Bitcoin price today: steadies after record high over $126k amid "Uptober" optimism
Investing.com -- Holcim AG (SIX:HOLN) shares rose on Thursday after the company raised its full-year profit margin forecast and posted second-quarter results that exceeded earnings expectations despite a slight revenue miss.
Recurring EBIT reached CHF 955 million for the quarter, beating the CHF 929 million company-compiled consensus by 2.8%.
EBIT margin rose to 22.9%, up 110 basis points from the prior year and 70 basis points above analyst expectations.
In local currency, EBIT grew 2.4% year-over-year and 10.2% on an organic basis.
Revenue for the quarter fell 3.8% from a year earlier to CHF4.18 billion, narrowly missing the CHF 4.19 billion consensus.
The company cited challenging weather conditions across its markets during the quarter.
Holcim now expects a full-year recurring EBIT margin above 18%, higher than the company-compiled consensus of 18.15% and above RBC Capital Markets’ estimate of 17.9%.
The Swiss building materials manufacturer maintained its guidance for recurring EBIT growth of 6% to 10% in local currency terms and a free cash flow before leases of around CHF 2 billion.
RBC forecasts CHF1.8 billion, while consensus is also at CHF2 billion. All geographic regions delivered EBIT results ahead of consensus.
In Europe, sales to external customers declined 5.8% year-over-year to CHF 2.32 billion, 2.6% below consensus. EBIT margin in the region increased by 200 basis points to 22.5%, with EBIT exceeding expectations by 4%.
Latin America sales fell 6% to CHF 769 million, in line with consensus. EBIT margin narrowed by 110 basis points to 31.9%, while EBIT came in 0.8% above forecasts.
In Asia, the Middle East and Africa, sales declined 2% to CHF 967 million, but beat consensus by 3.1%. EBIT margin rose by 170 basis points to 28.6%, with EBIT surpassing estimates by 3.5%.
By product segment, Building Materials net sales in the first half of 2025 totaled CHF 5.82 billion, down 0.9% year-over-year but up 3.2% in local currency and 3.6% like-for-like.
Building Solutions net sales dropped 5% to CHF2.88 billion, down 1% in local currency and 2.9% like-for-like.
“Going into the Q2 results we preferred Heidelberg (ETR:HDDG) over Holcim, but Holcim has set a high bar in terms of Q2 performance and outlook for the full year,” said analysts at RBC Capital Markets in a note.