Design Delight Studio

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

Switzerland-based building materials producer Holcim AG (SIX:HOLN) saw its shares rise 2.2% following the announcement of better-than-expected third-quarter profits on October 24, 2025. The company’s recurring EBIT exceeded market consensus by 2.5%, reaching CHF 836 million in Q3, with margins improving to 20.7% compared to 20.2% a year ago.

Financial Highlights (First Nine Months of 2025)

• Recurring EBIT: Increased 9.8% in local currency to CHF 2.28 billion.
• Recurring EBIT Margin: Expanded to 19.1%, showcasing improved profitability.
• Net Sales: Rose 2.9% in local currency to CHF 11.9 billion.
• Third-quarter net sales: Slightly decreased to CHF 4.04 billion from CHF 4.14 billion in Q3 2024. #### Growth Drivers
  Holcim attributes its robust performance to disciplined cost management and growing sales of sustainable products, reflecting its strategy to meet rising customer demand for eco-friendly materials. CEO Miljan Gutovic highlighted the company’s focus on decarbonization, circular construction, and value-accretive acquisitions, completing 14 transactions in diverse regions including Europe and the Americas.

Regional Performance

• Europe: Recurring EBIT rose 5.9% with a margin increase of 130 basis points.
• Asia, Middle East & Africa: Recurring EBIT grew 14.7% with a 240 basis point margin gain.
• Latin America: Net sales grew 10%, but recurring EBIT dropped 10.3%.

Sustainability Progress

• ECOPact low-carbon concrete: Represented 31% of ready-mix net sales, up from 26% the previous year.
• ECOPlanet cement: Accounted for 35% of cement net sales, increased from 32%.
• Recycled construction demolition materials: Usage grew by approximately 20% year-over-year.

Outlook and Strategic Moves

Holcim confirmed its full-year 2025 guidance, aiming for:

• Recurring EBIT growth of 6-10% in local currency.
• A margin above 18%.
• Free cash flow before leases around CHF 2 billion.
• Net sales growth of 3-5%.
• Over 20% growth in recycled materials.

Notably, Holcim signed a binding agreement to acquire Xella, a European sustainable walling system producer with projected 2025 net sales near €1 billion. This acquisition will expand Holcim’s footprint in the EUR 12 billion+ walling market, expected to close in the second half of 2026 pending regulatory approval.

Market Reception

Jefferies highlighted the strong margin expansion and reiterated a “buy” rating with a CHF 81.40 price target, citing Holcim’s consistent ability to exceed earnings estimates via margin improvement.

Holcim’s Q3 report underscores its leadership in sustainable building materials, leveraging cost control and strategic growth initiatives to enhance profitability and market position in the evolving construction industry.

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