Eagle Materials (EXP)
NYSE:EXP
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Eagle Materials
(NYSE:EXP)
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Rating:65Neutral
Price Target:
$238.00
▲(18.24% Upside)
Action:Downgraded
Date:05/22/26
EXP scores as moderately attractive: solid core fundamentals and reasonable valuation are tempered by weaker free-cash-flow conversion and higher leverage, while the latest earnings call points to strong cash generation and strategic project progress but also elevated near-term capex and ongoing wallboard and cost headwinds. Technical signals are currently mixed-to-weak, limiting near-term momentum support.
Positive Factors
Operating cash generation
Consistent operating cash conversion (OCF > net income and OCF/net income ~2.36x) provides durable internal funding for capex, debt service, and buybacks. This reduces reliance on external financing during multi-year project builds and supports financial flexibility through cycles.
Negative Factors
Rising leverage
Material increase in leverage reduces balance-sheet flexibility and raises interest and refinancing risk during downturns. Higher debt levels constrain optionality for opportunistic investments or additional returns, particularly while large project spending remains underway.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash generation
Consistent operating cash conversion (OCF > net income and OCF/net income ~2.36x) provides durable internal funding for capex, debt service, and buybacks. This reduces reliance on external financing during multi-year project builds and supports financial flexibility through cycles.
Read all positive factors
Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.59B
Dividend Yield0.47%
Average Volume (3M)404.54K
Price to Earnings (P/E)15.7
Beta (1Y)1.09
Revenue Growth2.13%
EPS Growth-4.85%
CountryUS
Employees2,500
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)13.20
Shares Outstanding30,895,480
10 Day Avg. Volume414,177
30 Day Avg. Volume404,542
Financial Highlights & Ratios
PEG Ratio-2.86
Price to Book (P/B)4.02
Price to Sales (P/S)2.57
P/FCF Ratio30.04
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue3.61
Enterprise Value/Gross Profit12.79
Enterprise Value/Ebitda13.92
Forecast
1Y Price Target
$213.14Price Target Upside5.89% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)13.12
Revenue Forecast (FY)$2.34B
Eagle Materials Business Overview & Revenue Model
Company Description
Eagle Materials Inc., operating through its subsidiaries across the United States, stands as a key producer and supplier of both heavy construction and light building materials. The company's diverse operations are organized into distinct segments...
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
82
Very Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.31B | 2.26B | 2.26B | 2.15B | 1.86B |
| Gross Profit | 652.54M | 673.14M | 685.32M | 639.27M | 519.61M |
| EBITDA | 599.45M | 792.63M | 811.07M | 762.74M | 634.82M |
| Net Income | 423.81M | 463.42M | 477.64M | 461.54M | 374.25M |
Balance Sheet | |||||
| Total Assets | 3.84B | 3.26B | 2.95B | 2.78B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 297.92M | 20.40M | 34.92M | 15.24M | 19.42M |
| Total Debt | 1.80B | 1.28B | 1.12B | 1.12B | 974.60M |
| Total Liabilities | 2.37B | 1.81B | 1.64B | 1.60B | 1.45B |
| Stockholders Equity | 1.47B | 1.46B | 1.31B | 1.19B | 1.13B |
Cash Flow | |||||
| Free Cash Flow | 197.43M | 353.27M | 443.63M | 431.58M | 443.05M |
| Operating Cash Flow | 614.17M | 548.55M | 563.94M | 541.73M | 517.17M |
| Investing Cash Flow | -431.74M | -370.13M | -175.36M | -268.59M | -74.12M |
| Financing Cash Flow | 95.09M | -192.94M | -368.90M | -277.31M | -692.15M |
Eagle Materials Technical Analysis
Positive
201.28
Price Trends
204.92
Positive
207.75
Positive
215.68
Negative
Market Momentum
3.04
Positive
53.32
Neutral
30.15
Neutral
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 201.28 is below the 20-day moving average (MA) of 208.91, below the 50-day MA of 204.92, and below the 200-day MA of 215.68, indicating a neutral trend. The MACD of 3.04 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.15 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $33.20B | 13.16 | 25.07% | 0.51% | -1.28% | 140.98% | |
68 Neutral | $35.38B | 32.19 | 13.10% | 0.67% | 7.41% | 19.13% | |
67 Neutral | $950.83M | 16.87 | 14.22% | 5.46% | 16.65% | -3.36% | |
67 Neutral | $2.98B | 22.80 | 21.28% | 0.19% | 9.49% | 8.32% | |
65 Neutral | $6.59B | 15.75 | 28.27% | 0.47% | 2.13% | -4.85% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.12B | 28.05 | 9.35% | ― | 9.57% | -18.90% |
* Basic Materials Sector Average
EXP
Eagle Materials
217.06
15.46
7.67%
CPAC
Cementos Pacasmayo SAA
10.71
5.20
94.37%
MLM
Martin Marietta Materials
565.54
15.84
2.88%
USLM
United States Lime & Minerals
105.95
6.48
6.51%
VMC
Vulcan Materials
280.19
16.58
6.29%
KNF
Knife River Corporation
75.92
-9.28
-10.89%
Eagle Materials Corporate Events
Executive/Board Changes
Eagle Materials Announces New Long-Term Executive Equity Incentives
Neutral
May 28, 2026
Effective May 21, 2026, Eagle Materials’ compensation committee approved a new round of long-term equity incentives for key officers, including its top executives, under the company’s 2023 equity plan. The package combines performance-...
Business Operations and StrategyExecutive/Board Changes
Eagle Materials CFO Transition and New Incentive Plans
Neutral
May 21, 2026
On May 15, 2026, Eagle Materials announced that longtime Senior Vice President, Chief Accounting Officer and Controller William R. Devlin will retire effective June 1, 2026, after more than 20 years in the role, and will stay on in an advisory cap...
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.