Building materials industry records profitable growth
The building materials group Holcim achieved solid growth in the 2025 financial year. Organic sales rose by 2.9 per cent to a total of CHF 15.72 billion. Holcim attributes the sharp decline in earnings per share to the sale of its business in Nigeria.
According to a statement, the Zug-based building materials group Holcim achieved annual sales of CHF 15.7 billion in 2025, representing growth of 3.0 per cent in local currency. Recurring EBIT (earnings before interest and taxes) rose to CHF 2.88 billion (10.3 per cent). The recurring EBIT margin improved by 80 basis points to an “industry-leading” 18.3 per cent. Earnings per share before impairment and disposals increased by 5.0 per cent to CHF 3.22. There were sharp declines in consolidated profit (-73.4 per cent to CHF 387 million) and earnings per share (-73.1 per cent to CHF 0.70). This was “characterised by a non-cash effect caused by exchange rate changes on the divestment of Holcim’s business in Nigeria”.
Profitable growth accelerated particularly in the fourth quarter. Recurring EBIT increased by 12.2 per cent to CHF 601 million in local currency. Quarterly sales amounted to CHF 3.82 billion, representing growth of 3.4 per cent in local currency.
By product line, Building Materials recorded organic sales growth of 5.1 per cent to CHF 11.56 billion. Building Solutions, on the other hand, posted an organic sales decline of 1.6 per cent to CHF 5.85 billion. Regionally, Europe saw a decline in sales (organic -2.4 per cent), while recurring EBIT rose by 7.4 per cent to CHF 1.47 billion. The margin was 17.0 per cent. In Latin America, sales grew organically by 4.9 per cent to CHF 3.09 billion, while recurring EBIT declined slightly by 0.5 per cent organically. In Asia, the Middle East and Africa, sales grew organically by 10.0 per cent to CHF 3.62 billion. Recurring EBIT rose organically by 20.5 per cent, with the margin reaching 24.6 per cent.
An important growth driver for Holcim in 2025 was the 21 transactions completed, 18 of which had a value-enhancing effect. In the announcement, CEO Miljan Gutovic thanked the 45,000 employees: “Together, we have achieved all our goals for 2025.” For 2026, the Group expects organic revenue growth of 3 to 5 per cent and an organic increase in recurring EBIT of 8 to 10 per cent. The company also expects a further improvement in the recurring EBIT margin.