Holcim (HOLN) Investor Day 2025 summary

Strategic direction and transformation

• Launching the NextGen Growth 2030 strategy with a full capital market separation of the North American business, focusing on industry-leading financial and sustainability targets and a balanced 50/50 split between Materials and Solutions by 2030.

• Emphasizing sustainability, premium brands, and leadership in attractive markets, with >50% of net sales from ECOPact and ECOPlanet and 90% of cement sales in top 3 market positions.

• Four strategic drivers for 2030: focused investment in attractive markets, sustainability-driven growth, expansion of high-value building solutions, and a performance culture.

• Positioned to benefit from megatrends such as urbanization, energy-efficient refurbishment, modular construction, climate action, re-industrialization, and digitalization.

• Value-accretive M&A remains central, with 91 deals closed between 2018 and 2024, and a continued focus on bolt-on and strategic acquisitions to strengthen market presence.

Financial guidance and capital allocation

• 2030 financial targets: 3%-5% net sales growth, 6%-10% recurring EBIT growth per year, 50% cash conversion rate, and a balanced 50/50 split between Materials and Solutions.

• Capital deployment capacity of CHF 18–22 billion from 2025–2030, including CHF 4-5 billion for growth initiatives, CHF 2.5 billion for sustainability, CHF 3-4 billion for acquisitions, and CHF 7 billion for shareholder returns.

• Maintaining a progressive dividend policy with a 50% payout ratio, opportunistic share buybacks, and dividends paid from foreign capital contribution reserves.

• Achieved record 2024 results: CHF 16.3 billion net sales, 17.4% EBIT margin, CHF 2.2 billion free cash flow, and 11.1% return on invested capital.

• Commitment to a strong investment grade balance sheet, targeting <1.5x net debt/EBITDA and maintaining BBB+/Baa1 ratings.

Regional and business segment outlook

• Europe: CHF 8.8 billion net sales in 2024, 15.6% EBIT margin, driven by sustainability investments, decarbonization, and 62 M&A deals since 2018.

• Asia, Middle East, and Africa: CHF 3.9 billion net sales in 2024, 22.4% EBIT margin, focus on margin expansion, cost-competitive exports, and 18 M&A deals since 2018.

• Latin America: CHF 3.1 billion net sales in 2024, 33.8% EBIT margin, leading profitability, and expansion of Disensa retail stores from ~2,000 to ~5,000 by 2030.

• Building Solutions: Targeting a 50/50 split with Materials by 2030 (from 37/63 in 2024), leveraging premium brands, innovation, and bolt-on acquisitions.

• Sustainability and innovation drive margin expansion, with premium pricing for eco-products and cost reductions from alternative materials and fuels.