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Third Quarter Fiscal 2026Earnings Release and Conference CallJanuary 29, 2026
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2 Forward-Looking StatementsForward-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, 2025, 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 2026 Third Quarter Highlights: Strong Performance, Despite Mixed Environment 3 Delivered solid financial results—Revenue of $556 million—Gross profit margin of 28.9%—EPS of $3.22Enhanced reliability, health, and efficiency of operations—Maintained industry-leading safety record; advanced standardization, reporting, HSE training throughout company—Completed several waste-recycling initiatives, enhancing efficiency and extending revenue streams—Continued progress on Laramie, WY cement plant modernization; expected completion late calendar 2026—Continued progress on Duke, OK Wallboard plant modernization; expected completion in H2 calendar 2027Strengthened capital structure and liquidity, issuing $750 million of 10-year notes with an interest rate of 5%Significantly increased shareholder distributions to approximately $150 million through repurchase of 648,000 shares and quarterly dividend payment
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Cement Outlook Remains Favorable, Wallboard Outlook Mixed 4 Eagle well-positioned for various scenariosGypsum WallboardNew single-family residential construction remains challenged, with ongoing affordability issuesShifting housing policies and increased affordability focus may spur new-home constructionEagle’s low-cost structure, strengthened by capital investments currently underway, provides advantages in less clear demand environmentCementFederal, state ,and local infrastructure spending remains healthySignificant IIJA funds remaining to be spent, supporting years of public infrastructure spendingContinued growth in key private non-residential construction end markets, e.g., data centers
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$558 $556 2025 2026FISCAL Q3In millions 5 Revenue Down Slightly 5CHANGE DRIVEN BY:Lower Wallboard and Paperboard sales volume and pricesPartially offset by higher cement sales volume and contribution from the acquired aggregates business Revenue
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$3.56$3.222025 2026FISCAL Q3 Diluted EPS 6 EPS of $3.22 6THIRD QUARTER REFLECTS:Lower net earnings Reduced share count due to share buybacks
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71Includes Cement, Concrete and Aggregates and Cement Intersegment revenue, and our proportionate share of the Joint Venture. Heavy Materials Third Quarter Results Driven By Increased Cement and Aggregates Sales Volume$352 $390 FY2025 FY2026THIRD QUARTER Revenue1In millions$85 $93 FY2025 FY2026THIRD QUARTER Operating EarningsIn millionsTHIRD QUARTER HIGHLIGHTSCement sales volume +9%Net Cement sales prices down 1%Concrete and Aggregates revenue +22%Record Aggregate sales volume +81%
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8 Light Materials Third Quarter Results Reflect Lower Wallboard Sales Volume and Prices$242 $203 FY2025 FY2026THIRD QUARTER RevenueIn millions$97 $73 FY2025 FY2026THIRD QUARTER Operating EarningsIn millionsTHIRD QUARTER HIGHLIGHTSWallboard sales volume down 14%Recycled Paperboard sales volume down 10%Wallboard net sales prices down 5%
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91Includes depreciation of $117 million and $124 million for the nine months ended December 31, 2024 and 2025, respectively. Continued Healthy Cash Flow Generation Nine months ended December 31In millions20252024+5%$512$486Operating Cash Flow1 (295)(147)Capex, net217339Free Cash Flow-(25)Acquisition Spending(24)(25)Dividends Paid(310)(201)Share Repurchases531(93)Change in Debt(15)1Other$399$(4)Net Change in Cash Balance $512 million of cash flow from operations
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Capital Structure Provides Significant Financial Strength 1046%48%3.31.25 12.31.25Net Debt-to-Cap1.5x1.8x3.31.25 12.31.25Net Debt to Adjusted EBITDA1 1Net 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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14 Reconciliation of EBITDA and Adjusted EBITDATTMDecember 31, 2025Fiscal Year ended March 31, 2025$430$463Net Earnings, as reported114128Income Tax Expense4541Interest Expense166159Depreciation, Depletion and Amortization756791EBITDA36Acquisition accounting and related expenses 1 -1Litigation loss2019Stock-based Compensation $780$817Adjusted EBITDA In millions1Represents 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. 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 andAdjusted 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 year ended March 31, 2025, and the trailing twelve-month period ended September 30, 2025.
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15 Reconciliation of Net Debt to Adjusted EBITDAAs of December 31, 2025As ofMarch 31, 2025In millions$1,785$1,246Total debt, excluding debt issuance costs41920Cash and cash equivalents$1,366$1,226Net Debt$780$817Adjusted EBITDA (TTM)1.8x1.5xNet Debt to Adjusted EBITDADue 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.