Vicat (VCT) H1 2025 earnings summary

Executive summary

• Organic sales were stable, up 0.2% like-for-like, but down 2.7% reported due to adverse currency effects, with resilience in Switzerland, the Mediterranean, and Brazil, despite slowdowns in the US, India, and Africa.

• EBITDA guidance for 2025 was updated to +2% to +5% like-for-like, reflecting strong performance and significant FX headwinds.

• Strategic moves included the acquisition of REALMIX in Brazil, the integration of Cermix in France, and a tender offer for minority interests in Sinai Cement, Egypt.

• Free cash flow improved to €44 million from -€23 million, and net debt was reduced by €190 million year-over-year, with leverage ratio improved to 1.81x.

• The business model remains resilient, with balanced exposure to developed and emerging markets and a continued focus on deleveraging and operational efficiency.

Financial highlights

• Consolidated sales reached €1,885 million, down 2.7% reported, but up 0.2% like-for-like year-over-year.

• EBITDA was €331 million, down 6.3% reported and 2% like-for-like; EBITDA margin at 17.5% (-70bps year-over-year).

• Recurring EBIT was €169 million, down 10% reported and 4.4% like-for-like; EBIT margin at 9%.

• Net income improved 6.3% like-for-like to €116 million; net income group share up 3.1% like-for-like to €102 million; net margin 6.1%.

• Net debt at €1,375 million, leverage ratio at 1.81x, down from 2.01x a year ago.

Outlook and guidance

• 2025 EBITDA growth guidance updated to +2% to +5% like-for-like due to currency headwinds.

• Sales growth targeted on a like-for-like basis; H2 2025 performance expected to benefit from Kiln 6 in Senegal and stabilizing energy costs.

• Net CapEx guidance for 2025 confirmed at €280 million; deleveraging target of 1.3x by year-end and below 1x by 2027.

• Committed to maintaining EBITDA margin of at least 20% through 2027.

• Regional outlook: Europe remains weak in residential, US mixed, emerging markets varied with currency headwinds.