Eagle Materials (EXP) concentration risks

The company's disclosed concentration profile is geographic, with a high share of total revenue generated within a defined regional footprint. Approximately 65% of total revenue is generated in ten states — Colorado, Illinois, Kansas, Kentucky, Missouri, Nevada, North Carolina, Ohio, Oklahoma, and Texas — a high share by disclosed size with a structural character. The concentration reflects the location of the company's manufacturing plants, quarries, and distribution network, which were sited to serve regional construction demand rather than a transient customer relationship. The structural nature of this exposure means it is unlikely to change materially in the near term without significant capital redeployment; the geographic footprint is an asset-intensive commitment. The positive offset to the high share is geographic breadth within the footprint: the ten states span multiple climate zones, construction cycles, and demand drivers, so a downturn in one state market does not necessarily translate into a simultaneous contraction across all ten. States tied to residential construction trends, infrastructure spending, and industrial demand will cycle at different paces. No individual customer, supplier, or commodity concentrations are separately disclosed. The dominant risk in the profile is therefore a broad regional economic slowdown affecting the construction end-markets in the disclosed states simultaneously — such as a national housing downturn or a sustained infrastructure spending decline — rather than any single-name or single-commodity idiosyncratic event.

For the engine’s reasoning on EXP’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.