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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on EXP

Breaking News: Eagle Materials Inc has recently been in the news with several developments. Principal Financial Group Inc increased its stake in the company by 14.6% to 511,372 shares. Additionally, EXP Services Inc, a subsidiary of Eagle Materials Inc, was awarded a $6.1 million contract by Electra Battery Materials Corporation to provide project management and engineering support. There is no recent earnings release available. Analysts at recommend a hold. Eagle Materials Inc has seen increased institutional investment and secured new contracts.

1.c. Company Highlights

2. Eagle Materials' Q3 FY2026 Earnings: Steady Performance Amidst Mixed Construction Environment

Eagle Materials reported revenue of $556 million, with earnings per share (EPS) of $3.22 and a gross profit margin of 28.9% for the third quarter of fiscal 2026. The EPS was slightly lower than the estimated $3.32. The company's heavy materials segment drove revenue growth, with an 11% increase, primarily due to a 9% rise in cement sales volume and a 22% increase in concrete and aggregates revenue.

Publication Date: Feb -08

📋 Highlights
  • Revenue and Profitability:: Generated $556 million in revenue with earnings per share of $3.22 and a gross margin of 28.9%.
  • Heavy Materials Growth:: Cement sales volume increased 9%, Aggregates sales hit a record 1.6 million tons (+81%), and Heavy Materials revenue rose 11%.
  • Capital Projects Progress:: Modernization of Mountain Cement and Duke Wallboard facilities underway; Laramie plant to be commissioned late CY2026, Duke in H2 CY2027.
  • Wallboard Challenges:: Volumes declined due to weak residential construction, with pricing down 3% sequentially and shipments at 25.4 billion sq ft (2018 levels).
  • EPS Decline:: Earnings per share fell 10% YoY to $3.22, driven by lower Wallboard and Paperboard volumes despite Cement/Aggregates growth.

Segment Performance

The Cement and Aggregates sales volumes grew, driven by infrastructure spending and solid growth in non-residential end markets. The company's strategy focuses on investing in its people, controlling costs, and supporting customers through increased reliability, efficiency, and capacity. The Laramie, Wyoming Cement plant is expected to be commissioned late this calendar year, followed by the Duke, Oklahoma commissioning in the second half of calendar 2027.

Operational Highlights

Eagle Materials has made progress on its major capital projects, including the modernization of its Mountain Cement plant and the Duke Wallboard facility. These investments are expected to lower the company's cost structure, strengthen its competitive position, and deliver a strong return on investment. The company's Wallboard business faced challenges due to the residential construction market, but it has a hedging program in place to mitigate natural gas price spikes during winter storms.

Outlook and Valuation

Analysts estimate revenue growth of 1.9% for the next year. With a current P/E Ratio of 16.93 and an EV/EBITDA of 11.07, the company's valuation appears reasonable. The ROE of 28.78% and ROIC of 12.33% indicate a strong return on equity and invested capital. The dividend yield is relatively low at 0.44%, but the free cash flow yield is 3.36%, suggesting a decent return for investors.

Market Dynamics

The company's Cement prices have been impacted by structural changes in the Texas market, but it has announced price increases across most of its network. The Wallboard prices have declined, but the management does not see this as a long-term trend. The company's larger customers on the Pro distribution side have been acquired by big box retailers, which may change the procurement dynamic, but it's too early to determine the impact.

3. NewsRoom

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Weyerhaeuser Co: A Significant Addition to First Eagle Investment's Portfolio

Feb -04

Source: gurufocus.com

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Eagle Materials: Heavy Materials Strength Offsets Wallboard Weakness

Feb -04

Source: seekingalpha.com

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Electra Awards $6.1 Million Contract to EXP Services for Project Management and Engineering Support at Ontario Refinery

Feb -03

Source: globenewswire.com

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Principal Financial Group Inc. Grows Stock Position in Eagle Materials Inc $EXP

Feb -03

Source: defenseworld.net

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Harbor Mid Cap Value ETF Q4 2025 Performance Drivers And Trading Highlights

Jan -30

Source: seekingalpha.com

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Compared to Estimates, Eagle Materials (EXP) Q3 Earnings: A Look at Key Metrics

Jan -29

Source: zacks.com

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Eagle Materials Inc. (EXP) Q3 2026 Earnings Call Transcript

Jan -29

Source: seekingalpha.com

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Eagle Materials (EXP) Q3 Earnings Lag Estimates

Jan -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.49%)

6. Segments

Cement

Expected Growth: 5%

Eagle Materials Inc.'s cement segment growth is driven by increasing demand from infrastructure projects, residential construction, and repair activities. Additionally, the company's strategic expansion into new markets, cost savings initiatives, and operational efficiencies contribute to its 5% growth rate.

Gypsum Wallboard

Expected Growth: 4%

Eagle Materials Inc.'s Gypsum Wallboard segment growth is driven by increasing demand for new construction and renovation projects, fueled by a strong US housing market and infrastructure development. Additionally, the company's strategic expansion into new markets, cost savings initiatives, and focus on sustainable products contribute to its 4% growth.

Concrete and Aggregates

Expected Growth: 5%

Eagle Materials Inc.'s Concrete and Aggregates segment growth is driven by increasing infrastructure spending, rising demand for residential and commercial construction, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and pricing initiatives contribute to its 5% growth rate.

Reconciling Items

Expected Growth: 3%

Eagle Materials Inc.'s 3% growth is driven by increasing demand for construction materials, particularly in the US, fueled by government infrastructure spending and a strong housing market. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth, along with operational efficiencies and cost savings initiatives.

Paperboard

Expected Growth: 4%

Eagle Materials Inc.'s paperboard segment growth is driven by increasing demand for sustainable packaging, rising e-commerce sales, and growing need for lightweight materials. Additionally, the company's strategic acquisitions, operational efficiencies, and cost savings initiatives contribute to its 4% growth rate.

7. Detailed Products

Cement

Eagle Materials Inc. produces high-quality Portland cement for use in various construction projects, including roads, bridges, buildings, and homes.

Concrete and Aggregates

The company offers a range of concrete and aggregate products, including ready-mix concrete, crushed stone, sand, and gravel.

Gypsum Wallboard

Eagle Materials Inc. manufactures and distributes gypsum wallboard for use in building construction and renovation projects.

Recycled Paperboard

The company produces recycled paperboard products, including containerboard and kraft paper, for use in packaging and paper products.

Oil and Gas Proppants

Eagle Materials Inc. supplies frac sand and other proppants for use in hydraulic fracturing operations in the oil and gas industry.

8. Eagle Materials Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Eagle Materials Inc. is medium due to the availability of alternative building materials and the increasing demand for sustainable products.

Bargaining Power Of Customers

The bargaining power of customers for Eagle Materials Inc. is low due to the company's strong brand reputation and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Eagle Materials Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Eagle Materials Inc. is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Eagle Materials Inc. is high due to the presence of several established players in the industry and the ongoing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.70%
Debt Cost 5.00%
Equity Weight 54.30%
Equity Cost 10.68%
WACC 8.09%
Leverage 84.16%

11. Quality Control: Eagle Materials Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Boise Cascade

A-Score: 5.1/10

Value: 6.9

Growth: 5.8

Quality: 5.4

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Eagle Materials

A-Score: 4.5/10

Value: 3.5

Growth: 7.6

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Summit Materials

A-Score: 4.4/10

Value: 2.1

Growth: 5.4

Quality: 4.4

Yield: 1.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Knife River

A-Score: 3.3/10

Value: 5.7

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

225.85$

Current Price

225.85$

Potential

-0.00%

Expected Cash-Flows