New strategy pays off – more profit and green share of sales increases
Building materials producer Holcim improved its recurring operating profit margin by 90 basis points to 18.3 per cent in the first half of 2025. The construction company's recurring operating profit rose by 10.8 per cent in local currency to CHF 1.440 billion.
Holcim achieved half-year sales of 7.87 billion Swiss francs, an increase of 1.8 per cent in local currency. In a press release, the company reported a disproportionately high increase in its recurring EBIT (recurring operating profit) of 10.8 per cent in local currency and 3 per cent in Swiss francs to CHF 1.44 billion. The recurring EBIT margin thus improved by 90 basis points to 18.3 per cent. Earnings per share also rose by 7.4 per cent year-on-year to CHF 1.57 before impairments and disposals.
The building materials company also reported increased demand for sustainable solutions. ECOPact low-CO2 concrete accounted for 31 per cent of total sales of ready-mix concrete in the first half of the year, compared to 25 per cent in the previous year. Sustainable ECOPlanet cement accounted for 35 per cent of cement sales, compared to 32 per cent a year ago.
“I would like to thank all of our 48,000 employees around the world for their contribution to our excellent half-year results. Holcim is the leading partner for sustainable construction and we are unlocking significant business opportunities through our new strategy ‘NextGen Growth 2030’ – which lays the foundation for a new era of growth and value creation,” CEO Miljan Gutovic is quoted as saying.
For the full year, Holcim is forecasting 3 to 5 percent sales growth in local currency, 6 to 10 percent growth in recurring EBIT in local currency, a recurring EBIT margin of more than 18 percent, free cash flow before leases of around CHF 2 billion and over 20 percent growth in recycled construction and demolition materials.