Stock Markets January 27, 2026

Bernstein Identifies Five Materials Stocks Poised to Benefit from a 2026 Construction Rebound

Analyst note highlights pricing power, structural moats and exposure to decarbonisation and infrastructure as key differentiators

By Marcus Reed
Bernstein Identifies Five Materials Stocks Poised to Benefit from a 2026 Construction Rebound

Bernstein's latest sector outlook singles out five building-materials companies it views as best positioned to outperform when construction volumes recover in 2026. The research emphasizes pricing power, structural advantages and linkages to long-term themes such as decarbonisation and infrastructure spending as the primary drivers of relative performance across heavy and light materials.

Key Points

  • Bernstein identifies pricing power, structural market advantages and exposure to decarbonisation and infrastructure spending as the main differentiators for materials firms heading into a 2026 construction recovery.
  • Five companies highlighted as top ideas are Amrize, Sika, Holcim, CRH and Rockwool, spanning heavy and light building materials and insulation.
  • Sectors impacted include construction materials, cement and aggregates, construction chemicals, insulation, and companies tied to infrastructure and non-residential building activity.

Bernstein's 2026 sector outlook highlights a concentrated set of building-materials names that the firm believes will outperform as market activity normalises and margins expand. Central to Bernstein's thesis are companies with clear pricing power, structural advantages in their markets, and exposure to persistent trends such as decarbonisation and infrastructure investment.

The research note distinguishes between heavy and light building materials, and names five companies that stand out for their positioning as volumes recover.


Amrize

Bernstein places Amrize at the top of its sector list. The firm points to Amrize's dominant footprint in inland US cement markets that are relatively insulated from low-cost imports. The company is credited with strong pricing power, a low-cost logistics network oriented along the Mississippi River, and a cost structure Bernstein describes as highly flexible. Following a corporate spin-off, Amrize's share price has underperformed peers, which Bernstein views as creating an entry point that does not fully reflect upside potential from aggregates, roofing and a possible recovery in US demand.

Sika

On the light materials side, Bernstein prefers Sika. The firm highlights Sika's leadership in construction chemicals and a portfolio of highly differentiated products. After weak share price performance in 2025, Bernstein sees improving conditions as end markets stabilise and bolt-on M&A activity accelerates. The firm points to Sika's pricing power, expanding total addressable markets and a track record of gaining share as supportive of a compelling medium-term rerating case.

Holcim

Holcim is identified as a candidate to outperform driven by its decarbonisation strategy and what Bernstein describes as underappreciated growth potential in Latin America. Bernstein expects the introduction of the Carbon Border Adjustment Mechanism (CBAM) in Europe to speed capacity rationalisation, which should bolster pricing power for large, well-positioned producers such as Holcim. The firm also notes Holcim's investments in carbon capture, alternative fuels and low-carbon products as sources of potential margin expansion not yet fully reflected in market valuations.

CRH

CRH is presented as a high-quality, diversified way to access a recovery in US infrastructure and non-residential construction. Bernstein highlights CRH's combination of pricing discipline and a robust M&A track record, which the firm believes positions the company to benefit from long-term mega-trends. Bernstein also notes that CRH's inclusion in the S&P 500 should support incremental demand for the stock alongside existing fundamental momentum.

Rockwool

Rockwool is singled out as a niche leader in stonewool insulation, operating in a capital-intensive market that is unattractive for new entrants. Bernstein views recent share price weakness following guidance downgrades as overdone and sees scope for a rerating if conservative forecasts are beaten. The firm also highlights optional upside from any normalisation of Rockwool's Russian exposure, which Bernstein believes further skews the company's risk-reward profile to the upside.


Across these names, Bernstein's emphasis is consistent: market share positions, pricing strength and investments tied to decarbonisation and infrastructure spending will be key differentiators as construction markets move toward recovery in 2026.

Risks

  • Market recovery timing - the thesis depends on construction markets moving toward recovery in 2026, so delayed or weaker-than-expected volume recoveries would reduce upside for the highlighted stocks (affecting construction materials and infrastructure-related sectors).
  • Guidance and share price volatility - conservative outlooks and recent downgrades have pressured some stocks, and continued downside from guidance misses would weigh on rerating prospects (notably for niche players like Rockwool in insulation markets).
  • Policy and capacity shifts - outcomes related to regulatory measures such as Europe's CBAM and broader capacity rationalisation could evolve differently than expected, altering pricing dynamics for large producers like Holcim (impacting cement and heavy materials markets).

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