Holcim (HOLN) Q3 2025 TU earnings summary

Executive summary

• Achieved strong profitable growth in the first nine months of 2025, with net sales of CHF 11.9 billion, up 2.9% in local currency, and Q3 net sales up 4.9%, driven by leading market positions and a resilient business model.

• Recurring EBIT grew 9.8% in local currency for nine months, with margin expansion to 19.1% and Q3 recurring EBIT up 8.1% in local currency.

• Announced the acquisition of Xella, a European leader in sustainable walling systems, expanding into the EUR 12 billion+ walling market and projected to add EUR 1 billion in net sales.

• Closed 14 value-accretive M&A transactions since the start of the year, focusing on attractive markets and expanding the portfolio.

Financial highlights

• Net sales for nine months reached CHF 11.9 billion, up 2.9% in local currency; Q3 net sales up 4.9% in local currency.

• Recurring EBIT for nine months was CHF 2.3 billion, up 9.8% in local currency; Q3 recurring EBIT up 8.1% in local currency.

• Recurring EBIT margin reached 19.1% for nine months, with 12-month rolling margin at 18.1%.

• Free cash flow before leases expected to be around CHF 2 billion for FY2025.

• Foreign exchange effects negatively impacted sales by CHF 600 million (5%).

Outlook and guidance

• Full-year 2025 guidance confirmed: 3%-5% net sales growth in local currency, 6%-10% recurring EBIT growth, recurring EBIT margin above 18%, and free cash flow before leases around CHF 2 billion.

• Strong pricing momentum expected in 2026, especially in Europe due to EU ETS changes; double-digit price increases targeted in high-inflation markets.

• Robust project pipeline and positive outlook in key regions, with infrastructure and residential recovery expected to drive growth.

• Latin America margins expected above 30% in Q4 and for the full year, with further margin progression anticipated in 2026 as integration synergies materialize.