Eagle Materials (E5M) Q2 2027 Earnings Report

The call was mixed but cautiously constructive. Eagle delivered record revenue, higher operating cash flow, strong liquidity, continued shareholder returns, and progress on major modernization projects. However, these positives were offset by a 14% EPS decline, lower operating earnings in both major sectors, elevated diesel, freight and raw material costs, ongoing Wallboard demand weakness, and operational disruptions at the older Mountain Cement plant.

Eagle expects fiscal 2027 capital expenditures of between $490 million and $525 million, with construction of Mountain Cement on track to be completed later this calendar year and Duke Wallboard construction at mid-fiscal 2028; once Laramie construction is complete, commissioning will take about 2 quarters, while Duke construction and commissioning will occur about 1 year after the Laramie, Wyoming, cement plant is complete. By the later part of fiscal 2028, many cost savings are expected to be accretive to Mountain Cement’s margin profile, although achieving the full 25% cost savings requires selling the full capacity of the new plant and will take several years. Price increases in cement and aggregates are effective January 1, 2027, with cement increases anywhere between $10 to $14, $15 a ton depending upon the market, and about 50% of cement demand is driven by public infrastructure spending.