Holcim posts record North America earnings in first half

North America delivered record performance, with recurring EBIT up 18% on revenue of CHF 4.9 billion ($6 billion), driven by infrastructure demand and margin gains in its Solutions & Products segment.

“In North America, our business is firing on all cylinders; strong demand, great pricing, and operational excellence,” said CEO Miljan Gutovic.

Latin America also performed strongly, with high EBIT margins and expansion of the Disensa retail network, which added 170 stores during H1.

Gutovic said the group was integrating new waterproofing, flooring, and construction chemical acquisitions into Disensa’s channels:

On the whole, the group reaffirmed its full-year guidance and pointed to a strong pipeline of infrastructure projects in the second half of the year.

Sustainable products help Holcim’s first half in Europe

Render of a new tower planned for the Wood Wharf neighbourhood at Canary Wharf in London, UK. Image courtesy Canary Wharf

CFO Steffen Kindler said margin expansion was underpinned by low to mid-single-digit pricing and disciplined cost control, particularly in distribution and support services.

Despite softer volumes in Europe, Holcim saw margin improvement in the region thanks to demand for its ECOPlanet and ECOPact low-carbon cement products and ongoing M&A activity in building solutions.

Gutovic highlighted projects such as the Ellinikon in Athens and London’s Wood Wharf as showcases for its end-to-end circular construction strategy.

Across all regions, Holcim closed 11 acquisitions and three divestments in H1, including the sale of its UK ready-mix and aggregates business to Breedon Group. Gutovic said additional bolt-on deals were expected by year-end, with a focus on roofing, waterproofing, and energy-efficient materials.

Outlook: infrastructure tailwinds and cautious optimism

Gutovic described the outlook for the second half as “equally or even better than H1”, citing residential recovery in parts of Europe and a full pipeline of projects in Mexico, including a planned 5,000km rail network and major water and energy investments.

“In Mexico, our margins are well above the average for Latin America,” he said, adding that 180,000 new homes were already under construction as part of a government plan to build up to 1.5 million.

Globally, Holcim reiterated its guidance for full-year local currency EBIT growth of 6–10%, net sales growth of 3–5%, and more than CHF 2 billion ($2.5 billion) in free cash flow before leases. The company expects to grow its recycled construction and demolition materials by more than 20% this year.

“We are making good progress in transforming Holcim into a leader in innovative and sustainable building solutions,” added Gutovic.

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