EXP - Cement Outperforms While Wallboard Falls Mainly On Price

研报英文原文证据摘录

EXP - Cement Outperforms While Wallboard Falls Mainly On Price

P

ADTV 302,652 has had to absorb freight costs here of roughly $2-$3 per unit. Cement is more mixed, with

Shares Out (M) 32 both customer pickup and company-delivered volumes, only the latter impacted by diesel

costs. Note that diesel is also used in quarry operations and the proximity of quarries to Short Interest Ratio/% Of Float 5.9%

plants helps limit freight costs here. Dividend/Yield $1.00/0.5%

Enterprise Value ($M) $7,870 Capex at Peak With Modernization Projects. Capex is expected to peak in FY27 at ~$490–

Cash & Equivalents ($M) $298 $525 million, driven by its two major plant modernization projects. The Mountain Cement

Total Debt ($M) $1,860 new kiln line in Laramie, WY (60% complete, commissioning late calendar 2026) and Duke,

OK gypsum plant upgrade (30% completd, with completion scheduled for 2H calendar 2027)

represent ~$760 million of total investment. The upgrades are expected to expand capacity,

7 Page Document reduce the cost structure largely through energy savings, and are targeting double-digit

returns. FY28 capex spending is expected around $250 million, with 1H FY28 including the

Reasons for this report completion of the Duke project. Then, capex spending is expected to transition toward an approximate $150 million maintenance run rate.

✓ Earnings Recap Papermill Has Record Year. Eagle Materials’ paper mill saw its strongest performance

✓ Updating Estimates in FY26 and management views the ~$40 million EBIT run rate for the fiscal year as

sustainable. Roughly 60% of volume is noted to be under long-term agreements with

inflators/deflators that can pass through input cost changes (with some timing lag), helping

limit the impact of raw material volatility.