Strong quarterly results lift shares in premarket trading
Eagle Materials Inc. (NYSE:EXP) reported fourth-quarter fiscal 2026 results ahead of Wall Street expectations on Tuesday, helping drive the company’s shares 3.30% higher in premarket trading.
The construction materials producer posted adjusted earnings of $1.91 per share, comfortably above analyst forecasts of $1.60 per share.
Quarterly revenue reached $479.1 million, beating the consensus estimate of $452.66 million and increasing 2% from the same period a year earlier.
Heavy Materials business drives growth
Eagle Materials reported record full-year revenue of $2.3 billion for fiscal 2026, representing year-on-year growth of 2%.
Fourth-quarter net earnings totaled $60.2 million, or $1.91 per diluted share, compared with $66.5 million, or $2.00 per share, in the prior-year quarter. Adjusted EBITDA declined 4% year-on-year to $136.1 million.
Performance during the quarter was led by the Heavy Materials division, where cement revenue, including joint venture operations, rose 15% to $245.7 million.
Cement sales volumes increased 15% to 1.4 million tons, although average net cement pricing declined 2% to $153.99 per ton.
Meanwhile, the Light Materials segment reported a 9% decline in revenue to $214.6 million, reflecting a 4% drop in gypsum wallboard sales volumes and an 8% decrease in average prices.
“Amid geopolitical uncertainty and ongoing fiscal and trade policy disruptions, our combined businesses delivered strong financial, operational, and strategic performance in fiscal 2026,” said Michael Haack, President and CEO.
Company returns capital to shareholders
For fiscal 2026, Eagle Materials generated operating cash flow of $614 million and returned $414 million to shareholders through dividends and share repurchases.
During the fourth quarter, the company repurchased approximately 338,000 shares for $71.5 million.
Eagle Materials finished the fiscal year with net debt of $1.5 billion and a net leverage ratio of 1.9x.