11 Best Cement and Construction Materials Stocks to Buy Now

5. Eagle Materials Inc. (NYSE:EXP)

Number of Hedge Fund Holders: 28

Eagle Materials Inc. (NYSE:EXP) is a manufacturer of basic construction materials used in residential, commercial, industrial, infrastructure, and energy applications. It has two primary lines, Portland Cement and Gypsum Wallboard, which are used for building and repairing roads and highways as well as for building and renovating commercial, residential, and industrial structures. The company manufactures and sells its products through a network of over 70 facilities across the US. It is headquartered in Dallas, Texas.

Eagle Materials owns virtually all its raw material and has relative self-sufficiency with decades of supply located close to its production facilities. Conditions are favorable with cement being the essential binding material in concrete with few substitutes and the water molecule imbedded in gypsum wallboard chemistry with an inherent fire resistance benefit essential to satisfy US construction specifications. To expand its heavy materials footprint, Eagle Materials has taken strategic initiatives such as the $430 million Mountain Cement plant expansion and modernization and a new Houston slag-cement facility through its joint venture at Texas Lehigh Cement.

For the first quarter of fiscal 2025 ended June 30, Eagle Materials Inc. (NYSE:EXP) had a record revenue of $608.7 million and record net earnings per diluted share of $3.94. Although the weather conditions were adverse across many of the core markets, Eagle’s portfolio of businesses performed well. While cement demand continues to be driven by construction spending on infrastructure and heavy industrial projects, residential construction activity is resilient due to housing supply shortages.

With favorable underlying fundamentals in markets and significant cash flow generation, Eagle Materials Inc. (NYSE:EXP) is positioned well to perform through the remaining fiscal year. The company has driven competitiveness and strong returns through sustained investment for low-cost positioning through cycles.