Eagle Materials has posted record revenue of US$470.1m in the 4QFY23 (ended 31 March 2023), marking a 14 per cent increase YoY. Net earnings over the same period advanced by 35 per cent to US$100.4m, while adjusted EBITDA was up 30 per cent at US$171.7m.
Cement revenue, including joint venture and intersegment revenue, in the quarter came in at US$213.8m, up 14 per cent YoY. Operating earnings for the cement business expanded by 59 per cent YoY to US$45.3m, driven by higher net sales prices, helping to partially offset rising operating costs, particularly energy. Cement sales volumes over the quarter were down three per cent YoY to 1.3Mt, while the average net cement sales price increased 16 per cent YoY to US$147.50/t.
The full-year FY23 also saw record revenue for Eagle, up 15 per cent YoY at US$2.1bn. Net earnings advanced 23 per cent YoY to US$461.5m, with adjusted EBITDA improving 19 per cent to US$781.5m. Cement revenue, including joint venture and intersegment revenue, improved seven per cent YoY over the 12-month period to US$1.1bn, with operating earnings also improving by seven per cent YoY at US$278.8m. Although cement sales volumes were down five per cent YoY at 7.1Mt, the average annual net cement sales price grew 13 per cent YoY to US$134.36/t.
Commenting on the annual results, Michael Haack, president and CEO, Eagle Materials, said, “We are pleased to announce another exceptional quarter and year at Eagle. We achieved record financial results and made strong progress on all strategic priorities. During the fiscal year, we expanded gross margins by 190bps to 29.8 per cent, reported record earnings per share of US$12.46, generated operating cash flow of US$542m, and repurchased 3.1m shares of our common stock for US$388m. We also increased production of our eco-friendly Portland Limestone Cement product and integrated several acquisitions which should improve our already enviable low-cost producer position. At the end of the fiscal year, debt was US$1.1bn, and our net leverage ratio (net debt to Adjusted EBITDA) was 1.4x, giving us substantial financial flexibility for disciplined capital allocation.”
“Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favourable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction. We remain well-positioned to capitalise on these conditions given our geographical footprint across the US heartland and fast-growing Sunbelt and our financial strength and flexibility,” added Mr Haack.
