Eagle Materials Inc.

Executive summary

Eagle Materials Inc. (NYSE: EXP) manufactures heavy construction materials and light building products across the United States. The company focuses on cement, concrete, aggregates, gypsum wallboard, and recycled paperboard. Headquarters are in Dallas, Texas, and operations include more than 70 facilities in 21 states. The business is organized into two segments: Heavy Materials (cement, concrete, aggregates) and Light Materials (gypsum wallboard, recycled paperboard).

Key financials (fiscal 2026 vs 2025)

• Revenue: $2.3 billion (record high), up 2% year over year.
• Net earnings: $423.8 million, down 9% from prior year.
• Diluted EPS: $13.16, down 4% from prior year.
• Share repurchases: ~1.7 million shares repurchased for $381.8 million in fiscal 2026; total repurchases/dividends returned to shareholders ≈ $4.3 billion.
• Shares repurchased since 1994: about 52.9 million.
• Debt outstanding (as of March 31, 2026): $1.8 billion.
• Financing actions: issued $750.0 million of 10-year senior notes at 5.000%.

Employees and governance

• Employees: approximately 2,800 as of March 31, 2026 (≈800 salaried; ≈2,000 hourly).
• Labor: about 780 hourly employees covered by collective bargaining agreements.
• Board and corporate governance include sustainability and safety objectives; executive compensation incorporates sustainability goals.

Business divisions and operations

Heavy Materials

• Composition: Cement and concrete; aggregates.

• Cement

  • 8 cement plants and 2 slag grinding facilities (one cement plant and one slag grinding facility operate via a joint venture).
  • Clinker capacity: approximately 6.7 million tons (about 6% of U.S. clinker capacity).
  • Total cement capacity (net): about 8.15 million tons; total gross capacity ≈7.33 million tons (Buda plant is 50% owned via joint venture; net capacity reflects partner’s 50%).
  • Production (including 50% JV share): ≈6.9 million short tons in fiscal 2026; ≈6.0 million short tons in fiscal 2025.
  • Cement sales (including JV share): ≈7.5 million short tons in fiscal 2026; ≈6.9 million in fiscal 2025.
  • Distribution terminals: more than 30 locations serving a multi-state heartland footprint.
  • Demand drivers: public infrastructure, private nonresidential, and residential construction (public infrastructure represented about 50% of cement demand).
  • Customer concentration: no single customer accounted for more than 10% of Cement segment revenue in fiscal 2026.
  • Imports and strategy: U.S. cement imports were roughly 23% of U.S. cement consumption in 2024–2025; Eagle emphasizes a core U.S. heartland network to reduce coastal import exposure.
  • Example plant locations: Buda (JV, TX), LaSalle (IL), Sugar Creek (MO), Laramie (WY), Tulsa (OK), Fernley (NV), Louisville (KY), Fairborn (OH).
  • Limestone quarries: each cement plant has nearby quarries; reserves and resources are projected to support current production for 25+ years.

• Aggregates

  • Six active aggregate facilities with total annual capacity of about 9,050 thousand tons. Locations include Central Texas, Northern Colorado, Northern Kentucky, Northern Nevada, and Western Pennsylvania; the Kansas City area aggregate facility is not currently operating.
  • Production for third-party sales in fiscal 2026: ≈6.4 million tons; total production including internal use: ≈7.0 million tons.
  • Raw materials: mined from company-owned or leased quarries; most reserves are company-owned.
  • Demand drivers: local construction activity and weather.

Light Materials

• Gypsum Wallboard

  • 5 gypsum wallboard plants.
  • Capacity: ~3,775 MMSF (million square feet) per year.
  • Production: 2,792 MMSF in fiscal 2026; 2,968 MMSF in fiscal 2025.
  • Primary markets: Sun Belt regions and related residential/nonresidential construction. Distribution is primarily by truck; rail shipments were less than 5% in fiscal 2026.
  • Raw materials: natural gypsum sources near operations (New Mexico, Colorado, Oklahoma) plus synthetic gypsum supplied under a long-term contract with Santee Cooper for Georgetown, SC (through 2069 with two 20-year extension options).
  • Customer concentration: three customers together accounted for about 64% of Gypsum Wallboard segment revenue in fiscal 2026.
  • Paper integration: a modern recycled paperboard mill supplies liner and paper for wallboard; paper is roughly one-third of wallboard production costs and enables 100% recycled liner.

• Recycled Paperboard (Republic Paperboard Company)

  • Location: Lawton, Oklahoma.
  • Capacity: about 380,000 tons per year.
  • Product use: gypsum liner plus some containerboard grades and lightweight packaging.
  • Internal consumption: about 40% of recycled paperboard produced is used by Eagle’s Gypsum Wallboard operations; two additional gypsum wallboard manufacturers account for roughly 50% of this segment’s revenue under long-term contracts.
  • Raw materials: 100% recycled fiber (OCC and other grades); fiber contracts manage price exposure.
  • Energy and inputs: electricity and natural gas are significant inputs; electricity is supplied by PSO in Oklahoma with potential rate changes noted for 2027.

Mineral reserves, resources, and raw materials (as of March 31, 2026)

• Cement limestone

  • Proven limestone reserves: 213,930 thousand tons
  • Probable reserves: 99,330 thousand tons
  • Total proven & probable reserves: 313,260 thousand tons
  • Measured limestone resources: 432,155 thousand tons
  • Indicated limestone resources: 320,110 thousand tons
  • Measured & Indicated resources: 752,265 thousand tons

• Aggregates

  • Measured & indicated aggregates resources: 124,445 thousand tons
  • Inferred: 126,465 thousand tons
  • Total measured & indicated resources: 250,910 thousand tons
  • Aggregates reserves (proven + probable): 153,280 thousand tons

• Gypsum

  • Gypsum reserves: 65,505 thousand tons (proven 41,135; probable 24,370)
  • Gypsum resources: 149,650 thousand tons (measured 88,710; indicated 60,940; inferred 65,300)
  • Synthetic gypsum supply: long-term agreements including a 60-year supply contract with Santee Cooper for Georgetown, SC, through 2069 with extension options.

Distribution and customers

• Products (cement, concrete, gypsum wallboard) are distributed from company-owned plants and more than 30 distribution terminals, with the majority of deliveries by truck.
• The regional plant network supports shipment of hard-to-ship products and helps manage local market cycles.
• Cement segment had low customer concentration; Gypsum Wallboard had higher concentration with three customers accounting for ~64% of segment revenue.

Strategy and capital allocation

• Strategic priorities: maintain a low-cost production position, pursue geographic diversification across growth markets, and balance acquisitions with organic growth.

• Capital allocation priorities:

  1. Invest in growth opportunities with strong financial returns and strategic fit.
  2. Maintain and improve operating assets to sustain a low-cost position.
  3. Return excess cash via share repurchases and dividends.

• Recent and ongoing investments (examples)

  • Laramie, WY cement plant modernization: capacity increase of about 50% to ~1.2 million tons and expected cost reductions of about 25%; startup expected late calendar 2026.
  • Cement plant expansion in Oklahoma and development of a northern Colorado distribution facility to support the low-cost network.
  • Duke, OK gypsum wallboard expansion: $330 million project to increase capacity by about 25% to 1.5 billion square feet; expected completion in the second half of calendar 2027.
  • Investments since 2012: approximately $3.0 billion in Heavy Materials; over $400 million currently allocated to major cement capacity projects.

Environmental, regulatory, and risk context

• Environmental and safety regulation affects operations; cement environmental capital expenditures were $11.1 million in fiscal 2026, with anticipated spending of $7.3 million in fiscal 2027.
• Regulatory developments under review or litigation include air quality standards (ozone, PM2.5), NESHAPs for cement kilns, and CISWI-related requirements.
• Climate-related compliance and potential greenhouse gas policy, carbon pricing, and energy price volatility are monitored as part of risk management.
• Cybersecurity governance includes a Director of Information Security, Board/Audit Committee oversight, incident response planning, third-party risk management, and disaster recovery arrangements.

Operations and capacity summary (as of March 31, 2026)

• Facilities: >70 facilities in 21 states.
• Cement: 8 plants; 2 slag grinding facilities (one joint venture plant and one joint-venture slag facility); clinker capacity ~6.7 million tons; net cement capacity ~6.68–8.15 million tons (JV treatment varies).
• Concrete: 30 readymix plants (Central Texas, Kansas City, Northern Colorado, Northern Nevada).
• Aggregates: 6 active quarry sites; total aggregates capacity ~9,050 thousand tons.
• Gypsum Wallboard: 5 plants; wallboard capacity ~3,775 MMSF; production ~2,792 MMSF in fiscal 2026.
• Recycled Paperboard: 1 mill; capacity ~380,000 tons.
• Employment: ~2,800 total employees; ~800 salaried; ~2,000 hourly; ~780 hourly workers under collective bargaining agreements.
• Shareholder returns: ~1.7 million shares repurchased in fiscal 2026 for $381.8 million; ~52.9 million shares repurchased since 1994; total cash returned ≈ $4.3 billion.
• Debt and financing: $1.8 billion outstanding; issued $750 million of 10-year notes at 5.000%.
• Limestone reserves: 313.3 million tons (proven and probable); measured and indicated resources 752.3 million tons; the majority of reserves are company-owned.

Company profile summary

Eagle Materials manufactures and sells essential heavy construction materials (cement, concrete, aggregates) and light building materials (gypsum wallboard, recycled paperboard) across a regional U.S. footprint. The company operates an integrated network of plants, quarries, and distribution terminals, and balances acquisitions with organic investment to expand capacity and sustain a low-cost producer position.