Holcim Exceeds Q1 Expectations Before Amrize Spin-Off
(Reuters) -Swiss construction materials maker Holcim reported better-than-expected first-quarter profit on Friday, in its last results before the spin-off of its North American business Amrize.
Holcim posted recurring operating profit of 515 million Swiss francs ($619 million) for the three months ended March 31, beating forecasts for 494 million francs in a company-compiled consensus.
Sales remained stable at 5.54 billion francs, beating forecasts for 5.49 billion francs.
"Our disciplined M&A execution continued with five value-accretive acquisitions," CEO Miljan Gutovic said in a statement.
"These transactions will strengthen our aggregates and ready-mix businesses in Europe and North America, and our specialty building solutions in Latin America."
Holcim is planning to spin off 100% of Amrize to its shareholders, with the separation expected to be completed in June.
The spin-off is expected to be one of the largest deals in the global construction industry, with the company initially targeting a $30 billion valuation when it was announced in January 2024.
The transaction still requires approval from Holcim's shareholders at the company's AGM on May 14, with Amrize planning listings on the New York Stock Exchange and the SIX Swiss Exchange.
The company outlined its post-split strategy last month, in which it said it was targeting average annual growth in earnings before interest and taxes of 6% to 10% by 2030.
It will focus on Europe, Australia, North Africa, and Latin America, and expand its focus on building solutions, including foundations, flooring, walling, and roofing.
Holcim, which in 2024 had net sales of 16.3 billion francs excluding North America, would have a total estimated capital deployment capacity of 18-22 billion francs from 2025 to 2030, the company said, with the cash earmarked for large acquisitions and share buybacks.
($1 = 0.8317 Swiss francs)
(Reporting by John Revill and Ariane Luthi; Editing by Kim Coghill and Varun H K)
