Eagle Materials reports Q1 adjusted EPS $3.55, consensus $3.57

Reports Q1 revenue $601.5M, consensus $601.42M. Commenting on the first quarter results, Michael Haack, President and CEO, said, “Fiscal 2024 is off to a solid start for Eagle, with record revenue of $602 million, adjusted EPS of $3.55, and gross margins of 29.3%, an increase of 240 bps. Our portfolio of businesses continued to perform well, and we made progress on our strategic priorities. During the quarter, we reached an important milestone in the production of Portland Limestone Cement, surpassing 50% across our system. We completed the acquisition of a cement import terminal in northern California that further strengthens our competitive position in that market. And we returned $83 million of cash to shareholders through share repurchases and dividends, all while maintaining our balance sheet strength: at June 30, 2023, Eagle’s net debt was $1.1 billion, and our net adjusted leverage ratio remained at 1.4x, giving us substantial financial flexibility for continued disciplined capital allocation.” Haack continued, “Looking ahead to the balance of the year, we expect demand for cement to remain steady driven by infrastructure and heavy industrial projects. Residential construction activity remains resilient as the market balances interest rate-related affordability challenges with chronic supply shortages and strong demand. 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.”