Holcim upgrades full-year guidance after Q2 profit beat
Holcim’s Q2 Performance and Upgraded Outlook
By John Revill
Stronger-Than-Expected Q2 Results
ZURICH, July 31 (Reuters) - Holcim reported better-than-expected second quarter sales and earnings on Friday as the building materials maker upgraded its full-year outlook.
Drivers of Growth: Sustainability and Regional Demand
The Swiss company said it was seeing increased customer demand for its lower-carbon cement and concrete products, while increasing use of recycled construction and demolition materials, all of which boost profit margins.
Holcim was also seeing rising sales in Germany, Switzerland, Spain and Eastern Europe, and strong demand for housing and infrastructure projects in Mexico, Peru and Central America.
Financial Highlights
During the second quarter, Holcim saw sales rising 6.4% to 4.41 billion Swiss francs ($5.46 billion), beating forecasts for 4.27 billion francs in a company-gathered consensus.
Recurring operating profit (EBIT) rose 13.1% to 1.01 billion francs, beating forecasts for 958 million francs.
CEO Statement and Upgraded Guidance
"Building on our strong results and our resilient and proven business model across all economic cycles and market conditions, we upgrade our full-year 2026 guidance," said CEO Miljan Gutovic in a statement.
Holcim, which makes cement, roofing, walling and other building products, said it now expected to achieve a 5% increase in organic sales in 2026, which are adjusted for currency and acquisition effects, up from its previous view for an increase in the range of 3% to 5%.
It also expects to improve its full-year recurring EBIT by 10%, above its previous guidance for an increase of 8% to 10%.
Industry Comparison
The results contrasted with rival Heidelberg Materials, which on Thursday cut the upper end of its 2026 profit outlook, saying inflation and high financing costs would likely continue to weigh on global residential construction, with energy costs being a key driver.
($1 = 0.8070 Swiss francs)
(Reporting by John Revill, Editing by Miranda Murray and Mrigank Dhaniwala)
