Eagle Materials Inc. (NYSE: EXP) has reported its financial results for the third quarter of fiscal 2026, ending on December 31, 2025. The company's revenue for this period was $556.0 million, with net earnings reaching $102.9 million and net earnings per share at $3.22. Adjusted EBITDA stood at $190.1 million, with the company repurchasing approximately 648,000 shares of its common stock for $142.6 million.
In the heavy materials sector, which includes cement, concrete, and aggregates, as well as joint venture and intersegment cement revenue, revenue was up 11% to $390.2 million. Cement revenue, including joint venture and intersegment revenue, saw a 9% increase to $321.2 million, while operating earnings were up 5% to $91.3 million. Cement sales volume increased by 9% to 1.9 million tons, contributing to these positive results.
In contrast, the light materials sector, encompassing gypsum wallboard and recycled paperboard, experienced a 16% decrease in revenue to $203.5 million. Gypsum wallboard sales volume decreased by 14% to 637 million square feet, with the average net sales price declining by 5% to $225.19 per MSF. Similarly, paperboard sales volume was down 10% to 81,000 tons, with the average net sales price at $588.77 per ton, a 6% decrease.
The company's president and CEO, Michael Haack, highlighted the challenges in the residential construction market but noted the strong demand for heavy construction products due to elevated federal, state, and local spending on public infrastructure projects and private non-residential construction. He emphasized the company's strengthened financial position, including the issuance of $750 million of 10-year senior notes and the repayment of its bank credit facility. The quarter ended with a net debt of $1.4 billion and a net leverage ratio of 1.8x.
Additionally, Haack expressed confidence in the company's market position, capital structure, and operating discipline, citing ongoing projects to modernize its cement and gypsum wallboard plants in Wyoming and Oklahoma. These investments aim to enhance operational efficiency and lower production costs, positioning the company for long-term success.
Eagle Materials Inc. remains a leading U.S. manufacturer of heavy construction products and light building materials, operating more than 70 facilities across 21 states. As a result of these announcements, the company's shares have moved 0.46% on the market, and are now trading at a price of $231.83. If you want to know more, read the company's complete 8-K report here.
