Building Products - 1Q26 Earnings Recap

Research evidence excerpt

Building Products - 1Q26 Earnings Recap

Truist Securities

Equity Research Report May 12, 2026

INDUSTRIALS: Building Products/

Durable Goods Building Products - 1Q26 Earnings Recap

Earnings season saw mixed results in our coverage, with most companies at or better

than views for 1Q26, but estimates were down more than up for the rest of 2026 on

Keith Hughes weak demand and exposure to petrochemical inflation. Most of our coverage saw stock

404-926-5032 prices decline during the earnings period, somewhat based on results, but also related

Keith.Hughes@truist.com to news flow on the Iran war. We believe the group will continue to move with macro

trends, with the potential for petrochemical inflation and drag to offset and price playing

Mia Senyitko a role. We see the decline in SITE as the best buying opportunity given inflation gains

404-439-7395 to earnings that investors were likely unrealistically expecting in the 2026 guide.

Mia.Senyitko@truist.com

Quarterly Results About as Expected. The vast majority of our coverage reported

5 Page Document results around expectations in the quarter although the estimates were not very strong

on either demand or the bottom line. A generally muted quarter on residential markets

Reasons for this report with better commercial results were expected and achieved.

Guidance Mixed As Future Very Cloudy. We quite honestly only saw a few significant

✓ Sector Update earnings cuts, with the most prominent being from Builders FirstSource (BLDR, Buy)

and Fortune Brands (FBIN, Hold). Regardless, we believe most companies are taking a

wait-and-see approach on results given the uncertainty of the Iran war and the impacts

the war could have on demand.

Sentiment is the Biggest Issue in Residential Market; Not Getting Better. The