JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
INvesting.com -- Holcim (SIX:HOLN) on Friday reported stable first-quarter sales of CHF 5.54 billion and maintained its 2025 outlook, as growth in Latin America and Europe helped offset weather-related setbacks in North America and supported its ongoing spin-off of Amrize.
The company’s net sales declined 0.8% year over year, remaining nearly flat in local currency. Recurring EBIT stood at CHF 515 million, a 3.1% decrease from the prior-year period, though it rose 1.7% in local currency.
Holcim confirmed full-year guidance for 2025, including mid-single-digit net sales growth in local currency, over-proportional recurring EBIT growth, further expansion of recurring EBIT margin, and free cash flow exceeding CHF 3.5 billion.
In North America, net sales to external customers fell 4.4% to CHF 1.084 billion, and recurring EBIT dropped to a loss of CHF 5 million from CHF 35 million a year earlier.
The company cited unfavorable weather but noted improved trading in March and the closing of an aggregates acquisition. Holcim said it has secured more than 230 infrastructure projects through 2028.
Latin America recorded 8.1% growth in net sales and a 5.8% rise in recurring EBIT in local currency.
The region maintained a leading recurring EBIT margin of 35%, supported by broad-based commercial activity and infrastructure investment.
Europe posted a 6.4% increase in recurring EBIT to CHF 120 million, while net sales fell 1.7% to CHF 1.546 billion.
The EBIT margin expanded by 60 basis points. Three bolt-on acquisitions were completed during the quarter in Bulgaria, France and Serbia.
In Asia, Middle East and Africa, recurring EBIT rose 8.9% to CHF 199 million, with the margin widening by 250 basis points to 21.7%, led by growth in North Africa and increased ECOPact sales. Net sales declined 2.8% to CHF 870 million, but grew 9.4% organically.
The Solutions & Products segment recorded CHF 1.23 billion in net sales, up 3.3%, driven by roofing in North America.
Recurring EBIT rose to CHF 57 million. Holcim began construction on new sites in Indiana and Tilbury to expand its roofing and circular construction offerings in the U.S. and UK, respectively.
Low-carbon ECOPact concrete accounted for 32% of ready-mix sales, and ECOPlanet cement represented 29% of cement sales, both up from 26% a year earlier. Recycling of construction demolition materials rose 21%.
The planned spin-off of Holcim’s North American unit, Amrize, remains on track, with a listing on the NYSE and SIX Swiss Exchange expected in June.
Shareholders will vote in May on the proposed distribution. Amrize recently raised capital through a bond offering and is positioned to focus exclusively on the North American market.