Compagnie de Saint-Gobain (SGO) Q2 2025 earnings summary

Executive summary

• Achieved record operating margin of 11.8% and recurring EPS of €3.63 per share in H1 2025, with sales up 3.4% in local currencies to €23.9 billion and EBITDA of €3.8 billion, up 7% in local currencies compared to H1 2024, despite currency headwinds and a challenging macroeconomic environment.

• Operational execution remained strong, supported by successful integration of recent acquisitions in construction chemicals and high-growth geographies, and a new regional operating model.

• Maintained a fully regionalized organization to accelerate growth and enhance product mix across end markets, with continued focus on sustainable solutions and innovation.

• Strategic acquisitions in construction chemicals totaled €1.7 billion, strengthening presence in high-growth markets.

Financial highlights

• Sales grew 3.4% in local currencies to €23.9 billion; EBITDA reached €3.8 billion (+7% in local currencies); operating income rose to €2,803 million (+1.9%).

• Free cash flow generation was €2.2 billion, with a cash conversion ratio of 63%; net debt/EBITDA at 1.7x.

• Net attributable income was €1,629 million, down 1.9% year-over-year; recurring net income at €1,797 million.

• CapEx increased to €711 million due to nine new plant openings in H1, but annual CapEx will remain around 4.5% of sales.

Outlook and guidance

• 2025 outlook confirmed: operating margin expected above 11.0% for the full year, with gradual recovery in Europe, continued strength in Latin America, and robust performance in Asia-Pacific, especially India and Southeast Asia.

• Free cash flow conversion expected to remain at strong levels, above the 50% target.

• Ongoing focus on margin management, productivity, and value-creating acquisitions.