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Eagle Materials Inc (EXP)
NYSE:EXP
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Eagle Materials (EXP) AI Stock Analysis

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EXP

Eagle Materials

(NYSE:EXP)

Rating:76Outperform
Price Target:
$263.00
▲(10.75% Upside)
Eagle Materials' strong financial performance and strategic investments in growth and sustainability are significant strengths. However, challenges such as declining free cash flow growth, increased leverage, and subdued wallboard demand impact the overall score. The technical indicators suggest stability, while the valuation is fair.
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.
Tariffs Impact
Tariffs could be a net positive for wallboard and cement.
Negative Factors
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 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 segments. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.
How the Company Makes MoneyEagle Materials generates revenue through the sale of its core products, including gypsum wallboard, cement, and concrete. The company benefits from a robust revenue model that relies on both direct sales to construction companies and partnerships with distributors and retailers. The primary revenue streams include the sale of gypsum wallboard, which is in high demand due to ongoing residential and commercial construction projects, and cement, which is essential for various construction applications. Additionally, Eagle Materials may capitalize on market trends by adjusting pricing strategies based on supply and demand dynamics. The company's earnings are also supported by its strategic acquisitions and investments in new production facilities, which enhance its capacity and market reach.

Eagle Materials Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a mixed sentiment. While Eagle Materials achieved record revenue and demonstrated strong performance in aggregates and cement volumes, challenges remain with declining earnings per share and subdued wallboard market outlook. The company is actively investing in growth and sustainability, which shows promise for future performance.
Q1-2026 Updates
Positive Updates
Record First Quarter Revenue
Eagle Materials reported record first quarter revenue of $634.7 million, a 4% increase primarily due to higher cement and wallboard sales volume and contributions from recently acquired aggregates businesses.
Safety and Sustainability Progress
The company maintained its safety performance with a total recordable incident rate well below the industry average. Eagle also met its 2030 midterm cement CO2e intensity goal early and enhanced its sustainability reporting.
Strong Aggregates and Cement Volumes
Aggregates volumes improved meaningfully year-over-year, with a 117% increase in aggregate sales volume, including contributions from acquisitions. Cement volumes saw a year-over-year increase, impressive given major weather disruptions.
Continued Investment in Growth
Eagle is investing in modernizing and expanding the Laramie, Wyoming cement plant and the Duke, Oklahoma wallboard plant. The company also repurchased 358,000 shares for $79 million and paid $87 million in dividends.
Negative Updates
Decline in Earnings Per Share
First quarter earnings per share were down 5% to $3.76, driven by lower earnings mostly in cement due to higher operating costs.
Challenges in Wallboard Market
The near-term outlook for wallboard volumes remains subdued due to single-family new homebuilding constraints driven by affordability challenges.
Higher Operating Costs Impacting Cement
Operating earnings in the Heavy Materials sector were down 5%, primarily due to the impact of lower production volumes on fixed costs and increased raw material costs.
Company Guidance
During the Eagle Materials First Quarter of Fiscal 2026 Earnings Conference Call, the company reported record first quarter revenue of $634.7 million, a 4% increase from the previous year, with a diluted net earnings per share of $3.76. Despite challenging weather conditions, cement and aggregates volumes showed significant year-over-year improvements, with aggregates seeing a 117% increase, including acquisitions. The company maintained a low total recordable incident rate, showcased progress in sustainability, and met its 2030 midterm cement CO2e intensity goal early. Operating cash flow rose by 3% to $137 million, while capital spending increased to $76 million, aligning with modernization projects. Eagle's net debt-to-cap ratio was 46%, with a net debt-to-EBITDA leverage ratio of 1.6x, and $60 million in cash on hand. The company also repurchased 358,000 shares for $79 million. Guidance indicated stable demand trends, particularly in infrastructure, though wallboard demand remained subdued due to housing affordability issues.

Eagle Materials Financial Statement Overview

Summary
Eagle Materials shows strong profitability with robust margins and a healthy balance sheet. However, the decline in free cash flow growth and increased leverage are areas of concern.
Income Statement
85
Very Positive
Eagle Materials demonstrates strong profitability with consistent gross and net profit margins. The TTM gross profit margin is 29.38%, and the net profit margin is 19.81%, indicating efficient cost management. Revenue growth has been steady, with a slight increase in the TTM period. The EBIT and EBITDA margins are robust at 27.18% and 34.24%, respectively, reflecting solid operational performance. However, the slight decline in margins compared to previous years suggests potential cost pressures.
Balance Sheet
78
Positive
The company's balance sheet shows a healthy debt-to-equity ratio of 0.51 in the TTM, indicating moderate leverage. Return on equity is strong at 30.83%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure. However, the increase in total debt over recent periods could pose a risk if not managed carefully.
Cash Flow
72
Positive
Operating cash flow remains strong, with a coverage ratio of 2.06 in the TTM, indicating sufficient cash generation to cover net income. However, free cash flow growth has declined by 11.03% in the TTM, which could impact future investment capabilities. The free cash flow to net income ratio is 0.57, suggesting room for improvement in converting earnings into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.29B2.26B2.26B2.15B1.86B1.62B
Gross Profit671.87M673.14M685.32M639.27M519.61M408.36M
EBITDA782.85M792.63M811.07M762.74M634.82M597.68M
Net Income452.94M463.42M477.64M461.54M374.25M339.44M
Balance Sheet
Total Assets3.40B3.26B2.95B2.78B2.58B2.84B
Cash, Cash Equivalents and Short-Term Investments59.74M20.40M34.92M15.24M19.42M263.52M
Total Debt1.35B1.28B1.12B1.12B974.60M1.05B
Total Liabilities1.91B1.81B1.64B1.60B1.45B1.48B
Stockholders Equity1.49B1.46B1.31B1.19B1.13B1.36B
Cash Flow
Free Cash Flow314.30M353.27M443.63M431.58M443.05M589.14M
Operating Cash Flow552.55M548.55M563.94M541.73M517.17M643.07M
Investing Cash Flow-413.10M-370.13M-175.36M-268.59M-74.12M37.09M
Financing Cash Flow-126.25M-192.94M-368.90M-277.31M-692.15M-530.29M

Eagle Materials Technical Analysis

Technical Analysis Sentiment
Negative
Last Price237.48
Price Trends
50DMA
224.65
Positive
100DMA
219.38
Positive
200DMA
233.46
Negative
Market Momentum
MACD
2.38
Positive
RSI
49.14
Neutral
STOCH
68.36
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 237.48 is above the 20-day moving average (MA) of 232.98, above the 50-day MA of 224.65, and above the 200-day MA of 233.46, indicating a neutral trend. The MACD of 2.38 indicates Positive momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 68.36 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$622.53M10.1316.29%7.39%3.95%27.28%
76
Outperform
$7.86B17.8531.87%0.42%0.88%-4.17%
76
Outperform
$38.95B41.2111.89%0.65%0.19%4.33%
76
Outperform
$37.55B34.5012.10%0.51%1.02%-45.31%
74
Outperform
$3.52B28.2124.95%0.19%21.97%44.87%
63
Neutral
$4.55B29.8811.11%2.64%-22.49%
61
Neutral
$10.37B6.45-0.08%2.84%3.09%-36.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EXP
Eagle Materials
237.48
-11.78
-4.73%
CPAC
Cementos Pacasmayo SAA
6.54
1.35
26.01%
MLM
Martin Marietta Materials
627.09
122.80
24.35%
USLM
United States Lime & Minerals
122.62
44.70
57.37%
VMC
Vulcan Materials
298.91
67.67
29.26%
KNF
Knife River Corporation
80.18
3.19
4.14%

Eagle Materials Corporate Events

Business Operations and Strategy
Eagle Materials Highlights Strategic Operations in September 2025
Neutral
Sep 5, 2025

Eagle Materials Inc. has prepared presentation materials for investor presentations starting in September 2025. The company highlights its strategic operations with limited vertical integration and self-sufficiency in raw materials. The announcement underscores the importance of its main product lines, Portland cement and gypsum wallboard, in U.S. construction, emphasizing their roles in infrastructure and residential projects. The presentation also outlines potential risks affecting future performance, including economic conditions, fluctuations in demand, and changes in energy and raw material costs.

Delistings and Listing ChangesBusiness Operations and Strategy
Eagle Materials Announces Dual Listing on NYSE Texas
Positive
Aug 14, 2025

On August 14, 2025, Eagle Materials Inc. announced the dual listing of its common stock on NYSE Texas, a newly launched electronic equities exchange in Dallas, Texas. This strategic move, effective August 15, 2025, positions Eagle Materials as a Founding Member of the NYSE Texas Exchange, reinforcing its commitment to Texas and enhancing its market presence while maintaining its primary listing on the New York Stock Exchange.

Executive/Board ChangesShareholder Meetings
Eagle Materials Announces Board Changes at Annual Meeting
Neutral
Aug 5, 2025

On August 1, 2025, Eagle Materials Inc. received a resignation letter from director Richard R. Stewart, effective after the certification of the election results at the Annual Meeting of Stockholders on August 4, 2025. His resignation was in accordance with the company’s director retirement policy and not due to any disagreements. During the meeting, George J. Damiris, Martin M. Ellen, and David Rush were elected to the Board of Directors to serve until 2028. Stockholders also approved executive compensation, a proposal to declassify the Board of Directors, and the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026.

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: Sep 05, 2025