German Construction: Resi Permits Appear The Bright Spot

Research evidence excerpt

German Construction: Resi Permits Appear The Bright Spot

Germany | Building, Construction &

Housebuilders EquityMayResearch22, 2026

Exhibit 6 - % sales in Germany (2026E)German Construction: Resi Permits Appear

30%

25%The Bright Spot

20%

15%

While German ifo construction climate index deteriorated further in May, 10%

business expectations became a touch less negative after the dip in April. 5%0%

March resi permits remain up double-digits % YoY, with similar momentum

across apartments and houses. While product pricing in most part saw Geberit SIG Heidelberg Kingspan Sika Holcim Saint-Gobain CRH

.limited price rises from the start of 2026, cement prices only started to rise Source: Company data, Jefferies estimates

in April (+1.2%) and still remain down YoY.

Exhibit 1 - Germany ifo business climate in the construction industry

(15)

(30)

(45)

(60)

May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

. Business Climate Business Situation Business Expectations

Source: Ifo Institute, Jefferies. The business climate is a transformed mean of the balances of the business situation and the

expectations.

Exhibit 2 - Germany residential building permits

25,000 80%

23,000 60%

21,000 40%

19,000 20%

17,000 0%

15,000 -20%

13,000 -40%

Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26

. Germany residential building permits (lhs) YoY Change (%)

Source: Jefferies, Federal Statistical Office (Destatis)

Exhibit 3 - Germany producer price index for industrial products (YoY growth)

6%

4%

2%

0%

-2%

Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26

Cement Ready-mixed concrete Aggregates

. Adhesives Insulators Mortar