Best european basic materials stocks to invest in 2026

European basic materials stocks offer investors exposure to the continent's industrial backbone, providing essential materials for construction, manufacturing, and infrastructure development. This article explores top European companies in the basic materials sector that combine stability with growth potential in the evolving European economy.

Heidelberg Materials stands as a leading cement and aggregates producer, serving construction markets across Europe with sustainable building materials and strong operational efficiency. Atalaya Mining focuses on copper production with operations in Spain, delivering valuable metals essential for renewable energy and electrification trends. CRH operates as a major building materials group with extensive operations across Europe and North America, providing diversified exposure to construction markets and infrastructure development.

These European basic materials stocks represent compelling opportunities for investors seeking exposure to the continent's industrial sector and infrastructure development. Consider adding these companies to your portfolio in 2025 to capitalize on Europe's construction trends and the growing demand for essential building materials.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Heidelberg Materials (DE:HEI)

    Heidelberg Materials AG is a leading global building materials company specializing in the production and distribution of cement, aggregates, ready-mixed concrete, and other construction materials worldwide. Founded in 1873 and headquartered in Heidelberg, Germany, the company has established itself as one of the world`s largest integrated building materials providers with operations across Europe, North America, Asia, Africa, and Australia. Heidelberg Materials serves diverse construction markets through its comprehensive portfolio of high-quality building materials that support infrastructure development, residential construction, and commercial building projects globally.

    The company operates through multiple business segments including Cement, Aggregates, Ready-Mixed Concrete, and Building Products, providing integrated solutions that address the complete spectrum of construction material needs. Heidelberg Materials` core activities include cement manufacturing, quarrying operations for aggregates production, ready-mixed concrete supply, and specialized building products development for diverse construction applications. Through strategic acquisitions, operational excellence initiatives, and sustainability programs focused on carbon reduction and circular economy principles, Heidelberg Materials continues to strengthen its global market position while advancing sustainable construction practices.

    Heidelberg Materials financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 5.5%
    • Return on equity (ROE): 11%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 64.06%
    • Operating margin: 10.7%
    • Net profit margin: 8.74%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 10.37
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 21.9%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 4%

    💡 Why invest in Heidelberg Materials?

    Heidelberg Materials` global market leadership and integrated building materials platform create compelling opportunities for investors seeking exposure to essential construction and infrastructure sectors:

    • Global Market Leadership: Heidelberg Materials ranks among the world`s largest building materials companies with leading market positions across cement, aggregates, and ready-mixed concrete markets in key geographic regions worldwide.
    • Integrated Value Chain: The company`s vertically integrated operations from raw material extraction through processing to finished building products provide cost advantages, quality control, and supply chain resilience.
    • Infrastructure Investment Tailwinds: Growing global infrastructure spending, urbanization trends, and construction activity create sustained demand for Heidelberg Materials` essential building materials across diverse geographic markets.
    • Environmental Sustainability Leadership: The company`s investments in carbon reduction technologies, alternative fuels, and circular economy initiatives position it to benefit from evolving environmental regulations and trends.

    🐌 Key considerations before investing in Heidelberg Materials

    Despite its market leadership, Heidelberg Materials faces several challenges that investors should carefully consider before making investment decisions:

    • Construction Cycle Sensitivity: The company`s performance is closely tied to construction activity, economic conditions, and infrastructure spending cycles that create significant revenue volatility during downturns.
    • Energy Cost Volatility: Heidelberg Materials faces exposure to volatile energy prices, raw material costs, and transportation expenses that can significantly impact margins and profitability across its operations.
    • Environmental Regulatory Risks: The cement and building materials industry faces increasing environmental regulations, carbon pricing mechanisms, and sustainability requirements that can create compliance costs and operational constraints.
    • Geographic Concentration Risks: The company`s operations in specific geographic markets create exposure to regional economic conditions, political instability, and local regulatory changes that can impact performance.

    Final thoughts on Heidelberg Materials

    Heidelberg Materials` global market leadership, integrated operations, and strategic positioning in essential construction markets create compelling opportunities for investors seeking infrastructure exposure. However, investors must carefully consider construction cycle sensitivity, cost volatility, environmental regulatory risks, and geographic concentration that characterize the building materials business. Like the foundation materials that support modern construction, Heidelberg Materials offers stability and growth potential for investors who understand both opportunities and challenges of the global sector.

  • Atalaya Mining (L:ATYM)

    Atalaya Mining PLC is a copper mining company focused on the development and operation of copper mines in Spain and other European jurisdictions. Founded in 2004 and headquartered in Cyprus with operations centered in Spain, the company has established itself as a significant copper producer in Europe through its flagship Proyecto Riotinto mine. The company has demonstrated strong operational performance and strategic expansion, positioning itself to benefit from growing copper demand driven by renewable energy and electrification trends.

    The company`s core business revolves around copper mining and processing, with its primary asset being the Proyecto Riotinto mine in Andalusia, Spain, one of Europe`s largest open-pit copper operations. Atalaya Mining focuses on sustainable mining practices while maintaining cost-effective production methods, serving both European and international copper markets. With copper being essential for renewable energy infrastructure, electric vehicles, and grid modernization, the company is strategically positioned to capitalize on the global transition toward clean energy and electrification.

    Atalaya Mining financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 9.33%
    • Return on equity (ROE): 15.84%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 38.88%
    • Operating margin: 15.54%
    • Net profit margin: 18.95%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.5
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 335.3%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 23%

    💡 Why invest in Atalaya Mining?

    Like a skilled prospector who has struck a rich vein in proven territory, Atalaya Mining demonstrates several compelling advantages that make it attractive for copper exposure:

    • European Production: Atalaya Mining operates one of Europe`s largest open-pit copper mines, providing strategic geographic diversification and reduced exposure to political risks common in traditional copper-producing regions.
    • Electrification Demand: The company benefits from accelerating copper demand driven by renewable energy infrastructure, electric vehicle adoption, and grid modernization projects across Europe and globally, creating growth tailwinds.
    • Production Excellence: Proyecto Riotinto mine demonstrates consistent production performance with cost-effective extraction methods, generating stable cash flows while maintaining competitive operating costs in global copper markets.
    • Strategic Positioning: Atalaya Mining`s focus on sustainable mining practices and European operations positions the company to capitalize on ESG-conscious investment trends and regional supply chain preferences.

    🐌 Key considerations before investing in Atalaya Mining

    However, like mining operations that face unpredictable geological challenges, Atalaya Mining confronts several significant risks that copper investors must carefully evaluate:

    • Commodity Volatility: Heavy dependence on copper prices exposes the company to significant revenue fluctuations based on global economic conditions, industrial demand cycles, and macroeconomic factors beyond management control.
    • Single Asset Risk: Concentration in the Proyecto Riotinto mine creates operational vulnerability, as production disruptions, geological challenges, or regulatory issues at this primary asset could severely impact performance.
    • Environmental Standards: European environmental standards and evolving mining regulations could increase compliance costs, limit expansion opportunities, or require significant capital investments in environmental protection measures.
    • Capital Requirements: Mining operations require substantial ongoing capital expenditures for equipment maintenance, expansion projects, and infrastructure development, potentially constraining cash flow available for shareholders.

    Final thoughts on Atalaya Mining

    Atalaya Mining`s strategic European copper production, operational excellence, and positioning within the electrification megatrend create compelling opportunities for investors seeking copper exposure. However, commodity price volatility, single asset concentration, and regulatory challenges require careful evaluation of mining sector dynamics. Like a well-positioned mine that yields precious metals through skilled extraction, Atalaya Mining combines geographic advantages with operational expertise to deliver copper production in an increasingly electrified world.

  • CRH (L:CRH)

    CRH plc is a leading global building materials group supplying aggregates, cement, asphalt, ready-mix concrete, and other essential construction products across more than 30 countries. Founded in 1970 and headquartered in Dublin, Ireland, the company has grown through strategic acquisitions and organic expansion to become one of the largest materials providers in North America and Europe. In fiscal 2024, CRH generated revenues of $35.6 billion up 2% and achieved adjusted EBITDA of $6.9 billion, while reaffirming 2025 guidance for net income of $3.7 4.1 billion and adjusted EBITDA of $7.3 7.7 billion.

    CRH`s core business is organized into three operating segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions. The Americas Materials Solutions segment provides aggregates, asphalt, cement, and ready-mix concrete across the U.S. and Canada, driving 75% of the group`s profits. Americas Building Solutions focuses on commercial building products such as blocks, movements, and glass, while International Solutions spans Europe, Asia, and Latin America with tailored construction products.

    CRH financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 5.9%
    • Return on equity (ROE): 14.49%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 36.13%
    • Operating margin: 18%
    • Net profit margin: 9.3%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 3.73
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 12.2%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 5.3%

    💡 Why invest in CRH?

    CRH plc offers several compelling reasons to consider investing:

    • Resilient Earnings Growth: Despite Q1 2025 reporting a small net loss, CRH achieved full-year 2024 net income of $3.8 billion, representing a 12% increase year-on-year driven by strong non-residential demand.
    • Strong Cash Generation: The company generated impressive free cash flow of $4.0 billion in 2024 and returned $1.3 billion to shareholders via share repurchases, with an additional $300 million contemplated for 2025.
    • Pricing Power Advantages: Q1 2025 revenues rose 3% to $6.8 billion, with adjusted EBITDA up 11% to $495 million, reflecting strong pricing discipline and continued cost efficiency improvements across all business segments.
    • Favorable Market Exposure: Approximately 75% of profits derive from North America where public infrastructure spending is strong, and CRH has signaled continued benefit from both U.S. and European construction upcycles.

    🐌 Key considerations before investing in CRH

    However, prospective investors should weigh the following challenges:

    • Short-Term Earnings Volatility: Q1 2025 delivered a net loss of $98 million and a loss per share of $0.15, impacted by weather disruptions and the timing of divestiture gains, creating quarterly earnings unpredictability for investors.
    • Market Construction Cyclicality: CRH remains exposed to economic cycles in construction and infrastructure markets, which can lead to significant swings in volume and pricing if activity levels soften during economic downturns or recessions.
    • Portfolio Integration Risks: Ongoing portfolio optimization including recent disposals and acquisitions poses execution challenges and may compress margins during transition periods, requiring effective management coordination.
    • Environmental Regulatory Pressures: As a major cement and aggregates producer, CRH faces increasing regulatory scrutiny over carbon emissions and environmental compliance, requiring substantial capital-intensive decarbonization measures.

    Final thoughts on CRH

    CRH plc combines global scale, diversified segment exposure, and strong 2024 financial results with clear 2025 guidance, positioning it for continued growth in key markets. Its robust cash flow generation and shareholder returns underwrite an attractive income profile, while backlog visibility and pricing discipline support margin stability. However, investors must account for near-term earnings volatility, cyclical demand dynamics, and the capital requirements of environmental compliance when evaluating CRH as a long-term investment.

  • Compagnie de Saint-Gobain (PA:SGO)

    Compagnie de Saint-Gobain S.A. is a French multinational manufacturer and distributor of construction and high-performance materials, serving markets worldwide. Founded in 1665 as the Manufacture royale de glaces de miroirs in Paris and now headquartered in La DГ©fense, Courbevoie, the company employs over 170,000 people across 76 countries. In fiscal 2024, Saint-Gobain generated sales of 46.6 billion euros and operating income of 5.30 billion euros with an 11.4% margin, while recurring net income rose to 2.84 billion euros.

    Saint-Gobain`s core business spans four main activities: High-Performance Materials including abrasives, ceramics, and composites; Building Distribution covering gypsum, insulation, and façades; and Construction Products encompassing glass, mortars, and plasterboards. The company has bolstered its portfolio with strategic acquisitions, most recently Fosroc in mid-2024, to expand its footprint in construction chemicals and cement additives. With over two-thirds of its operating income now generated outside Europe, Saint-Gobain benefits from diversified geographic exposure and resilient end-markets across global construction sectors.

    Compagnie de Saint-Gobain financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 5.48%
    • Return on equity (ROE): 11.96%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 27.88%
    • Operating margin: 11.59%
    • Net profit margin: 5.99%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 5.62
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -1.4%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 1.7%

    💡 Why invest in Compagnie de Saint-Gobain?

    Compagnie de Saint-Gobain S.A. offers several compelling reasons to consider investing:

    • Strong Financial Results: 2024 sales held steady at 46.6 billion euros and operating margin hit a record 11.4%, demonstrating robust pricing power and effective cost management across all business segments and geographic regions.
    • Broad Product Portfolio: The group offers comprehensive materials across construction, chemicals, and high-performance segments, significantly reducing dependency on any single market while providing diversified revenue streams.
    • Extensive Global Diversification: With operations in 76 countries and two-thirds of pro forma operating income from high-growth regions including North America, Asia, and emerging markets, Saint-Gobain mitigates regional risks.
    • Innovation Sustainability Leadership: Continuous R&D investment, positive price-cost spread, and a strategic `Grow & Impact` plan drive sustainable product development and decarbonization solutions that align with global environmental trends.

    🐌 Key considerations before investing in Compagnie de Saint-Gobain

    However, prospective investors should weigh the following challenges:

    • Construction Market Cyclicality: Exposure to new construction activity, particularly in European markets, makes revenues sensitive to economic downturns and interest-rate cycles that can significantly impact demand for building materials.
    • Raw Material Energy: Fluctuations in raw materials including sand and chemicals, plus energy prices can compress margins significantly if price increases cannot be fully passed on to customers in competitive markets.
    • Regulatory Trade Risks: As a global operator, the company faces complex environmental regulations, trade tariffs, and compliance challenges across multiple jurisdictions that can impact operational costs and market access.
    • Integration of Acquisitions: Significant bolt-on deals like Fosroc require seamless operational and cultural integration to realize expected synergies without cost overruns or operational disruptions that could impact performance.

    Final thoughts on Compagnie de Saint-Gobain

    Saint-Gobain`s century-old heritage, record 2024 profitability, and diversified portfolio position it well for mid-term growth, especially in high-growth geographies. Strategic acquisitions and a strong backlog in construction chemicals support continued innovation and margin expansion. Nonetheless, investors should weigh the impacts of cyclical construction markets, input-cost volatility, and regulatory complexities when considering Saint-Gobain as a long-term investment.