EXP

Eagle Materials Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is EXP Halal?

Building materials are generally permissible, but the latest total-assets debt screen fails and environmental concerns remain qualitative.

What You Should Know

Eagle Materials' March 31, 2026 Form 10-K reports 45.81% interest-bearing debt/assets, 7.76% identifiable liquidity/assets, 13.70% receivables-plus-cash/assets and 0.27% disclosed interest income/revenue. Cement and wallboard are generally permissible products, while debt, environmental impact and end use require continuing review.

⚠️ Concerns

  • Debt/assets was 45.81%
  • Cement production has material environmental impact
  • Interest income was 6.156 million in fiscal 2026

Current quantitative Sharia screen

Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
45.81%Above limit
Below 33.333% under FTSE Yasaar

1,760.081 / 3,842.244

Cash + interest-bearing securities / assets
7.75%Within limit
Below 33.333% under FTSE Yasaar

297.92 / 3,842.244

Receivables + cash / assets
13.70%Within limit
Below 50% under FTSE Yasaar

526.493 / 3,842.244

Non-compliant income / revenue
0.27%Within limit
No more than 5% under FTSE Yasaar

6.156 / 2,308.658

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 45.81%, while liquidity/assets is 7.76%, receivables plus cash/assets is 13.70% and interest income/revenue is 0.27%; debt fails the examined limit.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

The debt/assets ratio is above the examined limit; other calculated ratios are below their limits and business classification remains qualitative.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is above 33%; this is a calculation against SAC ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.

Business-activity disclosure

Eagle Materials manufactures cement, gypsum wallboard, recycled paperboard, concrete and aggregates. The core building-materials activity is generally permissible, while cement emissions and downstream end use require qualitative review.

Limitation: The filing does not classify environmental impact or every customer end use under a Sharia standard.

Purification

Interest income is disclosed, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Eagle Materials' March 31, 2026 Form 10-K.
  • Debt includes current portion of long-term debt of 15.000 and long-term debt of 1,745.081.
  • Cash and cash equivalents are 297.920; no separate interest-bearing securities were identified in the balance-sheet inputs used here.
  • The filing reports 6.156 of interest income on fiscal 2026 revenue of 2,308.658.
  • The filing does not provide a universal prohibited-revenue numerator for environmental or customer end use.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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