Holcim: Strong first half with 11.5% organic growth in recurring EBIT, guidance upgraded

• Recurring EBIT up 11.5% organically to CHF 1 438 million; up 13.1% in Q2
  Net sales up 5.2% organically to CHF 7 925 million; up 6.4% in Q2
• Recurring EBIT margin of 18.1%, with improving momentum
• EPS up 7.4% before impairment and divestments
• Two strategic acquisitions closed: Xella and a majority stake in Cementos Pacasmayo, expanding in high-value Building Solutions and Latin America
• Full-year guidance 2026 upgraded: ~5% organic net sales growth, ~10% organic recurring EBIT growth

Miljan Gutovic, CEO: “I thank all of our 50 000 employees worldwide for their contributions to our strong half-year results, as we continue to deliver on our NextGen Growth 2030 strategy with impeccable execution.

“In H1, we achieved strong profitable growth with an industry-leading recurring EBIT margin, while completing two value-accretive, strategic acquisitions: Xella across 22 European markets and a majority stake in Cementos Pacasmayo in Peru. These acquisitions will accelerate NextGen Growth 2030 by expanding high-value Building Solutions and growing our footprint in the attractive Latin America region.

“Holcim delivered strong organic growth in net sales in the first half, driven by its leading positions in highly attractive markets. There was double-digit organic growth in recurring EBIT, while our 18.1% margin resulted from increased customer demand for our sustainable offering, strict cost discipline and operational excellence.

“Building on our strong results and our resilient and proven business model across all economic cycles and market conditions, we upgrade our full-year 2026 guidance.”

 ¹ From continuing operations.

Profitable growth continues

Net sales of CHF 7 925 million in the first half of the year were up 5.2% organically compared to the same period in the prior year. Momentum accelerated in the second quarter, with a 6.4% organic increase.

Recurring EBIT in the first half of the year grew over-proportionally compared to net sales to
CHF 1 438 million, a rise of 11.5% organically versus the prior-year period, accelerating in the second quarter with a 13.1% organic increase. Holcim reported a recurring EBIT margin of 18.1% with increasing momentum in the second quarter that is expected to continue into the second half of the year.

Holcim’s earnings per share before impairment and divestments from continuing operations in the first half of 2026 were CHF 1.69, up 7.4% compared to the prior-year period.

Free cash flow was CHF 36 million in H1 2026, compared to CHF 156 million in H1 2025, on track to achieve full-year 2026 guidance of around CHF 2 billion.

Focused investments in attractive markets

Holcim is continuing to invest in highly attractive markets, both organically and through value-accretive M&A. In the first half of the year, Holcim closed seven transactions, comprising six acquisitions and one divestment.

Building Materials was strengthened with two acquisitions for the cement and aggregates business: in addition to Cementos Pacasmayo, Holcim acquired Uranus Pluton SRL in Romania.

Building Solutions expanded with four acquisitions: in addition to Xella, Holcim completed three acquisitions for ready-mix concrete: Jacobs NV in Belgium, Josef Klösters Kies & Beton GmbH in Germany, and the ready-mix business of Stevenson Group in New Zealand.

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

Sustainability driving profitable growth

 In the first half of 2026, net sales of Holcim’s ECOPact were 30%¹ of total ready-mix concrete net sales, while net sales of ECOPlanet amounted to 40%¹ of total cement net sales.

Holcim is accelerating circular construction using ECOCycle technology. In the first half of 2026, Holcim increased the volume of recycled construction demolition materials by 36% to 4.7 million tons¹ compared to the prior-year period. With the acquisition of Xella, Holcim added 22 circular construction hubs to its footprint, bringing the total to 134 in the first half of the year.

Guidance 2026 upgraded

Holcim’s NextGen Growth 2030 strategy will continue to drive superior performance and value creation. Building on its strong first half-year results, Holcim upgrades its FY2026 guidance²:

• Net sales and recurring EBIT growth at the high end of NextGen Growth 2030 targets:
  • ~5% organic net sales growth
  • ~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

¹ Excluding large acquisitions.

² Previous FY2026 guidance: 3% to 5% organic growth in net sales; 8% to 10% organic growth in recurring EBIT.

Group results by product line

Holcim’s two customer-focused product lines are Building Materials and Building Solutions, both providing customers end-to-end solutions from foundation and flooring to walling and roofing, across the built environment from infrastructure and industry to buildings.

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.

Regional segment performance

Europe

Europe saw strong net sales, accelerating in Q2, driven by Germany, Switzerland, Spain, Greece, and East Europe, with a positive contribution from the Alkern acquisition. The recurring EBIT margin was up 20 bps for the first half versus the prior-year period. Positive momentum in residential building permits continues in France, Germany, and Poland, contributing to a strong outlook supported by infrastructure investments in Central and East Europe, from roads to tunnels and airports.

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.

Latin America

Latin America delivered strong organic growth in net sales of 6.2% in the first half, driven by Mexico, Ecuador, and Central America. The region is consistently delivering a recurring EBIT margin above 30%. Cementos Pacasmayo contributed positively to second-quarter results. For the outlook, demand for housing and infrastructure is high in Mexico, Peru, and Central America; Holcim is supplying the region’s largest social housing project in Ecuador with ECOPact, to be completed by 2030.

Asia, Middle East & Africa

The region delivered excellent organic growth in net sales and recurring EBIT in the first half, with continued margin expansion reaching 25.7%, up 80 bps. ECOCycle was launched in Australia to accelerate circular construction. With favorable demand trends in North Africa and Australia, strong growth is expected to continue, driven by residential and large-scale infrastructure projects. For example, in Australia, Holcim is supplying Sydney’s Western Parkland City with ECOPact.

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Photo: holcim.com