Why a $104 Million Allocation to Eagle Materials Stock Could Signal Confidence in Construction’s Next Cycle
Key Points
Black Creek Investment Management acquired 502,120 shares in Eagle Materials during the fourth quarter.
The quarter-end position value increased by $103.78 million due to the new share purchase.
That represented 5.15% of 13F reportable assets under management.
- 10 stocks we like better than Eagle Materials ›
On February 13, 2026, Black Creek Investment Management Inc. disclosed a new position in Eagle Materials (NYSE:EXP), acquiring 502,120 shares in the fourth quarter with an estimated trade value of $103.78 million.
What happened
According to a SEC filing dated February 13, 2026, Black Creek Investment Management Inc. established a new position in Eagle Materials (NYSE:EXP), acquiring 502,120 shares during the fourth quarter. The quarter-end position value stood at $103.78 million, reflecting the new share purchase.
What else to know
- This new position in Eagle Materials accounted for 5.1% of Black Creek’s 13F reportable assets as of December 31, 2025.
- Top five holdings after the filing:
- NYSE:ELAN: $250.32 million (12.4% of AUM)
- NYSE:BAH: $211.34 million (10.5% of AUM)
- NASDAQ:PSMT: $201.01 million (10.0% of AUM)
- NASDAQ:PYPL: $187.56 million (9.3% of AUM)
- NYSE:FCN: $183.17 million (9.1% of AUM)
- As of February 12, 2026, shares of Eagle Materials were priced at $232.67, down 5.1% over the past year and underperforming the S&P 500 by 18.0 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 12, 2026) | $232.67 |
| Market capitalization | $7.60 billion |
| Revenue (TTM) | $2.30 billion |
| Net income (TTM) | $430.13 million |
Company snapshot
- Eagle Materials produces and supplies cement, concrete and aggregates, gypsum wallboard, and recycled paperboard, serving the construction and packaging industries.
- The company generates revenue through the mining, manufacturing, and distribution of heavy and light building materials, with a diversified product mix supporting both commercial and residential construction, as well as infrastructure projects.
- Its primary customers include commercial and residential builders, public construction entities, and manufacturers in the gypsum wallboard and packaging sectors.
Eagle Materials operates as a leading U.S. supplier of construction materials, with a balanced portfolio spanning cement, aggregates, wallboard, and paperboard. Its integrated business model leverages raw material extraction and manufacturing capabilities to serve a broad customer base across multiple construction end-markets.
What this transaction means for investors
Cyclical stocks rarely look comfortable at the exact moment capital rotates toward them, and that might be exactly why this position deserves a closer look.
Eagle Materials just posted $556 million in quarterly revenue and $3.22 in diluted EPS for its fiscal third quarter. Meanwhile, cement volumes rose 9% year over year, while organic aggregates volumes climbed 34%, even as gypsum wallboard volumes fell 14%. In other words, heavy materials tied to infrastructure are offsetting residential softness.
With net debt of roughly $1.37 billion and a net leverage ratio of 1.8x, the balance sheet looks disciplined. The company also repurchased about 648,000 shares for $142.6 million in the quarter, reinforcing capital allocation consistency.
Within a portfolio led by Elanco, Booz Allen, PriceSmart, PayPal, and FTI Consulting, this 5.1% allocation is meaningful but not outsized. It fits a profile that favors cash-generative, asset-heavy businesses with pricing power. Shares are down 5.1% over the past year and have lagged the broader market, yet operating metrics remain resilient. For long-term investors, the question is not whether housing is soft today. It is whether infrastructure spending, disciplined leverage, and steady buybacks can compound value through the next cycle.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booz Allen Hamilton, FTI Consulting, and PayPal. The Motley Fool recommends Eagle Materials and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.
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