Eagle Materials Inc. (NYSE:EXP) reported third-quarter fiscal 2026 results on Thursday that missed analyst expectations, as softer conditions in residential construction offset strength in its heavy materials businesses.
The company posted adjusted earnings per share of $3.22 for the quarter ended December 31, 2025, below the consensus forecast of $3.49. Revenue totaled $556 million, coming in just under analysts’ expectations of $557.85 million. Eagle Materials’ shares were little changed in premarket trading following the release.
Overall revenue was broadly flat compared with $558 million in the same quarter last year, while net earnings declined to $102.9 million from $119.6 million a year earlier, reflecting pressure in parts of the portfolio.
“Despite a mixed construction environment, Eagle’s portfolio of businesses continued to perform well during the quarter,” said Michael Haack, President and CEO. “While the residential construction market was challenged, federal, state, and local spending on public infrastructure projects and private non-residential construction remained elevated, supporting strong demand for our Heavy construction products.”
Performance diverged by segment. Cement sales volumes increased 9% year on year, while organic aggregates volumes surged 34%, underscoring solid demand in heavy construction. By contrast, the light materials segment struggled, with gypsum wallboard volumes down 14% to 637 million square feet and average wallboard pricing falling 5% to $225.19 per thousand square feet.
Eagle Materials also took steps to bolster its balance sheet during the quarter, issuing $750 million of 10-year senior notes at an interest rate of 5.00%. The company repurchased around 648,000 shares for $142.6 million and reported a net leverage ratio of 1.8x.
“Our low-cost operations continue to generate strong cashflow that we are investing to advance our operational efficiency and our low-cost position,” Haack added, pointing to ongoing modernisation projects at the group’s cement and gypsum wallboard facilities.