Building Products - Exterior Cladding Shares Show Continued Shift to Fiber Cement & Wood; Midwest is the Exception

Research evidence excerpt

Building Products - Exterior Cladding Shares Show Continued Shift to Fiber Cement & Wood; Midwest is the Exception

Truist Securities

Equity Research Report July 1, 2026

INDUSTRIALS: Building Products/

Durable Goods Building Products - Exterior Cladding

Shares Show Continued Shift to Fiber

Keith Hughes Cement & Wood; Midwest is the Exception

404-926-5032 The Census Bureau published its Characteristics of New Housing for 2025 which

Keith.Hughes@truist.com

includes a survey of exterior cladding. Homes continued to show a modest shift to Fiber

Cement and Wood for home exteriors. The exception was the Midwest where Vinyl

Julian Nirmal siding gained share most likely given its low price. There is significant regional variation

404-836-4749 in exterior cladding with Vinyl still dominate in the Northeast and Midwest, Stucco in Julian.Nirmal@truist.com

the West and a much more diverse use of products in the South. We believe that Fiber

Cement share gain continues with future potential share gains in all areas particularly

4 Page Document the Midwest and Northeast. Note these numbers are best used for directional trends.

Reasons for this report Fiber Cement, Vinyl, & Stucco Retain Leading Share Positions. The market share of

exterior cladding for single family completions remains pretty fragmented with Stucco,

✓ Sector Read-Throughs Vinyl, and Fiber Cement all having a similar share position which is then distantly

✓ US Census Bureau Housing CHARS followed by Brick. Wood remains in the smallest share position despite its above market

Release for Exterior Cladding growth over recent years.

Exterior Cladding Continues to See Significant Regional Variation. As has been

the case for decades, the type of exterior material used for single family construction