Compagnie de Saint-Gobain (SGO) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 sales declined 2.3% in local currencies and like-for-like, outperforming initial expectations despite adverse weather in North America and Europe, while Asia-Pacific grew 9% and Europe remained stable; Americas declined due to weather and weak new construction.

• Achieved all 2021–2025 financial targets, including 3.0% average organic growth, 10.9% operating margin, and 15.1% ROCE, with 2025 sales at €46.5bn and EBITDA at €7.2bn.

• The group remains focused on its Lead and Grow strategy, emphasizing solutions, non-residential and infrastructure expansion, and active portfolio management, supported by acquisitions and digital solutions.

• Three bolt-on acquisitions in Construction Chemicals (including FOSROC and Cemix), 11 new plants/lines (mostly in high-growth regions), and divestments in Nordic ventilation and other businesses enhanced the group’s profile.

• Price increases were announced in response to renewed inflation, with a slightly positive price-cost spread expected for the year.

Financial highlights

• 2025 sales reached €46,571m, up 2.1% in local currencies, with like-for-like sales nearly stable (-0.2%) and Q1 2026 reported sales at €11.1bn, impacted by a negative 2.6% currency effect.

• Construction Chemicals segment grew 4.3% in local currencies and 1.7% organically, outperforming the group.

• Operating income for 2025 was €5.3bn, up 3.8% in local currencies, with a stable operating margin at 11.4%.

• Group prices were stable overall, with high comparison bases in the Americas and a neutral price effect in Q1 2026.

• Recurring net income for 2025 was €3.3bn; free cash flow was €3.8bn (58% cash conversion ratio).

Outlook and guidance

• 2026 EBITDA margin guidance is confirmed at above 15%, with H1 margins impacted by extreme weather in Europe and North America.

• Like-for-like sales are expected to turn positive in Q2 2026, with progressive improvement anticipated.

• Gradual improvement is anticipated in Europe, continued weakness in North America in H1 with better prospects in H2, and growth led by India, Southeast Asia, and Mexico.

• Full-year guidance is maintained despite geopolitical and macroeconomic uncertainties, with a focus on delivering a slight positive price-cost spread.