Eagle Materials has reported record revenue of US$1.9bn in the FY22, up 15 per cent YoY. Net earnings advanced by 10 per cent to US$374.2m over the same period, while adjusted EBITDA from continuing operations improved by 15 per cent to reach US$657.4m. In the fourth quarter of the FY22, revenue increased by 20 per cent YoY to another record of US$413.1m, with net earnings advancing by 13 per cent to US$74.3m. Adjusted EBITDA from continuing operations also grew in the fourth quarter, up by seven per cent YoY to US$132.2m.
Commenting on the results, Michael Haack, president and CEO of Eagle Materials, said, “During the fiscal year we expanded gross margins by 270bps to 27.9 per cent, reported record earnings per share of US$9.14, generated operating cash flow of US$517m and repurchased nearly 4m shares of our common stock for US$590m.”
In the Heavy Materials sector, which includes cement, concrete and aggregates, FY22 revenue saw a six per cent YoY increase to US$1.2bn with higher cement net sales prices helping to increase annual operating earnings to US$278m, a YoY advance of 10 per cent. Cement revenue alone expanded by seven per cent to US$1bn with the average annual net cement sales price up seven per cent YoY at US$119.13/t. Cement sales volumes for the year were a record 7.5Mt, up one per cent on the previous year. Fiscal 2022 revenue from concrete and aggregates saw an uptick of five per cent YoY to US$177.1m on the back of higher sales prices and improved concrete volumes. Concrete and aggregates reported operating earnings of US$18.5m, down three per cent YoY due to higher operating costs, primarily diesel prices.
The fourth quarter of fiscal 2022 saw cement revenue alone increase by 10 per cent YoY to US$187.4m. Operating earnings rose to US$28.4m, an uptick of 23 per cent, reflecting higher net sales prices and lower operating costs. Cement volumes for the quarter fell two per cent YoY to 1.3Mt, while the average net cement sales price improved by 12 per cent to US$126.71/t. Fourth-quarter concrete and aggregates revenue saw a seven per cent YoY increase to US$37.2m, supported by higher pricing and improved concrete sales volumes. However, lower aggregate sales volumes and increased operating costs led to a 56 per cent decline in fourth-quarter operating earnings to US$1.5m.
“As we begin our new fiscal year, Eagle is well positioned, both financially and geographically, to capitalise on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near- and long-term,” added Mr Haack. “We expect that infrastructure investment should increase in the latter part of our fiscal year, as federal funding from the recently enacted Infrastructure Investment and Jobs Act begins in earnest. And despite recent interest rate increases, housing demand remains strong across our geographies, outpacing the supply of homes. Non-residential construction activity is also picking up.”
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