European building sector poised for growth in 2026, says BofA

Bank of America sees the European building sector maintaining the positive growth momentum in 2026, supported by interest rate sensitivity, exposure to German infrastructure and Ukraine reconstruction, as well as strong pricing trends and M&A optionalities

The brokerage distinguishes between heavy-side materials (aggregates, cement, concrete), expected to gain in particular from positive pricing and earnings momentum, and light-side materials (insulation boards, loft rolls, silicons), deemed less popular but facing "more material valuation optionality for 2026"

It cites lead indicators suggesting a "renaissance" in European new housing in 2026 after five years of decline, potentially helping heavy-side as well as light-side materials' product volumes

Key risks according to BofA are delays in the EU Emissions Trading Scheme regulation as well as in the housing recovery

The brokerage is positive on Heidelberg Materials HEIG.DE, Buzzi BZU.MI (coverage resumed on Monday), CRH CRH.N, Saint-Gobain SGOB.PA, Kingspan KSP.I, Ferguson FERG.N, Balfour Beatty BALF.L and Travis Perkins TPK.L

It rates as "neutral" Holcim HOLN.S (downgraded from "Buy"), Geberit GEBN.S and Amrize AMRZ.S