Sika posts lower nine-month sales, plans up to 1,500 job cuts

By John Revill

ZURICH (Reuters) -Swiss industrial and construction chemicals maker Sika reported a drop in nine-month sales on Friday and said it would implement structural changes in its persistently weak markets, including cutting up to 1,500 jobs.

The company, whose chemical additives are used to strengthen and waterproof building materials in walls, floors and roofs, said its sales fell 3.8% to 8.58 billion Swiss francs ($10.82 billion) in the nine months ended September 2025.

The sales figure fell short of the 8.63 billion franc forecast from Zuercher Kantonalbank and Bank Vontobel, weighed down by a strong Swiss franc and a weaker Chinese construction market.

Sales were up 1.1% when measured in local currencies, which remove the translation effect of the Swiss franc.

ONE-OFF CHARGES

Sika said it expected one-off charges of 80 million to 100 million francs in 2025, tied to structural adjustments in its underperforming markets such as China.

It also plans to spend 120 million to 150 million francs as part of its broader investment and efficiency programme, which is aimed at saving 150 million to 200 million francs per year, with the full impact expected by 2028.

CEO Thomas Hasler said Sika was "proactively addressing" ongoing market weakness, adding that the company had continued to grow and gain market share despite market headwinds.

Earnings before interest, depreciation and amortisation (EBITDA) fell 3.3% to 1.64 billion francs, slightly missing forecasts of 1.65 billion francs.

The company said it had not been affected by Washington's tariffs.

The U.S. is Sika's biggest market accounting for 27% of its total sales. The chemical maker has 50 plants in the U.S. employing about 4,000 people and produces all of its products locally.

Sika, whose results are considered an indicator of the health of the construction industry, said its sales into the sector were up 1.2% in local currencies. Sales for industrial manufacturing were up 1.1% in local currencies.

The company, which has made five acquisitions in 2025, said it was rebasing its medium-term growth target of 3%–6% in local currencies.

In July, Sika forecast a "modest" increase in full-year sales when measured in local currencies, citing market uncertainties.

On Friday, it said it expected its EBITDA margin to be about 19% after one-off costs. Excluding these costs, it expects an EBITDA margin of between 19.5% and 19.8%.

($1 = 0.7931 Swiss francs)

(Reporting by John Revill and Ananya Palyekar; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)