Sika reports better-than-expected annual profit

ZURICH, Feb 20(Reuters) - Swiss construction and automotive chemicals maker Sika expects 2026 sales to rise between 1% and 4% in local currencies, the company said on Friday, and reported better-than-expected annual profit.

The company, which makes additives used in projects such as the Elbphilharmonie Concert Hall in Hamburg and the Grand Egyptian Museum in Giza, said its operating profit before depreciation (EBITDA) fell to 2.06 billion Swiss francs, taking a hit from one-off costs.

The figure, however, beat forecasts of 2.05 billion Swiss francs in a consensus of analysts gathered by Vara.

Net income fell to 1.04 billion Swiss francs, below forecasts for 1.07 billion francs.

Sika, which has been wrestling with a downturn in China and a stronger Swiss franc, last month posted annual sales down 4.8% to 11.2 billion Swiss francs.

"We expect global market conditions in the construction industry to remain muted in 2026, with a continuation of the market trends seen in 2025," CEO Thomas Hasler said in a statement.

For the rest of the year, the company said it sees an EBITDA margin of 19.5% to 20%, and confirmed its medium-term growth targets for 2028.

(Reporting by John Revill; Editing by Janane Venkatraman)