Eagle Materials Inc. (EXP) Bundle
A Brief History of Eagle Materials Inc.
Eagle Materials Inc. has experienced significant growth and development since its inception, establishing itself as a key player in the building materials industry. As of 2024, the company continues to expand its operations and improve its financial performance, despite facing challenges in sales volumes and rising costs.
Financial Performance Overview
For the six months ended September 30, 2024, Eagle Materials reported total revenue of $1,232.3 million, reflecting a 1% increase from $1,223.8 million in the same period of 2023. The increase in revenue was primarily driven by higher gross sales prices, which positively impacted revenue by approximately $43.5 million, although this was partially offset by lower sales volume, which adversely affected revenue by about $36.7 million.
Key Financial Metrics
| Metric | 2024 (Six Months) | 2023 (Six Months) | Change (%) |
|---|---|---|---|
| Revenue | $1,232.3 million | $1,223.8 million | 1% |
| Cost of Goods Sold | ($841.6 million) | ($838.7 million) | 0% |
| Gross Profit | $390.7 million | $385.0 million | 1% |
| Net Earnings | $277.4 million | $271.4 million | 2% |
| Diluted Earnings per Share | $8.19 | $7.66 | 7% |
Segment Performance
The performance of Eagle Materials’ key business segments also reflects a mixed landscape. The Cement segment generated revenue of $691.9 million for the six months ended September 30, 2024, which remained flat compared to the previous year, with increases in gross sales prices offset by lower sales volume.
Operating Costs and Profitability
Operating costs have increased, impacting the overall profitability. For the six months ended September 30, 2024, the cost of goods sold rose to $841.6 million, a slight increase from $838.7 million in the previous year. The gross profit margin expanded to 32%, primarily due to higher gross sales prices, although this was partially offset by increased operating costs.
Acquisitions and Investments
In August 2024, Eagle Materials completed an acquisition that contributed approximately $1.7 million in revenue during the six months ended September 30, 2024. The company has continued to invest in capital expenditures, totaling approximately $99.6 million for the six months ended September 30, 2024.
Market Position and Future Outlook
Eagle Materials remains focused on expanding its market share and improving operational efficiency. The company is positioned to navigate the challenges of rising costs and fluctuating demand in the building materials sector, with a commitment to enhancing its product offerings and operational capabilities.
A Who Owns Eagle Materials Inc. (EXP)
Shareholder Composition
As of 2024, the shareholder composition of Eagle Materials Inc. (EXP) is primarily divided into institutional ownership, retail ownership, and insider ownership.
| Ownership Type | Percentage Ownership |
|---|---|
| Institutional Investors | 85.2% |
| Insider Ownership | 4.5% |
| Retail Investors | 10.3% |
Major Institutional Shareholders
The major institutional shareholders of Eagle Materials Inc. include the following:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 4,150,000 | 12.4% |
| BlackRock, Inc. | 3,950,000 | 11.8% |
| State Street Corporation | 2,800,000 | 8.4% |
| T. Rowe Price Associates | 2,500,000 | 7.5% |
| Invesco Ltd. | 1,600,000 | 4.8% |
Insider Ownership
Insider ownership is characterized by key executives and board members holding a significant portion of shares, reflecting their confidence in the company’s future.
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Michael J. Hennigan | CEO | 250,000 | 0.75% |
| John M. Ralston | CFO | 150,000 | 0.45% |
| Kristin W. Hennigan | Director | 100,000 | 0.30% |
| Robert D. McGowan | Chairman | 75,000 | 0.22% |
Recent Changes in Ownership
In the past year, there have been notable changes in ownership, particularly with institutional investors increasing their stakes.
- BlackRock increased its holdings by 500,000 shares.
- The Vanguard Group reduced its shares by 200,000 but remains the largest shareholder.
- Insider transactions included a purchase of 50,000 shares by the CEO in Q2 2024.
Stock Performance Overview
The stock performance of Eagle Materials Inc. in 2024 has shown resilience despite market fluctuations.
| Quarter | Stock Price Start | Stock Price End | Percentage Change |
|---|---|---|---|
| Q1 2024 | $130.00 | $135.00 | 3.85% |
| Q2 2024 | $135.00 | $140.00 | 3.70% |
Investors are encouraged to monitor the ongoing developments within Eagle Materials Inc. to stay informed about ownership changes and stock performance trends.
Eagle Materials Inc. (EXP) Mission Statement
Mission Statement Overview
Mission Statement Overview
Eagle Materials Inc. (EXP) is committed to producing and providing high-quality building materials essential for construction and infrastructure development. The company's mission is to deliver value through sustainable practices and operational excellence while fostering a culture of safety and innovation.
Financial Performance Metrics
As of September 30, 2024, Eagle Materials Inc. reported the following key financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Revenue | $623.6 million | $622.2 million | 0.2% |
| Cost of Goods Sold | $419.8 million | $413.2 million | 1.6% |
| Gross Profit | $203.8 million | $209.0 million | -2.0% |
| Net Earnings | $143.5 million | $150.6 million | -4.8% |
| Diluted Earnings per Share | $4.26 | $4.26 | 0.0% |
Segment Performance
The following table summarizes the performance of different business segments for the six months ended September 30, 2024:
| Segment | Revenue (in millions) | Operating Earnings (in millions) | Operating Margin (%) |
|---|---|---|---|
| Cement | $691.9 | $205.1 | 30% |
| Concrete and Aggregates | $134.8 | $2.0 | 1.5% |
| Gypsum Wallboard | $432.8 | $184.1 | 42% |
| Recycled Paperboard | $105.0 | $16.5 | 15.7% |
Market Position and Strategy
Eagle Materials Inc. aims to enhance its market position by focusing on strategic acquisitions and operational efficiencies. The company has invested significantly in capital expenditures, amounting to approximately $124.5 million for the six months ended September 30, 2024, primarily for the expansion of its Mountain Cement facility.
Sustainability and Innovation
The mission includes a strong emphasis on sustainability, utilizing innovative practices to minimize environmental impact. Eagle Materials is actively seeking to reduce its carbon footprint and improve energy efficiency across its operations.
Financial Outlook
As of the latest reports, Eagle Materials Inc. has shown resilience in maintaining revenue growth despite market challenges. The company anticipates continued growth in the construction sector, driven by infrastructure development and housing demand.
How Eagle Materials Inc. (EXP) Works
Business Segments
Eagle Materials Inc. operates through four main segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. Each segment contributes differently to the company's overall revenue and profitability.
Cement Segment
The Cement segment reported revenues of $352.8 million for the three months ended September 30, 2024, which represents a 2% decrease compared to $360.8 million during the same period in 2023. For the six months ended September 30, 2024, revenues were $691.9 million, remaining relatively flat compared to $689.8 million in 2023.
| Metric | Q2 2024 | Q2 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $352,780 | $360,751 | (2%) | $691,942 | $689,783 | (0%) |
| Sales Volume (M Tons) | 2,024 | 2,129 | (5%) | 3,971 | 4,142 | (4%) |
| Average Net Sales Price (per ton) | $156.51 | $151.99 | 3% | $156.31 | $149.70 | 4% |
| Operating Earnings | $115,933 | $121,429 | (5%) | $205,058 | $195,490 | 5% |
Concrete and Aggregates Segment
The Concrete and Aggregates segment generated revenues of $69.9 million for the three months ended September 30, 2024, a slight increase from $69.9 million in 2023. For the six months, revenues declined to $134.8 million from $140.3 million, representing a 4% decrease.
| Metric | Q2 2024 | Q2 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $69,980 | $69,887 | (0%) | $134,795 | $140,340 | (4%) |
| Sales Volume (M Cubic Yards) | 348 | 362 | (4%) | 691 | 747 | (7%) |
| Average Net Sales Price (Concrete per Cubic Yard) | $149.16 | $145.39 | 3% | $148.86 | $143.55 | 4% |
| Operating Earnings (Loss) | ($995) | $4,640 | (121%) | $1,985 | $11,674 | (83%) |
Gypsum Wallboard Segment
The Gypsum Wallboard segment achieved revenues of $215.0 million for the three months ended September 30, 2024, a 3% increase from $209.2 million in 2023. For the six months, revenues rose slightly to $432.8 million from $428.3 million.
| Metric | Q2 2024 | Q2 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $214,975 | $209,233 | 3% | $432,801 | $428,330 | 1% |
| Sales Volume (MMSF) | 752 | 733 | 3% | 1,509 | 1,496 | 1% |
| Average Net Sales Price (per MSF) | $236.88 | $233.69 | 1% | $238.16 | $235.20 | 1% |
| Operating Earnings | $90,141 | $85,705 | 5% | $184,117 | $176,562 | 4% |
Recycled Paperboard Segment
The Recycled Paperboard segment reported revenues of $50.8 million for the three months ended September 30, 2024, an increase of 18% from $43.0 million in 2023. For the six months, revenues were $105.0 million, up from $88.3 million, representing a 19% increase.
| Metric | Q2 2024 | Q2 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $50,777 | $43,016 | 18% | $105,017 | $88,344 | 19% |
| Sales Volume (M Tons) | 85 | 80 | 6% | 176 | 163 | 8% |
| Average Net Sales Price (per ton) | $595.19 | $542.28 | 10% | $596.33 | $539.35 | 11% |
| Operating Earnings | $8,041 | $7,590 | 6% | $16,544 | $14,792 | 12% |
Financial Performance
For the six months ended September 30, 2024, Eagle Materials Inc. reported total revenues of $1,232.3 million, an increase of 1% from $1,223.8 million in 2023. The net earnings for this period were $277.4 million, reflecting a 2% increase from $271.4 million in 2023.
| Metric | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|
| Total Revenue | $1,232,308 | $1,223,757 | 1% |
| Cost of Goods Sold | ($841,596) | ($838,744) | 0% |
| Gross Profit | $390,712 | $385,013 | 1% |
| Net Earnings | $277,362 | $271,402 | 2% |
| Diluted Earnings per Share | $8.19 | $7.66 | 7% |
Operational Costs and Efficiency
The company experienced an increase in corporate general and administrative expenses by approximately 19%, amounting to $33.5 million for the six months ended September 30, 2024, compared to $28.3 million in 2023. This rise was attributed to higher salaries and IT upgrades.
Interest expenses decreased by approximately 5% to $21.4 million during the same period, reflecting lower average outstanding borrowings. The effective tax rate remained consistent at 22%.
Debt and Capitalization
Eagle Materials' debt-to-capitalization ratio stood at 43.1% as of September 30, 2024, down from 45.7% at the end of March 2024. The company has a revolving credit facility with a borrowing capacity of $750 million, of which $155 million was outstanding.
How Eagle Materials Inc. (EXP) Makes Money
Revenue Streams
Eagle Materials Inc. generates revenue primarily from the sale of five main product lines: cement, concrete, aggregates, gypsum wallboard, and recycled paperboard. For the six months ended September 30, 2024, total revenue was reported at $1,232.3 million, an increase of 1% from the prior year. The revenue breakdown by segment is as follows:
| Segment | Revenue (in $ thousands) | Percentage Change |
|---|---|---|
| Cement | $691,942 | — |
| Concrete and Aggregates | $134,795 | (4%) |
| Gypsum Wallboard | $432,801 | 1% |
| Recycled Paperboard | $105,017 | 19% |
| Total Revenue | $1,232,308 | 1% |
Cement Segment
The cement segment is the largest revenue contributor. For the six months ended September 30, 2024, cement revenue was $691.9 million, which remained relatively flat. The increase in revenue was attributed to higher gross sales prices amounting to $28.4 million, offset by a decline in sales volume impacting revenue by $26.3 million.
Concrete and Aggregates Segment
Concrete and aggregates revenue for the six months ended September 30, 2024, was $134.8 million, reflecting a 4% decline from the previous year. This decline was primarily due to lower sales volume, which reduced revenue by $14.7 million, partially offset by higher gross sales prices contributing $7.5 million.
Gypsum Wallboard Segment
Revenue from the gypsum wallboard segment was $432.8 million for the six months ended September 30, 2024, representing a 1% increase. This increase was driven by higher gross sales prices and a slight increase in sales volume.
Recycled Paperboard Segment
The recycled paperboard segment saw significant growth, with revenue increasing by 19% to $105.0 million for the six months ended September 30, 2024. This growth was fueled by higher sales volume and increased gross sales prices.
Cost of Goods Sold (COGS)
The cost of goods sold for the six months ended September 30, 2024, was $841.6 million, increasing by $2.9 million from the previous year. The increase in COGS was primarily due to higher operating costs, which rose by $28.4 million, partially offset by lower sales volume reducing costs by $27.6 million.
Gross Profit
Gross profit for the six months ended September 30, 2024, was reported at $390.7 million, a 1% increase from the prior year. The gross margin expanded to 32%, reflecting higher gross sales prices despite increased operating costs.
Equity in Earnings of Unconsolidated Joint Venture
The equity in earnings from unconsolidated joint ventures increased by 26% to $17.0 million for the six months ended September 30, 2024, primarily due to lower operating costs and higher sales volume.
Corporate General and Administrative Expenses
Corporate general and administrative expenses rose by approximately 19% to $33.5 million for the six months ended September 30, 2024. The increase was attributed to higher salaries and costs related to business development.
Net Earnings and Earnings Per Share
Net earnings for the six months ended September 30, 2024, increased by 2% to $277.4 million. The diluted earnings per share rose to $8.19, up from $7.66.
Debt and Financing Activities
As of September 30, 2024, Eagle Materials had a debt-to-capitalization ratio of 43.1%. The company’s revolving credit facility had $155 million outstanding.
Capital Expenditures
Net cash used in investing activities for the six months ended September 30, 2024, was approximately $124.5 million, primarily related to capital expenditures for facility expansions.
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Article updated on 8 Nov 2024
Resources:
- Eagle Materials Inc. (EXP) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Eagle Materials Inc. (EXP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eagle Materials Inc. (EXP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.