Eagle Materials Posts Record $652.7 Million Revenue as Cement and Wallboard Earnings Shrink
Eagle Materials posted record quarterly revenue of $652.7 million but saw operating earnings shrink in both its cement and wallboard businesses as diesel costs and high interest rates weighed on construction, according to its 8-K released Wednesday.
For its fiscal second quarter ended Sept. 30, 2026, the building materials maker reported net earnings of $111.5 million, or $3.63 per diluted share, and adjusted EBITDA of $202.7 million.
Costs squeeze both segments
Heavy Materials revenue, covering cement, concrete and aggregates, rose 2% to $477.8 million, but operating earnings fell 12% to $113.0 million on higher operating costs. Aggregates volume declined 6% to 1.9 million tons.
Light Materials revenue increased 2% to $216.4 million, while operating earnings dropped 13% to $68.3 million. Gypsum wallboard volume rose 7% to 696 million square feet, but the average net sales price fell 10% because of higher freight costs driven by diesel fuel prices.
President and CEO Michael Haack said public infrastructure and large private non-residential projects supported demand, while "elevated interest rates placed additional pressure on an already challenging residential construction market."
Buybacks and plant upgrades
Eagle repurchased 304,881 shares in the quarter for an estimated $62 million, the company said, and 711,381 shares for an estimated $146.0 million over the first half of the fiscal year.
The company is modernizing its Mountain Cement plant and its Duke, Oklahoma, gypsum wallboard plant, investments Haack said should strengthen its low-cost position and add capacity.
Eagle ended the quarter with $1.8 billion of debt, $1.5 billion of net debt and a net leverage ratio of 2.1 times adjusted EBITDA.
By the numbers
- Fiscal Q2 revenue: $652.7 million, a record
- Diluted EPS: $3.63
- Adjusted EBITDA: $202.7 million
- Heavy Materials operating earnings: $113.0 million, down 12%
- Wallboard net sales price: down 10%
Sources
- Eagle Materials Form 8-K with fiscal second-quarter 2027 earnings release, filed Nov. 4, 2026 (accession 0001193125-26-446156)
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