Eagle Materials Posts Adjusted EBITDA of $202.7 Million
Key Facts
Eagle Materials reported results for the second quarter of fiscal 2027, the period ended September 30, 2026, posting adjusted earnings before interest, taxes, depreciation and amortization of $202.7 million, according to a company statement. Net earnings fell from the same period a year earlier, the statement said, without specifying here the amount of the decline. Segment results show diverging trends, with revenue growth in heavy materials and lower operating earnings. Chief Executive Michael Haack said the operating environment faced higher diesel prices and interest rates. He said spending on infrastructure and large private projects supported demand for heavy materials products, while interest rates weighed on the housing market.
Heavy materials revenue was $477.8 million, up 2% year over year, but operating earnings fell 12% to $113.0 million. The company linked the decline to higher operating costs, while Haack attributed the difficult operating environment to higher diesel prices and interest rates. The performance leaves the segment with two divergent results: higher revenue and lower operating earnings. Haack said spending on infrastructure and large private projects supported demand for the segment’s products. In contrast, interest rates weighed on the housing market, limiting the strength of that support across demand categories.
Comparison with previous periods shows the continued divergence between revenue growth and the trajectory of earnings. In the first quarter of fiscal 2027, the company posted revenue of $651.0 million, up 3% year over year, while net earnings were $102.1 million, down 17%, and diluted earnings per share fell 13% to $3.29. In the second quarter of fiscal 2026, revenue was $638.9 million, net earnings were $137.4 million and diluted earnings per share were $4.23. These figures provide context for comparison with the current quarter, in which the company reported adjusted earnings before interest, taxes, depreciation and amortization of $202.7 million. The statement also said net earnings declined year over year, while heavy materials results showed lower operating earnings despite higher segment revenue.
Second-quarter fiscal 2026 results show that sales volumes moved in different directions across business lines. Haack said at the time that cement sales volume rose 8%, driven by demand tied to federal, state and local government spending on public infrastructure projects. Organic aggregate sales volume also increased 35% that quarter, according to his remarks. By contrast, gypsum wallboard sales volume fell 14%, while new residential construction remained constrained by concerns about housing affordability and persistently high mortgage rates. This context accompanies Haack’s statement in the current-quarter results that higher interest rates weighed on the housing market, while spending on infrastructure and large private projects continued to support demand for heavy materials.
On the balance sheet, the company ended the quarter with debt of $1.8 billion and net debt of $1.5 billion. Net debt to adjusted earnings before interest, taxes, depreciation and amortization was 2.1 times, according to the company statement. Eagle Materials continues to upgrade its Mountain Cement facility and the Duke gypsum wallboard facility in Oklahoma. The company said the investments are intended to improve operating efficiency and reliability and increase production capacity. In its fiscal 2026 results, it had said the Mountain Cement upgrade was about 60% complete and expected the new kiln line to begin operating in late 2026; it also targeted operation of the new gypsum wallboard line at the Duke plant in the second half of 2027.
The company’s conference call to discuss second-quarter results was scheduled for November 4, 2026, at 8:30 a.m. Eastern time, according to Eagle Materials’ events and presentations page. The call was set for the day the company announced results for the period ended September 30. It was scheduled to discuss the quarter’s results, along with the operating and financial figures the company announced. Those figures include adjusted earnings before interest, taxes, depreciation and amortization of $202.7 million and the performance of the heavy materials segment. The debt, net debt and leverage ratio disclosed in the statement also provide context for assessing the company’s financial position at the end of the period.