Eagle Materials sets a revenue record as wallboard prices pull profit down
Eagle Materials earned $3.63 per share in the quarter ended September 30, 2026, below the $3.98 analysts expected and the $4.23 it earned a year earlier. Revenue hit a record $652.7 million, but lower wallboard prices and higher diesel-driven freight costs cut into profit.
The results
Q2 FY2027
-8.7%
Earnings
+1.3%
Revenue
+2.8%
The stock
Earnings per share
Expected $3.98
$3.63
Revenue
Expected $644.63M
$652.75M
What the company expects
Chief Executive Michael Haack said higher interest rates, broader economic uncertainty and geopolitical conditions may keep affecting construction activity in the near term. The company expects costs for its new enterprise software system to continue in future quarters.
Results for Q2 FY2027, released on November 4, before the open. Expected: average of analysts' forecasts.
Who holds it
AI analysis
Nov 4
What drove the quarter
Wallboard prices fell
Eagle Materials' average net wallboard price fell 10% even though it sold 7% more wallboard, because prices before freight fell 6% and higher diesel costs raised freight. Gypsum Wallboard operating earnings dropped to $57.4 million from $67.3 million a year earlier.
Cement sold more but earned less
Cement sales volume reached a record 2.2 million tons, yet cement operating earnings fell 9% to $108.8 million. The company blamed higher labor and depreciation costs, pricier purchased raw materials and diesel-driven freight.
Record revenue and share buybacks
Revenue reached a record $652.7 million, 1.3% above what analysts expected. Eagle Materials also bought back 304,881 of its own shares for about $62 million in the quarter.
What it changes
Pressure may last
Chief Executive Michael Haack said higher interest rates, economic uncertainty and geopolitical conditions may keep weighing on construction in the near term. High rates have already put more pressure on a weak housing market.
Overhead costs keep rising
Corporate general and administrative expenses rose 26%, driven by health insurance and a new company-wide software system. Eagle Materials expects the software costs to continue while it rolls the system out to its other businesses.
Plant upgrades under way
Eagle Materials is modernizing its Mountain Cement plant and its wallboard plant in Duke, Oklahoma. The company says the work should lower costs, make the plants more reliable and add production capacity.
What it does not say
Adjusted EBITDA leaves costs out
Adjusted EBITDA of $202.7 million excludes interest, taxes, depreciation and stock-based pay, so it shows less than the full cost of running the company. Net earnings, which count all of those costs, fell to $111.5 million from $137.4 million.
One session's rise is not a verdict
The stock rose 2.8% on November 4, 2026, the day of the results. Before that, it had lost 5.9% over the year to November 3 while the S&P 500 gained 11.6%.
Analysis written by an AI from public data. It is not investment advice.