Eagle Materials reported financial results for its second quarter of fiscal 2025, which ended Sept. 30.
The company says it achieved a record revenue of $623.6 million and net earnings of $143.5 million last quarter. These totals reflect a 0.22 percent increase and a 4.67 percent decrease, respectively.
“Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather during the quarter, which affected sales volumes primarily in our cement and concrete and aggregates businesses,” says Michael Haack, president and CEO of Eagle Materials. “We remain optimistic about our near-term and future opportunities and confident in our ability to execute on them.
“The current economic environment is constructive for our businesses,” Haack adds. “Employment is strong, recent inflation data should support a more accommodative monetary environment, spending from the Infrastructure Investment & Jobs Act is still in the beginning phases, and housing supply remains chronically short because of decade-long production deficits.”
Revenue in the company’s heavy materials sector, which includes cement, concrete and aggregates, as well as joint-venture and intersegment revenue, was down 2 percent in the quarter to $418.7 million. Operating earnings in the heavy materials sector dropped 9 percent to $114.9 million.
Eagle Materials attributes both decreases to lower sales volumes that were partially offset by higher prices.
During the quarter, Eagle Materials acquired a small mine near one of its existing sites in Kentucky. The acquisition was completed in August for $24.9 million. This deal affected revenue and operating earnings in its heavy materials sector, according to the company.
More specifically, concrete and aggregate revenues were down 0.26 percent to $65.9 million, reflecting lower sales volumes that were partially offset by higher concrete and aggregate prices. Operating earnings related to concrete and aggregates also declined, falling more than 121 percent for an operating loss of nearly $1 million.
This decrease in concrete and aggregate operating earnings is attributed to lower concrete and aggregate sales volumes and about $700,000 of expenses related to the impact of the step-up in inventory values tied to the acquisition in Kentucky.
Still, Haack is optimistic about the long-term outlook for Eagle Materials.
“We believe our well-positioned balance sheet should give us substantial financial flexibility and support our capital allocation priorities and long-term growth,” Haack says. “Our consistent, disciplined operational and strategic approach should position us to continue to perform well through economic cycles and drive superior value for our shareholders.”
