Eagle Materials Invests $330M to Expand and Modernize Oklahoma Gypsum Plant
$EXP
Eagle Materials Inc. (NYSE:EXP), a prominent US manufacturer of construction products and building materials, announced a significant $330 million investment to modernize and expand its gypsum wallboard plant in Duke, Oklahoma. This project aims to increase the plant’s annual manufacturing capacity by 300 million square feet, or 25%, enhancing Eagle Materials’ ability to serve high-growth markets more effectively. The upgrade includes the implementation of state-of-the-art technology that will improve operational efficiencies and reduce manufacturing costs by nearly 20%.
The company has made a strategic addition to its leadership, appointing David Rush to its Board of Directors on May 15, 2025. David Rush, the retired CEO of Builders FirstSource, brings extensive experience in strategic management and operational finance, which will be invaluable as Eagle Materials continues to navigate the competitive landscape of the building materials industry.
Its primary products, Portland Cement and Gypsum Wallboard, are essential components for infrastructure and construction projects across the United States. With over 70 facilities in 21 states, Eagle Materials is well-positioned to capitalize on the increasing demand for construction materials, driven by both residential and commercial building projects.
The company reported a notable increase in its stock price, which has surged by 264% over the past five years, with an 11% rise in just the last thirty days. This growth in share price is partially attributed to the overall market’s performance, which saw a 13% increase during the same period. The company’s earnings per share (EPS) have also seen a substantial rise, with a compound annual growth rate of 78% over the five years, outpacing the annual share price gain of 30%
The cumulative impact of these developments is significant for Eagle Materials. The expansion of the Oklahoma plant not only secures the company’s supply chain by capitalizing on local gypsum reserves but also positions it as a low-cost producer with enhanced capacity to meet future demands. These initiatives unfold, Eagle Materials is poised to continue its trajectory of growth, adapting to market conditions and consumer needs in the dynamic construction sector.
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