Earnings in the materials sector are projected to increase by approximately 20% in 2026, marking the strongest performance in five years and trailing only the technology sector. This growth stems from trade protections, rising steel prices, and heightened demand for packaging amid consumer discounts.
Materials sector earnings are forecasted to grow by about 20% in 2026, according to Bloomberg Intelligence, representing the group’s best showing in five years and placing it just behind technology. This surge is propelled by robust trade protections, particularly Section 232 tariffs on imported steel, which are empowering U.S. producers to maintain higher pricing power. Additionally, a notable uptick in consumer goods demand is benefiting packaging firms through increased orders for boxes and cans as food brands leverage discounts to boost volumes.