Eagle Materials Inc (EXP)
NYSE:EXP
Top Page
Eagle Materials
(NYSE:EXP)
Select Model
Select Model
Rating:70Outperform
Price Target:
$207.00
▲(11.49% Upside)
Action:ReiteratedDate: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 margins and profitability
Eagle's trailing-twelve-month operating margin (~27%) and net margin (~19%) reflect durable pricing power and manufacturing efficiency across cement, aggregates and wallboard. Elevated margins underpin consistent cash generation, improving resilience through cycles and supporting reinvestment and shareholder returns.
Negative Factors
Wallboard (Light Materials) weakness
Sustained weakness in the Light Materials segment — with revenue down ~16%, operating earnings down ~25% and shipments falling ~14% — reflects structural softness in wallboard end markets tied to residential construction. This pressure reduces consolidated earnings power and may require extended recovery or strategic repositioning.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Eagle's trailing-twelve-month operating margin (~27%) and net margin (~19%) reflect durable pricing power and manufacturing efficiency across cement, aggregates and wallboard. Elevated margins underpin consistent cash generation, improving resilience through cycles and supporting reinvestment and shareholder returns.
Read all positive factors
Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.84B
Dividend Yield0.47%
Average Volume (3M)477.85K
Price to Earnings (P/E)16.2
Beta (1Y)1.13
Revenue Growth1.50%
EPS Growth-4.44%
CountryUS
Employees2,500
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)3.39
Shares Outstanding31,432,138
10 Day Avg. Volume502,008
30 Day Avg. Volume477,845
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 Cap1.26
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit11.27
Enterprise Value/Ebitda9.41
Forecast
1Y Price Target
$215.50Price Target Upside16.07% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)12.82
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:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call highlights strong performance and momentum in the Heavy Materials business (double-digit segment revenue growth, record aggregates volumes), solid cash generation, improved capital structure (including $750M bond issuance), active shareholder distributions, and measurable progress on high-return modernization projects and recycling initiatives. These positives are tempered by notable weakness in the Light Materials/Wallboard segment — with revenue down 16%, operating earnings down 25%, shipments down ~14%, and price pressure — which drove a 10% decline in EPS. Regional competitive pressures (notably Texas and import-exposed coastal markets), higher near-term capital spending for modernization projects, and short-term commodity/weather exposures add caution. Overall, the company appears financially strong and operationally resilient, with growth levers underway that offset the cyclical weakness in wallboard.Positive Updates
Solid Revenue and Profitability
Reported Q3 revenue of $556 million and gross profit margin of 28.9%; generated EPS of $3.22 while navigating a mixed construction environment.
Negative Updates
Wallboard Revenue and Earnings Decline
Light Materials revenue decreased 16% to $203 million; operating earnings in the sector fell 25% to $73 million, driven primarily by lower wallboard sales volumes and prices.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Revenue and Profitability
Reported Q3 revenue of $556 million and gross profit margin of 28.9%; generated EPS of $3.22 while navigating a mixed construction environment.
Read all positive updates
Company Guidance
Eagle's guidance emphasized disciplined capital allocation and liquidity while progressing major projects: FY2026 capital spending is expected to be $430–$450 million (YTD capex $295M), operating cash flow for the first 9 months was $512M, and the company issued $750M of 10‑year senior notes at 5% while ending 12/31/25 with $419M cash and ~ $1.2B total committed liquidity (net debt/EBITDA 1.8x; net debt-to-cap 48%); Q3 results showed $556M revenue, $3.22 EPS (down 10%), 28.9% gross margin, heavy materials revenue +11% (cement volume +9%, concrete & aggregates revenue +22%, aggregates volume +81% to a record 1.6M tons), light materials revenue down 16% to $203M and segment operating earnings down 25% to $73M, the company announced ~$8/ton cement price increases in most markets effective early 2026 (ex‑Texas/Far West), maintains >50% natural gas hedges through winter, returned nearly $150M to shareholders in the quarter (≈648k shares repurchased; ~1.4M shares repurchased YTD ≈4% of outstanding; ~3.3M shares remaining authorization), and reiterated commissioning timelines for Laramie late calendar 2026 and Duke in H2 2027.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
Neutral
185.66
Price Trends
208.31
Negative
212.68
Negative
218.48
Negative
Market Momentum
-6.55
Negative
43.55
Neutral
79.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXP, the sentiment is Neutral. The current price of 185.66 is below the 20-day moving average (MA) of 186.36, below the 50-day MA of 208.31, and below the 200-day MA of 218.48, indicating a neutral trend. The MACD of -6.55 indicates Negative momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 79.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.78B | 25.54 | 23.07% | 0.19% | 20.27% | 31.94% | |
75 Outperform | $36.78B | 34.81 | 12.79% | 0.67% | 6.54% | 32.48% | |
72 Outperform | $36.10B | 33.02 | 11.90% | 0.51% | 1.99% | -41.08% | |
70 Outperform | $5.84B | 16.19 | 28.78% | 0.47% | 1.50% | -4.44% | |
65 Neutral | $4.24B | 25.39 | 9.71% | ― | 5.52% | -25.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $950.65M | -44.08 | 11.98% | 5.46% | 9.24% | 24.01% |
* Basic Materials Sector Average
EXP
Eagle Materials
185.66
-25.44
-12.05%
CPAC
Cementos Pacasmayo SAA
10.52
5.42
106.27%
MLM
Martin Marietta Materials
598.48
141.12
30.85%
USLM
United States Lime & Minerals
131.84
46.78
54.99%
VMC
Vulcan Materials
281.63
54.71
24.11%
KNF
Knife River Corporation
74.82
-9.87
-11.65%
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.