Compagnie de Saint-Gobain (SGO) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with operating margin of 11.4%, recurring net income of €3.5bn, and free cash flow of €4.0bn, despite challenging markets, especially in Europe.

• Major acquisitions (CSR, Bailey, Fosroc, Cemix, OVNIVER) expanded presence in high-growth regions and construction chemicals, with €5bn invested.

• Sustainability focus: 34% reduction in Scope 1 & 2 CO2 emissions since 2017, 67% carbon-free electricity, and launch of recycled gypsum plasterboard.

• Leadership changes: Sreedhar N to CEO Asia-Pacific/India, Maud Thuaudet as Group CFO, Benoit Bazin appointed Chairman and CEO.

• Employee engagement high, with 89% proud to work at the company and top employer recognition for 10 years.

Financial highlights

• 2024 sales reached €46.6bn, with H2 sales up 1.6% year-over-year at constant exchange rates.

• Operating income was €5.3bn (+1%); EBITDA €7.2bn (margin 15.5%); recurring EPS €6.95.

• Net debt/EBITDA at 1.4x; net debt increased to €9.8bn due to acquisitions.

• Dividend per share up 5% to €2.20 for 2025; €1.5bn returned to shareholders in 2024 via dividends and buybacks.

• Free cash flow hit a record €4.0bn; cash conversion stable at 62%.

Outlook and guidance

• 2025 operating margin expected above 11%, exceeding initial strategic plan targets.

• Flattish to slightly positive group volumes for 2025; H1 slightly negative, H2 recovery led by Europe.

• Price increases announced in multiple geographies for 2025; positive price-cost spread expected.

• Acquisitions to add ~3% to sales and €200m to profit in 2025.

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