Vicat (VCT) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 organic sales remained stable at €886 million, with resilience in Western Europe, especially Switzerland and Italy, offsetting slowdowns in India and Africa; strong performance in Egypt and improved business in Brazil.

• FY 2025 guidance confirmed, focusing on like-for-like sales growth, low single-digit EBITDA growth, and climate initiatives, including public consultation for major CCS projects.

• Integration of Cermix with VPI strengthens the construction chemicals business in France, contributing €7 million to revenue.

Financial highlights

• Group sales reached €886 million, down 2.7% reported and -0.2% like-for-like, mainly due to negative currency effects totaling €30 million (–3.3%) from Turkish lira, Egyptian pound, and Brazilian real.

• Price increases offset lower volumes, and Cermix integration added €7 million to revenue.

• Cement sales up 0.5% like-for-like despite a 6.8% volume drop, mainly in India; prices solid in developed markets.

• Net capital expenditures are expected to be around €280 million for 2025.

Outlook and guidance

• 2025 guidance confirmed: like-for-like sales growth, low single-digit EBITDA growth, and EBITDA margin target of at least 20% for 2025–2027.

• Leverage ratio targeted at 1.3x by end-2025 and below 1.0x by end-2027.

• Acceleration in performance expected in H2 2025, supported by the CAN6 kiln in Senegal and stabilizing energy costs.

• Guidance does not factor in the macro impact of a prolonged trade conflict.