The April 2026 edition of the Construction Materials Sector Update provides an in-depth look at full-year 2025 performance, key industry trends, and notable transaction activity across the construction materials landscape. This report offers a detailed view of how leading public and private companies navigated a dynamic operating environment in 2025 — and where the sector is headed as we move into 2026

In summary:

Strong results despite mixed conditions: Construction materials companies closed out 2025 on a high note, with most delivering full-year results that met or exceeded targets. After a weather-challenged first half, a meaningful volume recovery in the second half — paired with disciplined pricing and cost management — drove record gross profit per ton at several major producers.

Infrastructure and private investment driving demand: Federal infrastructure spending under the IIJA continued to provide a durable demand floor, with roughly half of authorized highway and bridge funds still unspent entering 2026. Data centers, grid modernization, and coastal rebuilding emerged as important incremental demand drivers, partially offsetting persistent residential weakness.

M&A activity at its most active in years: Strategic buyers drove an exceptionally active deal environment in 2025, with disclosed transactions exceeding $6 billion in announced deal value. Buyers prioritized aggregates scale, vertical integration, and portfolio optimization — themes that show no sign of slowing heading into 2026.

Cautious optimism for 2026: Management teams across the sector are guiding to modest volume growth, continued mid-single-digit pricing gains, and steady margin expansion, supported by infrastructure backlogs, data center demand, and improving private nonresidential activity. Tariffs, IIJA reauthorization, and residential affordability remain the key variables to watch.

Click here to read the full report.