2Q26 Earnings Preview

Research evidence excerpt

2Q26 Earnings Preview

Equity Research

10 July 2026 | 12:11AM EDT

AMERICAS HOMEBUILDERS, BUILDING PRODUCTS & WOOD PRODUCTS

Lack of Visibility and Elevated Rates to Weigh on Stocks this Earnings Season: Susan Maklari

+1(212)357-3906 |

Our channel checks suggest that home sales and R&R spend remain under pressure susan.maklari@gs.com

Goldman Sachs & Co. LLC

as US mortgage rates hover around 6.5% and consumers adjust to higher energy

Charles Perron-Piche, CFAprices, though we believe this context was largely in line with investors’ and +1(917)343-1847 | charles.perron-

management’s conservative expectations. As such, we expect full-year guides to be piche@gs.comGoldman Sachs & Co. LLC

largely unchanged and have reduced our 2026 EPS estimates by a modest 2% on Rhea Bhatia

average. This compares to the stocks up 4% from June 12th till July 2nd as the +1(332)245-7517Goldman Sachs India| rhea.bhatia@gs.comSPL

market saw greater potential for rates to moderate as oil moved off its recent peak, Galilee Best

led by the builders up 6%. Despite the move, we believe housing-focused investors +1(212)902-7208 | galilee.best@gs.com Goldman Sachs & Co. LLC

are cautious going into 2Q earnings as a lack of visibility could make it difficult for

these stocks to sustain any lift. Against this backdrop we highlight the following: 1)

we see upside to price/cost for CSL (on CL) later this year as oil moves off its recent

peak while company-specific efforts drive CWT margin expansion; 2) IBP is

well-positioned to leverage favorable end-market and geographic exposure to help

offset inflationary pressures and deliver YOY gross margin expansion, 3) historically

lean channel inventories in composite decking coming into the season along with