Compagnie de Saint-Gobain (SGO) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales grew 1.3% in local currencies, with stabilization in like-for-like sales and strong performance in Asia-Pacific and Latin America, offsetting contraction in North America.

• Construction chemicals segment delivered 18% sales growth in local currencies, driven by recent acquisitions and successful integration.

• Europe returned to growth for the first time since Q1 2023, with sequential improvement and stabilization in France, and gains in Spain, Italy, and the Middle East.

• The "Lead & Grow" strategic plan targets mid-single-digit sales growth, EBITDA margin of 15-18%, and ROCE above 13% for 2026–2030.

• H1 2025 sales reached €23.9bn, with record EBITDA of €3.8bn (+7.0%) and operating margin at 11.8%.

Financial highlights

• Q3 2025 reported sales were €11.42 billion, down 1.3% reported but up 1.3% in local currencies, with a negative 2.6% currency effect, especially in the Americas.

• H1 2025 operating income reached €2.8bn, with a record margin of 11.8%.

• Volume decline improved to -0.9% in Q3 from -1.8% in Q2; prices increased 0.7% year-over-year.

• Positive scope/structure impact of 1.5% in Q3, reflecting acquisitions in high-growth markets.

• Free cash flow conversion ratio was 63% in H1 2025.

Outlook and guidance

• 2025 operating margin expected to exceed 11.0%.

• Q4 expected to show continued sequential improvement, with volume growth in Europe and overall H2 volume growth.

• Gradual recovery anticipated in Europe, continued strength in Latin America, and growth in Asia-Pacific led by India.

• 2026–2030 targets: mid-single-digit sales growth, EBITDA margin 15–18%, free cash flow conversion >50%, ROCE >13%.

• Moderate price increases and slight inflation expected going into 2026.