Holcim (HOLN) H2 2025 earnings summary

Executive summary

• Achieved double-digit recurring EBIT growth in 2025, with Q4 recurring EBIT up 12.2% and full-year recurring EBIT up 10.3%, exceeding guidance and targets.

• Industry-leading recurring EBIT margin expanded by 80 basis points to 18.3%, driven by high-value strategy, operational efficiency, and sustainable offerings.

• Net sales from continuing operations reached CHF 15,724 million, up 3.0% in local currency, with Q4 net sales up 3.4%.

• Net income surged to CHF 13,250 million, driven by the Amrize spin-off gain; EPS before impairment and divestments rose 5.0% to CHF 3.22.

• Free cash flow reached CHF 2.2 billion with a 54% cash conversion rate; proposed dividend of CHF 1.70 per share (53% payout ratio).

Financial highlights

• Recurring EBIT for 2025 was CHF 2,876 million, up 10.3% in local currency, with margin expanding to 18.3%.

• Net financial debt reduced to CHF 3,785 million, with leverage at 0.9x recurring EBITDA.

• EPS from continuing operations increased by 5.0% to CHF 3.22.

• Free cash flow after leases: CHF 1,944 million; cash conversion ratio at 54%.

• Return on invested capital improved to 11.2% in 2025.

Outlook and guidance

• 2026 guidance: 3–5% organic net sales growth, 8–10% organic recurring EBIT growth, further margin increase, and free cash flow around CHF 2 billion.

• 20% growth in recycled construction demolition materials targeted for 2026.

• FX headwinds expected to normalize after Q1, with 3% sales and 4–5% profit headwinds anticipated for the year.

• Continued investment in sustainable building solutions and decarbonization initiatives.

• Pending acquisitions of Xella (Europe) and Cementos Pacasmayo (Peru) expected to close in 2026.