--- title: "Cheaper Steel Could Lift Continental Stock And Two More European Names" type: "News" locale: "en" url: "https://longbridge.com/en/news/296701775.md" description: "Cheaper imported steel in Europe and the UK is reshaping market dynamics, benefiting auto parts makers and builders while squeezing producers. The article highlights three stocks positively exposed to this trend: Continental, Sogefi, and Travis Perkins. These companies rely on imported flat and galvanized steel, suggesting potential margin improvements if cost advantages hold, despite existing risks like leverage and operational challenges." datetime: "2026-08-23T11:38:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296701775.md) - [en](https://longbridge.com/en/news/296701775.md) - [zh-HK](https://longbridge.com/zh-HK/news/296701775.md) generator: "portal-rs" --- # Cheaper Steel Could Lift Continental Stock And Two More European Names Cheaper steel flooding into Europe and the UK is squeezing producers like Tata Steel, yet it is also quietly reshaping the economics of carmakers and builders that rely on imported flat and galvanised steel. For investors, that creates a rare moment where the same news can help or hurt different stocks. This article walks through three stocks that appear to be positively exposed to this steel trade shock and explains why they may merit a closer look now. The stocks below are just a starting sample, as the full screen surfaced 56 more companies with equally compelling narratives that are not covered here. If you want to move ahead of the crowd, head straight into the European Automotive and Construction Buyers of Imported Steel screener to identify, filter and analyze your own highest conviction ideas. ## Continental (XTRA:CON) Continental is a Hanover based auto components group that sells tires and vehicle systems worldwide and, as a large consumer of flat and galvanised steel in chassis, structural and wheel applications, is directly exposed to shifts in imported steel costs. The business is still heavily driven by its Tires segment, which generated about €13.6b of revenue, with a further €5.2b from ContiTech and related industrial solutions. At a market cap of roughly €13.8b, Continental is a large, established European supplier that sits squarely within the automotive focus of this screener. Investors looking at Continental today are essentially weighing a large, steel intensive auto supplier that could see margins benefit from cheaper imported steel against a balance sheet and earnings profile that still carry meaningful risk. The company is reshaping its portfolio toward higher margin automotive technology and software while also using ContiTech sale proceeds for debt reduction and shareholder returns, which could support a future P/E re rating if execution holds. At the same time, current unprofitability, high leverage, legal settlements and sensitivity to FX and tariff shifts mean the turnaround is not yet a done deal. If those pieces come together, Continental offers a much richer story than just cheaper raw materials suggest. Continental’s margin story is quietly decoupling from the headline steel shock, as portfolio shifts and debt moves reshape the risk reward profile. For the full context, see the 2 key rewards and 2 important warning signs XTRA:CON Earnings & Revenue History as at Aug 2026 ### Build your own steel margin shortlist around Continental Continental and the other two stocks in this article are just three ideas surfaced from one screen. The real edge comes from building filters that fit your own approach. Use our flexible Screener to mix valuation, growth, balance sheet and risk filters, or tap into our curated Investing Ideas for ready made starting points. ## Sogefi (BIT:SGF) Sogefi is a Milan based auto parts group that supplies metal intensive suspension, filtration, air intake and cooling systems to global car and truck makers, which naturally links it to the European Automotive and Construction Buyers of Imported Steel theme because steel input costs matter for its margins. The business is split between Suspensions, which generated about €536.7 million of revenue, and Air & Cooling at roughly €447.2 million, with smaller adjustments on top. With a market cap of about €246 million, Sogefi sits in the mid cap bracket of the European auto components space. Investors looking at Sogefi today are weighing a compact auto supplier that is working to improve margins while sitting in the crosshairs of steel pricing, OEM pricing pressure and rising capital investment. Operational restructuring, local for local production and a push into higher value Heavy Duty applications give the Suspensions division in particular some levers to support profitability if cheaper imported steel holds. However, recent earnings have been volatile, profit margins are thin and one off losses plus a debt heavy balance sheet keep risk firmly on the radar. If the efficiency plan, plant ramp ups in places like Romania and Argentina and any steel cost tailwind come together, the gap between Sogefi’s current share price and what its improving economics might justify could be wider than the recent headline numbers suggest. Sogefi’s margin story may involve more than a simple steel cost play, as restructuring and Heavy Duty growth plans reshape the upside risk and balance sheet pressure. Get the full picture in the 2 key rewards and 3 important warning signs BIT:SGF Revenue & Expenses Breakdown as at Aug 2026 ## Travis Perkins (LSE:TPK) Travis Perkins is a UK focused distributor of building materials and tools that can benefit when cheaper imported steel feeds through into the prices of merchanting and construction products. The group generates most of its revenue from Merchanting, which contributed about £3.7b, with Toolstation adding roughly £849 million. With a market cap of about £1.37b, Travis Perkins is a large player in the UK construction supply chain that is closely linked to the screener theme around steel input costs. For investors watching the steel story, Travis Perkins offers a mix of potential margin relief from lower steel costs and signs of earnings recovery, with half year 2026 profits and EPS ahead of the prior year. The company is working on efficiency gains through ERP fixes and digital upgrades while using its scale to hold share in a weak construction market, which could give it leverage if input prices stay favourable. The catch is that the business is only just rebuilding profitability, relies on external borrowing and is operating in end markets that management still describes as weak, so the upside case rests on execution as much as on cheaper steel. Travis Perkins’ recovery story may be stronger than the raw numbers suggest, with ERP fixes, digital upgrades and cheaper steel reshaping the outlook. Get the full analyst forecasts for Travis Perkins to see what the market might be missing. LSE:TPK Earnings & Revenue History as at Aug 2026 ## Seeking Alternatives Before The Crowd? Fresh stock ideas can move from quiet to flying quickly. Use these themed lists to spot potential breakouts while it matters and before the crowd catches on. Act now. - Target steady income streams by scanning companies in the 423 dividend fortresses that aim to keep payouts coming even when sentiment drops and headlines turn noisy. - Capture early momentum in infrastructure by reviewing the curated 39 power grid technology and infrastructure stocks that focuses on businesses tied to grid upgrades and electrification while they are still under the radar for now. - Ride long term demand for critical materials by checking the hand picked 9 top copper producer stocks that tracks producers positioned for structural supply and demand tightness. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### Valuation is complex, but we're here to simplify it. Discover if Travis Perkins might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [CTTAY.US](https://longbridge.com/en/quote/CTTAY.US.md) - [CON.DE](https://longbridge.com/en/quote/CON.DE.md) - [TPK.UK](https://longbridge.com/en/quote/TPK.UK.md) ## Related News & Research - [Continental AG (OTCMKTS:CTTAY) Short Interest Update](https://longbridge.com/en/news/296220279.md) - [Continental to showcase quarry-duty specialty tires at Steinexpo trade show](https://longbridge.com/en/news/296179139.md) - [BUZZ-Brazil's Usiminas jumps after report Ternium aims to take it private](https://longbridge.com/en/news/296801697.md) - [3 U.S. Manufacturing Stocks Tied To Tariff Driven Onshoring】【。](https://longbridge.com/en/news/296706361.md) - [REFILE-China July iron ore imports slide from June as thinning steel margins curb appetite](https://longbridge.com/en/news/296576258.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**