On this page of StockholderLetter.com we present the latest annual shareholder letter from EAGLE MATERIALS INC — ticker symbol EXP. Reading current and past EXP letters to shareholders can bring important insights into the investment thesis.

 •  6/17/2024 Letter Continued (Full PDF)
 •  6/23/2023 EXP Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  EXP Benford's Law Stock Score = 88

EXP Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT AND FORM 10-K

LETTER TO OUR SHAREHOLDERS
Dear Shareholders,
Fiscal 2024 was yet another record-breaking year at Eagle Materials, our third consecutive year of record results. For the
fiscal year, we reported record revenue of $2.3 billion and record diluted earnings per share of $13.61.
Looking back on the year, Eagle   s performance benefitted from a US economy that remained on steady footing, increasing
federal infrastructure and non-residential construction spending to support cement demand, and, contrary to expectations
at the start of the year, housing market conditions that supported relatively stable gypsum wallboard demand.
Our focus throughout the year and throughout our history has been on investing and nurturing talent, keeping our facilities
in like-new condition, maintaining a solid capital structure, and serving our customers while being good stewards in our
communities, ultimately building an enduring business through shifting economic cycles. Because much of Eagle   s
success comes down to effective cycle management, we want to elaborate more on the hallmarks of our unique approach.
Disciplined Growth Through Superior Execution
We seek to double our earnings from    peak-to-peak    across cycles through organic investments and prudent acquisitions.
Every growth opportunity we consider must meet high strategic and financial-return standards while reinforcing Eagle
Materials    low-cost producer position, and in turn, we must execute at the highest levels.
Recent growth initiatives include the expansion and modernization of our Mountain Cement facility, which will increase the
plant   s annual manufacturing capacity by approximately 50% to serve the fast-growing Denver and Salt Lake City markets.
The modernized plant will use state-of-the-art technology to meaningfully reduce our manufacturing costs and carbon
intensity. We are also completing construction of a new slag grinding facility in Texas, through our joint venture at Texas
Lehigh, expanding our ability to meet cementitious demand in Texas and advancing our transition to blended cements.
Our forward-looking investments go beyond these recent projects, as we are always seeking opportunities to enhance our
facilities, including with our decades-old decisions to ensure our substantial raw materials reserves are located next to our
plants. Our growth investments are intended to generate healthy financial returns while advancing our strategic priorities.
Continuously More Efficient
Another cornerstone of our cycle management is our focus on the    peak-to-trough    resiliency of our assets. We
continuously invest in developing our people, strengthening our processes, and maintaining our plants. As such, we are
steadfast in our commitment to extend our low-cost position by using less to manufacture more at the highest quality.
We expect our ongoing investments in sustainability to produce a high return on investment. Positioning our assets for the
next 50 years supports Eagle   s industry-leading operating margins and sets us up to find more production and cost
efficiencies in the future. Our updated Sustainability Report provides detailed information on our environmental and safety
programs, metrics, and progress.
Financial Flexibility Driven By Operational Performance
Being prepared for both favorable and challenging market conditions requires financial flexibility as well as operational
efficiency. We are committed to maintaining a healthy balance sheet through economic cycles. We ended the fiscal year
with leverage at 1.3 times Net Debt-to-EBITDA.
Our consistent operational performance and financial discipline produce strong enterprise cash flows, putting us in the
enviable position of being able to capitalize on growth initiatives and invest to ensure the sustainability of our businesses
while also returning excess capital to shareholders. Over the last five years, we have invested almost $1.4 billion back into
our business, through both system improvements and acquisitions. With regards to returning excess cash flow to
investors, this past fiscal year alone we returned $378 million to shareholders through share repurchases and dividends.
Over the last five years our share buyback program has reduced the overall stock float by approximately 30%.
Every Eagle Materials employee   each of whom has contributed to our record results   focuses on the same ingredients
of our long track record of success: disciplined growth, resiliency, and exceptional performance. As such, we believe we
will continue to set the bar for our industry in the years ahead.



 6/17/2024 Letter Continued (Full PDF)