Eagle Materials : 4Q24 webcast slides

MAY 21, 2024

Fiscal Year and Fourth Quarter 2024 Earnings Release and Conference Call

Forward-Looking Statements

Forward-LookingStatements. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of

1995. Forward-looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Company's belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside the Company's control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward- looking statements. The principal risks and uncertainties that may affect the Company's actual performance include the following: the cyclical and seasonal nature of the Company's businesses; fluctuations in public infrastructure expenditures; adverse weather conditions; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; the availability and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil, and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; inability to timely execute announced capacity expansions; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; severe weather conditions (such as

winter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company's result of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent quarterly and annual reports upon filing. These reports are filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company's expectations.

2

Advances in Long-Term Sustainability

Fiscal Year 2024 Sustainability Highlights

• Safety performance continues to outpace the industry
• Advanced portfolio transition to less carbon-intensive product: sales of Portland Limestone Cement and other blended cement products reached 75%
• Reduced water consumption 23%
• Enhanced Sustainability disclosures to include Scope 1 and Scope 2 emissions data and started to align with SASB and TCFD frameworks

3

Fiscal Year 2024 Financial Highlights

Third consecutive year of record results

• Achieved record performance for the full year
• • Revenue up 5% to record $2.3 billion
  • Net Earnings up 3% to $477.6 million
  • Gross profit margin expanded 50 bps to 30.3%
  • Diluted EPS up 9% to record $13.61
• Generated $564 million of operating cash flow
• Maintained strong balance sheet and financial flexibility

4

Favorable Business Conditions

Underlying economic fundamentals support both sectors

• Strong demand outlook
• • Federal infrastructure spending expected to increase through 2025, adding to already

healthy state and local funding

Cement- High levels of manufacturing construction offsetting slightly weaker areas of non-residential spending

• Limited ability to add new supply and alternative products diminishing in availability
• Favorable long-term outlook for residential construction
• • Single-familyresidential construction increasing, driven by persistent limited existing

Gypsum	home inventory
Wallboard	- Repair and remodel demand should remain strong with aging US housing stock
	- US household formation data underscore need for significant new housing inventory
	 Continuing industry capacity constraints

5

Fiscal Year 2024 Strategic Highlights

Strong progress on all strategic initiatives

• Completed acquisitions, integration of complementary operations
• • Acquired Stockton cement terminal
  • Took full ownership of Battletown, KY aggregates business
• Initiated organic growth projects
• • New Houston slag-cement facility will add 500,000 tons of capacity to fast-growing Texas market and advance Eagle transition to lower-carbon-intensive product
  • Modernization and expansion of Laramie, WY cement plant will increase capacity 50%, lower manufacturing costs ~25%, reduce carbon intensity
• Continued return of cash to shareholders
• • Returned $378 million through share repurchases and dividends
  • Repurchased 1.9 million shares, or 5%, of outstanding shares

6

Record Annual and Q4 Revenue

Revenue

In millions

5% ANNUAL INCREASE REFLECTS:

• Higher Cement prices
• Acquired cement import terminal

$2,148	$2,259
2023	2024

+5%
$470	$477
2023	2024

FISCAL YEAR

FISCAL Q4

7

Record Annual EPS Up 9%

Diluted EPS

ANNUAL INCREASE REFLECTS:

• Cement and Paperboard margin expansion
• Reduced share count due to share buybacks

$12.46	$13.61
2023	2024

FISCAL YEAR

$2.79
	$2.24
2023	2024

FISCAL Q4

8

Heavy Materials Annual Results

Driven by Continued Strong Pricing Momentum

FISCAL 2024 CEMENT

• Net sales prices +12%
• Sales volume +2%

Revenue*

In millions

	$1,466
$1,314
FY2023	FY2024

Operating Earnings

In millions

	$351
$297
FY2023	FY2024

* Includes Cement, Concrete and Aggregates and Cement Intersegment revenue, and our proportionate share of our Joint Venture.

9

Light Materials Annual Results

Reflect Lower Wallboard Sales Volume

FISCAL 2024 WALLBOARD

• Sales volume -3%
• Net sales prices up slightly

Revenue

In millions

$981	$941
FY2023	FY2024

Operating Earnings

In millions

$378	$366
FY2023	FY2024

10