Eagle Materials Inc. reported financial results for fiscal year 2025 and the fiscal fourth quarter ended March 31. The company is reporting record revenue of $2.3 billion, up slightly from the prior year. Revenue in the fourth quarter was $470.2 million, down 1%.
Fiscal 2025 revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was down 2% to $1.4 billion, and annual operating earnings decreased 11% to $310.7 million. Both declines were due primarily to lower sales volume, which was partially offset by higher Cement net sales prices.
Fiscal 2025 Cement revenue, including Joint Venture and intersegment revenue, was down 2% to $1.2 billion, and Cement operating earnings declined 6% to $319.5 million. These declines reflect lower Cement sales volume, partially offset by higher net sales prices. While average annual net Cement sales price for the year increased 4% to $156.67 per ton, annual Cement sales volume was down 5% to 6.9 million tons.
Fourth quarter Cement revenue, including Joint Venture and intersegment revenue, was down 6% to $214.0 million, reflecting lower sales volume, partially offset by higher Cement sales prices. Operating earnings declined 26% to $27.6 million, reflecting lower sales volume and higher operating costs, namely approximately $10 million in maintenance costs, partially offset by higher net sales prices.
Joint Venture pulled forward its annual maintenance outage from April to March this year and started up a new cement slag facility in Houston during the winter, which will extend the company’s ability to meet the demand needs of its customers in a fast-growing market. The combined impact from the timing change of the annual outage and the commissioning costs for the new facility affected Joint Venture results by approximately $4 million.
The average net Cement sales price for the quarter increased 2% to $157.62 per ton. Quarterly Cement sales volume was down 6% to 1.2 million tons, primarily because of adverse weather conditions, particularly in February.
Fiscal 2025 Concrete and Aggregates revenue declined 1% to $237.7 million, as a result of lower sales volume, which was partially offset by higher sales prices. The acquired aggregates businesses in Kentucky (completed in August 2024) and Western Pennsylvania (completed in January 2025) contributed approximately $11.6 million of revenue during fiscal 2025.
Concrete and Aggregates reported an operating loss of $8.8 million in fiscal 2025. The loss was due to lower sales volume and the $2.5 million impact of selling acquired inventory after its markup to fair value as part of acquisition accounting.
Fourth quarter Concrete and Aggregates revenue was $54.3 million, an increase of 12%, driven by higher Aggregates sales volume and the contribution of $6.7 million from the two acquired aggregates businesses.
The fourth quarter operating loss of $9.4 million, resulted from lower Concrete sales volume due to difficult weather conditions during the quarter and the $1.9 million impact of selling acquired inventory after its markup to fair value as part of acquisition accounting.
Commenting on the annual results, Michael Haack, president and CEO, said, “We are pleased to report another year of strong financial, strategic, and operational performance at Eagle. In fiscal 2025, we generated record revenue of $2.3 billion and gross profit margin of 29.8%, continued to advance our long-term growth and value-creation strategies, and achieved important milestones in employee health and safety. In addition, we returned $332 million of cash to shareholders through share repurchases and dividends and maintained our balance sheet strength, ending the year with debt of $1.2 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.5x.
“On the strategic front, we expanded operationally within our existing geographic footprint and improved our ability to service customers in our growing markets. We completed the acquisition of two pure-play aggregates businesses – one in Kentucky and the other in Western Pennsylvania – for a combined investment of $175 million; began construction and made significant progress in expanding and modernizing our Wyoming cement plant; and started up a 500,000 ton slag-cement facility in Houston, which is operated through our Texas Lehigh Cement Co. 50/50 joint venture. Last week, we announced a $330 million investment to modernize and expand our Duke, OK Gypsum Wallboard plant, which we expect will increase the annual plant capacity by 300 million sq. ft., or 25%, lower the plant’s operating cost, and take advantage of our nearby, low-cost natural gypsum reserves. Construction is expected to begin soon with startup scheduled for the second half of calendar year 2027.
“Employee health, safety, and environmental stewardship remain paramount objectives, and I’m very proud of our team’s efforts and results in these areas. In fiscal 2025, our safety performance continued to outpace the industry average, and our total recordable incident rate (TRIR) was the lowest since we began tracking this lagging indicator. More importantly, we had a 25% increase in hazard observation reporting, which is the most useful leading indicator to prevent incidents. As always, we continue to strive for zero safety incidents. We also invested in several projects that we expect will reduce the environmental impact of certain of our facilities and deliver meaningful economic benefits, most notably a project designed to reduce the water consumption of our Lawton, Oklahoma papermill by 50%.”
With respect to fourth quarter results, Haack said, “Our fourth quarter financial results reflect the impact of adverse weather on our Cement and Concrete and Aggregates businesses in the first two months of calendar 2025, with February being the most affected compared with the prior year. Fourth quarter results were also affected by higher production costs as we pulled forward the annual maintenance outage at our Texas Lehigh cement facility and experienced weather-related production interruptions at other facilities.”
Haack concluded, “Despite the recent volatility in the capital markets due to changing trade and fiscal policies, we remain optimistic about our business and focused on continuing to position Eagle for sustained performance through various economic cycles and uncertain times. Our financial strength and flexibility should continue to drive shareholder returns through shifting macroeconomic conditions.”