Solid cement sales help drive Eagles Materials revenue in Q2

Eagle Materials reported a record second quarter as revenue increased 12% to $447.7 million from second quarter 2019 revenue of $400 million. 

The Dallas, Texas-based company also posted net earnings of $96 million, rising more than 33% from net earnings of $72 million in the second quarter a year ago.

Revenue in Eagle’s heavy materials sector, which includes cement, concrete, and aggregates increased 15% to $324.4 million for the quarter. 

Cement revenue soared 22% to more than $278 million during the period.

Sales in the light materials sector, which includes gypsum wallboard and paperboard, increased 1% from the prior year, as improved sales volume was partially offset by lower pricing. 

Eagle said that it still plans to separate its heavy materials and light materials businesses into two independent, publicly traded corporations but the timing of the separation remains uncertain given the effects of the COVID-19 pandemic.

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The Bottom Line: Profits leap 33% in the second quarter as cement, concrete, and aggregates revenue increases 12%.

What the CEO said: “Our end markets remain resilient as COVID-related uncertainty persists: the housing market continued its strong rebound, and cement demand remained robust, despite wet weather in the first half of September,” said Michael Haack, president and CEO of Eagle Materials. “Our wallboard shipments were up 6%, and we shipped an all-time record 2.2 million tons of cement during the quarter. We generated strong operating cash flow, which, combined with the receipt of the majority of our tax refund in the quarter, significantly improved our balance sheet and liquidity position.”

Company info: The full second quarter 2020 report from Eagle Materials is available here.