Eagle Materials Reports Strong Q3 Fiscal 2026 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Revenue Growth: Eagle Materials reported revenue of $556 million for Q3, an 11% increase year-over-year, primarily driven by higher sales volumes of cement and aggregates, indicating strong demand in the infrastructure construction sector.
- Net Profit Performance: The company achieved net earnings of $102.9 million with earnings per share of $3.22, demonstrating robust profitability despite challenges in the residential construction market, supported by elevated public infrastructure spending.
- Shareholder Returns: During the quarter, Eagle repurchased approximately 648,000 shares for $142.6 million and returned nearly $150 million to shareholders through quarterly cash dividends, reflecting the company's commitment to shareholder value and financial health.
- Debt Management: Eagle issued $750 million in 10-year senior notes at a 5.00% interest rate, which not only extended the maturity schedule of its debt but also enhanced liquidity, providing flexibility for future capital allocation.
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Analyst Views on EXP
Wall Street analysts forecast EXP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EXP is 231.29 USD with a low forecast of 210.00 USD and a high forecast of 251.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
1 Buy
6 Hold
0 Sell
Hold
Current: 219.510
Low
210.00
Averages
231.29
High
251.00
Current: 219.510
Low
210.00
Averages
231.29
High
251.00
About EXP
Eagle Materials Inc. is a manufacturer of heavy construction materials and light building materials in the United States. Its primary products are Portland Cement and Gypsum Wallboard, which are used in building, expanding and repairing roads, highways and residential, commercial and industrial structures. Its segments include Cement; Concrete and Aggregates segments; Gypsum Wallboard, and Recycled Paperboard. Its business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments; and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. It manufactures and sells its products through a network of approximately 70 facilities spanning 21 states. It operates approximately eight cement plants, two slag grinding facilities and 30 cement distribution terminals. It operates over 25 ready-mix concrete batch plants, seven aggregate processing plants, five gypsum wallboard plants and a recycled paperboard mill.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eagle Materials to Announce Q3 Earnings on January 29
- Earnings Announcement Date: Eagle Materials is set to announce its Q3 earnings on January 29 before market open, with a consensus EPS estimate of $3.39, reflecting a 5.6% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations: The revenue estimate for Q3 stands at $554.9 million, down 0.6% year-over-year, suggesting weak growth in market demand that could impact the company's overall financial performance.
- Historical Performance Review: Over the past two years, Eagle Materials has only beaten EPS estimates 38% of the time and revenue estimates 25% of the time, indicating volatility in the company's profitability.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and 10 downward revisions, while revenue estimates saw 1 upward revision and 11 downward revisions, reflecting analysts' cautious outlook on the company's future performance.
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Eagle Materials Q3 Earnings Beat Expectations Despite EPS Miss
- Revenue Performance: Eagle Materials reported Q3 revenue of $556 million, a slight decline of 0.4% year-over-year, yet it exceeded market expectations by $1.1 million, indicating resilience in a competitive market environment.
- Earnings Per Share: The GAAP EPS of $3.22 fell short of expectations by $0.18, reflecting the impact of cost pressures on profitability despite the revenue beat.
- Net Earnings and Adjusted EBITDA: Net earnings stood at $102.9 million with adjusted EBITDA at $190.1 million, demonstrating the company's efforts in cost control and operational efficiency, even amidst revenue challenges.
- Share Repurchase: The company repurchased approximately 648,000 shares of its common stock for $142.6 million, showcasing management's confidence in the long-term value of the company while potentially providing additional returns to shareholders.
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