Stifel cuts Eagle Materials price target to $241 from $242

On Wednesday, Stifel analyst Brian Brophy adjusted the price target for Eagle Materials (NYSE:EXP), a company specializing in the manufacturing and distribution of building materials, to $241.00, a slight decrease from the previous $242.00. Despite this change, the firm maintained a Hold rating on the stock. According to InvestingPro data, Eagle Materials maintains a GREAT financial health score of 3.19/5, with a current P/E ratio of 17.57x and strong operational metrics including $2.26 billion in trailing twelve-month revenue. Brophy’s analysis followed the company’s fiscal fourth quarter results for the period ending in March, which showed revenues falling short of expectations at $470 million compared to the anticipated $481 million. This shortfall was attributed to underperformance in both the cement and wallboard segments.

Eagle Materials reported a year-over-year growth in cement pricing by 2%, but experienced a volume decrease of 6%, which was influenced by adverse weather conditions. Conversely, wallboard pricing saw a 1% year-over-year decline, with volume dropping 3%, albeit performing better than the industry’s 9% decline. Despite these challenges, Eagle Materials observed signs of improving demand in April. InvestingPro analysis reveals the company’s robust financial position with a healthy current ratio of 2.73 and sufficient cash flows to cover interest payments.

Operational difficulties, including weather impacts costing approximately $4-5 million, a rescheduling of maintenance at a cement joint venture, and commissioning costs for a new slag facility estimated at around $4 million, led to an adjusted EBITDA that did not meet expectations, coming in at $141 million versus the forecasted $156 million. Additionally, the company incurred acquisition-related expenses surpassing $3 million.

Looking ahead, Eagle Materials anticipates capital expenditures ranging from $475 million to $525 million for the fiscal year 2026. These investments are earmarked for various modernization programs expected to yield strong returns, with an internal target of a 15% cash-on-cash return. Stifel’s commentary highlighted Eagle Materials’ advantageous position as a low-cost producer with significant raw material reserves. Despite this, the firm expressed a cautious stance on the near-term housing market, citing a decline in industry sentiment driven by affordability challenges. For deeper insights into Eagle Materials’ financial health and growth prospects, including exclusive ProTips and comprehensive valuation metrics, visit InvestingPro, where you’ll find detailed analysis in our Pro Research Report, available for over 1,400 US stocks.

In other recent news, Eagle Materials reported its first-quarter earnings for 2025, which fell short of analyst expectations. The company’s earnings per share (EPS) came in at $2.08, missing the anticipated $2.58, while revenue reached $470.2 million, falling below the forecasted $487.58 million. Despite these setbacks, Eagle Materials achieved a record fiscal year revenue of $2.3 billion, reflecting a modest increase from the previous year. Meanwhile, Jefferies adjusted its outlook on Eagle Materials, reducing the company’s price target from $235.00 to $220.00, while maintaining a Hold rating. The firm highlighted that Eagle Materials’ earnings are expected to remain stable in fiscal year 2026, with a recovery in the cement sector anticipated. This projection is based on assumptions of rebased wallboard margins and strong demand in infrastructure. Eagle Materials continues to focus on strategic investments, including facility upgrades and expansions, positioning itself for future growth amid a competitive market landscape.

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