Holcim Shares Rise on Strong Q3 Profitability and Effective Cost Control

Date: October 24, 2025
Source: Investing.com

Solid Third-Quarter Performance Exceeds Expectations

Holcim AG, a building materials firm in Switzerland, saw its shares jump 2.2%.
The company reported strong Q3 profit.
It reached a recurring EBIT of CHF 836 million, just above CHF 835 million in Q3 2024.
This figure is 2.5% above market expectations.
The EBIT margin hit 20.7%, a gain of 50 basis points compared to last year.

Key Financial Highlights (First Nine Months 2025)

• Recurring EBIT is CHF 2.28 billion, up 9.8% in local currency.
• The recurring EBIT margin expanded to 19.1%.
• Net Sales increased 2.9% to CHF 11.9 billion.

Holcim credits its margin rise and profit to strict cost control and higher sales of sustainable products.

Strategic Growth and Sustainable Offerings Driving Profitability

CEO Miljan Gutovic stressed the focus on a high-value strategy.
He added that the company is scaling sustainable products, pushing decarbonization, and promoting circular construction.
The firm completed 14 value-accretive transactions in Europe and Latin America.

Sustainable segments saw clear growth.
ECOPact low-carbon concrete now makes up 31% of ready-mix sales (up from 26% last year).
ECOPlanet cement accounts for 35% of cement sales (up from 32%).
Recycling of construction materials rose by about 20%.

Mixed Regional Performance

In Europe, recurring EBIT increased 5.9% and margins grew by 130 basis points.
In Asia, the Middle East, and Africa, EBIT climbed 14.7% with a 240 basis point margin gain.
In Latin America, net sales grew 10% while recurring EBIT dropped by 10.3%.

Forward Outlook and Strategic Expansion

Holcim confirmed its full-year guidance for 2025.
Recurring EBIT should grow between 6% and 10% (local currency).
The target EBIT margin is above 18%.
Free cash flow is expected to be around CHF 2 billion before leases.
Net sales should rise 3% to 5%, and recycled materials should grow over 20%.

Holcim also signed a binding deal to acquire Xella, a top European sustainable walling systems producer.
Xella is set to post €1 billion in sales in 2025 and will boost Holcim’s hold on the €12 billion walling market.
The deal is expected to close in the second half of 2026, pending regulatory approval.

Analyst Commentary

Jefferies praised Holcim’s performance.
Q3 EBIT exceeded estimates by 3.8%, and margins improved by 130 basis points over the year.
The brokerage maintained a “buy” rating with a CHF 81.40 price target.
They underlined Holcim’s steady margin gains.

Summary

Holcim’s Q3 2025 results show strong operational performance.
This strength comes from disciplined cost management and rising sustainable product sales.
Strategic acquisitions and a focus on circular economy practices keep the company well placed for profitable growth in sustainable construction.

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