Short answer
Eagle Materials Inc (EXP) filed its fiscal 2018 10-K annual report with the SEC on May 23, 2018. It reported revenue of $1.4B (+14.5% year over year) and net income of $257M.
- Top risk flagged: EPA CISWI Rule compliance date February 7, 2018, requiring significant emissions reductions at cement kilns using non-hazardous secondary materials
FY2018 key financial metrics · XBRL
- Revenue
- $1.4B
- +14.5% YoY
- Net income
- $257M
- +29.5% YoY
- Operating margin
- 27.6%
- −1.9 pp YoY
- Gross margin
- 24.4%
- −1.3 pp YoY
- EPS (diluted)
- $5.28
- +28.8% YoY
- ROE
- 18.1%
- +1.6 pp YoY
- Operating cash flow
- $338M
- +1.8% YoY
Source: XBRL data from the Eagle Materials Inc (EXP) FY2018 10-K on SEC EDGAR. USD.
Eagle Materials Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Commodity-based supplier of heavy construction, light building, and oil-and-gas materials, competing primarily through low-cost regional operations
- Five gypsum wallboard plants after Bernalillo, New Mexico restarted in September 2017 following idling since 2009
- Heavy Materials expansion produced contiguous cement footprint from California to Ohio and south to Texas after 2017 Fairborn acquisition
- Approximately 2,200 employees as of March 31, 2018, including approximately 800 under collective bargaining agreements
- Utica, Illinois frac-sand expansion: $70.0 million project, $45.0 million spent, completion expected summer 2018
Management Discussion & Analysis
- Revenue $1,386.5M, up 14% YoY from $1,211.2M, driven by acquisitions, pricing and volume
- Gross margin 24% vs 26%; net earnings $256.6M, up 29% from $198.2M
- Best segment Cement: revenue $651.8M, operating earnings $179.2M, margin 27%; worst Recycled Paperboard: earnings $32.8M, margin 18% vs 23%
- Operating cash flow $337.7M; capex $132.0M, dividends $19.4M, buybacks $61.1M
- Outlook: construction demand expected to rise; fiscal 2019 freight costs projected up 10% to 12% and capex $110.0M to $125.0M
Risk Factors
- EPA CISWI Rule compliance date February 7, 2018, requiring significant emissions reductions at cement kilns using non-hazardous secondary materials
- Oil and gas price volatility, including OPEC initiatives and Middle East events, threatens frac-sand demand tied to well completions
- Third-party synthetic gypsum and slag suppliers could reduce by-product production, increasing procurement costs or limiting availability
- Excess U.S. gypsum wallboard nameplate capacity creates oversupply risk and pressure on commodity product prices
- Substantial indebtedness and restrictive covenants could accelerate repayment following covenant breaches
Generated from the filing text; verify against the original. How to read a 10-K
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