Holcim (HOLN) Investor Day 2025 summary

Strategic transformation, direction, and growth initiatives

• Launching the NextGen Growth 2030 strategy, including a planned spin-off of the North America business to create a focused entity with operations in Europe, Latin America, Australia, North Africa, and Building Solutions, subject to shareholder approval in May 2025.

• Four strategic drivers for 2030: focused investment in attractive markets, sustainability-driven growth, expansion of high-value building solutions, and a performance culture.

• Targeting a 50/50 net sales split between building materials and solutions by 2030, leveraging premium brands, integrated offerings, and innovation.

• Accelerating M&A activity, with 91 deals closed since 2018, focusing on bolt-ons and strategic acquisitions, especially in Latin America and Europe.

• Positioned to benefit from megatrends such as urbanization, energy-efficient refurbishment, modular construction, climate action, re-industrialization, and digitalization.

Financial targets and capital allocation

• 2030 targets: 3%-5% net sales growth and 6%-10% recurring EBIT growth per year, with a 50% cash conversion rate and balanced 50/50 split between Materials and Solutions.

• Achieved CHF 16.3 billion in net sales and CHF 2.8 billion in EBIT in 2024, with a 17.4% EBIT margin and 11.1% ROIC.

• Capital deployment capacity of CHF 18–22 billion from 2025–2030, including CHF 4-5 billion for growth, CHF 2.5 billion for sustainability, CHF 3-4 billion for acquisitions, and CHF 7 billion for shareholder returns.

• Maintaining a strong balance sheet with a target net debt leverage below 1.5x and a Baa1/BBB+ credit rating post-spin.

• Progressive dividend policy with a 50% payout ratio and opportunistic share buybacks funded by divestments or excess cash.

Regional focus and market positioning

• Europe: CHF 8.8bn net sales in 2024, 15.6% EBIT margin, strong sustainability roadmap, and 62 M&A deals since 2018.

• Asia, Middle East, and Africa: CHF 3.9bn net sales in 2024, 22.4% EBIT margin, high margins and cash generation, with North Africa as an export hub for decarbonized materials.

• Latin America: CHF 3.1bn net sales in 2024, 33.8% EBIT margin, most profitable region, and plans to expand Disensa retail network from ~2,000 to ~5,000 stores by 2030.

• Building Solutions: Targeting a 50/50 split with Building Materials by 2030 (from 37/63 in 2024), leveraging premium brands, innovation, and bolt-on acquisitions.

• Ongoing strategic divestments and portfolio optimization to maintain flexibility and capitalize on market opportunities.