Sika (SIKA) Q4 2025 earnings summary

Executive summary

• Achieved CHF 11.2 billion in sales for 2025, up 0.6% in local currencies but down 4.8% in CHF due to FX headwinds.

• Outperformed a declining market through innovation, digitalization, and efficiency programs, notably the Fast Forward initiative.

• Fast Forward program implemented for cost savings and agility, with all one-time costs recognized in 2025 and expected CHF 150–200 million EBITDA benefit by 2028.

• Seven bolt-on acquisitions signed or completed in 2025, expanding presence and manufacturing capacity globally.

• Dividend proposed at CHF 3.70 per share, up 2.8%, marking the 14th consecutive year of growth.

Financial highlights

• EBITDA reached CHF 2,065 billion (18.4% margin); excluding Fast Forward costs, EBITDA was CHF 2,150 billion (19.2% margin).

• Net profit was CHF 1,045 million (9.3% of net sales), impacted by one-time costs.

• Material/gross margin expanded to 54.9%, up 0.4 pts year-over-year.

• Operating free cash flow was CHF 1,356 million (12.1% of sales), with 100% profit-to-cash conversion.

• ROCE decreased to 12.3%, impacted by one-time costs and FX.

Outlook and guidance

• 2026 guidance: local currency sales growth of 1%-4%, EBITDA margin targeted at 19.5%-20%.

• Medium-term targets reaffirmed: 3–6% annual growth in local currencies, 20–23% EBITDA margin, >10% operating free cash flow as % of net sales, and 20–25% ROCE.

• Market conditions expected to remain muted in H1 2026, with improvement anticipated in H2.