Eagle Materials (EXP)
NYSE:EXP
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Eagle Materials
(NYSE:EXP)
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Rating:70Outperform
Price Target:
$231.00
▲(14.77% Upside)
Action:Reiterated
Date:02/19/26
EXP scores well on underlying profitability and operating cash generation, supported by constructive technicals. The score is held back by weakening near-term fundamentals (revenue/margins and free cash flow), increased leverage, and ongoing Wallboard softness highlighted on the earnings call; valuation is fair with minimal dividend support.
Positive Factors
High Profitability Margins
Sustained high operating and net margins reflect durable pricing power and cost control in heavy and light materials. Over 2-6 months this margin profile supports cash generation and returns, providing a buffer in cyclical downturns and funding for capex, buybacks, or debt reduction.
Negative Factors
Wallboard (Light Materials) Weakness
Prolonged weakness in wallboard demand and pricing pressure reflects structural softness in residential markets and import competition in some regions. Over several months this depresses consolidated earnings and margins and may require pricing, mix, or capacity adjustments to restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability Margins
Sustained high operating and net margins reflect durable pricing power and cost control in heavy and light materials. Over 2-6 months this margin profile supports cash generation and returns, providing a buffer in cyclical downturns and funding for capex, buybacks, or debt reduction.
Read all positive factors
Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.18B
Dividend Yield0.47%
Average Volume (3M)347.73K
Price to Earnings (P/E)7.7
Beta (1Y)1.05
Revenue Growth2.13%
EPS Growth-4.85%
CountryUS
Employees2,500
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)13.27
Shares Outstanding31,432,138
10 Day Avg. Volume332,759
30 Day Avg. Volume347,728
Financial Highlights & Ratios
PEG Ratio13.71
Price to Book (P/B)5.09
Price to Sales (P/S)3.28
P/FCF Ratio20.97
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit11.52
Enterprise Value/Ebitda9.62
Forecast
1Y Price Target
$210.00Price Target Upside4.33% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)12.91
Revenue Forecast (FY)$2.33B
Eagle Materials Business Overview & Revenue Model
Company Description
Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States. It operates through Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard se...
How the Company Makes Money
Eagle Materials makes money by manufacturing and selling construction materials, with revenue primarily generated from product sales to contractors, builders, distributors, and other construction-industry customers. In its Heavy Materials segment,...
Eagle Materials Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: the company delivered record revenue, strong operating cash flow (+12%), significant heavy materials volume gains (cement +8%, aggregates +70% including acquisitions; organic aggregates +24%), and maintained a strong liquidity and leverage profile (net debt/EBITDA 1.9x). Management emphasized disciplined capital allocation and progress on strategic plant modernizations (Mountain Cement ~60% and Duke Wallboard ~30% complete) that are expected to lower costs and expand capacity. Offsetting these positives were notable weaknesses in the Wallboard/light materials business (revenue -9%, operating earnings -15%, Wallboard prices -4%), modest declines in cement pricing (~1%), and near-term margin pressure from higher freight/diesel and elevated near-term capex. On balance, the positive operational momentum, cash generation, balance sheet actions and strategic investments slightly outweigh the near-term demand and cost headwinds.Positive Updates
Record Annual and Quarterly Revenue
Fiscal 2026 revenue reached a record $2.3 billion, up 2% year-over-year; fourth quarter revenue was a record $479 million, also up 2%.
Negative Updates
Wallboard Revenue and Earnings Decline
Light Materials (Wallboard + recycled paperboard) revenue decreased 9% to $881 million; operating earnings in the sector fell 15% to $331 million, primarily due to lower Wallboard sales volumes and prices.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual and Quarterly Revenue
Fiscal 2026 revenue reached a record $2.3 billion, up 2% year-over-year; fourth quarter revenue was a record $479 million, also up 2%.
Read all positive updates
Company Guidance
Eagle guided that fiscal 2027 will be a peak investment year with capital expenditures of $490–$525 million (versus $417 million in FY2026), with sustaining capex expected to settle around $150 million annually once the projects complete (roughly $250 million in early FY2028); the Mountain Cement modernization is ~60% complete with kiln commissioning expected in late calendar 2026 and the Duke, OK wallboard line ~30% complete with commissioning in H2 calendar 2027 (concluding mid‑fiscal 2028). Management highlighted FY2026 operating cash flow of $614 million, record revenue of $2.3 billion and EPS of $13.16, record aggregate sales of 6.6 million tons (+70% YoY; organic +24%) and cement volume +8%, while light materials revenue was $881 million (‑9%) with wallboard prices ‑4%. On capital allocation and liquidity they returned $414 million to shareholders (repurchased ~1.7M shares for $382M, ~2.9M shares remain authorized), issued $750 million of 10‑year notes at 5%, ended 3/31/26 with $298 million cash and ~ $1.0 billion committed liquidity, and report net debt/capital of 50% and net debt/EBITDA of 1.9x; they also noted FY2027 primary fuel costs were locked last winter and said they expect continued regional cement/aggregates volume momentum and a mid‑term wallboard rebound.Eagle Materials Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
69
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.30B | 2.26B | 2.26B | 2.15B | 1.86B | 1.62B |
| Gross Profit | 650.83M | 673.14M | 685.32M | 639.27M | 519.61M | 408.36M |
| EBITDA | 779.18M | 792.63M | 811.07M | 762.74M | 634.82M | 597.68M |
| Net Income | 430.13M | 463.42M | 477.64M | 461.54M | 374.25M | 339.44M |
Balance Sheet | ||||||
| Total Assets | 3.84B | 3.26B | 2.95B | 2.78B | 2.58B | 2.84B |
| Cash, Cash Equivalents and Short-Term Investments | 419.00M | 20.40M | 34.92M | 15.24M | 19.42M | 263.52M |
| Total Debt | 1.80B | 1.28B | 1.12B | 1.12B | 974.60M | 1.05B |
| Total Liabilities | 2.35B | 1.81B | 1.64B | 1.60B | 1.45B | 1.48B |
| Stockholders Equity | 1.49B | 1.46B | 1.31B | 1.19B | 1.13B | 1.36B |
Cash Flow | ||||||
| Free Cash Flow | 231.81M | 353.27M | 443.63M | 431.58M | 443.05M | 589.14M |
| Operating Cash Flow | 574.80M | 548.55M | 563.94M | 541.73M | 517.17M | 643.07M |
| Investing Cash Flow | -492.95M | -370.13M | -175.36M | -268.59M | -74.12M | 37.09M |
| Financing Cash Flow | 305.98M | -192.94M | -368.90M | -277.31M | -692.15M | -530.29M |
Eagle Materials Technical Analysis
Negative
201.28
Price Trends
196.66
Positive
208.80
Negative
216.78
Negative
Market Momentum
-0.59
Positive
47.36
Neutral
28.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXP, the sentiment is Negative. The current price of 201.28 is below the 20-day moving average (MA) of 205.68, above the 50-day MA of 196.66, and below the 200-day MA of 216.78, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXP.
Eagle Materials Risk Analysis
Eagle Materials disclosed 15 risk factors in its most recent earnings report. Eagle Materials reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eagle Materials Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $33.37B | 5.87 | 25.07% | 0.51% | -1.28% | 140.98% | |
70 Outperform | $6.18B | 7.69 | 28.27% | 0.47% | 2.13% | -4.85% | |
68 Neutral | $34.56B | 54.27 | 13.10% | 0.67% | 7.41% | 19.13% | |
67 Neutral | $2.99B | 30.61 | 21.28% | 0.19% | 9.49% | 8.32% | |
66 Neutral | $961.29M | 9.20 | 14.23% | 5.46% | 16.65% | -3.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $4.17B | -14.61 | 9.35% | ― | 9.57% | -18.90% |
* Basic Materials Sector Average
EXP
Eagle Materials
200.25
-13.46
-6.30%
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MLM
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541.98
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USLM
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104.12
0.06
0.05%
VMC
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263.26
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KNF
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73.52
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.