Holcim H1 2025 presentation: Margin expansion drives double-digit EBIT growth

Introduction & Market Context

Holcim (SIX:HOLN), the global building materials company, released its half-year 2025 results presentation on July 31, 2025, showcasing strong profitability improvements despite modest sales growth. The presentation, delivered by CEO Miljan Gutovic and CFO Steffen Kindler, highlighted the company’s performance following its spin-off from Amrize AG, with a focus on margin expansion and sustainable product offerings.

Operating in 45 countries with over 48,000 employees, Holcim has positioned itself to capitalize on significant infrastructure investments across its regions. The company’s NextGen Growth 2030 strategy emphasizes decarbonization, circular construction, and expansion of high-value building solutions.

Quarterly Performance Highlights

Holcim reported net sales of CHF 7.9 billion for H1 2025, representing a 1.8% increase in local currency terms. More impressively, recurring EBIT grew by 10.8% in local currency to CHF 1.4 billion, with the recurring EBIT margin expanding by 90 basis points to reach 18.3%. Earnings per share increased by 7.4% to CHF 1.57.

As shown in the following financial performance summary:

The company’s margin expansion has been consistent over recent quarters, demonstrating Holcim’s ability to improve profitability even with modest sales growth. The recurring EBIT margin has steadily increased from 17.5% in Q4 2024 to 18.0% in Q2 2025.

Regional performance varied across Holcim’s global footprint. Europe showed margin expansion of 130 basis points despite a 2.5% decline in net sales, while Latin America delivered strong net sales growth of 8.6% with recurring EBIT growth of 6.6%. The Asia, Middle East & Africa region achieved impressive margin expansion of 200 basis points and double-digit recurring EBIT growth of 12.0%.

The following regional breakdown illustrates these performance differences:

Holcim’s EPS growth of 7.4% reflects the company’s improved profitability and effective cost management. The company reported net income from continuing operations of CHF 931 million, a 5.4% increase from H1 2024.

Strategic Initiatives

Holcim’s NextGen Growth 2030 strategy is driving the company’s focus on sustainable building materials and high-value solutions. The strategy encompasses enhancing leading market positions, accelerating decarbonization efforts, expanding high-value building solutions, pursuing value-accretive M&A, and maintaining a performance-driven culture.

The strategic framework is illustrated here:

A key component of Holcim’s strategy is scaling its sustainable product offerings. ECOPact, the company’s low-carbon concrete, now represents 31% of ready-mix net sales, up from 25% in H1 2024. Similarly, ECOPlanet, its sustainable cement offering, has increased to 35% of cement net sales from 32% a year earlier.

The growth in these sustainable product lines is shown in the following chart:

Holcim has also made significant progress in circular construction, with ECOCycle (recycled construction demolition materials) volume increasing by 35% to 3.4 million tons in H1 2025.

The company’s M&A strategy remains active, with 11 value-accretive transactions closed during the period. These acquisitions strengthen Holcim’s position in building materials and expand its footprint in high-value building solutions across multiple markets including France, Bulgaria, Serbia, Peru, Argentina, Poland, and Germany.

Holcim’s balance sheet remains strong, with a clear path to reducing its leverage ratio to below 1.1x by the end of 2025:

The company has outlined an ambitious capital allocation plan, with CHF 18-22 billion deployment capacity from 2025 to 2030, divided between growth CAPEX, acquisitions, dividends, and strategic M&A plus share buybacks.

Forward-Looking Statements

Holcim maintained its full-year 2025 guidance, projecting 3-5% net sales growth and 6-10% recurring EBIT growth in local currency terms. The company expects to achieve a recurring EBIT margin above 18% and generate approximately CHF 2 billion in free cash flow before leases.

Looking further ahead, Holcim’s NextGen Growth 2030 targets include:

These long-term targets reflect Holcim’s commitment to sustainable growth, with ambitious goals for both financial performance and environmental impact. The company aims to achieve a 50/50 split between materials and solutions in its net sales mix, while significantly expanding its sustainable product offerings and reducing its environmental footprint.

The ELLINIKON project in Athens, Greece—Europe’s largest urban regeneration project valued at EUR 8 billion—exemplifies Holcim’s strategy in action. The company is supplying its entire product range for this LEED gold pre-certified development, from ECOPact concrete to ZinCo green roofing systems.

With its focus on margin expansion, sustainable solutions, and strategic acquisitions, Holcim appears well-positioned to capitalize on infrastructure investments and construction demand across its global markets, despite varying regional economic conditions.

Full presentation:

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