MSF)	$	232.62		$	239.39		-3%		$	232.75		$	232.31		0%
Recycled Paperboard (Ton)	$	567.55		$	550.52		+3%		$	551.72		$	590.67		-7%
*Net of freight and delivery costs billed to customers

	Intersegment and Cement Revenue (dollars in thousands)
	Quarter Ended March 31,						Fiscal Year Ended March 31,
	2024			2023			2024			2023
Intersegment Revenue:
Cement	$	8,171		$	6,544		$	35,363		$	32,915
Concrete and Aggregates		2,705			-			12,940			-
Recycled Paperboard		20,422			21,016			82,351			92,835
	$	31,298		$	27,560		$	130,654		$	125,750
Cement Revenue:
Wholly Owned	$	189,386		$	172,784		$	1,077,918		$	927,637
Joint Venture		30,023			34,453			112,736			113,518
	$	219,409		$	207,237		$	1,190,654		$	1,041,155

Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
	March 31,
	2024				2023
ASSETS
Current Assets –
Cash and Cash Equivalents	$	34,925			$	15,242
Accounts and Notes Receivable, net		202,985				195,052
Inventories		373,923				291,882
Federal Income Tax Receivable		9,910				16,267
Prepaid and Other Assets		5,950				3,060
Total Current Assets		627,693				521,503
Property, Plant and Equipment, net		1,676,217				1,662,061
Investments in Joint Venture		113,478				89,111
Operating Lease Right-of-Use Assets		19,373				20,759
Notes Receivable		-				7,382
Goodwill and Intangibles		486,117				466,043
Other Assets		24,141				14,143
	$	2,947,019			$	2,781,002
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities –
Accounts Payable	$	127,183			$	110,408
Accrued Liabilities		94,327				86,472
Current Portion of Long-Term Debt		10,000				10,000
Operating Lease Liabilities		7,899				6,009
Total Current Liabilities		239,409				212,889
Long-Term Liabilities		70,979				66,543
Bank Credit Facility		170,000				157,000
Bank Term Loan		172,500				182,500
2.500% Senior Unsecured Notes due 2031		740,799				739,532
Deferred Income Taxes		244,797				236,844
Stockholders’ Equity –
Preferred Stock, Par Value $0.01; Authorized 5,000,000
Shares; None Issued		-				-
Common Stock, Par Value $0.01; Authorized 100,000,000 Shares;
Issued and Outstanding 34,143,945 and 35,768,376 Shares, respectively.		341				358
Capital in Excess of Par Value		-				-
Accumulated Other Comprehensive Losses		(3,373	)			(3,547	)
Retained Earnings		1,311,567				1,188,883
Total Stockholders’ Equity		1,308,535				1,185,694
	$	2,947,019			$	2,781,002

Attachment 5
Eagle Materials Inc.
Depreciation, Depletion and Amortization by Lines of Business
(dollars in thousands)
(unaudited)
The following table presents depreciation, depletion and amortization by lines of business for the quarters and fiscal years ended March 31, 2024 and 2023:
	Depreciation, Depletion and Amortization
	Quarter Ended March 31,						Fiscal Year Ended March 31,
	2024			2023			2024			2023
Cement	$	22,758		$	20,750		$	89,138		$	81,643
Concrete and Aggregates		4,877			4,459			19,728			17,413
Gypsum Wallboard		6,418			5,205			23,038			21,744
Recycled Paperboard		3,690			3,745			14,811			14,942
Corporate and Other		742			706			3,117			2,812
	$	38,485		$	34,865		$	149,832		$	138,554

Attachment 6
Eagle Materials Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited)
(dollars in thousands)
EBITDA and Adjusted EBITDA
We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide additional measures of operating performance and allow for more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that further excludes the impact from non-routine items and stock-based compensation. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance or liquidity in accordance with GAAP. The following shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters and fiscal years ended March 31, 2024 and 2023:
	Quarter Ended March 31,					Fiscal Year Ended March 31,
	2024		2023			2024		2023
Net Earnings, as reported	$	77,099	$	100,356		$	477,639	$	461,540
Income Tax Expense		24,597		22,606			140,298		127,053
Interest Expense		9,686		10,329			42,257		35,171
Depreciation, Depletion and Amortization		38,485		34,865			149,832		138,554
EBITDA	$	149,867	$	168,156		$	810,026	$	762,318
Purchase accounting 1		-		-			4,568		2,067
Stock-based Compensation		4,544		3,519			19,900		17,155
Adjusted EBITDA	$	154,411	$	171,675		$	834,494	$	781,540
1 Represents the impact of purchase accounting on inventory costs and related business development costs

Attachment 7
Eagle Materials Inc.
Reconciliation of Net Debt to Adjusted EBITDA
(unaudited)
(dollars in thousands)
GAAP does not define “Net Debt” and it should not be considered as an alternative to debt as defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses “Net Debt to Adjusted EBITDA,” which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months, as an alternative metric to assist it in understanding its leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.
	Fiscal Year Ended March 31,
	2024		2023
Total debt, excluding debt issuance costs	$	1,102,500	$	1,099,500
Cash and cash equivalents		34,925		15,242
Net Debt	$	1,067,575	$	1,084,258
Adjusted EBITDA		834,494		781,540
Net Debt to Adjusted EBITDA	1.3x		1.4x

 

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For additional information, contact at 214-432-2000.



Michael R. Haack

President and Chief Executive Officer

D. Craig Kesler

Executive Vice President and Chief Financial Officer

Alex Haddock

Vice President, Investor Relations, Strategy and Corporate Development

Source: Eagle Materials Inc.

FAQ

What were Eagle Materials' fiscal year 2024 financial results?

Eagle Materials reported record revenue of $2.3 billion, net earnings of $477.6 million, and diluted EPS of $13.61 for fiscal year 2024.

How did Eagle Materials perform in the fourth quarter of fiscal 2024?

In the fourth quarter, Eagle Materials' revenue increased by 1% to $476.7 million, but net earnings declined by 23% to $77.1 million, and diluted EPS decreased by 20% to $2.24.

What was Eagle Materials' adjusted EBITDA for fiscal year 2024?

Eagle Materials' adjusted EBITDA for fiscal year 2024 was $834.5 million, a 7% increase from the previous year.

How much did Eagle Materials spend on share repurchases in fiscal year 2024?

Eagle Materials repurchased 1.9 million shares for $343 million in fiscal year 2024.

What were the financial results of Eagle Materials' Heavy Materials sector in fiscal year 2024?

The Heavy Materials sector reported revenue of $1.5 billion, up 12%, with operating earnings increasing by 18% to $350.8 million.

How did the Light Materials sector perform in fiscal year 2024?

The Light Materials sector saw a 4% decrease in revenue to $941.4 million and a 3% decline in operating earnings to $366.2 million.

What initiatives did Eagle Materials announce recently?

Eagle Materials announced a $430 million investment to expand its Mountain Cement facility in Wyoming and the start-up of a slag-cement facility in Texas.

What were Eagle Materials' gross margins in fiscal year 2024?

Eagle Materials expanded its gross margins by 50 basis points to 30.3% in fiscal year 2024.

How did adverse weather conditions affect Eagle Materials in the fourth quarter?

Adverse weather conditions negatively impacted both Cement and Concrete and Aggregates results in the fourth quarter, contributing to a decline in net earnings and diluted EPS.

What was the fiscal year 2024 revenue and operating earnings for Cement at Eagle Materials?

Cement revenue, including Joint Venture and intersegment revenue, was up 14% to $1.2 billion, with operating earnings increasing by 21% to $338.3 million.