Eagle Materials reports record revenue in 3QFY23-24

US-based Eagle Materials has reported record revenue of US$558.8m in the third quarter of FY23-24 (3QFY24), ended 31 December 2023, marking a nine per cent increase YoY. The results come despite “a backdrop of shifting, albeit constructive, market conditions as interest rates moved materially lower during the latter half of the quarter,” said Michael Haack, president, Eagle Materials. Adjusted EBITDA was up 10 per cent YoY to US$218.6m, while the company also reported record net earnings of US$129.1m. Net earnings per share improved by 16 per cent to US$3.72, compared to the same period a year earlier. 

Revenue in the Heavy Materials sector, which includes cement, concrete and aggregates, as well as joint venture and intersegment cement revenue, was up 18 per cent YoY to US$366.4m. Heavy Materials’ operating earnings increased by 43 per cent to US$107.3m, mainly driven by higher cement net sales prices and sales volumes. 

Cement revenue for the quarter was up 20 per cent to US$308.7m and operating earnings were a record US$105.6m, up 46 per cent, aided by the US$11m revenue from the recently acquired Stockton Terminal. Cement sales volumes advanced by seven per cent to 1.8Mt over the three-month period. Concrete and aggregates revenues expanded by five per cent to US$57.8m, reflecting higher aggregates sales volumes and record concrete pricing. Operating earnings for concrete and aggregates declined 35 per cent to US$1.8m due to higher input costs. 

Revenue in the Light Materials sector, which includes gypsum wallboard and recycled paperboard, was down four per cent YoY to US$226.9m, on account of lower wallboard and paperboard sales prices and slightly lower wallboard volumes. Although this was partially offset by higher paperboard sales volumes. Gypsum wallboard sales volumes were down one per cent YoY to 772Mft², while paperboard sales volumes were up nine per cent to a record 84,000t, compared to the same quarter a year earlier. Operating earnings in the sector stood at US$82.6m, marking a 13 per cent contraction, primarily due to lower wallboard sales volumes and pricing.