Compagnie de Saint-Gobain (SGO) Q2 2025 earnings summary

Executive summary

• Achieved record operating margin of 11.8% and recurring EPS of €3.63 per share in H1 2025, with sales up 3.4% in local currencies to €23.9 billion and record EBITDA of €3.8 billion, despite currency headwinds and a mixed macroeconomic environment.

• Strong operational execution and successful integration of recent acquisitions, especially in construction chemicals and high-growth geographies, totaling €1.7 billion.

• Demonstrated resilience and growth in sustainable solutions across residential, non-residential, and infrastructure projects globally.

• Maintained a fully regionalized organization and new regional operating model to accelerate growth and enhance product mix across end markets.

Financial highlights

• EBITDA reached a record €3.8 billion, up 7% in local currencies year-over-year; operating income rose to €2,803 million (+1.9%).

• Free cash flow generation was €2.2 billion, with a cash conversion ratio of 63%.

• Net debt to EBITDA ratio at 1.7x, within the 1.5–2x target range; net debt rose to €12.8 billion, mainly due to acquisitions.

• Recurring net income at €1.8 billion; net attributable income was €1,629 million, down 1.9% year-over-year.

• Operating working capital stable at 23 days sales.

Outlook and guidance

• 2025 outlook confirmed: operating margin expected to exceed 11.0% for the full year.

• Expects gradual recovery in Europe, continued growth in Latin America, and robust performance in Asia-Pacific, especially India and Southeast Asia.

• Capital expenditure to remain around 4.5% of sales, focused on high-growth markets.

• Ongoing focus on margin management, productivity, and value-creating acquisitions.