Holcim Q3 2025 slides: Recurring EBIT up 9.8% as sustainable products drive growth

Holcim (SWX:HOLN) delivered strong profitable growth in Q3 2025, with recurring EBIT increasing 9.8% in local currency despite significant foreign exchange headwinds. The company’s trading update presentation, delivered on October 24, highlighted accelerating momentum with Q3 net sales growth of 4.9% in local currency, outpacing the 2.9% growth seen over the first nine months of the year.

Quarterly Performance Highlights

Holcim reported net sales of CHF 11.9 billion for the first nine months of 2025, representing a 2.9% increase in local currency. Recurring EBIT reached CHF 2.3 billion, up 9.8% in local currency, with margins expanding 80 basis points to 19.1%. The company’s performance was impacted by a substantial foreign exchange headwind of CHF 604 million on net sales.

As shown in the following waterfall chart of net sales growth:

The company’s recurring EBIT growth of 9.8% in local currency was driven by strong organic growth of CHF 234 million, partially offset by M&A impacts and foreign exchange effects:

Holcim’s margin expansion continued throughout 2025, with the 12-month rolling recurring EBIT margin reaching 18.1% by Q3:

Regional performance varied across Holcim’s global operations. Europe achieved margin expansion of 130 basis points to 17.3% despite a 1.8% decline in net sales. Latin America delivered strong net sales growth of 10.0% with a 30.8% margin, though this represented a 300 basis point decline. The Asia, Middle East & Africa region showed balanced growth with net sales up 3.2% and margins expanding 240 basis points to 25.1%.

Strategic Acquisition of Xella

A centerpiece of Holcim’s presentation was the strategic acquisition of Xella, which represents a significant expansion into the European walling market. The EUR 1.85 billion transaction gives Holcim access to a highly attractive market segment with Xella contributing approximately EUR 1 billion in net sales and an EBITDA margin of around 20% in 2025.

The acquisition aligns perfectly with Holcim’s NextGen Growth 2030 strategy, focusing on attractive markets, sustainability-driven growth, expansion of high-value building solutions, and performance culture:

Holcim emphasized the complementary nature of Xella’s product portfolio, which creates significant cross-selling opportunities. The combined offering provides comprehensive solutions across building structures, from foundations to roofing systems:

The company highlighted the Belgrade Waterfront Project in Serbia as an example of potential cross-selling opportunities, where Holcim’s ECOPact and ZinCo products were used alongside Xella’s Ytong, Silka, and Multipor solutions:

Sustainable Products Driving Growth

Holcim’s sustainable product lines continued to gain market share, supporting margin expansion. ECOPact, the company’s low-carbon concrete, reached 31% of ready-mix net sales in the first nine months of 2025, up from 26% in the same period of 2024. ECOPlanet, its sustainable cement offering, increased to 35% of cement net sales from 32% a year earlier.

The company also reported significant progress in circular construction, with ECOCycle recycled construction demolition materials increasing 20% to 5.6 million tons in the first nine months of 2025.

"We delivered strong profitable growth in the first nine months of 2025," stated CEO Miljan Gutovic in the recent earnings call, highlighting the company’s resilience and strategic focus on sustainability-driven growth.

Outlook and Guidance

Holcim confirmed its full-year 2025 guidance, projecting:

• 3% to 5% net sales growth in local currency
• 6% to 10% recurring EBIT growth in local currency
• Recurring EBIT margin above 18%
• Free cash flow before leases of approximately CHF 2 billion
• Over 20% growth in recycled construction demolition materials

The company faces ongoing challenges from foreign exchange volatility and potential regulatory changes, particularly regarding EU ETS regulations that could affect pricing and cost structures. However, Holcim’s strong positioning in attractive markets and its focus on high-value sustainable building solutions provide a solid foundation for continued growth.

Currently trading at $87.78, Holcim has demonstrated strong momentum with a 53.3% year-to-date return. According to market analysis, the company maintains a strong financial health score, supported by impressive revenue growth of 19.25% in the last twelve months.

Holcim’s Q3 2025 presentation reinforces its strategic direction toward sustainable building solutions and value-accretive acquisitions, positioning the company for continued profitable growth despite macroeconomic challenges.

Full presentation:

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