L1 Capital International Dumps 85K Eagle Materials Shares Worth $19.1 Million
Key Points
The equities fund sold 84,795 shares of Eagle Materials, a net position change of $19.1 million.
The position previously accounted for 4.7% of the fund’s AUM in the prior quarter.
Eagle Materials stock has fallen by over 30% over the past year.
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What happened
On Nov. 14, 2025, L1 Capital International, an Australia-based fund specializing in high-conviction international equities, disclosed in an SEC filing that it had sold its entire $19.1 million stake in Eagle Materials (NYSE:EXP).
L1 Capital International sold its entire holding of 84,795 shares in Eagle Materials during the third quarter. The transaction was valued at $19,092,442 based on quarterly average pricing.
What else to know
At the end of the second quarter, Eagle Materials constituted 4.7% of L1 Capital's 13F assets.
Top holdings after the filing:
- Taiwan Semiconductor Manufacturing: $75.28 million (15.7% of AUM)
- Microsoft: $42.01 million (8.8% of AUM)
- AerCap Holdings: $41.60 million (8.7% of AUM)
- Amazon.com: AMZN: $36.15 million (7.5% of AUM)
- CRH Plc.: $32.27 million (6.7% of AUM)
As of Nov. 14, 2025, Eagle Materials shares were priced at $202.06, down 33.6% over the past year, underperforming the S&P 500 by 46.7 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $6.63 billion |
| Revenue (TTM) | $2.30 billion |
| Net income (TTM) | $446.80 million |
| Price (as of market close Nov. 14, 2025) | $202.06 |
Company snapshot
Eagle Materials is a leading U.S. supplier of essential construction materials, with a diversified portfolio spanning cement, aggregates, wallboard, and recycled paperboard.
The company produces and supplies cement, concrete, aggregates, gypsum wallboard, and recycled paperboard for construction and building materials markets. Primary customers include construction contractors, public infrastructure developers, and manufacturers in the building materials sector across the United States.
The company leverages vertical integration and regional scale to serve a broad base of customers in residential, commercial, and public infrastructure markets.
Foolish take
Eagle Materials hasn't been the market's favorite for some time. The company has lost a third of its market value over the last 12 months, thanks to a soft housing and construction market.
After registering strong revenue growth in the mid-teens from fiscal year (FY) 2021 to FY 2023, the U.S. housing market began softening in 2024. As a result, revenue growth fell to 5% for FY 2024 (ended March 31, 2024), followed by zero growth in FY 2025, and this trend has continued.
The company missed earnings estimates for the second quarter of FY 2026 (ended Sept. 30, 2025) as wallboard volumes -- one of its core businesses -- declined 5% in the first half of FY 2026 due to softening demand from the residential construction business.
Mortgage interest rates remain elevated, which will continue to drive concerns about housing affordability. Management admits the road ahead for residential construction activity and mortgage rates remains unclear.
The good news is that Eagle's non-residential segments have witnessed solid growth, driven by government support for public infrastructure projects and increased spending levels in private non-residential end markets.
The stock currently trades at 16.3 times its trailing 12-month earnings and a price-to-sales ratio of 3.2, both of which fall within its five-year ranges. In short, Eagle Materials is fundamentally a solid business. The 33% decline over the past year appears to be overdone.
While the near term remains uncertain, this stock could prove to be a hidden gem for investors with a 5 to 10-year investment horizon. The housing market is inherently cyclical. When mortgage rates decline and new house construction activity picks up, this stock could soar.
Glossary
13F portfolio: The collection of U.S. equity holdings that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC).
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Net position change: The difference in the value of a holding before and after a transaction, reflecting buying or selling activity.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Vertical integration: A business strategy where a company controls multiple stages of its supply chain, from production to distribution.
Reportable assets: Investments that must be disclosed in regulatory filings, such as those required by the SEC for large managers.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Filing: An official document submitted to a regulatory authority, often detailing financial or ownership information.
Exposure: The degree to which a portfolio or fund is affected by changes in the value of a particular asset or sector.
TTM: The 12-month period ending with the most recent quarterly report.
Market close: The end of the regular trading session for a stock exchange on a given day.
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Isac Simon has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends AerCap and Eagle Materials and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2027 $60 calls on AerCap, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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