The Zacks Building Products - Concrete & Aggregates industry is progressing through 2025 with cautious optimism, anchored by strong and steady infrastructure demand. Funding from the Infrastructure Investment and Jobs Act (IIJA) and additional state-level initiatives continue to drive highway, bridge, and public works activity, creating a resilient base of demand. Residential construction remains pressured by high interest rates and affordability constraints, though multifamily projects are beginning to stabilize and offer partial relief. 

Industrial demand is strengthening, led by data center expansion, semiconductor manufacturing, and new energy generation projects, which are emerging as meaningful growth drivers. Weather-related disruptions, labor costs, and broader economic uncertainty continue to present challenges, yet the industry is demonstrating resilience through disciplined pricing and cost management. Overall, even as private demand remains uneven, the visibility and consistency of public sector investment, combined with expanding industrial activity, are expected to underpin stable industry performance in 2025 for the industry leaders such as Vulcan Materials (VMC Quick QuoteVMC - Free Report) and Martin Marietta Materials (MLM Quick QuoteMLM - Free Report) .

Industry Description

The Zacks Building Products - Concrete & Aggregates industry consists of manufacturers, distributors and sellers of construction materials like aggregates and concrete along with other related items for public infrastructure, residential and non-residential, as well as other end markets. The materials also include gypsum wallboard, recycled paperboard, concrete blocks, ready-mix concrete, and oil and gas proppants. The industry players are also involved in designing, engineering, manufacturing, marketing, and installation of external building products for commercial, residential, and repair and remodel markets in domestic as well as international markets.

3 Trends Shaping the Future of Concrete & Aggregates Industry

Focus on Reviving Infrastructure: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act collectively signify a substantial commitment to bolstering American competitiveness. These three enacted laws are aimed at revitalizing American infrastructure, expediting the shift toward a sustainable economy, and fortifying the domestic semiconductor sector. These bills comprise new investments in almost every infrastructure sector, including transportation, energy, broadband and water. The U.S. administration’s endeavor to pump money for rebuilding the nation's roads, bridges and other infrastructure would give construction companies a solid foundation for growth. While the residential sector is facing headwinds from high interest rates and affordability issues, the industrial segment, especially data center and warehouse construction, is stabilizing.

Acquisitions & Focus on Operating Efficiency: The industry participants follow a well-chalked-out acquisition plan to enhance domestic and international portfolios. Moreover, companies are increasingly focusing on reducing controllable costs and maximizing operating efficiency across business lines to generate higher earnings and cash flows. The industry players have also been experiencing a solid pricing environment across their product portfolios, thereby helping to boost margins.

Fluctuation in Input Prices, Weather Woes & Shortage of Skilled Labors: The industry players are struggling with escalating material expenses, the shortage of skilled laborers and rising wage costs. The companies use electricity, diesel fuel, liquid asphalt and other petroleum-based resources. Hence, supply-related woes and significant fluctuations in the prices of these resources affect operating results. Also, businesses are exposed to weather-related risks affecting production schedules and profitability. Excessive rainfall, flooding or severe droughts jeopardize shipments and production. The first and fourth quarters are affected mainly by winter. Again, hurricanes in the Atlantic Ocean and Gulf Coast are most active during these quarters. These impediments may bump up costs and mar the industry participants’ profits.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Building Products - Concrete & Aggregates industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #98, which places it in the top 40% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2025, the industry’s earnings estimates for 2025 have increased to $2.18 per share from $2.09.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Outperforms Sector, Lags S&P 500

The Zacks Building Products - Concrete & Aggregates industry has lagged the Zacks S&P 500 Composite but performed better than the broader Zacks Construction sector over the past year.

Stocks in this industry have collectively lost 15.4% versus the broader sector’s 4.9% rise over the past year. Meanwhile, the S&P 500 has gained 16.1% in the same period.

One-Year Price Performance

Concrete & Aggregates Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing Building Products - Concrete & Aggregates stocks, the industry is currently trading at 24.03X versus the S&P 500’s 22.86X and the sector’s 19.91X.

Over the past five years, the industry has traded as high as 24.39X, as low as 13.86X and at a median of 20.08X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

 

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

2 Concrete & Aggregates Stocks to Keep an Eye On

Below, we have discussed two stocks from the Zacks Concrete & Aggregates universe that have growth potential.

Vulcan Materials Company: This Birmingham, AL-based company produces and supplies construction aggregates, asphalt mix, as well as ready-mixed concrete. The company continues to benefit from the flow of federal and state funds under the IIJA, which is accelerating highway and public works activity across its footprint. At the same time, Vulcan is seeing renewed momentum in private nonresidential construction, with data centers emerging as a major growth catalyst and early signs of improvement in warehouses and manufacturing projects. Its cost management framework, supported by the Vulcan Way of Operating, has enabled it to hold unit costs in check despite weather disruptions, ensuring that price gains translate effectively into margin expansion. While residential activity remains pressured by affordability issues, multifamily construction has begun to improve, helping offset some of the weakness in single-family housing. These factors—public infrastructure, industrial nonresidential demand, disciplined pricing, and tight cost control—are collectively supporting Vulcan’s performance and reinforcing its aggregates-led strategy.

Vulcan, a Zacks Rank #3 (Hold) stock, has gained 18.7% over the past year. Also, the 2025 earnings per share (EPS) estimate depicts 12% year-over-year growth. This company surpassed earnings estimates in two of the trailing four quarter and missed on other two occasions, with the average surprise being 10.2%. It has a three-to-five-year expected EPS growth rate of 14.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: VMC

Martin Marietta: Based in Raleigh, NC, Martin Marietta produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. Martin Marietta’s performance is being driven by its aggregates strength, favorable pricing dynamics, and exposure to large-scale infrastructure and industrial projects. Robust federal and state highway and bridge spending continues to provide a stable base of demand, while data centers, semiconductor manufacturing, and new energy generation projects in markets like Texas are adding incremental growth. The company has maintained strict commercial discipline, achieving strong price realization and cost spreads that drive margin expansion. In addition, its strategic shift toward an aggregates-led portfolio through asset swaps and acquisitions is creating a higher-margin, more resilient business model. Together, these elements—public infrastructure investment, technology-driven industrial projects, disciplined pricing, and portfolio realignment—are the central factors underpinning Martin Marietta’s performance.

Martin Marietta, a Zacks Rank #3 stock, has gained 12.8% over the past year. The 2025 EPS estimate depicts 42% decline but revenue estimates indicate 7.1% increase. This company surpassed earnings estimates in two of the trailing four quarters and missed on the other two occasions, with the average negative surprise being 0.9%. It has a three-to-five-year expected EPS growth rate of 5.8%.

Price and Consensus: MLM