The Zacks Building Products – Concrete & Aggregates industry is projected for sustained growth due to ongoing federal and state infrastructure projects, with significant investments resulting from the Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act. In 2026, industry leaders like Vulcan Materials (VMC) and Martin Marietta Materials (MLM) are expected to benefit from strong demand visibility and favorable pricing dynamics, with earnings estimates rising from $2.38 to $2.69 per share since November 2025.
Public spending on infrastructure, particularly in highways and utilities, continues to drive demand, while non-residential construction, including data centers and manufacturing plants, remains robust. Although residential construction faces challenges due to affordability constraints, the industry maintains firm pricing power amid other operational challenges, including cost inflation and labor shortages. The concrete and aggregates market outperformed the broader Zacks Construction sector over the past year, gaining 21.2% compared to the sector’s 7.7% rise.
The industry’s current forward price-to-earnings ratio stands at 24.99X, surpassing the S&P 500’s 23.36X and the construction sector’s 20.65X. With a favorable outlook, investments in stocks like Martin Marietta, which has a projected EPS of $21.78 for 2026 and a year-over-year growth of 7.5%, and Vulcan Materials are being encouraged as the market continues to recover.
