Britain’s SIG plc, one of Europe’s leading building materials suppliers, reported flat sales in the third quarter of 2025, reflecting the ongoing slowdown in the European construction industry.
The Sheffield-based company, which operates in six major markets—the UK, France, Germany, Ireland, Poland, and Benelux—said that overall demand remained well below historical levels, with no clear signs of recovery.
SIG’s like-for-like sales stood at £664 million ($893.8 million), and its full-year profit outlook remains unchanged at £31.6 million, matching current market estimates.
Company officials noted that builders and customers have grown cautious amid rising costs for materials and financing, leading to fewer new construction projects. This trend is consistent with other major players in the sector, such as Travis Perkins and Ibstock, who have also reported weaker demand in recent months.
Regionally, UK sales grew slightly by 1%, driven by strong performance in SIG’s interiors division. However, sales in Ireland and Germany saw significant declines, down 11% and 5% respectively.
Industry analysts suggest that the European construction market is stuck in a cyclical downturn, with recovery taking longer than expected due to persistent inflation and tight financial conditions.
Despite the short-term challenges, SIG remains focused on operational efficiency and long-term resilience, positioning itself to benefit once market conditions improve.
Summary:
SIG’s latest financial results highlight the ongoing challenges in the European construction industry, where high costs and slow demand continue to weigh on growth. Analysts expect a gradual recovery beginning in late 2025 or 2026 as interest rates ease and public infrastructure projects gain momentum.
