Building & Construction: Bricks and Mortar Databook: Q2 in Review

Research evidence excerpt

M

Foundation

August 5, 2026 05:49 AM GMT

Building & Construction: Bricks and Mortar

Databook | Europe

Morgan Stanley & Co. International plc+

Cedar Ekblom, CFA

Equity Analyst

Q2 in Review

Oscar P Smyth

Research Associate

Daniel Khajenouri

This chartbook summarises key data (PMIs, construction

spending, building permits, product pricing) for construction

markets that matter for our Construction coverage. Having

moved through the bulk of Q2 results we review key themes

leveraging a LLM to crunch through company conference calls.

Equity Analyst

Peter Ajose-Adeogun

Equity Analyst

Morgan Stanley & Co. LLC

Angel Castillo

Equity Analyst

Key Takeaways

Morgan Stanley México, Casa de Bolsa, S.A. de C.V.+

Themes: #1 Positive positive on DC and Infra end markets, #2 residential markets

Alejandra Obregon

are a drag with more negative than positive conference call citations.

Equity Analyst

#3 costs headwinds offset positive pricing outcomes #4 Guidance maintained by

most.

See inside this note from the our usual monthly review of key data. Special

Building & Construction

Europe

Industry View

In-Line

feature on DC construction put in place trends.

Preferred names in Europe: EU lightside: Saint Gobain, Kingspan, Rockwool. EU

heavyside: Heidelberg. Building products: Belimo.

Least preferred names: Heat pumps: Nibe, Ariston. Rich valuation with little

earnings growth: Geberit. Earnings risks and slow recovery: Wienerberger.

We leverage a LLM to track management commentary on end markets during the

reporting season. Overall, the reporting-season message is one of strong

infrastructure and data-centre demand, resilient US non-residential activity, but

continued pressure in residential markets. Across 28 companies, we identified and

classified 164 company-sourced citations by end market, of which 116 indicated

positive / improving conditions, seven were stable or mixed, and 41 pointed to

weakening / sluggish trends. Data centres and infrastructure remain the clearest

areas of strength. Momentum across the broader US non-residential market also

remained constructive. Repair and remodel in the US leans positive.

…