Compagnie de Saint-Gobain (SGO) Q2 2026 earnings summary

Executive summary

• Achieved €23.6bn in H1 2026 sales, with 0.7% organic growth year-over-year and 3.5% organic growth in Q2, driven by robust performance in non-residential and infrastructure markets across all regions.

• EBITDA reached €3,625m with a 15.4% margin, supported by strong operational execution and recovery from Q1 weather impacts.

• Strategic asset rotation of €3bn in sales (14 acquisitions, 9 disposals) increased exposure to Asia, emerging countries, and North America, achieving one-third of the 2030 sales rotation target.

• Outperformance driven by cross-selling, upselling, and specified sales, particularly in construction chemicals and innovative solutions, with construction chemicals achieving 8.5% organic growth in Q2.

• Free cash flow generation was €2.1bn, reflecting a 65% cash conversion ratio.

Financial highlights

• H1 2026 sales: €23,595m–€23,852m, down 1.1% year-over-year; like-for-like growth of 0.7%; Q2 organic growth at 3.5%.

• EBITDA: €3,625m, down 5.1% year-over-year; EBITDA margin 15.4%.

• Recurring net income: €1,684m; net attributable income: €1,417m; EPS: €2.89; recurring EPS: €3.44.

• Free cash flow: €2,105m; free cash flow conversion: 65%.

• Net debt reduced to €11.5bn (down 9.9% year-over-year); net debt/EBITDA ratio at 1.6x.

Outlook and guidance

• Expects sales growth in H2 2026 across all regions, with Asia-Pacific (notably India and SE Asia) leading.

• EBITDA margin guidance for 2026 set at above 15%.

• Strategic plan targets 15–18% EBITDA margin and >50% free cash flow conversion through 2030.

• Continued focus on margin, cash generation, and disciplined capital allocation.

• Capital expenditure planned at around €2bn for 2026; regular dividend growth and €2bn in share buybacks targeted for 2026–2030.