Eagle Materials (EXP) reported net profit margins of 19.4%, a decrease from last year’s 21.3%, signaling compressed profitability even as the company’s earnings are projected to grow at 5.78% per year. Revenue is expected to increase at a 3.9% annual pace, which is well behind the broader US market’s 10.3%. Trading at a P/E ratio of 15.4x, below peer averages, the stock’s $212.32 price currently sits under some estimates of fair value, with risk assessments showing only minor concerns and rewards centered on its continued growth trajectory and value positioning.
See our full analysis for Eagle Materials.
Next up, let’s see how these headline numbers compare to the most widely held market narratives. Some ideas could get confirmed, while others might face new challenges.
See what the community is saying about Eagle Materials
NYSE:EXP Earnings & Revenue History as at Nov 2025
Over the past five years, Eagle Materials averaged 8.6% annual earnings growth, but most recently saw negative annual earnings growth, indicating a sharper slowdown than the long-term trend would suggest.
According to analysts’ consensus view, sustained infrastructure spending and a strong presence in high-growth regions are expected to help offset recent pressure on margins. Future growth is anticipated to rely on operational upgrades and efficiency initiatives.
Consensus notes that modernization of key plants and expansion into sustainable materials should drive better margins and more resilient cash flow as federal projects accelerate.
Despite negative earnings momentum over the last year, management’s discipline and focus on high-growth areas are seen as buffers, not red flags, for long-term performance.
To see how the market’s consensus stacks up against other expert takes, check out the full narrative. 📊 Read the full Eagle Materials Consensus Narrative.
Analysts expect Eagle Materials will reduce its shares outstanding by 3.26% per year over the next three years, which could enhance earnings per share and return more value to shareholders.
The consensus narrative suggests that consistent share repurchases and disciplined capital allocation, supported by strong free cash flow and low leverage, are set to boost EPS and cushion earnings during sector volatility.
Even as immediate growth slows, initiatives like expensed capital projects and share buybacks are designed to support shareholder returns beyond just profit growth.
This approach stands out in the sector, where many peers face higher debt or lack the free cash flow for buybacks, according to consensus analysis.
With a P/E of 15.4x, Eagle Materials is trading below the peer group average (24.8x) and just above the wider industry average (15.3x), at a share price of $212.32, while its DCF fair value sits much higher at $475.54, reflecting a significant gap.
Analysts’ consensus notes that at $212.32, the stock trades at an 8.4% discount to their price target of $246.50, reinforcing their view that the company is fairly valued for its risk-return profile. At the same time, the large DCF fair value gap could signal a bigger opportunity or point to more conservative market sentiment on near-term margins and growth.
This valuation spread highlights the tension between recent margin weakness and longer-horizon rewards from operational upgrades and infrastructure tailwinds.
Investors are encouraged by consensus to examine whether current estimates underplay the upside from efficiency drives and capital returns.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Eagle Materials on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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A great starting point for your Eagle Materials research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
Eagle Materials is contending with compressed profit margins and slowing earnings momentum, which could challenge its ability to deliver steady growth ahead.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EXP.
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