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Investing.com -- Swiss building-materials supplier Holcim (SIX:HOLN) plans to achieve steady sales and earnings growth through 2030, following the planned spinoff of its North American business, Amrize.
As part of its NextGen Growth 2030 strategy, the company said on Friday that it aims for average annual net sales growth of 3% to 5%, excluding currency effects, over the next six years.
It is also targeting a 6% to 10% increase in recurring earnings before interest and taxes (EBIT).
Holcim reported that, excluding its North American operations, the remaining business generated net sales of 16.3 billion Swiss francs ($18.48 billion) last year, with a recurring EBIT margin of 17.4%.
From 2025 to 2030, the company expects to have between 18 billion and 22 billion francs available for capital deployment.
These funds will be used for organic growth, mergers and acquisitions (M&A), and progressive dividends. Holcim also noted that any excess capital may be allocated toward large acquisitions and opportunistic share buybacks.
“Holcim is best positioned through NextGen Growth 2030 to benefit from the powerful megatrends shaping the future of construction, from urbanization to energy-efficient refurbishment,” said Miljan Gutovic, CEO of Holcim.
As part of its long-term strategy, Holcim aims to expand its building solutions segment—ranging from building systems to high-performance concrete—to account for 50% of the group’s total sales, while the other half will come from traditional building materials like cement and aggregates.
“If targets are hit, we see profit growth of 40% between now and 2030,” RBC Capital Markets analysts commented. “These are big and bold targets, and we are looking forward to seeing how Miljan Gutovic’s footwear compares to Jan Jenisch’s.”
Holcim recently confirmed that the listing of Amrize remains on track for completion by the end of the first half of 2025. The company initially targeted a $30 billion valuation when it announced the spinoff in January 2024.
The Amrize separation is expected to be one of the largest transactions in the global construction industry, which is currently facing challenges from tariffs on key materials such as steel and aluminum imposed by U.S. President Donald Trump.
Holcim shareholders must approve the spinoff at the company’s annual general meeting on May 14. If approved, Amrize will be listed on both the New York Stock Exchange and the SIX Swiss Exchange.