The following is a summary of the Eagle Materials Inc. (EXP) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Eagle Materials reported a record Q2 revenue of $624 million, a slight uptick from the previous year.

• Q2 earnings per share remained steady at $4.26 despite facing certain non-routine costs.

• The company experienced a 35% increase in cash flow from operations, reflecting strong working capital management. Operating cash flow increased to $233 million.

Business Progress:

• Successfully commissioned the Texas Lehigh slag grinding plant and expanded alternative fuel facilities, enhancing low-carbon product offerings and sustainability.

• Progressed on significant maintenance and modernization projects, including upgrades at Texas Lehigh and Tulsa Cement facilities, aimed at boosting plant reliability and efficiency.

• Acquired a small bolt-on aggregates business enhancing the customer reach of Battletown Materials in Louisville, Kentucky.

Opportunities:

• With 75% of IIJA funding yet to be spent, a strong demand tailwind is anticipated, especially from infrastructure and large-scale industrial projects.

• Announced price increases across most markets by early 2025, reflecting the company's strong positioning and demand outlook.

• Wallboard business poised for growth; announced a price increase delayed to early 2025, expecting a more favorable environment due to low mortgage rates and strong single-family building activity.

Risks:

• Cement and concrete volumes were negatively impacted by unusual weather patterns and operational challenges, including labor strikes and reduced demand in specific regions.

• The operational adjustments and reduced demand in Denver and union-related disruptions in Kansas City impacted volumes and required strategic shifts in market focus and operations.

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