Holcim Shares Rise on Strong Q3 Earnings Driven by Cost Control and Sustainability

Holcim AG, the Swiss building materials giant (SIX: HOLN), saw its shares climb 2.2% after it reported strong Q3 results. The firm posted solid margins and recurring EBIT. It managed costs well and focused on sustainable products.

Key Financial Highlights Q3 2025

• Recurring EBIT: CHF 836 million; this figure sits just above last year’s CHF 835 million.
• Recurring EBIT Margin: Expanded to 20.7% from 20.2% year-over-year.
• Net Sales: CHF 4.04 billion; a slight drop from CHF 4.14 billion in Q3 2024.
• 9-Month Recurring EBIT: Grew by 9.8% in local currency to CHF 2.28 billion.
• 9-Month EBIT Margin: Increased to 19.1%.
• Net Sales (9 months): Rose 2.9% in local currency to CHF 11.9 billion.

Drivers Behind the Growth

Holcim credits its better margins and profit beat to firm cost discipline and strong demand for green building materials. The firm offers products like ECOPact low-carbon concrete and ECOPlanet cement. These items now capture 31% of ready-mix concrete sales and 35% of cement sales.
CEO Miljan Gutovic said the company leads with a high-value strategy and scales up sustainable solutions that aid decarbonization and circular construction.

Regional Performance and Strategic Moves

• Europe: Recurring EBIT grew by 5.9%, and its margin improved by 130 basis points.
• Latin America: Net sales increased by 10%, yet recurring EBIT fell by 10.3%.
• Asia, Middle East & Africa: Recurring EBIT jumped by 14.7% with a 240 basis point margin gain.

Holcim completed 14 acquisitions in Europe and the Americas this year. These deals boost its role in sustainable construction. It also divested operations in Nigeria and Iraq to streamline its portfolio.

Outlook and Market Response

The firm maintained its full-year guidance for 2025. It expects recurring EBIT to grow 6% to 10% in local currency. The outlook includes an EBIT margin above 18% and net sales growth between 3% and 5%. Further, the company projects an over 20% rise in recycling construction demolition materials and aims for free cash flow before leases of around CHF 2 billion.
Jefferies kept a “buy” rating with a CHF 81.40 price target. They noted Holcim’s consistent ability to beat margin estimates.

In October, Holcim signed a binding agreement to buy Xella. Xella leads in sustainable walling systems in Europe and is expected to generate near €1 billion in revenue for 2025. The acquisition should strengthen Holcim in the EUR 12 billion walling market and is set to close in the second half of 2026, subject to regulatory approvals.

In summary, Holcim’s robust Q3 results and focus on eco-friendly products give it an edge in today’s evolving construction market. The company controls costs and pushes sustainable innovation to drive its growth and leadership.

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