Jessie Baron's questions to Eagle Materials Inc (EXP) leadership • Q2 2025
Question
Jessie Baron from Jefferies, on for Phil Ng, asked for an update on the cost structures for the Cement and Wallboard businesses, particularly regarding energy hedging, and requested more detail on the operational issues in Kansas City and Denver.
Answer
CFO Craig Kesler outlined that Wallboard costs are driven by internally sourced paper and natural gas (hedged ~50%), while Cement costs are mainly maintenance and energy, with fuel prices set by 1-2 year contracts. Executive Michael Haack explained that in Denver, the company is diversifying a new acquisition's customer base, and in Kansas City, a work stoppage has been resolved, with the operation now being refocused on the non-union market.