RBC sees gradual improvement for European & US building materials stocks in Q3

Compagnie de Saint Gobain SA

09/10/2026 08:06

** RBC sees a gradual q/q improvement across most European materials products in Q3, but notes US geopolitical uncertainty will continue to fuel cost inflation and volatility
** RBC expects muted European volumes due to heatwaves and rising mortgage rates while a weak US residential backdrop and the absence of a meaningful storm season drive a destocking cycle for roofing firms
** The broker prefers Germany's Heidelberg HEIG.DE -- upgrades it to "outperform" -- noting the company navigated a challenging quarter of unusual weather much better than peers
** RBC downgrades both US and French construction companies Knife River KNF.N and Saint-Gobain SGOB.PA to "sector perform" from "outperform" due to acute cost headwinds like higher diesel and natural gas prices

(Reporting by Dimitri Rhodes in Gdansk)
((dimitri.rhodes@thomsonreuters.com))