Sika Raises Sales Growth Outlook Following Strong First-Half Performance
Strong First-Half Results and Upgraded Outlook
Better-Than-Expected Revenue Performance
July 28 (Reuters) - Swiss construction chemicals maker Sika raised its annual sales-growth outlook on Tuesday after reporting better-than-expected first-half revenue, as market-share gains helped it outperform a muted global construction market.
Sales-Growth Outlook Revision
Sika, whose products are used to strengthen and waterproof walls and floors in data centres and other buildings, raised its sales-growth full-year outlook in local currencies to 3%-6%, from an earlier range of 1% to 4%.
First-Half Financial Highlights
The Baar-based company said its sales in the six-month period ended June 30 fell 1.5% to 5.59 billion francs ($6.83 billion), but still exceeded analysts' expectations of 5.44 billion francs, according to a Visible Alpha consensus.
CEO Statement on Performance
"Our year started strongly against a muted market and geopolitical uncertainty. Our continued share gains across our markets enable us to raise our revenue growth guidance... We are comfortable with current consensus CHF EBITDA expectations," Sika CEO Thomas Hasler said in a statement.
In local currencies, the company's sales advanced 4%.
Challenges and Market Context
Currency Headwinds Impact
The company delivered the forecast upgrade despite currency headwinds that weighed on several Swiss firms during the first half of 2026. Companies including pharmaceutical giant Roche reported a significant impact from the strong Swiss franc, which surged on safe-haven demand following the outbreak of the Iran war before easing in recent weeks.
Limited Middle East Exposure
Sika has previously said the turmoil in the Middle East had a limited effect on its business, as the region accounts for only about 4% of group revenue.
Profitability and Margin Guidance
EBITDA Performance
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.06 billion Swiss francs for the first half, exceeding analysts' expectations of 1.02 billion francs.
Updated EBITDA Margin Forecast
It now expects earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 19% to 19.5%, down from an earlier forecast of 19.5% to 20%.
Exchange Rate Information
($1 = 0.8184 Swiss francs)
Reporting Credits
(Reporting by John Revill in Zurich and Anusha Shah in Bengaluru; Editing by Sherry Jacob-Phillips)
