Eagle Materials (NYSE:EXP) reported record first-quarter fiscal 2027 revenue of $651 million, up 3% from a year earlier, as higher cement volumes, record recycled paperboard sales and increased aggregates sales offset weaker wallboard results.
The company generated earnings per share of $3.29 and a gross margin of 24.8%. However, earnings per share declined 13% year over year, which Chief Financial Officer Craig Kesler attributed primarily to elevated freight costs and unexpected downtime at the company’s Mountain Cement facility. Share repurchases reduced Eagle’s fully diluted share count by 5%, partially offsetting the earnings decline.
Heavy Materials Volumes Rise Despite Mountain Cement Downtime
Eagle’s Heavy Materials sector, which includes cement, concrete and aggregates, posted an 8% increase in revenue. Cement and aggregates volumes rose, supported by public infrastructure spending and private nonresidential construction activity, including data center development.
Operating earnings in the segment declined 11%, however, due to higher freight and raw-material costs and an approximately $6 million earnings impact from equipment failure at the Mountain Cement plant. Haack said the facility’s kilns date to the 1960s and that the disruption underscored the need for Eagle’s modernization project at the site.
The company said it was able to use its broader cement network to supply customers during the outage without disrupting sales volumes. The equipment problems had been largely resolved as of late July, Haack said, though the additional cement movements and broadly elevated freight rates affected net cement pricing.
Gross cement pricing rose about 1% year over year, but net cement pricing declined as freight costs more than offset price gains. Kesler said certain markets supported price increases during the spring and early summer, while others did not, reflecting the regional nature of the cement business.
Management said infrastructure and nonresidential construction account for about 80% of Eagle’s Heavy Materials end-market exposure. Customers continue to report multi-year infrastructure project pipelines, the company said, despite questions surrounding future federal infrastructure legislation and state transportation budgets.
Data center activity has also become a growing source of opportunity across Eagle’s footprint. Kesler said the company bid on twice as many data center projects in the first half of calendar 2026 as it did during the same period of 2025. Haack said demand tied to these projects can include soil stabilization, tilt-up construction and foundations, involving a range of customers and cement uses.
Wallboard Results Reflect Housing Weakness and Freight Costs
Revenue in Eagle’s Light Materials sector fell 5% during the quarter. Lower wallboard sales volume and pricing were partially offset by record recycled paperboard sales volume. Segment operating earnings declined 16%, driven by lower wallboard volume and higher freight costs.
Residential construction represents roughly 80% of Eagle’s wallboard end-market exposure. Kesler said housing activity has remained relatively stable despite elevated interest rates and subdued construction levels, citing a continuing structural shortage of homes in the U.S.
Eagle implemented a wallboard price increase effective June 1, a move Kesler described as unusual for the current demand environment but necessary because of higher freight expenses. He said wallboard freight costs increased by $5 per thousand during the quarter and represented the most significant factor affecting sequential net pricing. Wallboard pricing exited June at approximately the quarterly average, according to Kesler.
The company said its costs outside of freight were relatively benign, aided by its access to decades of low-cost natural gypsum supplies. Management also said it has not seen a significant change in synthetic gypsum availability, though freight pressures have increased as synthetic gypsum has moved longer distances to supply wallboard plants.
Modernization Spending and Capital Returns Continue
Eagle is advancing two modernization projects intended to reduce operating costs and improve reliability. The Laramie, Wyoming, cement plant project is expected to lower that facility’s operating costs by 25%. Construction remains on track for completion late this year, with commissioning planned for the first part of next year.
The company’s Duke, Oklahoma, wallboard modernization is expected to reduce operating costs at that facility by 20% and is anticipated to commission in the latter half of 2027. Kesler said the Duke project is expected to be completed in mid-fiscal 2028.
First-quarter operating cash flow increased 13% to $154 million. Capital expenditures totaled $121 million, primarily for the Laramie and Duke projects. Eagle maintained its fiscal 2027 capital-spending outlook of $490 million to $525 million, with spending expected to peak during the year.
The company returned $92 million to shareholders during the quarter through its dividend and the repurchase of approximately 406,000 shares for $84 million. About 2.5 million shares remained available under its current authorization at quarter-end.
At June 30, 2026, Eagle had $234 million in cash, nearly $1 billion in committed liquidity, a net debt-to-capital ratio of 51%, and net debt-to-EBITDA leverage of 2.1 times. Haack said Eagle will continue evaluating organic investments and acquisitions, though potential deals must meet the company’s financial criteria and fit its strategic footprint.
About Eagle Materials (NYSE:EXP)
Eagle Materials Inc (NYSE:EXP) is a Dallas, Texas–based manufacturer of building materials serving construction and heavy industry markets across the United States. The company’s primary products include portland and masonry cements, gypsum wallboard, lightweight aggregate, paperboard packaging, and roofing granules. These product lines support a wide range of end uses—from residential and commercial buildings to infrastructure projects and industrial applications.
Since its spin-off from a major homebuilding company in 2004, Eagle Materials has grown through targeted facility expansions and strategic acquisitions.
