Profit expectations for Travis Perkins (LSE:TPK) and SIG PLC (LSE:SHI), two of the UK's biggest building materials distributors, have both been trimmed by Deutsche Bank as weak construction activity, poor weather and rising costs continue to weigh on the sector.
This follows recent results from the pair.
Travis Perkins, the builders' merchant, reported a decline in profits for last year due to weak construction activity and said trading since the start of 2026 had remained subdued amidst continued weakness in UK construction activity.
Deutsche analyst Ben Wild has cut his 2026 and 2027 operating profit estimates by 8% and 4% respectively, now forecasting a 2% year-on-year decline in operating profit to £131 million.
He cited weak pricing power, overhead cost inflation and negative volume growth in its core Merchanting division, with elevated political uncertainty, a soft labour market and rising financing costs all dampening demand for new housebuilding and home improvement activity.
SIG, which focuses mainly on distributing insulation and roofing products, had its 2026 and 2027 forecasts cut by around 4-5% – following cuts of up to 22% last month after the company warned that a market recovery is more likely in the second half of the year.
Trading in the early part of 2026 has been hit by poor weather, dragging like-for-like sales below expectations.
Deutsche Bank reiterated its 'sell' ratings on both stocks.