Constr., Infra & Materials (AO) | Reversal inflation narrative: Will recent insulation price hikes be sticky?

Research evidence excerpt

Constr., Infra & Materials (AO) | Reversal inflation narrative: Will recent insulation price hikes be sticky?

News comment

Release date: 15 June 2026

Alexander Craeymeersch, CFA

Equity Research Analyst

+32 11 49 1464

Constr., Infra & Materials acraeymeersch@keplercheuvreux.com

Europe

Reversal inflation narrative: Will recent insulation price hikes be sticky?

Key points:

Oil prices fell as hopes of U.S.–Iran de-escalation reduced supply-risk concerns around the Strait of Hormuz. For insulation

manufacturers, this eases the energy-cost pressure that would otherwise have weighed on margins absent offsetting price

increases. That said, most H1 2026 energy inflation was either hedged or passed through to end customers via price increases (5-

30% depending the insulation product category), so investor concerns were mainly focused on the potential H2 2026 margin and

volume impact.

The easing of inflation and price uncertainty should support insulation manufacturers today, particularly Rockwool, Steico and

Saint-Gobain, given their higher exposure to direct energy-cost inflation and investor's focus on this in recent months. In practice,

however, PIR insulation players are likely to be the larger near-term cost beneficiaries. If players remain rational in their price

setting, the positive price-over-cost momentum could prove to be significant towards the H2.

Demand remains the key question. For the sector to benefit from positive cost-over-price momentum as energy prices decline,

recent end-product price increases need to prove at least partly sticky, something that would be supported by stronger demand

volumes. With the inflation narrative now likely to reverse almost completely, the case for a potential 2027 construction recovery