Eagle Materials has released its results from the third quarter, which underline its strong performance.
Eagle Materials president and chief executive officer Michael Haack welcomed the results.
“Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather in our Midwest and Great Plains markets, where rainfall in November was 250 per cent higher than normal,” he said.
“The excessive rainfall affected sales volume in our cement and concrete and aggregates businesses, although we achieved higher sales volume in gypsum wallboard and recycled paperboard. On a company-wide basis, we generated revenue of $558 million and achieved a gross profit margin of 31.9 per cent.
“We also continued advancing our long-term growth and value-creation strategies: during the quarter, we announced the acquisition of Bullskin Stone and Lime, LLC, a pure-play aggregates business in Western Pennsylvania; returned $63 million of cash to shareholders through share repurchases and dividends; and maintained our balance sheet strength, ending the quarter with debt of $1.0 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.2x.”
Eagle Materials’ results included revenue of $558.0 million, net earnings of $119.6 million, net earnings per share of $3.56, adjusted net earnings per share (Adjusted EPS) of $3.59 and adjusted EBITDA of $208.8 million.
“While the path to lower interest rates and improved home-buying affordability is less certain today, we remain optimistic about our businesses and our ability to execute on the opportunities in front of us,” Haack said.
“Steady employment, housing supply that remains chronically short, and our cost-structure advantages continue to provide favorable conditions for our Gypsum Wallboard business in this dynamic environment. On the cement side, spending from the Infrastructure Investment and Jobs Act (IIJA) is still in the beginning phases, which should support multiple years of strong cement demand.
“Our balance sheet and cash-flow generation remain healthy, supporting our capital allocation priorities, and our consistent, disciplined operational and strategic approach should position us to continue to perform well through economic cycles and deliver value over the long term.”
