Holcim reports record 2024 earnings, plans Amrize spin-off in 2025

Investing.com -- Holcim (SIX:HOLN) reported record results for 2024 on Friday, boosted by strong earnings growth and continued expansion in sustainable construction. 

The Switzerland-based cement maker posted a full-year recurring EBIT of CHF 5.05 billion, a 10.8% increase in local currency, while net sales reached CHF 26.4 billion, up 1.3% in local terms.

Despite foreign exchange headwinds, Holcim expanded its EBIT margin to 19.1%, a 150 basis-point increase. Free cash flow after leases rose 2.6% to CHF 3.8 billion, supporting a proposed 11% increase in the annual dividend to CHF 3.10 per share. 

However, net income attributable to shareholders fell 4.4% to CHF 2.93 billion. Earnings per share before impairments and divestments rose 5.3% to CHF 5.70.

The company accelerated its shift toward lower-carbon materials, with its ECOPact and ECOPlanet product lines now accounting for 36% of total net sales. 

Recycling efforts also grew, surpassing 10.2 million tons of reclaimed materials, achieving Holcim’s 2025 target a year ahead of schedule.

Performance varied across regions. North America delivered CHF 1.62 billion in recurring EBIT, up 9.5%, with a margin of 24.9%, while Latin America recorded CHF 1.04 billion in EBIT, a 6% increase, with a margin of 36%. 

Europe saw EBIT grow by 12.1% to CHF 1.34 billion, with a margin of 17.8%. The Asia, Middle East & Africa segment posted CHF 878 million in EBIT, down 2.3%, though its margin improved to 22.8%. 

The company’s Solutions & Products division, which includes advanced roofing systems, posted EBIT growth of 15.2% to CHF 707 million, with an 11.9% margin.

Holcim continued to strengthen its portfolio through acquisitions, completing 27 deals in 2024, including five in the fourth quarter. The company also closed divestments in four markets. Net financial debt rose 7% to CHF 8.45 billion, reflecting Holcim’s expansion strategy.

By mid-2025, the company intends to establish Amrize, its North American operations, as a separate, publicly traded company. 

Amrize will seek listings on both the New York Stock Exchange and the Swiss SIX Exchange. This significant restructuring will be put to a shareholder vote at the company’s May AGM.

Holcim expects mid-single-digit net sales growth in local currency for 2025, with further EBIT margin expansion. Free cash flow is projected to remain above CHF 3.5 billion, while investments in circular construction are expected to increase.

Regionally, Holcim sees infrastructure modernization and reshoring in North America as key drivers of growth, while public and private sector investment is expected to support expansion in Latin America. 

Demand for sustainable building solutions is set to fuel growth in Europe, while price recovery in China and strong domestic demand in North Africa are expected to bolster performance in the Asia, Middle East & Africa region.