Eagle Materials CEO reflects on latest quarterly performance

By |  August 2, 2023

Logo: Eagle Materials

Eagle Materials provided insights about its first quarter of fiscal 2024 that ended June 30, noting that ready-mixed concrete and aggregate revenue was up 9 percent due to increased pricing for both and higher sales volumes in aggregates.

Eagle Materials’ operating earnings also increased 23 percent in concrete and aggregates, reflecting higher concrete and aggregate net sales prices and about $1.2 million of additional costs that were incurred in the first quarter of fiscal 2023 from the step-up in inventory values related to the acquisition of a Colorado aggregate business.

Companywide, Eagle Materials established a record revenue in the quarter at $601.5 million – a mark that’s up 7 percent from the prior-year period. The company’s overall earnings were up 15 percent to $120.8 million.

“Fiscal 2024 is off to a solid start for Eagle, with record revenue of $602 million, adjusted EPS (earnings per share) of $3.55 and gross margins of 29.3 percent – an increase of 240 bps (basis points),” says Michael Haack, president and CEO of Eagle Materials. “Our portfolio of businesses continued to perform well, and we made progress on our strategic priorities.”

Additionally, Haack highlighted gains Eagle Materials made during the quarter in cement.

“We reached an important milestone in the production of portland limestone cement, surpassing 50 percent across our system,” he says. “We completed the acquisition of a cement import terminal in northern California that further strengthens our competitive position in that market.”

Eagle Materials expects demand for cement to remain steady as the company looks to the balance of the year. Infrastructure and heavy industrial projects should fuel cement demand, Haack says, but other markets may present opportunities.

“Residential construction activity remains resilient as the market balances interest rate-related affordability challenges with chronic supply shortages and strong demand,” Haack says. “Given Eagle’s balance sheet strength, the favorable geographic positioning of our operations, and our consistent operational and strategic execution, we are poised for a strong fiscal 2024.”

Related: Eagle Materials purchases Martin Marietta asset

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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