Executive Summary

Record revenue of $0.635B (+4% YoY) and diluted EPS of $3.76; revenue and EPS both beat consensus, while Adjusted EBITDA was modestly above Street; gross margin 29.2% despite weather and maintenance cost headwinds .
Versus S&P Global consensus: revenue +4.3% beat*, EPS +2.1% beat*, and Adjusted EBITDA +1.4% beat*; Q3/Q4 FY2025 were prior misses largely on weather and fixed-cost absorption (see tables).
Execution on capex and strategic projects: FY2026 capex guide $475–$525M; Mountain Cement modernization on-time/on-budget for late CY2026 commissioning; Duke, OK wallboard modernization commencing with equipment purchases .
Capital returns and balance sheet: 358K shares repurchased for $79M; net leverage 1.6x; $0.25 dividend subsequently declared (payable Oct 16, 2025) .
Near-term stock narrative catalysts: infrastructure-driven cement volumes, aggregate integration, wallboard margin resilience, and pacing of cement price actions into the fall (pricing commentary suggests medium/long-term upside) .

What Went Well and What Went Wrong

What Went Well

Record revenue $634.7M (+4% YoY) with cement volumes up 2% and aggregates volumes up 117% (acquisitions + organic +29%), demonstrating resilience across heavy materials .
Wallboard volumes up 4% to 784 MMSF with sector operating earnings of $102.1M; margins held despite lower pricing, supported by lower input costs and operational advantages .
Management execution and positioning: “We remain well-positioned for long-term growth… aging infrastructure continues to need renovation and expansion” — CEO Michael Haack .

What Went Wrong

Cement operating earnings down 9% to $81.1M on higher fixed costs (due to maintenance/outage timing and lower production) and raw materials (+$7.1M and +$1.6M); JV earnings also weaker with 12% volume decline amid Texas weather .
Wallboard pricing down 3% YoY to $232.40/MSF; sequentially range-bound; management does not expect near-term pricing strength absent a meaningful volume recovery .
Corporate G&A up ~33% YoY (comp +$2.2M; ERP IT upgrades +$1.1M; professional services +$1.1M), a continuing headwind to consolidated EBIT .

Financial Results

Consolidated Performance vs Prior Periods and Estimates

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD Millions)	$558.0	$470.2	$634.7
Diluted EPS ($USD)	$3.56	$2.00	$3.76
Gross Profit ($USD Millions)	$177.8	$104.6	$185.6
Gross Margin %	31.9%	—	29.2%
EBITDA ($USD Millions)	$202.6	$133.3	$210.2
Adjusted EBITDA ($USD Millions)	$208.8	$141.2	$215.0

Metric vs S&P Global Consensus	Q3 2025 Actual	Q3 2025 Consensus*	Surprise	Q4 2025 Actual	Q4 2025 Consensus*	Surprise	Q1 2026 Actual	Q1 2026 Consensus*	Surprise
Revenue ($USD Millions)	558.0	575.4*	-3.0%	470.2	479.0*	-1.8%	634.7	608.8*	+4.3%
EPS ($)	3.56	3.95*	-9.2%	2.00	2.43*	-14.3%	3.76	3.68*	+2.1%
Adjusted EBITDA ($USD Millions)	208.8	221.6*	-5.8%	141.2	156.1*	-9.5%	215.0	212.2*	+1.4%

Note: Company reports EBITDA and Adjusted EBITDA as non-GAAP; consensus EBITDA definitions may differ. Values with asterisks are retrieved from S&P Global.

Segment Breakdown (Q1 FY2026)

Segment	Revenue ($USD Millions)	Operating Earnings ($USD Millions)
Cement (Wholly Owned)	$310.3	$77.3
Cement (Joint Venture)	—	$3.8
Concrete & Aggregates	$73.7	$6.2
Heavy Materials Total	$384.0	$87.3
Gypsum Wallboard	$221.5	$92.6
Recycled Paperboard	$29.1	$9.5
Light Materials Total	$250.6	$102.1
EBIT (Company)	—	$169.6

Operating KPIs (Volumes and Pricing)

KPI	Q3 2025	Q4 2025	Q1 2026
Cement Volume (M tons, total)	1.70	1.24	1.99
Cement ASP ($/ton)	$156.82	$157.62	$156.72
Concrete Volume (M cubic yards)	0.30	0.25	0.32
Concrete ASP ($/cubic yard)	$147.53	$148.56	$150.43
Aggregates Volume (M tons)	0.89	1.18	1.73
Aggregates ASP ($/ton)	$13.19	$13.83	$14.24
Wallboard Volume (MMSF)	737	722	784
Wallboard ASP ($/MSF)	$236.11	$231.54	$232.40
Paperboard Volume (k tons)	90	84	90
Paperboard ASP ($/ton)	$627.04	$595.69	$566.33

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Company Capital Expenditures	FY2026	Not previously specified	$475–$525M	New (specified range)
Mountain Cement Modernization Commissioning	Late CY2026	On budget/on schedule (FY2025 updates)	On budget/on schedule confirmed	Maintained
Duke, OK Wallboard Modernization	H2 CY2027 startup (prior)	Construction commencing; equipment purchases begun	Maintained timeline; execution update
Cash Taxes Paid (directional)	FY2026–FY2027	Not specified	Low-20% cash tax rate; accelerated depreciation expected to reduce cash taxes materially as major projects placed in service	New directional guidance
Dividend	Next payment	—	$0.25 per share payable Oct 16, 2025	Declared

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q3 FY2025)	Previous Mentions (Q-1: Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Cement demand/IIJA	Infrastructure awards early phases; cement demand supportive	Weather and outage timing drove lower volumes; slag facility startup (JV)	YOY cement volume increase; awards accelerating; consistent demand cadence	Improving volumes; constructive medium-term
Cement pricing	Price up 4% YoY; maintenance costs pressured earnings	ASP +2% in Q4; fixed cost absorption issues	Near-term pacing of price increases; medium/long-term upside potential	Near-term cautious; mid/long-term positive
Aggregates	Volumes down YoY; KY acquisition contribution	Q4 aggregate volumes +69% YoY; acquisitions impacted inventory accounting	+117% volume with acquisitions; +29% organic	Strong integration; organic growth
Wallboard	Volumes +2% and pricing +4% YoY	Q4 volumes -3% QoQ; pricing down slightly	Volumes +4%; pricing -3%; margins resilient; costs favorable	Stable margins, subdued demand
Weather impact	Midwest/Great Plains rainfall 250% of normal; broad impact	Adverse weather and outages impacted Q4	Oklahoma/Texas weather persisted; JV volumes -12%	Headwind moderating
Capex/Projects	Bullskin aggregates deal; continued upgrades	Mountain modernization progress; Duke modernization announced	FY26 capex range; Mountain on-time/on-budget; Duke equipment purchases	Execution progressing

Management Commentary

CEO Michael Haack: “We remain well-positioned for long-term growth… our strong balance sheet, significant cashflow generation, and consistent, disciplined operational and strategic execution… provides a platform that should allow the company to continue to deliver attractive shareholder value” .
Pricing outlook: “Shorter-term… we’ll be more pacing [cement price increases], looking at the fall… midterm and long term… more potential and upside” .
Sustainability and strategy: early achievement of midterm cement CO2e intensity goal; Terra CO2 investment to advance low-carbon materials .
CFO Craig Kesler: On capex and cash taxes — FY2026 capex $475–$525M; accelerated depreciation to materially reduce cash taxes when Mountain/Duke projects enter service .

Q&A Highlights

Wallboard demand and margins: management sees affordability constraints as the key gating factor; costs (natural gas, OCC) stable; wallboard margins remain strong .
JV and Texas weather: startup/ramp of slag facility continued to be a drag; Texas weather drove JV volumes -12% YoY; expected improvement through the year .
Cement costs: higher fixed costs due to annual maintenance and reduced production were temporary, with energy largely flat; impact unique to the quarter .
Aggregates profitability: strong quarter without one-off benefits; expect normal seasonality .
Pricing cadence: pacing cement price actions near term; potential to revisit in fall; constructive medium/long-term price outlook given utilization .

Estimates Context

The company beat Q1 FY2026 revenue and EPS vs S&P Global consensus, reversing prior quarter misses driven by adverse weather and fixed-cost absorption in cement; Adjusted EBITDA also modestly topped consensus despite cost pressures (see tables).
With capex guidance affirmed, Mountain/Duke project timelines intact, and commentary suggesting pacing of cement price actions into the fall, Street models may modestly increase FY2026 revenue/EPS for heavy materials while keeping wallboard pricing conservative until volumes recover .

Values marked with asterisks in tables are retrieved from S&P Global.

Key Takeaways for Investors

Infrastructure award momentum and high industry utilization underpin improving cement volumes; medium/long-term pricing looks constructive as supply-demand tightens .
Aggregates segment is inflecting: acquisitions plus 29% organic volume growth support revenue/earnings trajectory and margin normalization post acquisition accounting .
Wallboard remains resilient with strong margins; pricing likely range-bound until affordability improves; costs (gas/OCC) benign near term .
Near-term EPS variability tied to weather/maintenance timing in cement; Q1 shows improving cadence with temporary fixed cost headwinds .
Capital allocation remains disciplined: FY26 capex $475–$525M, opportunistic buybacks, net leverage 1.6x; dividend declared at $0.25/share enhances return profile .
Watch for fall cement pricing actions, Mountain commissioning late CY2026, Duke modernization execution, and updates on JV slag ramp; these are key narrative drivers for the stock .
Estimate risk skew: modest upward bias on heavy-side volumes and EBITDA if weather normalizes and price pacing holds; wallboard estimates likely stable pending housing affordability improvement .

EAGLE MATERIALS INC (EXP)·Q1 2026 Earnings Summary