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Holcim sees mixed outlook for European construction sector in 2027 - Finance news and analysis from Global Banking & Finance Review
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Holcim sees mixed outlook for European construction sector in 2027

Published by Global Banking & Finance Review

Posted on October 23, 2026

1 min read

· Last updated: October 23, 2026

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Holcim Foresees a Mixed 2027 for European Construction, Focus on Infrastructure

Holcim's Outlook on the European Construction Sector

CEO's Perspective on Regional Growth

ZURICH, Oct 23 (Reuters) - Holcim expects the development of the European construction sector to be mixed in 2027, with continued spending on infrastructure projects while new residential schemes will depend on interest rates, CEO Miljan Gutovic said on Friday.

Expectations for the UK and Europe

"Europe will still be mixed bag. I'm not expecting anything major in the UK for next year, but I think in Eastern Europe, in some parts of Western Europe, we will see healthy momentum," Gutovic said after the building materials company reported its third-quarter earnings.

Infrastructure vs. Residential Construction

"I think infrastructure will continue. The question mark is residential. Residential is obviously correlated to interest rates," he added.

Reporting and Editing Credits

(Reporting by John RevillEditing by Ludwig Burger)

Key Takeaways

  • Holcim reported robust Q3 results: net sales up 15.5% to CHF 4.66 billion and recurring EBIT rising 16.8% to CHF 976 million, prompting an upgrade of its full‑year 2026 guidance to 10‑12% organic EBIT growth and ~5% net sales growth (marketscreener.com).
  • CEO Miljan Gutovic expects continued infrastructure spending across Europe in 2027, though he noted residential construction will remain highly sensitive to interest rate trends (live.euronext.com).
  • European construction outlook varies by region: infrastructure-led growth is expected to drive modest sector-wide recovery into 2027, while housing activity remains subdued in markets like the UK—though countries such as Germany, Spain, and Eastern Europe show better momentum (think.ing.com).

References

Frequently Asked Questions

What is Holcim's outlook for the European construction sector in 2027?
Holcim expects a mixed development, with ongoing infrastructure spending but uncertain new residential schemes depending on interest rates.
Which areas in Europe may see healthy construction momentum?
Holcim anticipates healthy momentum in Eastern Europe and parts of Western Europe.
What factor is key for residential construction projects in Europe?
Interest rates are cited as the key factor affecting new residential construction schemes.
Does Holcim foresee any major developments in the UK's construction sector next year?
Holcim does not expect any major developments in the UK's construction sector for the upcoming year.

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