Eagle Materials Inc. reported financial results for the third quarter of fiscal 2026 ended December 31, 2025. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal third quarter).

Commenting on the third quarter results, Michael Haack, President and CEO, said, “Despite a mixed construction environment, Eagle’s portfolio of businesses continued to perform well during the quarter, generating revenue of US$556 million, EPS of US$3.22 and gross margins of 28.9%. 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. Our Cement sales volume was up 9% and our organic aggregates sales volume increased 34%.”

Mr. Haack continued, “During the quarter, we strengthened our financial position, issuing US$750 million of 10-year senior notes with an interest rate of 5%, which extended our total debt maturity schedule and increased committed liquidity. A portion of the proceeds were used to repay our bank credit facility. We also significantly increased our distribution of cash to shareholders, returning nearly US$150 million through our quarterly cash dividend and the repurchase of approximately 648 000 shares of our common stock. We ended the quarter with debt of US$1.8 billion, net debt of US$1.4 billion, and a net leverage ratio (net debt to Adjusted EBITDA) of 1.8x, giving us substantial financial flexibility that supports disciplined, value-enhancing capital allocation and long-term growth.” (Net debt is a non-GAAP financial measure calculated by subtracting cash and cash equivalents from debt as described in Attachment 6.)

Mr. Haack concluded, “Our low-cost operations continue to generate strong cashflow that we are investing to advance our operational efficiency and our low-cost position. We continued to make good progress this quarter on our projects to modernise our Laramie, Wyoming Cement plant and our Duke, Oklahoma Gypsum Wallboard plant. These growth investments will lower each plant’s cost structure, improve their reliability, and expand their production capabilities, which will strengthen our already low-cost competitive position. We are highly confident that our strong market position, advantaged capital structure, and rigorous operating discipline position us for continued success over the long term.”

Revenue in the Heavy Materials sector, which includes cement, concrete, and aggregates, as well as joint venture and intersegment cement revenue, was up 11% to US$390.2 million. Heavy Materials operating earnings increased by 9% to US$92.7 million. Both increases resulted from higher cement and aggregates sales volume and the contribution from the recently acquired aggregates business in Western Pennsylvania.

Cement revenue for the quarter, including joint venture and intersegment revenue, was up 9% to US$321.2 million, and operating earnings were up 5% to US$91.3 million. These increases reflect higher cement sales volume, partially offset by a 1% decline in Cement net sales prices. Cement sales volume increased 9% to 1.9 million t.

Concrete and aggregates revenue was up 22% to US$69.0 million, and operating earnings increased to US$1.4 million, reflecting higher aggregates sales volume, increased concrete and aggregates pricing, and US$7.6 million of revenue contribution from the recently acquired aggregates business. Excluding the recently acquired business, aggregates revenue increased 9%, and sales volume was up 34%.

Revenue in the light materials sector, which includes gypsum wallboard and recycled paperboard, decreased 16% to US$203.5 million, reflecting lower wallboard and paperboard sales volume and prices. Gypsum wallboard sales volume was down 14% to 637 million square feet (MMSF), and the average gypsum wallboard net sales price decreased 5% to US$225.19 per MSF.

Paperboard sales volume for the quarter was down 10% to 81 000 t. The average paperboard net sales price was US$588.77 per t, down 6%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

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