Holcim (HOLN) H1 2025 earnings summary

Executive summary

• Achieved strong profitable growth in H1 2025, with net sales up 1.8% in local currency, recurring EBIT up 10.8% in local currency to CHF 1.4 billion, and recurring EBIT margin expanding to 18.3%, driven by margin expansion, high-value strategy, and 11 value-accretive M&A transactions.

• EPS increased 7.4% in Swiss francs to CHF 1.57, reflecting strong operational performance and disciplined financial management.

• Completed the spin-off of the North American business, Amrize, in June 2025, marking a new era focused on sustainable construction and value creation.

• Launched the NextGen Growth 2030 strategy, targeting industry-leading financial and sustainability goals.

• Sustainability initiatives advanced, with significant increases in recycled construction demolition materials and premium ECO brand sales.

Financial highlights

• Net sales reached CHF 7.9 billion, up 1.8% in local currency; recurring EBIT rose 10.8% in local currency to CHF 1.4 billion; recurring EBIT margin improved by 90 bps to 18.3%.

• EPS from continuing operations increased 7.4% to CHF 1.57; net income from continuing operations attributable to shareholders was CHF 908 million, up 35.2% year-over-year.

• Free cash flow before leases was CHF 156 million, on track to reach around CHF 2 billion by year-end.

• Net financial debt reduced to CHF 5,548 million from CHF 10,862 million at H1 2024; leverage ratio at 1.2x, expected to be 1.1x by end of 2025.

• Q2 net sales grew 2.4% in local currency; Q2 recurring EBIT up 9.8% in local currency.

Outlook and guidance

• Full-year 2025 guidance targets 3%-5% net sales growth and 6%-10% recurring EBIT growth in local currency, with a recurring EBIT margin above 18%.

• Free cash flow before leases expected to be around CHF 2 billion; targeting over 20% growth in recycled construction demolition materials and continued expansion of premium ECO brands.

• Committed to 2030 targets: 3%-5% annual net sales growth, 6%-10% EBIT growth, over 50% ECO brand sales share, and less than 400 kg CO2 per ton of cementitious material.

• Guidance unchanged from March, with management aiming to overachieve and positive H2 outlook.