Holcim (HOLN) H1 2024 earnings summary

Executive summary

• Achieved record profitable growth in H1 2024, with recurring EBIT up 12.7% in local currency and net sales up 1.6% in local currency compared to H1 2023.

• Disciplined M&A with 11 acquisitions and 4 divestments, accelerating circular construction and expanding Solutions & Products.

• Advanced sustainability with a 7% reduction in CO2 per net sales and strong growth in ECOPact and ECOPlanet sales.

• Earnings per share before impairments and divestments increased by 10% to CHF 2.44.

• U.S. listing of North American business progressing, targeted for H1 2025.

Financial highlights

• Recurring EBIT reached CHF 2.2 billion, up 12.7% in local currency, with a record margin of 17.2% for H1 and 23.2% in Q2.

• Net sales totaled CHF 12.8 billion, up 1.6% in local currency, but down 2% in CHF year-over-year.

• Free cash flow after leases was CHF 48 million, consistent with seasonal trends and increased growth CAPEX.

• CapEx increased to CHF 767 million, up 13.4% year-over-year, focused on growth and green projects.

• Net financial debt at CHF 10.9 billion as of June 2024.

Outlook and guidance

• Upgraded 2024 guidance: low single-digit net sales growth in local currency, recurring EBIT margin above 18.5%, and free cash flow above CHF 3 billion.

• Targeting 20% growth in recycled construction demolition materials to 10 million tons.

• Continued focus on margin expansion and over-proportional EBIT growth in H2.

• Progressing toward US listing of North American business.