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Eagle Materials
(NYSE:EXP)
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Rating:62Neutral
Price Target:
$217.00
▲(1.62% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by strong underlying profitability but tempered by materially weaker free-cash-flow conversion and somewhat higher leverage than recent history. Technicals add a notable headwind as shares trade below major moving averages, while valuation is reasonable but supported by a very small dividend yield. Earnings-call commentary was net-positive on operations and liquidity, though peak capex and Wallboard softness keep near-term risk elevated.
Positive Factors
Strong and durable profitability
Eagle generates strong operating and net profitability for a construction-materials producer. These margins provide resilience against input-cost volatility and support reinvestment, debt service, and shareholder returns, although recent compression warrants monitoring.
Negative Factors
Weak free-cash-flow conversion
Although operating cash flow remains healthy, weak conversion to free cash flow limits funds available for debt reduction and shareholder returns. The deterioration suggests elevated capital or working-capital demands that could persist during the investment cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and durable profitability
Eagle generates strong operating and net profitability for a construction-materials producer. These margins provide resilience against input-cost volatility and support reinvestment, debt service, and shareholder returns, although recent compression warrants monitoring.
Read all positive factors
Eagle Materials (EXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.30B
Dividend Yield0.5%
Average Volume (3M)446.01K
Price to Earnings (P/E)16.2
Beta (1Y)1.09
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. Volume463,276
30 Day Avg. Volume446,006
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$228.17Price Target Upside6.84% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)12.71
Revenue Forecast (FY)$2.35B
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 building materials, with revenue primarily generated from product sales across its Heavy Materials and Light Materials segments. In Heavy Materials, the company earns revenue from the sale of ce...
Eagle Materials Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 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
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 | 740.45M | 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
Negative
213.55
Price Trends
213.87
Negative
208.61
Negative
211.04
Negative
Market Momentum
-1.73
Positive
46.23
Neutral
15.62
Positive
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 213.55 is above the 20-day moving average (MA) of 211.02, below the 50-day MA of 213.87, and above the 200-day MA of 211.04, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.37B | 25.08 | 20.76% | 0.22% | 7.00% | 7.12% | |
70 Outperform | $1.10B | 15.84 | 16.38% | 5.09% | 20.05% | 7.67% | |
70 Outperform | $36.04B | 32.72 | 13.11% | 0.72% | 6.86% | 18.35% | |
69 Neutral | $32.36B | 12.87 | 23.11% | 0.59% | 0.06% | 125.23% | |
63 Neutral | $3.78B | 27.09 | 8.72% | ― | 12.13% | -8.86% | |
62 Neutral | $6.30B | 16.16 | 26.87% | 0.47% | 1.68% | -7.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
EXP
Eagle Materials
206.38
-18.78
-8.34%
CPAC
Cementos Pacasmayo SAA
11.70
5.97
104.19%
MLM
Martin Marietta Materials
535.53
-61.87
-10.36%
USLM
United States Lime & Minerals
119.44
7.24
6.46%
VMC
Vulcan Materials
276.30
-7.86
-2.77%
KNF
Knife River Corporation
65.78
-20.91
-24.12%
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...
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.