European IG Building Materials: Building up

Research evidence excerpt

European IG Building Materials: Building up

J P M O R G A N Europe Credit Research

29 June 2026

European IG Building Materials

Building up

We expect the European Building Materials sector to report solid H1 2026 results Europe Corporate Credit - Basic

on the back of higher prices offsetting cost inflation headwinds. With a more Materials and Industrials

benign geopolitical backdrop and reduced concerns around regulatory changes in Benjamin Defay AC

Europe, we believe the outlook for the sector remains strong despite the higher (33-1) 4015 5047

interest rate environment. Meanwhile, balance sheets are rock solid with low ben.defay@jpmorgan.com

leverage, and we expect capital allocation to remain disciplined, despite ongoing Guillaume Jouandin

M&A activity. With spreads at multi-year lows, we are OW on SGOFP, Neutral on (44-20) 7134-1538

HEIGR/HOLNSW/KSPID and UW on SIKASW/WIEAV. guillaume.jouandin@jpmorgan.com

Samuel Gosling

• Expect solid H1 2026 results. We expect European Building Materials (44-20) 7134-0456

companies to report solid H1 2026 results in the coming weeks thanks to samuel.gosling@jpmorgan.com

J.P. Morgan Securities plc

increasing average selling prices, which should more than offset raw material,

energy and transportation cost inflation, with volumes likely to improve

somewhat, particularly in Europe. Most companies in the sector provided solid

Credit Ratings FY guidance at the start of the year, pointing to higher earnings YoY and strong

cash generation again this year, and recent commentary suggests the conflict Credit Ratings JPM

in the Middle East has not derailed this. CRHID Baa1/BBB+ NR

• Strong outlook. While the likely adjustments to the European Emissions HEIGR Baa2/BBB N