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Holcim delivered better-than-expected results for the first quarter of the year even as global construction activity showed signs of weakening. The company reported a 4.8% decline in sales to CHF 3.52 billion, which still came in above estimates, while recurring operating profit stood at CHF 431 million, also ahead of market expectations. Performance was influenced by portfolio restructuring, exits from select markets, adverse weather in Europe, and currency pressure from a strong Swiss franc. Despite softer industry sentiment and revised global growth expectations, Holcim maintained its full-year outlook and continued its expansion through acquisitions in Latin America.
Swiss cement major Holcim posted better-than-expected results for the first quarter of the year, even as the global construction sector showed a softer trend linked to broader economic uncertainty. Advertisement
The company recorded a 4.8% decline in sales to CHF 3.52 billion, equivalent to USD 4.47 billion, during the three-month period ending in March. Despite the drop, the figure exceeded analyst expectations of CHF 3.42 billion.
Recurring operating profit (EBIT) stood at CHF 431 million, also ahead of consensus estimates of CHF 407 million compiled by the company.
Performance during the period was influenced by its exit from Nigeria and other markets, adverse weather conditions across parts of Europe, and the impact of a stronger Swiss franc on reported figures.
Holcim also reshaped its portfolio through multiple transactions during the quarter, including increasing its stake in Peru-based Cementos Pacasmayo and agreeing to acquire building materials operations in Colombia, reflecting its continued focus on growth in Latin America.
The company’s chief executive stated that its business model remains resilient across market cycles and confirmed that the full-year 2026 guidance remains unchanged, despite global uncertainties. The commentary did not reference ongoing geopolitical tensions in the Middle East.
Industry sentiment has weakened since the start of the year, with a leading construction body cutting its 2026 growth forecast to around 1%–2%, down from earlier expectations. A senior economist noted that confidence levels in both residential and non-residential construction had declined compared with the end of the previous year.
Holcim still expects annual sales growth of 3%–5% on a like-for-like basis, excluding currency movements and acquisitions, along with an 8%–10% rise in recurring operating profit.
Organic sales increased by 3.9% during the quarter, while operating profit rose by 8.3%, both staying within the company’s expected performance range.
Source Reuters
5th Jun, 2025
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