Eagle Materials has reported 18 per cent YoY growth in revenue to US$561.4m in the first quarter of fiscal 2023 ended 30 June 2022. This record result is being attributed to healthy construction activity in all markets and broad pricing gains across the company’s portfolio. Record net earnings were also seen, coming in up 10 per cent YoY at US$105m, while adjusted EBITDA over the same period advanced by 13 per cent to US$184.1m
Revenue in the heavy materials sector, which includes cement, concrete and aggregates, joint venture and intersegment cement revenue, was up 10 per cent YoY at US$346.1m. Operating earnings increased slightly to US$68.1m on the back of higher cement sales prices, partially offset by a decrease in cement sales volume and the effects of the equipment downtime experienced by its joint venture.
Cement revenue, including joint venture and intersegment revenue, improved by five per cent YoY to US$284.5m. Operating earnings slipped slightly to US$62.3m due to higher energy and maintenance costs partially offset by improved cement sales prices. The average net cement sales price for the quarter increased 10 per cent YoY to US$127.82/t, while cement sales volume for the quarter fell two per cent to 2Mt, reflecting the delay to some larger projects due to weather in the central part of the US.
Concrete and aggregates revenue increased 38 per cent YoY to US$61.6m. According to the company, this was due to improved concrete and aggregates prices and the contribution of approximately US$11m from a recently-acquired business in northern Colorado.
Revenue in the light materials sector, which includes gypsum wallboard and paperboard, advanced 30 per cent YoY to US$247.9m, supported by higher gypsum wallboard sales volume and prices. Operating earnings came in at US$87.9m, up 32 per cent, reflecting higher gypsum wallboard sales volume and pricing. Gypsum wallboard sales volume were up five per cent to 798Mft2. Paperboard sales volume remained flat at 84,000t.
“Looking ahead, we expect demand for cement to remain strong with infrastructure investment increasing as federal funding from the 'Infrastructure Investment and Jobs Act' begins in earnest this fiscal year. In our light materials sector, wallboard shipments and orders remain strong, but we recognise quantitative tightening will likely have an impact on residential construction activity in the future. In the near term, we expect record home construction backlogs to support product demand this year,” said Michael Haack, president and CEO, Eagle Materials.
