Chart of the Week: Downside protection in Sika's FY26 price versus cost

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Chart of the Week: Downside protection in Sika's FY26 price versus cost

EUROPE | Building, Construction &

Housebuilders EquityJuneResearch29, 2026

Chart of the Week: Downside protection in

Sika's FY26 price versus cost

Recent commentary from Sika suggests limited 2Q26 raw material inflation

(given key inputs are distant derivatives of the oil price) while price increases

seem to have been implemented from as early as April. While we await

.the magnitude of 2Q26 price inflation, even in a scenario of raw material

RATING

inflation picking up into 2H26, we believe low single digit price increases in UK HOUSEBUILDERS

2Q26 would be sufficient to prevent a negative price-cost spread for FY26. Barratt Redrow Hold

Bellway Buy

Berkeley Group Buy

Sika will report 2Q26/ 1H26 results on Tuesday 28 July - we have yet to publish our 2Q26 preview Crest Nicholson Buy

but you can now register for our fireside chat with the CFO the day immediately after results here. Persimmon Buy

Taylor Wimpey Buy

Exhibit 1 - Sika - Low single-digit price increases at start-2Q26 are likely to be sufficient to prevent a Vistry Group Hold

negative FY26 price versus cost impact at varying levels of COGS inflation in 2H26 PAN EURO BUILDING PRODUCTS

5% Amrize Hold

for (we CRH Buy Forterra Buy

4% Geberit Buy FY26

3.4% Genuit Buy +0.5%) 3.1% Heidelberg Materials Buy start-2Q26 over

2.5% Ibstock Buy at pricing 3% 2.2% 2.8% Holcim Hold

1.9% Kingspan Hold needed 2% 1.6% Saint-Gobain Buy 1Q26 pass-through 1.3% Sika Buy

1.0% Volution Buy

1% 0.7% PAN EURO DISTRIBUTORS increase assume COGS

Price full HowdenSIG Joinery HoldHold

0% Travis Perkins Unpf

1% 2% 3% 4% 5% 6% 7% 8% 9% 10% UK PROPERTY SERVICES

2H26 COGS inflation, % YoY (we assume 1H26 +2%) LSL Buy

.

Source: Jefferies, Company data IRISH HOUSEBUILDERS

.