Holcim (HOLN) H2 2025 earnings summary

Executive summary

• Achieved all 2025 financial targets, with double-digit recurring EBIT growth (up 10.3% in local currency), Q4 acceleration, and industry-leading margin of 18.3%.

• Net sales from continuing operations reached CHF 15,724 million, up 3.0% in local currency, with Q4 net sales up 3.4%.

• Net income surged to CHF 13,250 million, driven by the Amrize spin-off gain; EPS before impairment and divestments rose 5.0% to CHF 3.22.

• Free cash flow reached CHF 2.2 billion with a 54% cash conversion rate; proposed dividend of CHF 1.70 per share (53% payout ratio).

• Board set 2026 guidance aligned with midterm targets, focusing on organic growth, margin expansion, and sustainability.

Financial highlights

• Recurring EBIT rose to CHF 2.9 billion, up 10.3% in local currency, with margin expanding by 80bps to 18.3%.

• Net financial debt reduced to CHF 3,785 million (down 55.2%), with leverage at 0.9x.

• EPS from continuing operations increased by 5.0% to CHF 3.22.

• Free cash flow totaled CHF 2.2 billion, with a 54% cash conversion rate.

• ROIC reached 11.2% in 2025.

Outlook and guidance

• 2026 guidance: 3–5% organic net sales growth, 8–10% organic recurring EBIT growth, further margin increase, and free cash flow around CHF 2 billion.

• Continued investment in circular construction and decarbonization, with 20%+ growth in recycled construction demolition materials targeted for 2026.

• Margin progress and EBIT growth expected to be back-end loaded, with positive price over cost.

• Pending acquisitions of Xella (Europe) and Cementos Pacasmayo (Peru) expected to close in 2026.