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.
2025 ANNUAL REPORT AND FORM 10-K
Letter to Our Shareholders Dear Shareholders, Fiscal 2025 was a year of many accomplishments for Eagle Materials, and we are proud to highlight them even as we look forward to the year ahead. Amid a volatile economic backdrop, for the fourth consecutive year, the Eagle Materials team delivered record results, generating revenue of $2.3 billion and diluted earnings per share of $13.77. Our financial accomplishments this past fiscal year were a direct result of our strategic and operational accomplishments, decisions, and investments. Eagle s steady focus on investing through cycles, not just for a point in the cycle, led to our record financial performance in fiscal 2025 and has positioned us to benefit from industry dynamics now and in the future. Positioned to Benefit from Industry Demand and Supply Dynamics We have a track record of outperformance, and we believe our disciplined focus and prudent investing philosophy will enable us to continue to outperform. As a purely domestic U.S. manufacturer with ownership of decades worth of raw materials reserves, we are also well-equipped to navigate a variety of possible economic outcomes. Even in periods of economic uncertainty as we currently are in, demand for our essential construction products cement, aggregates and wallboard should hold steady because the building and re-building of public infrastructure, residential, and non-residential buildings remain a priority at the local, state, and federal levels. At the same time, capacity utilization should remain elevated because supply is constrained by significant barriers to entry, including regulatory and environmental restrictions, necessary financial investment, and limited access to low-cost raw materials. These barriers should keep capacity utilization rates across our core businesses at higher levels than we ve seen historically. Eagle is well-positioned to benefit from these dynamics given the steady investments we have made to maintain our industry-leading operational performance and to secure our advantaged raw materials reserves, especially in gypsum wallboard, where we are largely insulated from the synthetic gypsum cost and availability pressures faced by the rest of the industry. While we continuously assess how changes in the economy might affect our operations, we do not allow near-term headline noise surrounding the broader economy to divert our attention from operating efficiently every day. We remain focused on maintaining our position as one of the lowest-cost producers in the industry and advancing our strategic priorities and long-term value-creating initiatives. Focusing on operational efficiency and sustainability is deeply ingrained in our organizational culture, and this focus served us particularly well in fiscal 2025. Fiscal 2025 Highlights Record Revenue of $2.3 billion Gross Profit Margin of 29.8% Record Diluted Earnings per Share $13.77 Lowest TRIR in company history Hazard observation reporting increased 25% $332.0 million returned to shareholders through dividends and share repurchases
Letter to Our Shareholders (continued) High-Return, High-Impact Strategic Investments Eagle s commitment to continuing to make investments that reinforce our advantaged low-cost position allows us to capture the benefits of up-cycles and weather the challenges of any down-cycles. In fiscal 2025, these investments included both accretive acquisitions and organic capital projects. Within Aggregates, a key Heavy Materials growth area for us, we acquired two pure-play aggregates operations one in Kentucky and the other in Western Pennsylvania that enhance our ability to serve markets complementary to our existing footprint. Together, the two businesses will increase Eagle s aggregates production capacity by 50%. In the Cement segment, the modernization and expansion of our Mountain cement plant to serve customers in the Northern Colorado area is ramping up and remains on schedule for completion in late 2026. In addition to expanding the plant s capacity by 50% with an additional 400,000 tons, the upgrade will lower manufacturing costs at the plant by about 25% and reduce the plant s CO2 intensity. Our Texas Lehigh joint venture also commissioned a new slag cement facility in Texas to extend our ability to meet cementitious materials demand throughout Texas. On the Light Materials side of our business, we have initiated a project to modernize and expand our Duke, Oklahoma gypsum wallboard facility. Capitalizing on our decades-long natural gypsum reserves, the facility upgrade will strengthen Eagle s competitive position and ability to serve customers across key Southern and Sunbelt markets as the rest of the wallboard industry continues to struggle to source synthetic gypsum. At our paper mill, which provides our wallboard business with nearly 100% of its recycled paper needs, we are nearing completion of our wastewater-reduction project, which lowered our water usage by over 30% in fiscal 2025. When completed later this summer, the wastewater treatment plant will reduce water usage by 50% annually. All these projects highlight Eagle s commitment to ensure the sustainability of our assets while delivering meaningful economic benefits. We continuously review and implement actions to further optimize our current assets and extend our network through compelling acquisitions. These strategic investments are complemented by the everyday decisions made at each of our plants. Everyday Decisions at Our Plants At the plant level, every local team has an ownership mindset. They are focused on improving operations and ensuring the resilience of our assets for decades to come. To cite just a few examples of our local teams in action, in fiscal 2025 we: Achieved our lowest total recordable incident rate in company history and increased hazard observation reporting, a key leading safety indicator, by 25% Completed our alternative fuel project at our Illinois cement plant and neared completion of a similar project at our Kosmos cement plant, both of which will lower cost and increase fuel optionality
Letter to Our Shareholders (continued) Expanded our average reserve life through ongoing land purchases Secured additional water rights to ensure sustainable water resources At Eagle, our commitment to our people, our assets, and the communities we operate in extends through every one of our plants. The daily decision-making at the local plant level drives Eagle s operational excellence and shareholder value over the long term. Disciplined Capital Allocation and Financial Stewardship Our ability to execute on investment opportunities is underpinned by our capital allocation principles and our balance sheet strength. In fiscal 2025, while investing our excess free cash flow across our high-return projects, we continued to return capital to shareholders, distributing $332 million of cash to shareholders through share repurchases and dividends. We ended the year with a net leverage ratio of 1.5x. Over the last five years, we have put nearly $3 billion of capital to work, investing in our asset base, making strategic acquisitions, and returning capital to shareholders. Over the next five years, we will follow the same capital allocation priorities, as we plan to prudently invest the significant free cash flow our businesses generate to maximize shareholder value. Governance Update On May 15, we announced the appointment of David Rush to our Board of Directors. We re pleased to welcome David to our Board and are confident his more than 30 years of experience in the industry will bring valuable perspective and insight as we position Eagle for continued success. Eagle Materials culture is as strong as ever, from our employees to our Board of Directors. We look forward to the success ahead, and we remain steadfast in our commitment and in our gratitude to our employees and to you, our shareholders, for your continued support. Sincerely, Mike Nicolais Michael Haack CHAIRMAN PRESIDENT AND CEO
 • shareholder letter icon 6/23/2025 Letter Continued (Full PDF)
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 • stockholder letter icon 6/17/2024 EXP Stockholder Letter
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EXP Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT AND FORM 10-K


Letter to Our Shareholders
Dear Shareholders,
Fiscal 2025 was a year of many accomplishments for Eagle Materials, and we are
proud to highlight them even as we look forward to the year ahead. Amid a volatile
economic backdrop, for the fourth consecutive year, the Eagle Materials team
delivered record results, generating revenue of $2.3 billion and diluted earnings per
share of $13.77.
Our financial accomplishments this past fiscal year were a direct result of our
strategic and operational accomplishments, decisions, and investments. Eagle   s
steady focus on investing through cycles, not just for a point in the cycle, led to our
record financial performance in fiscal 2025 and has positioned us to benefit from
industry dynamics now and in the future.
Positioned to Benefit from Industry Demand and Supply Dynamics
We have a track record of outperformance, and we believe our disciplined focus
and prudent investing philosophy will enable us to continue to outperform. As a
purely domestic U.S. manufacturer with ownership of decades worth of raw
materials reserves, we are also well-equipped to navigate a variety of possible
economic outcomes.
Even in periods of economic uncertainty as we currently are in, demand for our
essential construction products   cement, aggregates and wallboard   should hold
steady because the building and re-building of public infrastructure, residential, and
non-residential buildings remain a priority at the local, state, and federal levels.
At the same time, capacity utilization should remain elevated because supply is
constrained by significant barriers to entry, including regulatory and environmental
restrictions, necessary financial investment, and limited access to low-cost raw
materials. These barriers should keep capacity utilization rates across our core
businesses at higher levels than we   ve seen historically.
Eagle is well-positioned to benefit from these dynamics given the steady investments
we have made to maintain our industry-leading operational performance and to
secure our advantaged raw materials reserves, especially in gypsum wallboard,
where we are largely insulated from the synthetic gypsum cost and availability
pressures faced by the rest of the industry.
While we continuously assess how changes in the economy might affect our
operations, we do not allow near-term headline noise surrounding the broader
economy to divert our attention from operating efficiently every day. We remain
focused on maintaining our position as one of the lowest-cost producers in the
industry and advancing our strategic priorities and long-term value-creating initiatives.
Focusing on operational efficiency and sustainability is deeply ingrained in our
organizational culture, and this focus served us particularly well in fiscal 2025.
Fiscal 2025
Highlights
Record Revenue of
$2.3 billion
Gross Profit Margin of
29.8%
Record Diluted
Earnings per Share
$13.77
Lowest TRIR in
company history
Hazard observation
reporting increased
25%
$332.0 million
returned to
shareholders through
dividends and share
repurchases

Letter to Our Shareholders (continued)
High-Return, High-Impact Strategic Investments
Eagle   s commitment to continuing to make investments that reinforce our advantaged
low-cost position allows us to capture the benefits of up-cycles and weather the
challenges of any down-cycles. In fiscal 2025, these investments included both
accretive acquisitions and organic capital projects.
Within Aggregates, a key Heavy Materials growth area for us, we acquired two pure-play
aggregates operations   one in Kentucky and the other in Western Pennsylvania   that
enhance our ability to serve markets complementary to our existing footprint. Together,
the two businesses will increase Eagle   s aggregates production capacity by 50%.
In the Cement segment, the modernization and expansion of our Mountain cement
plant to serve customers in the Northern Colorado area is ramping up and remains
on schedule for completion in late 2026. In addition to expanding the plant   s capacity
by 50% with an additional 400,000 tons, the upgrade will lower manufacturing costs
at the plant by about 25% and reduce the plant   s CO2 intensity. Our Texas Lehigh
joint venture also commissioned a new slag cement facility in Texas to extend our
ability to meet cementitious materials demand throughout Texas.
On the Light Materials side of our business, we have initiated a project to modernize
and expand our Duke, Oklahoma gypsum wallboard facility. Capitalizing on our
decades-long natural gypsum reserves, the facility upgrade will strengthen Eagle   s
competitive position and ability to serve customers across key Southern and Sunbelt
markets as the rest of the wallboard industry continues to struggle to source
synthetic gypsum.
At our paper mill, which provides our wallboard business with nearly 100% of its
recycled paper needs, we are nearing completion of our wastewater-reduction project,
which lowered our water usage by over 30% in fiscal 2025. When completed later this
summer, the wastewater treatment plant will reduce water usage by 50% annually.
All these projects highlight Eagle   s commitment to ensure the sustainability of our
assets while delivering meaningful economic benefits. We continuously review and
implement actions to further optimize our current assets and extend our network
through compelling acquisitions. These strategic investments are complemented by
the everyday decisions made at each of our plants.
Everyday Decisions at Our Plants
At the plant level, every local team has an ownership mindset. They are focused on
improving operations and ensuring the resilience of our assets for decades to come.
To cite just a few examples of our local teams in action, in fiscal 2025 we:
    Achieved our lowest total recordable incident rate in company history and

increased hazard observation reporting, a key leading safety indicator, by 25%
Completed our alternative fuel project at our Illinois cement plant and neared
completion of a similar project at our Kosmos cement plant, both of which will
lower cost and increase fuel optionality

Letter to Our Shareholders (continued)
    Expanded our average reserve life through ongoing land purchases
    Secured additional water rights to ensure sustainable water resources
At Eagle, our commitment to our people, our assets, and the communities we operate
in extends through every one of our plants. The daily decision-making at the local plant
level drives Eagle   s operational excellence and shareholder value over the long term.
Disciplined Capital Allocation and Financial Stewardship
Our ability to execute on investment opportunities is underpinned by our capital
allocation principles and our balance sheet strength. In fiscal 2025, while investing
our excess free cash flow across our high-return projects, we continued to return
capital to shareholders, distributing $332 million of cash to shareholders through
share repurchases and dividends. We ended the year with a net leverage ratio of 1.5x.
Over the last five years, we have put nearly $3 billion of capital to work, investing in
our asset base, making strategic acquisitions, and returning capital to shareholders.
Over the next five years, we will follow the same capital allocation priorities, as we
plan to prudently invest the significant free cash flow our businesses generate to
maximize shareholder value.
Governance Update
On May 15, we announced the appointment of David Rush to our Board of Directors.
We   re pleased to welcome David to our Board and are confident his more than 30
years of experience in the industry will bring valuable perspective and insight as we
position Eagle for continued success.
Eagle Materials    culture is as strong as ever, from our employees to our Board of
Directors. We look forward to the success ahead, and we remain steadfast in our
commitment and in our gratitude to our employees and to you, our shareholders, for
your continued support.
Sincerely,
Mike Nicolais
Michael Haack
CHAIRMAN
PRESIDENT AND CEO



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