Holcim Reports Strong Start to 2026 with Robust Organic Growth

Strong start to the year

• Net sales up 3.9% organically to CHF 3 520 million

• Recurring EBIT up 8.3% organically to CHF 431 million

• M&A momentum continues with five transactions closed in Q1

• Closing of Cementos Pacasmayo acquisition and signing of Colombia acquisition to accelerate growth in the attractive Latin America region

• Full-year guidance 2026 confirmed

Miljan Gutovic, CEO: “I thank all my Holcim colleagues for their dedication and contributions to our strong start to the year.

“Holcim delivered robust organic growth in net sales driven by its leading positions in highly attractive markets. Strong organic growth in recurring EBIT came from strict cost discipline, operational excellence and increased customer demand for our premium brands and sustainable offering. This pushed ECOPact and ECOPlanet’s share of sales in their respective categories to new highs. Scaling up our circular technology ECOCycle, we increased the volume of recycled construction demolition materials by 24%.

“Our disciplined M&A execution continued with five value-accretive transactions across all our regions. In March, Holcim completed the acquisition of a majority stake in Cementos Pacasmayo in Peru and signed an agreement to acquire building materials and solutions operations in Colombia. The acquisitions will expand our footprint in the highly attractive Latin America region. With our resilient and proven business model across all economic cycles and market conditions, we confirm our full-year 2026 guidance.”

Performance overview Q1

¹ Comparative information restated for discontinued operations.

Delivering strong profitable growth

Net sales of CHF 3 520 million in the first quarter were up 3.9% organically compared to the prior-year period, with momentum accelerating in March. Recurring EBIT grew 8.3% organically to CHF 431 million, versus the prior-year period. Holcim’s recurring EBIT margin was impacted by scope effects in the first quarter.

Focused investment in attractive markets

Holcim is continuing to invest in profitable growth in highly attractive markets and closed five value-accretive transactions in the first quarter.

To strengthen Building Materials, Holcim completed the acquisition of a majority stake in Cementos Pacasmayo, a leading Peruvian producer of building materials with reported 2025 net sales of
USD 594 million. It also acquired Uranus Pluton SRL in Romania.

Building Solutions expanded with two acquisitions: Jacobs NV in Belgium and the ready-mix concrete business of Stevenson Group in New Zealand.

Holcim also closed the divestment of its operations in Lebanon, comprising activities in Cyprus.

In March, Holcim signed an agreement to acquire building materials and solutions operations in Colombia from Cemex that represent projected 2026 net sales of around USD 360 million. The transaction is subject to customary conditions and regulatory approval, and expected to close around the end of this year.

Sustainability driving profitable growth

Customer demand for Holcim’s sustainable offering continued to increase. In the first quarter of 2026, net sales of Holcim’s low-carbon ECOPact concrete increased to 31% of ready-mix net sales compared to 29%¹ in the prior-year period, while net sales of ECOPlanet increased to 39% of cement net sales versus 35%¹ in the first quarter of 2025.

Scaling up our circular construction technology ECOCycle, Holcim increased the volume of recycled construction demolition materials by 24%¹ compared to the prior year period.

¹Q1 2025 figures are restated for discontinued operations and other material changes in scope.
Artificial Intelligence unlocking growth and value creation

Artificial Intelligence (AI) is a strategic accelerator of incremental value for Holcim, improving performance and driving customer-centric services.

Holcim is targeting benefits of CHF 200 million in recurring EBIT from AI by 2028, split between cost avoidance and savings. This will entail growth investments of around CHF 20 million per year in the four focus areas of production, logistics, commercial and administration.

There are 38 large-scale AI initiatives being deployed across Holcim, including:

• Holcim M-Predict: AI-powered predictive modelling for equipment performance to optimize maintenance efficiency
• Holcim Foresight: AI-powered forecasting modelling to optimize fleet and network utilization
• Holcim+: an AI-powered customer platform for integrated planning, ordering and delivery with real-time tracking 24/7
• Holcim Career Hub: an AI-powered marketplace matching Holcim’s people to internal business opportunities to create value and nurture talent.

Guidance 2026

Holcim’s NextGen Growth 2030 strategy is expected to continue to drive superior performance and value creation. Building on its strong results to start the year, Holcim confirms its FY2026 guidance:

• Growth in line with NextGen Growth 2030 targets:
  • 3% to 5% organic net sales growth
  • 8% to 10% organic recurring EBIT growth
• Further increase of recurring EBIT margin
• Free cash flow of around CHF 2 billion
• >20% growth in recycled construction demolition materials

Group Results by Product Line

Holcim’s two customer-focused product lines are Building Materials and Building Solutions, which together provide customers with end-to-end solutions from foundations and flooring to walling and roofing, across the built environment from infrastructure and commercial to residential.

Building Materials covers an extensive range of cement and aggregates for customers, focusing on decarbonized cement and circular aggregates. Building Solutions comprises energy-efficient building systems and high-performance concrete and surfacing.

¹ Comparative information restated for discontinued operations and new management structure.

Regional segment performance

Europe

Strong sales momentum in March and positive price over cost partially offset the impact of weather. The use of alternative fuels¹ increased to 70%, future-proofing Holcim from energy price exposure. Infrastructure investments are providing a strong outlook, along with increases in residential building permits in several countries.

¹Alternative fuels as %, also known as Thermal Substitution Rate (TSR), is the ratio of thermal energy consumption of alternative fuels to the total amount of thermal energy consumption in the cement kiln system.

¹ French West Indies, previously reflected under Latin America, is now reported under the geographical region of Europe to  align with the current internal management structure. This change has been applied retrospectively, and prior-year figures have been restated accordingly.

² Comparative information restated for new management structure.

Latin America

Latin America delivered strong organic growth in net sales of 7.6%, driven by Mexico, Central America and Ecuador. Recurring EBIT was flat organically versus the prior-year period, with a margin above 30%. In Mexico, a social housing project with 1.8 million new homes and infrastructure projects are expected to accelerate growth. In Central America, there is high demand for housing and infrastructure.

¹ French West Indies, previously reflected under Latin America, is now reported under the geographical region of Europe to align with the current internal management structure. This change has been applied retrospectively, and prior-year figures have been restated accordingly.

² Comparative information restated for new management structure.

Asia, Middle East & Africa

The region delivered strong organic growth and an excellent double-digit organic increase in recurring EBIT of 26.3%. Positive demand trends continued in North Africa and Australia. Infrastructure and residential projects are expected to drive growth in North Africa, while Australia is experiencing good momentum from large projects such as the 2032 Olympic Games in Brisbane.

¹ Comparative information restated for new management structure.
Reconciliation to Group accounts

Reconciling measures of profit and loss:

¹ Comparative information restated for discontinued operations.