CIMB has forecast a 68% surge in earnings for the building materials sector in 2026, citing strong demand recovery, improved margins, and increased infrastructure spending across key markets. The brokerage expects the industry to enter a high-growth phase as construction activities accelerate and input costs stabilise.
According to CIMB, government-led capital expenditure, private real estate revival, and the rollout of large-scale infrastructure projects will significantly boost consumption of cement, steel, aggregates, tiles, and other core materials. The firm also anticipates higher operating efficiencies as companies streamline supply chains, adopt automation, and optimise energy usage.
A key factor behind the projected earnings jump is the stabilisation of raw material prices after several volatile years. Lower coal, petcoke, and freight costs are expected to strengthen margins, giving manufacturers additional headroom for profitability. CIMB also highlighted rising demand from Tier-2 and Tier-3 cities, driven by rapid urbanisation and expanding housing needs.
Industry analysts note that the sector’s earnings outlook is further supported by healthy balance sheets, capacity expansions, and improved pricing discipline among manufacturers. With strong tailwinds and favourable macroeconomic conditions, the building materials segment is poised for one of its most promising growth cycles in recent years.
