Compagnie de Saint-Gobain (SGO) Q4 2025 earnings summary

Executive summary

• Achieved all 2021–2025 financial and strategic targets, including 3.0% average organic growth, €46.5bn sales, and a stable 15.5% EBITDA margin.

• Positioned as a leader in sustainable construction, with decisive portfolio optimization, global expansion, and 39 acquisitions including FOSROC and Cemix.

• Outperformed in Asia and emerging markets, returned to growth in Europe (notably in H2), and maintained stable margins in North America despite market headwinds.

• Construction chemicals segment grew nearly 16% in local currencies, driven by strategic acquisitions.

• Set the stage for the new "Lead & Grow" plan for 2026–2030.

Financial highlights

• Sales grew 2.1% in local currencies to €46.5bn; like-for-like sales were stable, with volumes down 1.3% and prices up 0.8%.

• EBITDA reached €7.2bn (+3.4% in local currencies), with a stable margin at 15.5%.

• Recurring net income was €3.3bn; free cash flow reached €3.8bn with a 58% conversion ratio.

• Net debt/EBITDA ratio stable at 1.4x; €1.5bn returned to shareholders via dividends and buybacks.

• Dividend per share recommended at €2.30 (+4.5%).

Outlook and guidance

• 2026 EBITDA margin expected to exceed 15%, with H1 impacted by extreme weather in Europe and North America.

• Anticipates normalization and improvement in volumes from Q2, with positive momentum in Europe and strong growth in Asia and Latin America.

• Plans for €2bn in buybacks and €6bn in dividends from 2026–2030.

• Portfolio rotation to exceed 20% of sales by 2030, with active M&A and divestitures in 2026.

• Free cash flow conversion ratio targeted above 50% for 2026–2030.