Holcim Reports Lower EBIT Despite Net Sales Growth Outlook

Holcim Group's recent report signals a mixed performance with declining recurring EBIT but an optimistic sales growth forecast. Investors should monitor the impact of these results on Holcim's stock trajectory in the coming months.

Date: 25-04-2025

AI Rating: 5

Lower Recurring EBIT Impact: Holcim Group reported a 3.1% decline in recurring EBIT, which dropped to 515 million Swiss francs from 532 million francs last year. Although there is a highlight of a slight local currency growth of 1.7%, the overall drop in this key earnings metric could be a concern for investors assessing future profitability.

Net Sales Performance: The reported net sales were down 0.2% to 5.544 billion francs, slightly missing expectations. Given that sales fell in local currency by 0.8% and 0.6% organically, this reflects a trend that may cause investors to question the company’s top-line growth strategy moving forward.

EBITDA Stability: Recurring EBITDA showing a minimal growth to 1.011 billion francs signals stability in this operational measure, which may reassure some investors despite the decline in EBIT.

Regional Performance Insights: The mixed performance across regions signals varying market dynamics; for instance, strong growth in North America and double-digit growth in Asia, Middle East & Africa, particularly in North Africa, might attract positive investor sentiment in those specific markets. Furthermore, Latin America’s continued profitable growth is also a good sign.

Outlook and Spin-off: The confirmation of a fiscal 2025 outlook with expected profitable growth is crucial. The anticipated expansion in recurring EBIT margin and mid-single-digit net sales growth indicates management's optimistic long-term view, which could bolster investor confidence. The spin-off of Amrize, expected to list in June, may also reposition Holcim favorably in the market, impacting investor perception positively if executed correctly.

Stocks: HCMLY HCMLF