Executive Summary

Q3 FY2025: Revenue $558.0M, Diluted EPS $3.56, Adjusted EPS $3.59, Adjusted EBITDA $208.8M; sequentially lower on weather and maintenance, but margins resilient at 31.9% .
Heavy Materials pressured (cement and concrete volumes down on 250% rainfall vs normal in Midwest/Great Plains and $8M maintenance costs) while Light Materials (wallboard/paperboard) delivered volume and price growth; net leverage 1.2x and debt ~$1.0B support flexibility .
Management announced early-2025 price increases in most cement markets and a wallboard price increase slated for early February; Bullskin Stone & Lime aggregates acquisition closed in January, reinforcing heavy-side strategy .
Capital allocation remains active: Q3 repurchases ~195K shares for $55M, nine months repurchases nearly 800K shares for $201M; dividend declared at $0.25 per share for April 14, 2025 .
S&P Global Wall Street consensus estimates were unavailable due to system limits, so estimate comparisons are not provided; investors should focus on execution, pricing actions, and IIJA tailwinds (and winter weather risks) .

What Went Well and What Went Wrong

What Went Well

Light Materials strength: Wallboard volume +2% to 737 MMSF and price +4% to $236.11/MSF; Paperboard volume +7% to 90K tons and price +12% to $627.04/ton; segment operating earnings +18% to $97.4M .
Pricing power and margins: Company gross margin 31.9% despite weather and maintenance headwinds; cement average net sales price +4% to $156.82/ton .
Balance sheet and liquidity: Net leverage 1.2x; ~$686M committed liquidity; healthy cash generation (nine months CFO $486M, capex $147M) .

Quote: “We generated revenue of $558 million and achieved a gross profit margin of 31.9%...ended the quarter with debt of $1.0 billion and a net leverage ratio...of 1.2x” — CEO Michael Haack .

What Went Wrong

Weather and volumes: Cement sales volume −7% to 1.7M tons; adverse rainfall (250% of normal) reduced Heavy Materials volumes and drove concrete/aggregates operating loss .
Maintenance headwind: ~$8M nontypical maintenance at Tulsa and Texas Lehigh pressured cement operating earnings (−18% YoY) .
Higher corporate G&A: +47% YoY driven by ~$1.9M IT upgrades and ~$1.3M transaction-related costs; non-routine items impacted EPS (Adjusted EPS $3.59 vs $3.56 GAAP) .

Financial Results

Consolidated Performance by Quarter

Metric	Q1 FY2025 (Jun 30, 2024)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
Revenue ($USD Millions)	$608.689	$623.619	$558.025
Diluted EPS ($)	$3.94	$4.26	$3.56
Adjusted EPS ($)	N/A disclosed as EPS; Adjusted EBITDA below	$4.31	$3.59
Gross Profit ($USD Millions)	$186.868	$203.844	$177.813
Gross Margin (%)	30.7%	32.7% (203.844/623.619)	31.9%
Adjusted EBITDA ($USD Millions)	$224.507	$242.224	$208.756
Net Debt / Adjusted EBITDA (x)	1.3x (as of 6/30/24)	1.2x (as of 9/30/24)	1.2x (as of 12/31/24)

Sequential change (Q3 vs Q2):

Revenue: −10.5% (558.025 vs 623.619)
Diluted EPS: −16.4% (3.56 vs 4.26)
Adjusted EBITDA: −13.8% (208.756 vs 242.224)

YoY change (Q3 FY2025 vs Q3 FY2024):

Revenue: −0.1% ($558.025 vs $558.833)
Diluted EPS: −4.3% ($3.56 vs $3.72)

Non-GAAP note: Adjusted EPS excludes non-routine items; Q3 after-tax impact ~$1.039M lifted EPS by $0.03 .

Segment Revenue and Operating Earnings

Segment ($USD Millions)	Q1 FY2025	Q2 FY2025	Q3 FY2025
Cement (Wholly Owned) – Revenue	$299.572	$313.571	$259.890
Concrete & Aggregates – Revenue	$61.038	$65.930	$56.405
Gypsum Wallboard – Revenue	$217.826	$214.975	$209.493
Recycled Paperboard – Revenue	$30.253	$29.143	$32.237
Cement (Wholly Owned) – Op. Earnings	$81.409	$106.657	$81.776
Cement (JV) – Op. Earnings	$7.716	$9.276	$4.987
Concrete & Aggregates – Op. Earnings	$2.980	−$0.995	−$1.397
Wallboard – Op. Earnings	$93.976	$90.141	$86.393
Paperboard – Op. Earnings	$8.503	$8.041	$11.041

KPIs: Volumes and Prices

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025
Cement Sales Volume (M tons)	1.947	2.024	1.702
Cement Avg Net Sales Price ($/ton)	$156.10	$156.51	$156.82
Concrete Volume (M cubic yards)	0.343	0.348	0.298
Concrete Avg Price ($/cyd)	$148.56	$149.16	$147.53
Aggregates Volume (M tons)	0.799	0.979	0.893
Aggregates Avg Price ($/ton)	$12.61	$12.69	$13.19
Wallboard Volume (MMSF)	757	752	737
Wallboard Avg Price ($/MSF)	$239.43	$236.88	$236.11
Paperboard Volume (K tons)	91	85	90
Paperboard Avg Price ($/ton)	$597.41	$595.19	$627.04

Guidance Changes

Eagle Materials does not issue formal quarterly revenue/EPS guidance. Qualitative and action-oriented updates are below.

Metric	Period	Previous Guidance	Current Guidance	Change
Cement pricing actions	Calendar H1 2025	Prior price increases implemented earlier in CY2024	Price increase letters out in most cement markets for first part of CY2025; realization to be discussed in Q4 FY2025	Raised (announced)
Wallboard pricing actions	Early Feb 2025	November increase delayed	Price increase announced for early February; realization not specified	Raised (announced)
Maintenance outlook	FY2025	Major planned outages in Q3 FY2025	Q3 maintenance completed; expect return to normal maintenance cycle	Normalized
Dividend	Q4 FY2025 payable date	$0.25/qtr (prior pattern)	$0.25 per share payable April 14, 2025	Maintained

Earnings Call Themes & Trends

Topic	Q1 FY2025 (Jul 30)	Q2 FY2025 (Oct 29)	Q3 FY2025 (Jan 29)	Trend
Weather impacts	Adverse weather affecting heavy-side volumes	Ongoing adverse weather in Texas and eastern markets	Record rainfall (250% of normal) in Midwest/Great Plains; heavy-side volumes down	Persistent headwind
Cement maintenance	Preventative maintenance benefits in Q1	Maintenance costs +$7M in Q2	Nontypical outages +$8M in Q3; completed; normal cycle ahead	Headwind now past
Pricing actions	Cement prices +6% YoY in Q1	Cement +3% YoY; pricing supports earnings	Cement price increases announced for H1 CY2025; wallboard increase early Feb	Strengthening
IIJA/infrastructure	Constructive outlook; early phases	Early phases; supportive environment	Funds starting to flow; supportive for multiple years	Improving
Wallboard demand	Resilient; supply shortage supports	Volume +3%, price +1%; steady demand	Volume +2%; demand steady; affordability the swing factor	Steady/modestly positive
Aggregates strategy	Complementary tuck-ins	KY tuck-in $24.9M	Bullskin Stone & Lime ($152.5M) closed Jan; heavy-side focus	Expanding footprint
Paperboard pricing mechanism	Prices up with long-term contracts	+10% YoY pricing	Mechanically linked to OCC; expected to dip below $600 next quarter	Normalizing

Management Commentary

“Rainfall in November was 250% higher than normal...affected sales volume in our Cement and Concrete and Aggregates businesses...we generated revenue of $558 million and achieved a gross profit margin of 31.9%” — Michael Haack, CEO .
“We had major maintenance projects at two of our cement plants...which increased maintenance costs by approximately $8 million. The work...has been completed, improving long-term reliability” — D. Craig Kesler, CFO .
“We have price increase letters out for the majority of our cement markets...and our wallboard operations for the first half of 2025” — Michael Haack .
“Net debt-to-EBITDA leverage ratio was 1.2x...total committed liquidity...approximately $686 million...no meaningful near-term debt maturities” — D. Craig Kesler .
“Bullskin was a rare opportunity to acquire a pure-play aggregate asset...the acquisition closed in early January, and integration is well underway” — Michael Haack .

Q&A Highlights

Aggregates strategy: Bullskin aligns with heavy-side growth; potential for further aggregates deployment if assets meet returns .
Wallboard demand outlook: Industry consumption ~27.3B square feet; affordability key driver; steady near term .
Cement margins: ~$8M unique maintenance headwind in Q3; optimism for margins and volumes as weather eases and IIJA funds flow through .
Pricing cadence: Cement increases across markets from Jan through spring; wallboard increase early February .
Paperboard pricing: Mechanical adjustments tied to OCC; expect pricing to dip below $600/ton next quarter .
Macro/tariffs: Transition noise on IIJA/IRA but no observed public project pauses; potential cement import tariffs would raise marginal supply cost .

Estimates Context

S&P Global Wall Street consensus estimates for Q1–Q3 FY2025 were unavailable due to system request limits, so formal “vs. consensus” comparisons could not be provided. Values would normally be retrieved from S&P Global.
Given absence of consensus data, investors should triangulate performance using sequential and YoY trends, pricing actions, and segment mix to infer likely estimate revisions, especially around Heavy Materials volumes and Light Materials margins .

Key Takeaways for Investors

Pricing actions in cement and wallboard are the near-term catalysts; watch realization in Q4 FY2025 amidst winter seasonality and builder affordability dynamics .
Heavy-side volumes should recover as maintenance is complete and construction season begins; IIJA flow-through a multi-year tailwind; sequential metrics likely to improve into spring/summer .
Light Materials margins remain structurally supported by raw material supply positioning and industry cost shifts away from synthetic gypsum; margin resilience appears sustainable .
Balance sheet capacity (1.2x net leverage; ~$686M liquidity) enables ongoing buybacks, tuck-ins, and strategic aggregates expansion (Bullskin); shareholder returns remain robust .
Monitor paperboard pricing normalization (below $600/ton next quarter) and corporate G&A step-up (IT and transaction costs) for earnings cadence impacts .
Weather remains a wildcard; January/February typically weak; avoid over-extrapolation of Q3 weather headwinds; focus on spring demand and pricing realization .
Dividend maintained at $0.25/share; continued buybacks provide EPS support amid volume volatility .

Appendix: Additional Data Points

Q3 FY2025 share repurchases: ~195K shares for $55M; total cash returned in quarter $63M (repurchases + dividends) .
Nine months FY2025: CFO $486M; capex $147M (Laramie/WY modernization); repurchases nearly 800K shares for $201M .
Segment highlights Q3: Heavy Materials revenue $351.8M; operating earnings $85.4M; Light Materials revenue $241.7M; operating earnings $97.4M .

EAGLE MATERIALS INC (EXP)·Q3 2025 Earnings Summary