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Fiscal Year and Fourth Quarter 2025 Earnings Release and Conference Call MAY 20, 2025
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2 Forward-Looking Statements Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Company’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside the Company’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward- looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s businesses; fluctuations in public infrastructure expenditures; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability of and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; interruptions in our supply chain; inability to timely execute or realize capacity expansions or efficiency gains from capital improvement projects; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); changes in trade policy, including tariffs and the effects of any increases in tariffs on our business, including increases in inputs used in our facility expansion and modernization projects; possible losses or other adverse outcomes from pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; competition; cyber-attacks or data security breaches, together with the costs of protecting our systems against such incidents and the possible effects thereof on our operations; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s results of operations. Finally, any forward- looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, and subsequent quarterly and annual reports upon filing. These reports are filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.
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Fiscal Year 2025 Highlights 3 Steady progress on financial and strategic priorities in challenging environment Progress on long-term sustainability — Lowest Total Recordable Incident Rate (TRIR) in Company history — On track for 50% reduction in water consumption at Republic papermill — Expanded our ability to utilize alternative fuels in our cement business Delivered solid financial results — Record revenue of $2.3 billion — Gross profit margin of 30% — Record diluted EPS of $13.77 Invested in resiliency of assets Executed on long-term growth initiatives — Organic development projects — M&A Returned $332 million to shareholders Maintained healthy leverage profile, with net leverage ratio of 1.5x
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Executed on Strategic Priorities and Long-Term Growth Initiatives 4 Acquired two pure-play aggregates businesses complementary to our existing footprint in Northern Kentucky and Western Pennsylvania — 50% increase in annual aggregates production capacity — Enhanced ability to serve growing markets — Integrated operations efficiently Invested in long-term organic growth initiatives — Began construction to modernize and expand our Wyoming Cement plant; project is on-time and on-budget — Started up a 500,000 ton slag-cement facility in Houston; operated through our 50/50 Joint Venture — Announced plans to modernize and expand our Duke, OK wallboard plant, which will increase capacity by 25%, reduce manufacturing costs, and increase ability to serve high-growth market
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Outlook Remains Favorable, With Solid Demand Fundamentals 5 Eagle well-positioned in current operating environment Gypsum Wallboard Single-family residential construction demand remains steady U.S. employment levels remain healthy Eagle’s footprint concentrated in fast-growing U.S. Heartland and Sunbelt Eagle’s low-cost structure provides advantages in less clear interest-rate environment Cement State and Federal infrastructure budgets remain healthy, with no material disruption in award funding Two-thirds of IIJA funds remaining to be spent, supporting years of public infrastructure spending Backlog of activity in private non-residential manufacturing projects remains Eagle’s footprint strategically supported with aggregates acquisitions
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6 Solid Annual and Q4 Revenue ANNUAL CHANGE DRIVEN BY: Higher prices across all business lines Lower Cement and Concrete and Aggregates sales volume $477 $470 2024 2025 FISCAL Q4 Revenue $2,259 $2,261 2024 2025 FISCAL YEAR In millions
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$2.24 $2.00 2024 2025 FISCAL Q4 Record Annual EPS, Up 1% 7 ANNUAL RESULTS REFLECT: Reduced share count due to share buybacks Lower Cement and Concrete and Aggregates earnings Diluted EPS $13.61 $13.77 2024 2025 FISCAL YEAR
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8 Heavy Materials Annual Results Driven by Lower Sales Volume FISCAL 2025 CEMENT Sales volume -5% Net sales prices +4% $1,466 $1,439 FY2024 FY2025 Revenue1 In millions 1 Includes Cement, Concrete and Aggregates and Cement Intersegment revenue, and our proportionate share of the Joint Venture. $351 $311 FY2024 FY2025 Operating Earnings In millions
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9 Light Materials Annual Results Driven by Higher Wallboard Sales Prices and Record Recycled Paperboard Sales Volume FISCAL 2025 Wallboard net sales prices up 1% Record Recycled Paperboard sales volume, up 5% $366 $389 FY2024 FY2025 Operating Earnings In millions $941 $969 FY2024 FY2025 Revenue In millions
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10 1 Includes depreciation of $150 million and $159 million for fiscal years 2024 and 2025, respectively. Due to rounding, numbers may not add up precisely to the total provided. Continued Healthy Cash Flow Generation and Disciplined Capital Allocation Fiscal Year ended March 31, In millions 20252024 $549$564Operating Cash Flow1 (195)(120)Capex, net $354$444Free Cash Flow (175)(55)Acquisition Spending (34)(35)Dividends Paid (298)(343)Share Repurchases 1443Change in Debt (5)6Other $(15)$20Net Change in Cash Balance
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Capital Structure Provides Significant Financial Flexibility 11 45% 46% 3.31.24 3.31.25 Net Debt-to-Cap 1.3x 1.5x 3.31.24 3.31.25 Net Debt to Adjusted EBITDA1 1 Net Debt to Adjusted EBITDA is defined as Net Debt divided by Adjusted EBITDA. Net Debt to Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures and are described in the Appendix.
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Question & Answer
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An archive of this web cast will be available at eaglematerials.com later today. Thank you for participating in today’s conference call web cast.
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Appendix
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15 Reconciliation of EBITDA and Adjusted EBITDA Fiscal Year ended March 31, 2025 Fiscal Year ended March 31, 2024 In millions $463$478Net Earnings, as reported 128140Income Tax Expense 4142Interest Expense 159150Depreciation, Depletion and Amortization 791810EBITDA 65Acquisition accounting and related expenses 1 1-Litigation loss 1920Stock-based Compensation $817$834Adjusted EBITDA We present Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide additional measures of operating performance and allow for more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that excludes the impact from non-routine items (Non- routine Items) and stock-based compensation. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance in accordance with GAAP. The table beside shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the fiscal years ended March 31, 2024 and 2025. 1 Represents the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and business development costs Due to rounding, numbers may not add up precisely to the total provided.
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16 Reconciliation of Net Debt to Adjusted EBITDA As of March 31, 2025 As of March 31, 2024 In millions $1,246$1,103Total debt, excluding debt issuance costs 2035Cash and cash equivalents $1,226$1,068Net Debt $817$834Adjusted EBITDA 1.5x1.3xNet Debt to Adjusted EBITDA Due to rounding, numbers may not add up precisely to the total provided. GAAP does not define “Net Debt” and it should not be considered as an alternative to debt as defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses “Net Debt to Adjusted EBITDA,” which it defines as Net Debt divided by Adjusted EBITDA, as an alternative metric to assist it in understanding its leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.