Eagle Materials Says Housing Demand Remains Strong, Non-Residential Improving

Eagle Materials Inc of Dallas, TX has reported net earnings of US$374.2 million on revenue of US$1.86 billion for its fiscal year ended March 31, 2022. This compares with a net earnings of US$339.4 million on revenue of US$1.62 billion in the prior year.

Michael Haack, Eagle’s CEO, said, “As we begin our new fiscal year, Eagle is well-positioned, both financially and geographically, to capitalize on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near- and long-term. We expect that infrastructure investment should increase in the latter part of our fiscal year, as federal funding from the recently enacted Infrastructure Investment and Jobs Act in earnest. And despite recent interest rate increases, housing demand remains strong across our geographies, outpacing the supply of homes. Non-residential construction activity is also picking up.”

Eagle reports that its Light Materials (gypsum wallboard and paperboard) business generated operating earnings of US$274.1 million on revenue of US$804.1 million in the fiscal year ended March 31, 2022 versus US$192.8 million on revenue of US$635.4 million in the prior year.

Gypsum wallboard and paperboard revenues for the fourth quarter of fiscal 2022 totaled US$220.0 million, a 32% increase over the prior year period. The increase reflects improved wallboard sales volume and pricing. Gypsum wallboard sales volume increased 6% to 750 million sq ft and the average wallboard net sales price increased 27% to US$204.20/MSF.

Eagle’s Heavy Materials segment generated 2022 operating earnings of US$278.0 million on revenue of US$1.06 billion compared with US$253.0 million on revenue of US$987.2 million in the prior year.

The segment’s aggregates business sold 1.52 million tons versus 1.96 million tons in fiscal 2021. Average aggregates selling price for the year rose 10% to US$10.45/ton.

Volume 36, Issue 10

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