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Eagle Materials
(NYSE:EXP)
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Rating:62Neutral
Price Target:
$178.00
▼(-10.49% Downside)
Action:Reiterated
Date:10/08/26
EXP’s score is primarily driven by strong underlying profitability and a reasonable P/E, but it is held back by deteriorating cash conversion (weak recent free-cash-flow conversion and negative FCF growth) and notably weak technical momentum (below major moving averages with negative MACD). Earnings-call commentary supports the medium-term outlook via infrastructure/data-center demand and cost-reduction projects, but near-term pressures from freight/raw materials, downtime, and elevated capex temper the setup.
Positive Factors
Infrastructure and data-center demand
Exposure to infrastructure and expanding data-center construction supports durable demand across cement, aggregates, and related products. These projects typically involve large footprints and multi-year pipelines, improving volume visibility and reducing reliance on a single construction segment.
Negative Factors
Weak free-cash-flow conversion
Weak conversion of earnings into free cash flow reduces the capital available for debt reduction, acquisitions, and shareholder distributions. The deterioration from prior annual conversion levels suggests elevated investment or working-capital demands may continue to constrain financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Infrastructure and data-center demand
Exposure to infrastructure and expanding data-center construction supports durable demand across cement, aggregates, and related products. These projects typically involve large footprints and multi-year pipelines, improving volume visibility and reducing reliance on a single construction segment.
Read all positive factors
Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.36B
Dividend Yield0.57%
Average Volume (3M)455.00K
Price to Earnings (P/E)13.7
Beta (1Y)0.95
Revenue Growth1.68%
EPS Growth-7.06%
CountryUS
Employees2,800
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)12.72
Shares Outstanding30,675,325
10 Day Avg. Volume412,063
30 Day Avg. Volume454,999
Financial Highlights & Ratios
PEG Ratio-2.93
Price to Book (P/B)4.02
Price to Sales (P/S)2.57
P/FCF Ratio30.04
Enterprise Value/Market Cap1.60
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit13.62
Enterprise Value/Ebitda11.54
Forecast
1Y Price Target
$197.75Price Target Upside-0.56% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)12.11
Revenue Forecast (FY)$2.32B
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 producing and selling construction materials and building products, with revenue primarily generated from product sales to customers in construction-related end markets. (1) Heavy Materials revenue is driven mainly b...
Eagle Materials Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Eagle delivered record revenue, strong operating cash flow, healthy cement and Aggregates demand, progress on high-return modernization projects, and substantial liquidity while continuing to return capital to shareholders. These positives were tempered by a 13% decline in earnings per share, lower Light Materials revenue and earnings, elevated freight and raw material costs, Mountain Cement equipment downtime, subdued housing activity, safety results below expectations, and uncertainty around tariffs and freight costs.Positive Updates
Record Revenue and Strong Gross Margin
First-quarter revenue was a record $651 million, up 3% year-over-year. Earnings per share was $3.29 and gross margin was 24.8%.
Negative Updates
Earnings Per Share Declined
First-quarter earnings per share decreased 13% year-over-year. The decline was primarily driven by higher operating costs, increased freight costs, and unexpected downtime at the Mountain Cement plant, and was partially offset by a 5% reduction in fully diluted shares from the share repurchase program.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Revenue and Strong Gross Margin
First-quarter revenue was a record $651 million, up 3% year-over-year. Earnings per share was $3.29 and gross margin was 24.8%.
Read all positive updates
Company Guidance
Management continues to expect fiscal 2027 capital expenditures to range between $490 million and $525 million, with capital spending expected to peak in fiscal 2027; construction for Laramie Cement is still on track to be completed late this year, with commissioning planned for the first part of next year, while the Duke wallboard plant should commission towards the later half of 2027 and the Duke project is anticipated to be completed in mid-fiscal 2028. The Laramie project is expected to reduce the facility's operating cost by 25%, and the Duke Oklahoma wallboard plant modernization will reduce the operating cost of that facility by 20%; cement volume growth should set up nicely for better net price realization over the medium term, further benefiting from energy costs that should normalize.Eagle Materials Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
64
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.32B | 2.31B | 2.26B | 2.26B | 2.15B | 1.86B |
| Gross Profit | 628.19M | 652.54M | 673.14M | 685.32M | 639.27M | 519.61M |
| EBITDA | 741.67M | 764.20M | 792.63M | 811.07M | 762.74M | 634.82M |
| Net Income | 402.57M | 423.81M | 463.42M | 477.64M | 461.54M | 374.25M |
Balance Sheet | ||||||
| Total Assets | 3.91B | 3.84B | 3.26B | 2.95B | 2.78B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 233.54M | 297.92M | 20.40M | 34.92M | 15.24M | 19.42M |
| Total Debt | 1.80B | 1.80B | 1.28B | 1.12B | 1.12B | 974.60M |
| Total Liabilities | 2.42B | 2.37B | 1.81B | 1.64B | 1.60B | 1.45B |
| Stockholders Equity | 1.49B | 1.47B | 1.46B | 1.31B | 1.19B | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | 170.51M | 197.43M | 353.27M | 443.63M | 431.58M | 443.05M |
| Operating Cash Flow | 631.91M | 614.17M | 548.55M | 563.94M | 541.73M | 517.17M |
| Investing Cash Flow | -476.40M | -431.74M | -370.13M | -175.36M | -268.59M | -74.12M |
| Financing Cash Flow | 18.29M | 95.09M | -192.94M | -368.90M | -277.31M | -692.15M |
Eagle Materials Technical Analysis
Neutral
198.87
Price Trends
182.82
Negative
198.53
Negative
203.43
Negative
Market Momentum
-2.39
Negative
50.06
Neutral
90.87
Negative
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 198.87 is above the 20-day moving average (MA) of 170.32, above the 50-day MA of 182.82, and below the 200-day MA of 203.43, indicating a neutral trend. The MACD of -2.39 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.87 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.16B | 17.51 | 16.38% | 4.78% | 20.05% | 7.67% | |
70 Outperform | $36.02B | 12.44 | 23.11% | 0.66% | 0.06% | 125.23% | |
70 Outperform | $33.91B | 30.79 | 13.11% | 0.78% | 6.86% | 18.35% | |
68 Neutral | $2.51B | 14.16 | 16.96% | 1.18% | 5.46% | 7.16% | |
62 Neutral | $5.36B | 13.74 | 26.87% | 0.57% | 1.68% | -7.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $3.02B | 21.59 | 8.72% | ― | 12.13% | -8.86% |
* Basic Materials Sector Average
EXP
Eagle Materials
174.71
-57.63
-24.81%
CPAC
Cementos Pacasmayo SAA
12.73
5.91
86.66%
MLM
Martin Marietta Materials
507.17
-106.22
-17.32%
VMC
Vulcan Materials
261.69
-28.15
-9.71%
KNF
Knife River Corporation
53.12
-9.25
-14.83%
TTAM
Titan America SA
13.59
-1.67
-10.92%
Eagle Materials Corporate Events
Executive/Board ChangesShareholder Meetings
Eagle Materials Shareholders Approve Governance and Board Changes
Positive
Jul 31, 2026
At Eagle Materials’ recent Annual Meeting, shareholders elected Margot L. Carter, Michael R. Nicolais, and Mary P. Ricciardello to the Board of Directors to serve until the 2029 Annual Meeting, reaffirming the company’s current leaders...
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.