TRG | The Bottom Line – 4/10
TRG wrapped up the week in Cincinnati, the Queen City and home to the first high-rise reinforced with concrete in the U.S., completed in 1903, a fitting stop on the heels of publishing our quarterly Heavy Materials & Infrastructure Survey.
Our Q1’26 Heavy Materials & Infrastructure Survey, focusing on key aggregate, concrete, asphalt and cement volume and pricing trends throughout Q1’26. A variety of headlines have made a dent in heavy materials stocks during the quarter, particularly since the start of the middle eastern conflict and ensuing war. While the S&P500 is now off ~5% since the end of February, larger cap heavy materials stocks are off 10-13% and small/mid cap heavy materials stocks are off a heftier ~17-20% over the same time period. The war in the middle east has resulted in a spike in energy-related costs (crude oil, diesel, etc.), which is being felt by the industry. As we discuss in this report, industry contacts have responded in a variety of ways to these headwinds. Companies with whom we have spoken are tapping into the 2021 playbook, and this time around aren’t faced with as daunting of a task of managing dozens of different increases and outright shortages of key supplies/products. While certainly a shock to the system, the ability to offset these rising costs appear well within reach. Also creating noise in the quarter have been Wall Street reports on the upcoming IIJA reauthorization (expires September 2026), which we believe has unfairly hit stocks. Consistent feedback throughout our conversations has been “no bill is going backward on funding.” Having seen this script playout several times before, however, the highway bill reauthorization process is ripe for misinterpretation if the details are not well understood. The two Congressional committees primarily charged with writing a new highway bill are the Senate’s Environment and Public Works (EPW) and the House’s Transportation and Infrastructure (T&I). Contacts shared both committees are hard at work and a draft bill may be released as early as mid/late spring.
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Disclosure: This content reflects the independent views of Thompson Research Group, LLC (“TRG”), is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell any security. Additional information, including analyst certification and compensation-related conflicts of interest, may be found here: (disclosures).