Holcim (HOLN) H2 2024 earnings summary

Executive summary

• Achieved record recurring EBIT of CHF 5,049 million, up 10.8% in local currency and 6.1% in CHF, with a margin of 19.1%, up 150bps year-over-year.

• Earnings per share before impairments and divestments rose 5% to CHF 5.70; free cash flow reached CHF 3,801 million, up 3%, with a 57% cash conversion rate.

• 36% of net sales from advanced branded solutions; recycled construction demolition materials grew 20% to 10.2 million tons.

• Completed 27 M&A transactions and a CHF 1 billion share buyback; proposed dividend of CHF 3.10 per share, up 11%.

• North American business (Amrize) spin-off on track for H1 2025 NYSE listing.

Financial highlights

• Net sales grew 1.3% in local currency to CHF 27,009 million; organic growth and acquisitions offset FX headwinds of -3.5%.

• Recurring EBIT margin expanded to 19.1% from 17.6% in 2023; recurring EBIT up 10.8% in local currency.

• Free cash flow after lease rose 3% to CHF 3,801 million; CapEx investments totaled CHF 1.5 billion.

• Maintained net financial debt leverage at 1.2x, with net financial debt at CHF 8,448 million.

• Dividend per share up 11% to CHF 3.10; CHF 2,570 million cash returned to shareholders in 2024.

Outlook and guidance

• Guiding mid-single-digit net sales growth in local currency for 2025, with further EBIT margin expansion and free cash flow above CHF 3.5 billion.

• Overproportional recurring EBIT growth and continued double-digit growth in recycled construction and demolition materials expected.

• Strong outlook across all business segments and geographies, with infrastructure and sustainable solutions as key drivers.

• North America: infrastructure modernization and reshoring to drive growth; Latin America: infrastructure and commercial investments; Europe: strong demand for sustainable solutions; Asia, Middle East & Africa: strong demand in North Africa, positive outlook in Australia, price recovery in China.