Forbo (1K) | Hold | Markets likely to remain challenging in 2027

Research evidence excerpt

Forbo (1K) | Hold | Markets likely to remain challenging in 2027

terestingly, Belysse also said that it had started to implement price increases and

surcharges to mitigate the effects of the conflict in the Middle East on the company’s raw material,

energy and transportation costs.

Geopolitics are starting to impact leading indicators for Forbo’s customer markets

While recently published leading indicators for Forbo’s two businesses including floorings and

beltings, such as economic sentiment in Europe, the architecture firm billings in the US, and the

global manufacturing PMI all seemed to point towards improving momentum at the beginning of

2026, the start of the war in the Middle East and its effects on interest rates and economic

fundamentals across the globe have led to a reversal of some of the earlier positive developments

in market leading indicators. In other cases, a renewed deterioration is expected by market

intelligence providers in the coming months.

Chart 1: European Commission economic sentiment indicator for Eurozone Chart 2: Architecture Billing Index (ABI) on US non-residential construction

125 60

58 Index 120

115 56

110 54

52 105

100 Index 48

95 Balance/Diffusion 46 90 % 44

85 42 SA,

80 40

21 21 21 22 22 22 23 23 23 24 24 24 25 25 25 26 22 22 22 22 23 23 23 23 24 24 24 24 25 25 25 25 26

Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

Economic Sentiment Indicator Long-term average National No change

Source: European Commission Source: The American Institute of Architects (AIA), Kepler Cheuvreux est.

For instance, economic sentiment Europe dropped significantly in March, driven by worsening