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Eagle Materials (EXP)
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Eagle Materials (EXP) AI Stock Analysis

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EXP

Eagle Materials

(NYSE:EXP)

Rating:77Outperform
Price Target:
$247.00
▲(11.81%Upside)
Eagle Materials receives a strong score driven by robust financial performance and positive strategic initiatives. The stock's valuation is fair, and technical indicators suggest stable market conditions. The earnings call and corporate events reinforce positive growth prospects.
Positive Factors
Cost Structure
Management remains confident that its low-cost profile and structural changes in wallboard and cement supply should allow it to generate good returns and see less volatility through a cycle.
Pricing Dynamics
There are increasingly attractive pricing dynamics in wallboard given structural declines in synthetic gypsum supply amid coal plant retirements.
Tariffs
Tariffs could be a net positive for wallboard and cement.
Negative Factors
Natural Gas Pricing
There are some near-term risks due to a cold winter raising natural gas pricing and potential impacts on volume this quarter.
Weather Impact
Harsh weather has affected cement shipments to start the year.

Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)

Eagle Materials Business Overview & Revenue Model

Company DescriptionEagle Materials (EXP) is a leading supplier of heavy construction materials and light building materials in the United States. The company operates through two primary sectors: Heavy Materials, which includes the Cement and Concrete & Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. Eagle Materials is committed to delivering high-quality products used primarily in the construction of infrastructure, non-residential, and residential buildings.
How the Company Makes MoneyEagle Materials makes money through the production and sale of construction materials that are essential for infrastructure and building projects. Its Heavy Materials sector generates revenue by producing and selling cement, concrete, and aggregates, which are critical components for construction projects. The company operates cement plants and distribution terminals strategically located across the U.S., ensuring a steady supply to its clients. The Light Materials sector contributes to revenue through the manufacture and sale of gypsum wallboard and recycled paperboard. Gypsum wallboard is widely used in the construction of interior walls and ceilings, while recycled paperboard is utilized in the production of gypsum wallboard and other products. Eagle Materials benefits from long-term business relationships and distribution agreements that ensure a stable demand for its products. Additionally, the company’s strategic geographic footprint allows it to efficiently serve key markets, optimizing logistics and reducing transportation costs.

Eagle Materials Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q1-2026)
|
% Change Since: -8.57%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with record revenue and strong operational performance. However, challenges were noted in the cement sector, and earnings per share decreased. The outlook for Wallboard remains subdued due to housing affordability issues.
Q1-2026 Updates
Positive Updates
Record First Quarter Revenue
Eagle Materials reported a record first quarter revenue of $634.7 million, an increase of 4% year-over-year.
Strong Safety and Sustainability Performance
The company maintained its recordable incident rate well below the industry average and met its 2030 midterm cement CO2e intensity goal early.
Improved Aggregate Volumes
Aggregate sales volume increased by 117%, with organic growth of 29% year-over-year.
Robust Cash Flow and Strategic Investments
Operating cash flow increased by 3% to $137 million. The company is investing in modernizing its Mountain Cement plant and Duke Wallboard facility.
Significant Share Repurchase
Eagle Materials repurchased 358,000 shares of its common stock for $79 million during the first quarter.
Negative Updates
Decrease in Earnings Per Share
First quarter earnings per share were down 5% to $3.76 due to higher operating costs in cement despite a reduction in shares due to buyback.
Challenges in Cement Sector
Operating earnings in the Heavy Materials sector were down 5%, impacted by lower production volumes and increased raw material costs.
Subdued Wallboard Demand Outlook
The near-term outlook for Wallboard volumes remains subdued due to single-family new homebuilding constraints driven by affordability challenges.
Lower JV Operating Earnings
Joint venture operating earnings were lower than expected, impacted by the start-up drag from the slag facility and weather issues in Texas.
Company Guidance
During the Eagle Materials First Quarter of Fiscal 2026 Earnings Conference Call, the company reported a record first-quarter revenue of $634.7 million, with diluted net earnings per share of $3.76. Despite challenging weather conditions, cement volumes increased year-over-year for the first time since December 2023, and aggregate sales volume rose by 117%, driven by recent acquisitions. The call highlighted Eagle's safety performance, with a total recordable incident rate below the industry average, and sustainability initiatives, including meeting their 2030 midterm cement CO2e intensity goal early. The company continues to invest in modernization projects, with capital spending expected to range from $475 million to $525 million for fiscal 2026. Eagle also repurchased 358,000 shares, returning $87 million to shareholders, and maintained a net debt-to-EBITDA leverage ratio of 1.6x. The management expressed cautious optimism about infrastructure and cement demand, while acknowledging challenges in the wallboard market due to housing affordability issues.

Eagle Materials Financial Statement Overview

Summary
Eagle Materials exhibits strong financial health with consistent revenue growth and robust profitability. The company has managed its balance sheet effectively, maintaining stable leverage and solid cash flow generation. However, there are slight concerns with increasing debt levels and margin compression in the latest year.
Income Statement
85
Very Positive
Eagle Materials demonstrates strong financial performance with consistent revenue growth. The revenue grew from $1.45 billion in 2020 to $2.26 billion in 2025, reflecting a solid growth trajectory. The company maintains healthy gross and net profit margins, with 2025 showing a gross profit margin of 29.8% and a net profit margin of 20.5%. However, there was a slight decline in EBIT and EBITDA margins in 2025 compared to 2024, which warrants monitoring.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.88 in 2025, indicating moderate leverage. The equity ratio is 44.6%, suggesting a strong equity base relative to total assets. Return on Equity (ROE) remains robust at 31.8% in 2025, showcasing effective profit generation on shareholder equity. However, slightly increasing debt levels could pose a risk if not managed properly.
Cash Flow
80
Positive
Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.18 in 2025, indicating efficient cash generation relative to net income. Free cash flow growth has been inconsistent, with a decrease from 2024 to 2025. The free cash flow to net income ratio is 0.76, reflecting a reasonable conversion of earnings into free cash flow, although it shows room for improvement.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Eagle Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price220.92
Price Trends
50DMA
210.75
Positive
100DMA
216.22
Positive
200DMA
243.34
Negative
Market Momentum
MACD
3.33
Negative
RSI
56.02
Neutral
STOCH
81.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXP, the sentiment is Positive. The current price of 220.92 is above the 20-day moving average (MA) of 216.59, above the 50-day MA of 210.75, and below the 200-day MA of 243.34, indicating a neutral trend. The MACD of 3.33 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$35.68B38.3012.10%0.70%-2.24%3.00%
77
Outperform
$7.21B16.0433.52%0.45%0.05%0.96%
75
Outperform
$12.69B8.197.12%1.00%-9.62%795.20%
69
Neutral
$34.72B33.1111.88%0.55%-0.54%-48.61%
68
Neutral
$4.65B25.8513.76%2.48%2.22%
59
Neutral
HK$17.33B4.65-5.52%3.47%-3.57%-61.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EXP
Eagle Materials
220.92
-43.55
-16.47%
CX
Cemex SAB
8.41
2.22
35.86%
MLM
Martin Marietta Materials
575.88
-5.71
-0.98%
VMC
Vulcan Materials
270.11
2.16
0.81%
KNF
Knife River Corporation
82.00
3.02
3.82%

Eagle Materials Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Eagle Materials Approves Long-Term Incentive Equity Awards
Neutral
May 29, 2025

On May 22, 2025, Eagle Materials Inc.’s Compensation Committee approved long-term incentive equity awards for its officers under the 2023 Equity Incentive Plan. These awards include performance-vesting and time-vesting stock options and restricted stock units, with vesting criteria linked to the company’s financial performance over a three-year period. The initiative aims to align executive incentives with shareholder interests, potentially impacting the company’s operational focus and market positioning.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Eagle Materials Board Member Announces Retirement
Neutral
May 22, 2025

On May 16, 2025, David B. Powers announced his retirement from the Board of Eagle Materials Inc., effective at the end of his term during the 2025 annual meeting of stockholders, with no disagreements cited regarding company operations. Additionally, the Compensation Committee approved several incentive compensation programs for fiscal year 2026, including a salaried incentive plan and divisional plans for American Gypsum and Cement Companies, which are tied to operating earnings and EBITDA performance. These plans aim to align executive and divisional performance with company goals, potentially impacting stakeholder interests by incentivizing performance-based rewards.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Eagle Materials Announces $330M Plant Expansion Plan
Positive
May 16, 2025

Eagle Materials Inc. announced plans to modernize and expand its gypsum wallboard plant in Duke, Oklahoma, with a $330 million investment. This project, expected to start construction immediately and complete by the second half of 2027, will increase the plant’s capacity by 25% and reduce operating costs by nearly 20%, enhancing Eagle’s position in high-growth markets and as a low-cost producer.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

Executive/Board Changes
Eagle Materials Appoints David Rush to Board
Positive
May 15, 2025

On May 15, 2025, Eagle Materials Inc. announced the appointment of David Rush to its Board of Directors. Mr. Rush, who recently retired as CEO of Builders FirstSource, brings nearly 30 years of experience in the building products industry. His expertise in strategy, business integration, and operational finance is expected to benefit Eagle Materials and its shareholders significantly.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

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.Date of analysis: Jul 23, 2025