Eagle Matls — Income Statement, Cash Flows & Balance Sheet
Is Eagle Materials profitable?
Eagle Materials remains solidly profitable, though earnings have declined for two straight years as costs rise faster than revenue.
| FY2024 | FY2025 | Change | |
|---|---|---|---|
| Revenue | $2,259M | $2,261M | +0.1% |
| Revenue | $2,261M | $2,309M | +2.1% |
| Gross Profit | $685M | $673M | -1.8% |
| Gross Profit | $673M | $653M | -3.0% |
| Gross Margin | 30.3% | 29.8% | -0.5 pts |
| Gross Margin | 29.8% | 28.3% | -1.5 pts |
| Net Earnings | $478M | $463M | -3.0% |
| Net Earnings | $463M | $424M | -8.5% |
Revenue has barely budged over three years, yet net earnings have slipped each year. The squeeze comes from two directions: cost of goods sold is climbing, and corporate overhead nearly doubled over the same period — rising from roughly $60M to $89M — compressing margins even as the top line crept higher.
Corporate overhead and rising costs are the main earnings headwinds, not a structural revenue problem.
| FY2024 | FY2026 | Change | |
|---|---|---|---|
| Corp. G&A Expense | $60M | $89M | +49% |
| Interest Expense, net | $42M | $46M | +11% |
| Earnings Before Tax | $618M | $542M | -12% |
The run-up in corporate overhead — which includes stock compensation — alongside modestly higher interest costs has taken a meaningful bite out of pre-tax earnings over two years. These are real, recurring costs rather than one-time items.
Where does Eagle Materials' revenue come from?
Cement is the largest and most profitable segment, but Gypsum Wallboard had a rough year while Cement picked up the slack.
| Segment | FY2025 Op. Earnings | FY2026 Op. Earnings | Change |
|---|---|---|---|
| Cement | $319M | $328M | +3% |
| Gypsum Wallboard | $351M | $287M | -18% |
| Recycled Paperboard | $38M | $45M | +17% |
| Concrete & Aggregates | -$9M | $13M | Improvement |
Gypsum Wallboard — historically Eagle Materials' second-largest profit driver — saw a sharp earnings decline, likely reflecting weaker wallboard pricing. Cement continued to grow and partially offset that weakness, while the previously loss-making Concrete & Aggregates segment swung back to a modest profit.
Does Eagle Materials generate cash?
Eagle Materials is a strong cash generator, though a major capital spending push is consuming more of that cash than in recent years.
| FY2024 | FY2025 | FY2026 | Change (YoY) | |
|---|---|---|---|---|
| Operating Cash Flow | $564M | $549M | $614M | +12% |
| Capital Expenditures | $120M | $195M | $417M | +114% |
| Free Cash Flow* | $444M | $354M | $197M | -44% |
Free cash flow = operating cash flow minus capital expenditures (GAAP-derived, not a formally reported figure)
Operating cash flow actually improved this year, but capital expenditure more than doubled — driven by new plant investment, particularly in Gypsum Wallboard — leaving much less free cash flow available. The company simultaneously spent roughly $382M buying back its own shares, funded partly by issuing $750M in new senior notes.
How strong is Eagle Materials' balance sheet?
Eagle Materials took on significantly more debt this year to fund growth and share buybacks, which is worth watching.
| FY2025 | FY2026 | Change | |
|---|---|---|---|
| Total Debt | $1,246M | $1,781M | +$535M |
| Cash & Equivalents | $20M | $298M | +$278M |
| Net Debt (Debt minus Cash) | ~$1,226M | ~$1,483M | +$257M |
| Long-Term Debt | $1,223M | $1,745M | +$422M |
The company issued $750M of new 5.000% senior notes due 2036 during the year, pushing total debt up substantially. A large cash balance of nearly $298M remained at year-end, and Eagle Materials had a further $740M available on its revolving credit facility, so near-term liquidity looks comfortable. The higher debt load does mean more interest costs going forward, particularly given the new notes carry a 5% coupon versus the 2.5% on the older notes.