Half Year 2026 Holcim AG Earnings Call Transcript
Key Points
- Strong organic growth with net sales up 5.2% in H1 and 6.4% in Q2, and recurring EBIT up 11.5% in H1 and 13.1% in Q2.
- Positive price over cost in all regions for the 17th consecutive quarter, with a $90 million contribution in Q2.
- Successful closure of value-accretive acquisitions, including Xella and Pacas Mayo, enhancing building solutions portfolio.
- Upgraded 2026 full-year guidance to the high end of NextGen Growth 2030 targets, reflecting confidence in continued momentum.
- Strong performance in Asia, Middle East, and Africa with net sales up 8.5% and recurring EBIT up nearly 24%, with margin expansion of 80 basis points.
- AI initiatives expected to deliver around CHF200 million in benefits by 2028, with over 1,500 machines already on the AI platform.
- Robust balance sheet with leverage expected to return to around 1.6x by year-end, providing firepower for future M&A.
- Foreign exchange translation effects negatively impacted net sales by 3.4% and recurring EBIT by 2.8% in H1.
- Free cash flow in H1 was impacted by CapEx phasing, seasonally strong June working capital, and the divestment of Nigeria, though full-year guidance remains around CHF2 billion.
- Latin America volumes were slightly negative in Q2, with softer performance in Argentina and election-related impacts in Colombia.
- UK market remained soft in H1, with residential still weak, though infrastructure projects are expected to improve momentum in H2.
- Margin expansion was partly offset by divestments, particularly Nigeria, which had a high margin, keeping group margin flat in Q2.
- Integration costs and lower margins from new acquisitions like Pacas Mayo and Xella are expected to have a slight negative impact on margins in the near term.
Good morning and welcome to the analyst and investor conference call for Holcim's first half 2026 results. My name is Ben Pomerin and I'm pleased to be joined by Miljan Gutovic, our CEO and our CFO, Stefan Kindler.
After their presentation of our results, you will have the opportunity to ask your questions. Sandra, may I ask you to share the technical details with us?
Thank you.
You can register for questions at any time by pressing star and one on your telephone.
Webcast viewers may submit their questions in writing by the relative field.
I would like to remind you that all participants are in listen-only mode and the conference is being recorded.
For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast.
Thank you so much, Sandra.
And with this, I directly hand it over to Milian.
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