Holcim (HOLN) Q3 2024 TU earnings summary

Executive summary

• Achieved record Q3 recurring EBIT of CHF 1.674 billion with a margin of 23.5%, up 170 bps year-over-year, driven by strategic execution and sustainability initiatives.

• Six value-accretive acquisitions in Q3 expanded presence in sustainable and circular construction, including OX Engineered Products and new entries in Europe and Latin America.

• Nine-month net sales reached CHF 19.933 billion, up 1.2% in local currency, with organic growth and M&A offsetting FX headwinds.

• Sustainability initiatives advanced, with a 23% increase in recycled construction and demolition materials.

• On track to achieve full-year 2024 guidance, with strong performance across all segments and markets.

Financial highlights

• Q3 recurring EBIT up 9.1% in local currency and 4.6% in CHF, reaching CHF 1.674 billion; margin improved to 23.5%.

• Nine-month recurring EBIT rose 11.1% in local currency and 6.6% in CHF to CHF 3.884 billion; margin at 19.5%, up 160 bps.

• Net sales for nine months grew 1.2% in local currency, with organic growth and M&A offsetting a -3.5% FX impact.

• Share buyback program on track, with CHF 833 million (1.8% of shares) repurchased by late October 2024.

• Group recurring EBITDA after leases for nine months: CHF 5.085 billion; depreciation and amortization: CHF 1.202 billion.

Outlook and guidance

• Full-year 2024 guidance confirmed: low single-digit net sales growth (local currency), 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.

• Progressing toward U.S. listing of North American business in H1 2025.

• Optimistic for 2025: infrastructure to remain strong, residential recovery expected with interest rate cuts.