DALLAS - Eagle Materials Inc . (NYSE: NYSE:EXP), a prominent American manufacturer of construction products and materials, disclosed its financial outcomes for the fiscal fourth quarter ended March 31, 2024.
The company reported a fourth-quarter earnings per share (EPS) of $2.24, falling short of the analyst consensus of $2.67. Revenue for the quarter was $476.7 million, also below the expected $482.29 million.
The fiscal year 2024 concluded with Eagle Materials achieving record annual revenue of $2.3 billion, marking a 5% increase, and a net earnings rise of 3% to $477.6 million. Adjusted earnings per share for the year reached $13.61, showing a 9% improvement. However, the fourth quarter saw a downturn, with net earnings declining by 23% to $77.1 million and diluted EPS dropping by 20%.
Michael Haack, President and CEO, commented on the results, stating, "We are pleased to announce another year of superior performance at Eagle. We achieved record financial results and made strong progress on our strategic priorities."
He attributed the annual success to expanded gross margins, record EPS, and significant share repurchases. Despite the fourth-quarter setbacks attributed to adverse weather conditions and elevated maintenance costs, Haack remains optimistic about the company's position to capitalize on solid market fundamentals in fiscal 2025.
Eagle Materials' Heavy Materials sector, encompassing Cement, Concrete, and Aggregates, saw an annual revenue increase of 12% to $1.5 billion, with operating earnings up 18%. The Cement segment alone experienced a 14% revenue increase and a 21% rise in operating earnings, buoyed by higher sales volume and net sales prices. However, the fourth-quarter results were less favorable, with Cement operating earnings falling 18% due to lower organic sales volume and increased operating costs.
The Light Materials sector, which includes Gypsum Wallboard and Paperboard, faced a 4% revenue decline to $941.4 million for the fiscal year. The sector's operating earnings also decreased by 3%, mainly due to lower Wallboard sales volume.
Looking forward, Eagle Materials has announced several growth investments in its Heavy Materials business and remains committed to disciplined capital allocation, with $913 million invested in acquisitions, $486 million in organic capital expenditures, and $1.8 billion in share repurchases and dividends over the past five years.
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