The Zacks Building Products - Concrete & Aggregates industry is set for steady multi-year growth, driven by strong federal and state infrastructure spending and a rebound in private nonresidential construction. Public projects—from highways to utilities—continue to expand, providing a dependable base of demand. At the same time, data centers, manufacturing facilities and industrial development are accelerating, creating high-volume opportunities. 

Residential construction remains the weak spot due to affordability pressures, though it does not materially disrupt overall industry momentum. Pricing power stays solid thanks to limited quarry supply, high barriers to entry and tight local markets. While the sector faces challenges such as cost inflation, labor constraints, regulatory hurdles and weather disruptions, operational discipline and efficiency gains help offset these pressures. Overall, the industry enters 2026 with strong demand visibility, healthy pricing and durable long-term fundamentals, especially 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 five-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #87, which places it in the top 36% 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 September 2025, the industry’s earnings estimates for 2025 have increased to $2.30 per share from $2.20.

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 gained 6.8% against the broader sector’s 6.9% decline over the past year. Meanwhile, the S&P 500 has gained 17.5% 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 24.06X versus the S&P 500’s 23.74X and the sector’s 19.87X.

Over the past five years, the industry has traded as high as 24.72X, 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vulcan Materials Company: This Birmingham, AL-based company produces and supplies construction aggregates, asphalt mix, as well as ready-mixed concrete. Vulcan’s growth is supported by a combination of resilient end-market demand and disciplined execution. Public construction remains a powerful tailwind, underpinned by multi-year infrastructure funding and stronger contract awards across Vulcan’s core markets, which provide stable visibility for aggregates shipments. Private nonresidential activity is also improving, helped by momentum in data centers and large industrial projects near key Vulcan operations. Residential demand is softer, but geographic diversity and exposure to faster-growing Sun Belt markets cushion the weakness. Alongside demand, Vulcan’s operational discipline—anchored in the Vulcan Way of Operating—continues to enhance plant efficiencies, manage costs and expand unit profitability. Additionally, the company’s pricing strategy and leading market positions support steady price realization. Strategic portfolio actions, including divestitures of non-core downstream assets, further sharpen the aggregates-led focus and free up capital for high-return growth opportunities.

Vulcan, a Zacks Rank #3 (Hold) stock, has gained 2.5% over the past year. Also, the 2025 and 2026 earnings per share (EPS) estimates depict 11.8% and 16.5% year-over-year growth, respectively. This company surpassed earnings estimates in three of the trailing four quarters and missed on the other occasion, with the average surprise being 13%. It has a three-to-five-year expected EPS growth rate of 14.5%.

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 growth is being driven by broadly constructive demand across its key end markets, supported by strong infrastructure funding, steady heavy nonresidential activity and gradually improving residential trends. Federal and state infrastructure programs, including multi-year allocations under the Infrastructure Investment and Jobs Act, continue to provide a durable pipeline of highway, bridge and road projects that underpin aggregates shipments. Heavy nonresidential demand is bolstered by accelerating data center development, early-stage manufacturing projects and energy-related construction across high-growth Sunbelt markets. Even as residential construction remains soft, moderating mortgage rates point toward eventual stabilization. With an aggregates-led business model, disciplined pricing, improved operational execution and contributions from portfolio optimization initiatives, Martin Marietta is positioned to capitalize on these long-term structural tailwinds.

Martin Marietta, a Zacks Rank #3 stock, has gained 1.6% over the past year. The 2025 EPS and revenue estimates depict a 43.3% and 6.5% decline, respectively. Nonetheless, the 2026 EPS and revenue estimates depict 18.4% and 0.1% growth, respectively. 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 1.5%. It has a three-to-five-year expected EPS growth rate of 5.8%.

Price and Consensus: MLM