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olivLaw · US equity research

Eagle Materials Inc. EXP

Cement, Hydraulic · SIC 3241 · Vertical: Cement, Hydraulic (SIC 3241)

189.24USD−4.52% · 1 dayClose 05 Nov 2026

Eagle Materials is a U.S. maker of cement and gypsum wallboard, with a network of more than 70 facilities across 21 states. It posted solid results in the first quarter of fiscal 2027, but higher delivery costs and weak residential demand are weighing on profitability, which makes margin trends worth following in coming periods.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, Eagle Materials Inc. (EXP) stock was 189.24 USD (−4.52% on the day), with market capitalisation 5.8 bn USD, P/E 15.7 on diluted EPS of 12.05 USD over the last 12 months, dividend yield 0.53%, beta 1.07, 52-week range 163.34–240.24 USD. Latest reported quarter (Q2 2027): revenue of 652.7 m USD (+2.2% YoY), net income of 111.5 m USD (−18.8% YoY), diluted EPS 3.63 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
5.8 bn USD
shares as of 02 Nov 2026
P/E (TTM)
15.7
Diluted EPS TTM 12.05 · TTM to 30 Sept 2026
E/P (TTM)
6.37%
TTM to 30 Sept 2026
Dividend yield
0.53%
DPS 12m 1.00
Beta (2y)
1.07
Volatility (1y) 34%
52-week range
163.34240.24

Price history

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Technical reading

RSI (14)
59.2
strong (55–70)
Bollinger (20, 2)
155.72 – 197.18
in the upper half of the band · %B 0.81 · band width 23.5%
SMA 50 / 200
179.51 / 201.78
mixed trend
MACD (12, 26, 9)
4.03 / 1.09
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+10.3%−1.1%+11.4 pp—
3 months−10.5%−0.5%−10.0 pp—
6 months−10.6%+4.4%−15.0 pp—
Year to date−8.4%+12.3%−20.8 pp—
1 year−8.7%+13.5%−22.2 pp−14.3%
3 years+14.8%+76.4%−61.6 pp+56.2%
5 years+21.6%+63.7%−42.0 pp—
Max drawdown (1y)
−32.0%
12 Jan 2026 → 14 Oct 2026
Max drawdown (5y)
−48.2%
25 Nov 2024 → 14 Oct 2026
Compound annual growth (5y)
+4.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 30 Sept 2026

Revenue
652.7 m USD
+2.2% YoY
Net income
111.5 m USD
−18.8% YoY
Diluted EPS
3.63
−14.2% YoY
net / operating
17.1% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue558.0 m470.2 m634.7 m638.9 m556.0 m479.1 m651.0 m652.7 m
Cost of revenue380.2 m365.6 m449.1 m439.2 m395.1 m372.8 m489.7 m478.0 m
Gross profit177.8 m104.6 m185.6 m199.7 m160.9 m106.3 m161.2 m174.7 m
Operating income182.8 m———————
Depreciation & amortisation39.2 m ≈42.2 m40.6 m42.0 m ≈41.6 m ≈40.5 m41.2 m41.8 m ≈
Interest expense9.1 m10.1 m11.7 m9.4 m13.7 m11.7 m12.9 m11.9 m
Income tax34.7 m14.5 m34.5 m39.1 m26.3 m18.2 m29.6 m32.0 m
Net income119.6 m66.5 m123.4 m137.4 m102.9 m60.2 m102.1 m111.5 m
Diluted EPS3.562.00 ≈3.764.233.221.91 ≈3.293.63
Operating cash flow119.9 m ≈62.8 m136.6 m204.6 m ≈170.8 m ≈102.1 m154.4 m209.9 m ≈
Capex47.4 m ≈48.3 m76.1 m108.5 m ≈110.0 m ≈122.1 m120.8 m128.9 m ≈
Dividends paid8.4 m ≈8.3 m8.3 m8.4 m ≈7.8 m ≈7.9 m8.0 m7.6 m ≈
Share repurchases55.1 m ≈97.0 m78.6 m89.1 m ≈142.6 m ≈71.5 m83.8 m62.1 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 41 percentile of its own 39-quarter history (min 9.8, median 17.2, max 104.2; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue1.3 bn1.4 bn1.6 bn1.9 bn2.1 bn2.3 bn2.3 bn2.3 bn
Revenue YoY−5.5%+7.2%+15.6%+14.7%+15.4%+5.2%+0.1%+2.1%
Net income68.9 m70.9 m339.4 m374.2 m461.5 m477.6 m463.4 m423.8 m
Net income YoY−73.2%+3.0%+378.8%+10.3%+23.3%+3.5%−3.0%−8.5%
Diluted EPS1.471.688.129.1412.4613.6113.7713.16
Diluted EPS YoY−72.2%+14.3%+383.3%+12.6%+36.3%+9.2%+1.2%−4.4%
net %5.3%5.0%20.9%20.1%21.5%21.1%20.5%18.4%
Free cash flow181.4 m267.2 m589.1 m443.1 m431.6 m443.6 m353.3 m197.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Mar 2026

Cash
297.9 m USD
Financial debt
1.8 bn USD
Net debt
1.5 bn USD
Equity
1.5 bn USD
Total assets
3.8 bn USD
Debt / equity
1.19x
Current ratio
3.66x
ROE
28.9%
ROA
11.9%
FCF margin
8.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
2.3 bn
2025
2.3 bn
2026
2.3 bn

SEC (XBRL)· 19 May 2026verified

Cost of revenue
2024
1.6 bn
2025
1.6 bn
2026
1.7 bn

SEC (XBRL)· 19 May 2026verified

Gross profit
2024
685.3 m
2025
673.1 m
2026
652.5 m

SEC (XBRL)· 19 May 2026verified

SG&A
2024
134.8 m
2025
148.7 m
2026
167.1 m

SEC (XBRL)· 19 May 2026verified

Operating income
2024
716.9 m
2025
—
2026
—

SEC (XBRL)· 22 May 2024verified

Depreciation & amortisation
2024
149.8 m
2025
158.9 m
2026
164.7 m

SEC (XBRL)· 19 May 2026verified

EBITDA
2024
866.7 m ≈
2025
—
2026
—

SEC (XBRL)· 22 May 2024derived

Interest expense
2024
42.3 m
2025
40.5 m
2026
46.5 m

SEC (XBRL)· 19 May 2026verified

Pre-tax income
2024
617.9 m
2025
591.5 m
2026
542.0 m

SEC (XBRL)· 19 May 2026verified

Income tax
2024
140.3 m
2025
128.1 m
2026
118.2 m

SEC (XBRL)· 19 May 2026verified

Net income
2024
477.6 m
2025
463.4 m
2026
423.8 m

SEC (XBRL)· 19 May 2026verified

Diluted EPS
2024
13.61
2025
13.77
2026
13.16

SEC (XBRL)· 19 May 2026verified

Weighted average diluted shares
2024
35.1 m
2025
33.6 m
2026
32.2 m

SEC (XBRL)· 19 May 2026verified

Dividend per share
2024
1.00
2025
1.00
2026
1.00

SEC (XBRL)· 19 May 2026verified

Balance sheet · USD

Cash
2024
34.9 m
2025
20.4 m
2026
297.9 m

SEC (XBRL)· 19 May 2026verified

Receivables
2024
203.0 m
2025
212.3 m
2026
228.6 m

SEC (XBRL)· 19 May 2026verified

Inventories
2024
373.9 m
2025
415.2 m
2026
408.4 m

SEC (XBRL)· 19 May 2026verified

Current assets
2024
627.7 m
2025
668.7 m
2026
950.9 m

SEC (XBRL)· 19 May 2026verified

Property, plant & equipment, net
2024
1.7 bn
2025
1.8 bn
2026
2.1 bn

SEC (XBRL)· 19 May 2026verified

Goodwill
2024
392.6 m
2025
469.9 m
2026
470.7 m

SEC (XBRL)· 19 May 2026verified

Total assets
2024
2.9 bn
2025
3.3 bn
2026
3.8 bn

SEC (XBRL)· 19 May 2026verified

Accounts payable
2024
127.2 m
2025
129.9 m
2026
138.9 m

SEC (XBRL)· 19 May 2026verified

Short-term debt
2024
10.0 m
2025
15.0 m
2026
15.0 m

SEC (XBRL)· 19 May 2026verified

Long-term debt
2024
1.1 bn
2025
1.2 bn
2026
1.7 bn

SEC (XBRL)· 19 May 2026verified

Current liabilities
2024
239.4 m
2025
245.0 m
2026
260.2 m

SEC (XBRL)· 19 May 2026verified

Total liabilities
2024
1.6 bn
2025
1.8 bn
2026
2.4 bn

SEC (XBRL)· 19 May 2026verified

Equity
2024
1.3 bn †
2025
1.5 bn †
2026
1.5 bn †

SEC (XBRL)· 19 May 2026verified

Cash flow · USD

Operating cash flow
2024
563.9 m
2025
548.5 m
2026
614.2 m

SEC (XBRL)· 19 May 2026verified

Capex
2024
120.3 m
2025
195.3 m
2026
416.7 m

SEC (XBRL)· 19 May 2026verified

Free cash flow
2024
443.6 m ≈
2025
353.3 m ≈
2026
197.4 m ≈

SEC (XBRL)· 19 May 2026derived

Investing cash flow
2024
-175.4 m
2025
-370.1 m
2026
-431.7 m

SEC (XBRL)· 19 May 2026verified

Financing cash flow
2024
-368.9 m
2025
-192.9 m
2026
95.1 m

SEC (XBRL)· 19 May 2026verified

Dividends paid
2024
35.3 m
2025
33.7 m
2026
32.4 m

SEC (XBRL)· 19 May 2026verified

Share repurchases
2024
343.3 m
2025
298.3 m
2026
381.8 m

SEC (XBRL)· 19 May 2026verified

Computed indicators

Growth

Revenue growth (YoY)
2.1%
computed by olivLawFY 2026
Revenue CAGR 3Y
2.4%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
7.3%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-8.5%
computed by olivLawFY 2026
Net income CAGR 3Y
-2.8%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
4.5%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
-4.4%
computed by olivLawFY 2026
EPS CAGR 3Y
1.8%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
10.1%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
-44.1%
computed by olivLawFY 2026

Profitability

Gross margin
25.8%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
16.1%
computed by olivLawTTM to 30 Sept 2026
FCF margin
6.6%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
24.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
10.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
8.3%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
20.2%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
1.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.1x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
3.3x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
2.0x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.9x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
637.3 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
481.8 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
155.5 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
41.3%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
40 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
77 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
30 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
87 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
5.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
7.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
15.3x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
15.7x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
6.4%
computed by olivLawTTM to 30 Sept 2026
P/B
3.8x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
2.5x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
3.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
37.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
2.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.5%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
6.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 52 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

189.24 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 5.8 bn USD

Key indicators

Market capitalisation
5.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
15.7x
computed by olivLawTTM to 30 Sept 2026
P/B
3.8x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
24.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
16.1%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
2.1%
computed by olivLawFY 2026
Dividend yield
0.5%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

34/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 02 Nov 2026
Source: SEC (XBRL)published 04 Nov 2026
verified 2670derived 167

Score by group

  • Balance sheet100
  • Valuation51
  • Quality48
  • Growth16
  • Returns98

Estimated value range

Low
42.67
USD per share
Mid
64.85
USD per share
High
102.56
USD per share
Price: 189.24 USD
The price is above the range
Potential to the central value: -65.7% (value / price − 1)
Margin of safety: -191.8% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 42.67 – 102.56 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)42.67 – 102.56 (Mid 64.85)
    WACC 8.3% · starting FCFF 195.9 m USD · terminal value share of EV 76%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 37.9%
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)outside the aggregate13.14 – 17.67 (Mid 15.07)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Cement, Hydraulic (SIC 3241)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 52/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality16.1%80 (vs peers)10%
FCF conversion · Quality41.3%16 (on a fixed band)10%
Revenue CAGR 3Y · Growth2.4%20 (on a fixed band)13%
EPS CAGR 3Y · Growth1.8%12 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet3.3x100 (on a fixed band)7%
P/E (TTM) · Valuation15.7x65 (on a fixed band)17%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation2.7%34 (on a fixed band)13%
Shareholder yield (distributions) · Returns6.8%97 (on a fixed band)10%
Payout ratio (FCF) · Returns20.2%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth16/100 · 2/2 factors with a value
  • Quality48/100 · 2/3 factors with a value
  • Returns98/100 · 2/2 factors with a value
  • Valuation51/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

EAGLE MATERIALS INC. (EXP). Latest full fiscal year: 2026; data up to 2026-09-30.

Figures computed from the financial statements: revenue 2.3 bn USD in 2026; YoY growth 2.1%; net margin 16.1%; ROE 24.5%.

The estimated value range is 42.67–102.56 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 64.85 USD, the price of 189.24 USD leaves a potential of -65.7% (value / price − 1) and a margin of safety of -191.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 52/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 16.1%
  • Current ratio: 3.3x
  • Shareholder yield (distributions): 6.8%
  • Payout ratio (FCF): 20.2%

What contradicts it

  • FCF conversion: 41.3%
  • Revenue CAGR 3Y: 2.4%
  • EPS CAGR 3Y: 1.8%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.

Versus the vertical median

Cement, Hydraulic (SIC 3241) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
15.7x
vertical median 19.5x
below median (−19.4%)
EV/EBITDA
—
vertical median 10.5x
P/S
2.5x
vertical median 1.9x
above median (+28.3%)
P/B
3.8x
vertical median 2.6x
above median (+42.7%)
ROE
24.5%
vertical median 14.8%
above median (+65.5%)
Net margin
16.1%
vertical median 10.1%
above median (+60.2%)
EBIT margin
—
vertical median 14.6%
Revenue YoY
2.1%
vertical median 0.9%
above median (+124.6%)
Net debt/EBITDA
—
vertical median 1.8x
Dividend yield
0.5%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CXCemex Sab De Cv155.4 bn502.87.8%5.8%−2.1%−1% / +55%
CRHCRH public limited company65.7 bn18.614.8%9.2%+5.3%−18% / +57%
AMRZAmrize Ltd23.5 bn19.59.8%10.2%+0.9%−14% / unavailable
EXPEagle Materials Inc.5.8 bn15.724.5%16.1%+2.1%−9% / +15%
CPACHolcim Ltd——16.6%10.1%+1.4%+90% / +170%
LOMALoma Negra Compania Industrialargentina Sociedad Anonima——21.5%22.0%−23.9%−29% / +35%

1- and 3-year price returns: for EXP from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
112.64
Total return -40% · Per year -40%
199.33
Total return 6% · Per year 6%
300.53
Total return 59% · Per year 59%
3 years
104.82
Total return -43% · Per year -17%
209.15
Total return 12% · Per year 4%
346.86
Total return 85% · Per year 23%
5 years
97.54
Total return -47% · Per year -12%
219.45
Total return 19% · Per year 4%
400.34
Total return 115% · Per year 17%
What moves the 3-year price the most
  • Exit P/E± 52.29
  • Net margin± 36.60
  • Annual revenue growth± 30.65
  • Annual dilution± 3.08

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).

In brief

Eagle Materials is a U.S. maker of cement and gypsum wallboard, with a network of more than 70 facilities across 21 states. It posted solid results in the first quarter of fiscal 2027, but higher delivery costs and weak residential demand are weighing on profitability, which makes margin trends worth following in coming periods.

SWOT

Strengths

  • Long-term owned raw material reserves, a low-cost producer position and an integrated plant network.
  • Solid balance sheet with net leverage of 2.1x and rising operating cash flow in the first quarter of fiscal 2027.
  • Management team with long industry experience across several economic cycles.

Weaknesses

  • Dependence on seasonal demand and weather, which can weigh most on peak quarters.
  • Exposure to commodity pricing, driven by supply and demand and capable of sharp swings.
  • Higher cement operating costs in the first quarter, including an unexpected equipment failure at Mountain Cement.

Opportunities

  • Modernization of the Laramie and Duke plants could lower costs and add capacity in the coming years.
  • Infrastructure demand backed by federal and state funding, plus large private projects such as data centers.
  • Growth in fast-expanding Sun Belt and heartland states, where market conditions could turn more favorable.

Threats

  • A prolonged slump in residential construction if mortgage rates stay high.
  • Competitive pressure from imports and alternative products that could reduce prices.
  • Stricter environmental and climate rules that could raise compliance costs and required investment.

Risks

  • Dependence on public fundinghigh

    A significant share of revenue comes from government-funded projects, and delays in appropriations could reduce demand.

  • Exposure to residential constructionmedium

    Wallboard sales are tied to a residential market that remains weak because of high mortgage rates.

  • Energy and freight costsmedium

    Higher diesel and natural gas prices could compress margins, especially in segments that ship by truck.

  • Operational interruptionsmedium

    Unexpected equipment failures, such as the one at Mountain Cement, can hit production and costs in a given quarter.

  • Environmental regulationlow

    Emission and greenhouse gas rules could require additional plant investment and operating costs.

Investment thesis

What would need to be true (bull case)

  • If federally funded infrastructure stays strong, cement demand could remain solid over the medium term.
  • The Laramie and Duke modernizations could lower costs and add capacity, which could support long-term margins.
  • A moderately leveraged balance sheet and active share buybacks could support shareholder returns.

What would break the thesis

  • If the residential market stays weak, wallboard sales could keep declining.
  • Pressure from transport and fuel costs could limit margin recovery if prices do not adjust enough.
  • Imports and alternative products could push down prices and volumes for U.S. producers.

What to watch

  • Completion of the Mountain Cement modernization in Laramie and return to full productionlate calendar 2026
  • Trend in wallboard sales volume and mortgage ratesQ2 2027
  • Development of freight and diesel costs in the Cement segmentQ2 2027
  • Completion of the Duke, Oklahoma wallboard plant modernization2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).

The business

Eagle Materials Inc., headquartered in Dallas, Texas, manufactures heavy construction products and light building materials, mainly cement and gypsum wallboard, through its subsidiaries. Its products serve roads, highways and residential, commercial and industrial structures. The company runs two sectors: Heavy Materials, covering Cement and Concrete and Aggregates, and Light Materials, covering Gypsum Wallboard and Recycled Paperboard. Demand is cyclical and seasonal and depends on economic and geographic conditions. In fiscal 2026, revenue was 2.3 billion USD and net earnings were 423.8 million USD 1.

Two modernization projects matter for the period ahead. The Mountain Cement plant in Laramie, Wyoming, is expanding its capacity by 50% and could cut manufacturing costs by 25%, with start-up expected in late calendar 2026 1. The Oklahoma gypsum wallboard plant in Duke is being modernized with a 330.0 million USD investment and completion expected in the second half of calendar 2027 1.

Segments

Cement

Cement is the largest revenue contributor in the Heavy Materials sector. In fiscal 2026 segment revenue was 1144.0 million USD, and including the joint venture it reached 1299.4 million USD 1. Operating earnings rose to 328.3 million USD and sales volume grew 8% 1.

Gypsum Wallboard and Recycled Paperboard

Wallboard is tied to residential construction, which stayed weak. In the first quarter of fiscal 2027, wallboard sales volume fell 2% and net prices declined on higher freight costs 3. Recycled Paperboard reached a record volume, up 2%, and its price rose in line with long-term sales contracts 3.

Concrete and Aggregates

Concrete and Aggregates grew in fiscal 2026 thanks to the acquisitions in northern Kentucky and western Pennsylvania, which lifted aggregates volume sharply 1. Operating earnings remained modest and fell in the first quarter of fiscal 2027 on lower concrete volume and higher operating costs 3.

Market context

The company expects cement demand to stay steady in the near term, supported by public infrastructure funding under the Infrastructure Investment and Jobs Act, of which a significant share is still to be spent 2. Imports covered nearly 23% of U.S. cement sales, and national consumption was 112.3 million short tons in calendar 2025 1.

The residential market remains difficult because of elevated mortgage rates and housing affordability. Eagle believes its footprint in the U.S. heartland and the Sun Belt positions it to benefit when the market recovers, but the timing of that recovery is uncertain 2.

Trends

  • Public infrastructure fundingtailwind

    Federal and state funding for roads and highways remains high, supporting cement and aggregates demand over the medium term. The risk is that annual appropriations could be cut or delayed, and budget impasses could push projects back.

  • Weak residential constructionheadwind

    High mortgage rates and a large stock of new homes are slowing residential building, which hurts wallboard sales. If rates fall, demand could recover, but the timing is unclear.

  • Transport and fuel costsheadwind

    High diesel prices raised delivery costs for cement and wallboard, and the company expects freight costs to rise further in fiscal 2027. Price adjustment clauses in customer contracts offset these costs only partly.

  • Recycled fiber pricesmixed

    OCC prices have risen recently, raising the raw material cost for paperboard and wallboard liner. Customer contracts include price adjustments, but with a lag, which could compress margins in the short term.

Competitive position

The company operates in markets with many competitors, some larger and with more resources than Eagle. Price is the main basis of competition because most products are commodities. Competition also comes from alternative products, cement substitutes, recycled concrete and cement imports from jurisdictions with lower production costs 1.

Excess nameplate capacity in U.S. gypsum wallboard and rising cement imports could pressure prices. If new capacity arrives faster than demand, margins could decline 1.

  • Heidelberg Materials

    Partner in the Buda, Texas joint venture and a competitor in U.S. cement; named in the sources as a partner, not as a U.S.-listed company.

  • Cement importers

    Importers from jurisdictions with lower costs compete directly with domestic production and affect prices in port regions.

  • Producers of cement substitutes

    Competitors promoting silicate minerals and calcined clay as cement substitutes could reduce demand for the traditional product.

  • Recycled concrete producers

    Recycled concrete can replace new products in certain applications and competes with the Concrete and Aggregates segment.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Eagle Materials Inc. · 19 May 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Eagle Materials Inc. · 29 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Eagle Materials Inc. · 29 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.