On May 21, 2024, Eagle Materials Inc (EXP, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ended March 31, 2024. Eagle Materials Inc produces and sells construction products and building materials, including cement, concrete, aggregates, gypsum wallboard, and recycled paperboard, primarily to the construction and building industries.
Fiscal Year 2024 Highlights
Eagle Materials Inc achieved record annual revenue and profitability for fiscal year 2024. The company reported annual revenue of $2.26 billion, a 5.2% increase from the previous year, and net earnings of $477.6 million, up 3.5% year-over-year. The annual earnings per share (EPS) were $13.61, slightly below the analyst estimate of $14.10.
Michael Haack, President and CEO, commented, “We are pleased to announce another year of superior performance at Eagle. We achieved record financial results and made strong progress on our strategic priorities.”
Fourth Quarter Performance
For the fourth quarter, Eagle Materials Inc reported revenue of $476.7 million, narrowly missing the analyst estimate of $484.69 million. The company's net earnings for the quarter were $77.1 million, translating to an EPS of $2.24, which fell short of the estimated $2.66.
Haack noted, “While in the fourth quarter both Cement and Concrete and Aggregates results were affected by adverse weather conditions and increased maintenance costs, we expect underlying fundamentals to remain solid in our markets during fiscal 2025.”
Segment Financial Results
In the Heavy Materials sector, which includes Cement, Concrete, and Aggregates, fiscal 2024 revenue increased by 12% to $1.5 billion. Cement revenue alone rose by 14% to $1.2 billion, driven by higher sales volumes and net sales prices. However, fourth-quarter operating earnings in this segment declined by 18% due to lower organic sales volume and higher maintenance costs.
In the Light Materials sector, which includes Gypsum Wallboard and Recycled Paperboard, fiscal 2024 revenue decreased by 4% to $941.4 million. The decline was primarily due to lower Wallboard sales volume and Paperboard pricing, despite record Paperboard sales volume. Fourth-quarter operating earnings in this sector decreased by 7%.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $476.7M | $470.1M | $2.26B | $2.15B |
| Net Earnings | $77.1M | $100.4M | $477.6M | $461.5M |
| EPS (Diluted) | $2.24 | $2.79 | $13.61 | $12.46 |
Analysis and Outlook
Eagle Materials Inc's record annual performance underscores its robust operational capabilities and strategic focus. However, the fourth-quarter results highlight some challenges, including adverse weather conditions and increased maintenance costs. Despite these hurdles, the company remains optimistic about fiscal 2025, supported by strong market fundamentals and strategic growth initiatives.
Haack concluded, “Our financial strength and flexibility are the key factors that should enable us to drive shareholder returns through shifting macroeconomic cycles.”
For more detailed insights and the full financial report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Eagle Materials Inc for further details.
