Building Products: 2Q26 Earnings Preview

Research evidence excerpt

Building Products: 2Q26 Earnings Preview

USA | Building Products EquityJulyResearch16, 2026

KEY STOCKS FEATURED INCLUDE:Building Products: 2Q26 Earnings Preview

We're expecting mostly inline 2Q prints other than MLM, VMC, & RMIX due to TICKER RATING PRICE TARGET

weather, but with a muted housing backdrop, we view the bigger risk would be EXP HOLD $210.00

downside to 2H estimates, with the recovery pushed out to 2027. JHX BUY $32.00

MAS HOLD $75.00

Nice setup for JHX, OSB cut clearing event for LPX. We like the setup for JHX into earnings, with MHK HOLD $118.00

the $20 mil de-stock likely conservative with favorable web traffic & checks in decking, and easy MLM BUY $725.00

comps in siding. With JHX seeing traction on decking & trim price increases & oil down from the

peak, there could be upside to price:cost in 2H26. Lastly, with BCC looking to fill the void with TREX,

JHX (JEFe: $100 mil opportunity) would be the most logical partner & substantiates the synergies

for AZEK. With TREX pre-announcing 2Q, the focus will be on why margins are expected to firm up KEY CHANGES INCLUDE:

in 2H, and its execution on transitioning from BCC. We expect the momentum in sell out in 2Q for

TICKER RATING PRICE TARGET

TREX to carry into 3Q, with the investments driving an acceleration of growth. As for LPX, with OSB

prices coming in below its guide, consensus looks high, but the quarter could be a clearing event EXP HOLD $210.00 ($200.00)

if siding performs well. Given the movement in distribution in decking, there could potentially be JHX BUY $32.00 ($30.00)

different bundling combos going fwd with the channel btwn LPX, TREX, & JHX. MAS HOLD $75.00 ($74.00)

Soft 2Q for MLM & VMC, but FY guides intact. We're reducing our 2Q ests for MLM, VMC, & RMIX MHK HOLD $118.00 ($105.00)