The Trump administration's tariffs are a "clear net negative" for homebuilders and building products amid a weak housing backdrop, RBC Capital Markets said Friday in a report.
Late Wednesday, President Donald Trump announced duties on imports from several countries, including China and Japan. A 10% base tariff rate takes effect for all nations Saturday, though there will be additional duties that vary by country. China responded Friday with its own retaliatory tariffs of 34% on US products.
The tariffs posed a "significant earnings risk" if they hold, given "fragile" affordability and demand in the homebuilding sector, RBC said.
"The breadth of tariffs could unveil surprise exposures while being difficult" for companies to navigate, RBC said.
The companies with the highest China import exposure are Fortune Brands Innovations (FBIN), Masco (MAS), and Whirlpool (WHR), which may face 160 to 370 basis points of "direct margin headwinds" on their imports, RBC said.
The tariffs may generally result in a 15% to 30% incremental impact on fiscal 2025 earnings per share for certain building products companies based on China exposure alone, RBC said.
"Our sense is it will take some time for companies to wrap their arms around all of their different exposures/impacts, so while between growth and tariff headwinds we'd expect potential for sizable downward guidance revisions," RBC said.
Price: 52.84, Change: -2.16, Percent Change: -3.93
免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。