Holcim (HOLN) H2 2024 earnings summary

Executive summary

• Achieved record recurring EBIT above CHF 5 billion, up 10.8% in local currency and 6% in Swiss francs year-over-year, with a margin of 19.1%, up 150bps.

• Earnings per share before impairments and divestments rose 5% to CHF 5.70; free cash flow reached a record CHF 3.8 billion with a 57% cash conversion rate.

• 36% of net sales from advanced branded solutions; recycled construction demolition materials grew 20% to 10.2 million tons.

• Completed 27 M&A transactions and a CHF 1 billion share buyback; proposed dividend up 11% to CHF 3.10 per share.

• North American business spin-off (Amrize) on track for H1 2025 listing.

Financial highlights

• Net sales grew 1.3% in local currency to CHF 27,009 million; organic growth and acquisitions offset FX headwinds.

• Recurring EBIT up 10.8% in local currency, surpassing CHF 5 billion for the first time.

• Free cash flow after lease rose 3% to CHF 3.8 billion, with CapEx investments of CHF 1.5 billion.

• Net financial debt at CHF 8,448 million, leverage at 1.2x.

• Dividend per share up 11% to CHF 3.10; CHF 2,570 million cash returned to shareholders in 2024.

Outlook and guidance

• Guiding mid-single-digit net sales growth in local currency for 2025, with further recurring EBIT margin expansion.

• Free cash flow expected above CHF 3.5 billion; continued double-digit growth in recycled construction and demolition materials.

• North America: infrastructure modernization and reshoring to drive growth; Latin America: infrastructure and commercial investments; Europe: strong demand for sustainable solutions; Asia, Middle East & Africa: strong demand in North Africa, positive outlook in Australia, price recovery in China.