The building materials trade saw a weak start to 2026, according to the Building Materials Index from Prognoscentret and the Swedish Federation of Building Material Merchants. Turnover increased by 1.5 percent year-on-year in the first quarter, while volumes declined by 0.3 percent. However, growth is expected to improve for the full year.
The slowdown follows a strong end to 2025, when ROT tax deduction payouts reached a peak. The phasing out of the temporary increase in the ROT deduction, combined with colder weather and heightened geopolitical uncertainty, are cited by the organization as dampening factors.
On a rolling twelve-month basis through March, growth amounted to 4.1 percent in current prices and 0.7 percent in constant prices, indicating a continued but fragile recovery.
'The outcome in constant prices shows that volumes are once again declining slightly, confirming that the recovery has not yet firmly taken hold', says Patric Lindqvist, senior analyst at Prognoscentret.
The industry's outlook remains positive heading into the second quarter, with an average sentiment of 3.8 on a five-point scale.
The forecast points toward volume growth of 2.7 percent in 2026 and 2.5 percent in 2027.
Kesko Oyj is the leading wholesaler and retailer in Finland. Net sales break down by family of products as follows:
- grocery and convenience goods (53.4%; K-retailer; No. 2 in Finland): owned 1,128 supermarkets and stores under the names K-citymarket, K-supermarket, K-Market, Neste K., etc.;
- building, home improvement, DIY and gardening products (36.5%): building materials, interior design materials, gardening products, household appliances, furniture, etc. distributed via 491 outlets primarily under the Onninen, K-rauta, K-Bygg, Byggmakker, Byggarnas Partner and Carlsen Fritzøe brands;
- automotive (10.1%; K-Auto): cars (Volkswagen, Audi, Seat, CUPRA, Porsche, Bentley and MAN brands), spare parts and original accessories marketed through 47 outlets in Finland. The group also offers leisure and sports goods (owned 61 stores under the Intersport and Budget Sport names).
Net sales are distributed geographically as follows: Finland (80%), Nordic countries (15.8%), Baltic countries (1.1%) and other (3.1%).
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