Business
Holcim : First Quarter 2026 Trading Update - Analyst presentation
Holcim : First Quarter 2026 Trading Update - Analyst
About this update from Holcim Ltd
Q1 2026 TRADING UPDATE 24 April 2026 MILJAN GUTOVIC | CEO STEFFEN KINDLER | CFO BUSINESS REVIEW 2 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE STRONG START TO THE YEAR CHF 3.5 bn NEĪ S6LES +3.9% OG Robust organic growth in net sales powered by leading positions in highly attractive markets, gaining significant momentum in March CHF 0.4 bn RECURRING EBIĪ +8.3% OG Strong organic growth in recurring EBIĪ, driven by our premium and sustainable product offering, strict cost discipline and operational excellence 12.2% REC. EBIĪ M6RGIN -90 bps Margin impacted by scope effects in the first quarter CEMENTOS PACASMAYO CLOSED 6cquisition of a majority stake in Cementos Pacasmayo completed FY 2026 GUID6NCE CONFIRMED Net sales: 3% to 5% organic growth Recurring EBIĪ: 8% to 10% organic growth with further margin increase Free cash flow: ~CHF 2 bn 3 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Note: Comparative information in this presentation is restated for discontinued operations REGIONAL HIGHLIGHTS - EUROPE Key financials Strong sales momentum in March partially offset weather impact Positive price over cost Highlights Use of alternative fuels 1 increased to 70%, future-proofing Holcim from energy price exposure Īwo value-accretive acquisitions in Belgium and Romania Outlook Infrastructure investments providing strong outlook Increase in residential building permits in several countries 4 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE 1 6lternative fuels as %, also known as Īhermal Substitution Rate (ĪSR), is the ratio of thermal energy consumption of alternative fuels to the total amount of thermal energy consumption in the cement kiln system Note: French West Indies, previously reflected under Latin 6merica, is now reported under the geographical region of Europe to align with the current internal management structure REGIONAL HIGHLIGHTS - LATIN AMERICA Key financials Net sales up 7.6% organically driven by Mexico, Central 6merica and Ecuador Recurring EBIĪ margin of 30.6% Highlights Completed acquisition of a majority stake in Cementos Pacasmayo Signed acquisition in Colombia with one integrated cement plant and >20 production sites Outlook Social housing project with 1.8 m new homes 1 and infrastructure to accelerate growth in Mexico High demand for housing and infrastructure in Central 6merica 5 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE 1 Conavi Comision Nacional de Vivienda Note: French West Indies, previously reflected under Latin 6merica, is now reported under the geographical region of Europe to align with the current internal management structure REGIONAL HIGHLIGHTS - ASIA, MIDDLE EAST & AFRICA Key financials Strong organic recurring EBIĪ growth of 26.3% Continued margin expansion reaching 22.0%, up 100 bps Highlights Good demand trends continued in North 6frica and 6ustralia Value-accretive acquisition in New Zealand and further portfolio optimization Outlook Further growth in North 6frica driven by infrastructure and residential projects Good momentum in 6ustralia, e.g. Rocky Ring Road, North East Link project and 2032 Olympic Games in Brisbane 6 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE ORGANIC GROWTH IN NET SALES OF 3.9% Q1 Net sales bridge CHF m and % change 3 696 +3.9% -2.8% -5.6% 3 520 +136 -104 -207 ʘ1 2025 Organic growth M&6 FX ʘ1 2026 7 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE ORGANIC GROWTH IN RECURRING EBIT OF 8.3% Q1 Recurring EBIT bridge CHF m and % change 485 +8.3% -13.0% -5.5% 431 +35 -63 -26 ʘ1 2025 Organic growth M&6 FX ʘ1 2026 8 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE FUTURE-PROOFING HOLCIM FROM ENERGY PRICE EXPOSURE Driving fuel and electricity cost reduction through operational excellence in manufacturing Scaling up renewables with Power Purchase 6greements and waste heat recovery to optimize cost Increasing the use of alternative fuels to 50% globally and 90% in Europe by 2030 Alternative fuels 1 Energy costs 2 Leading the European energy transition with 14 cement plants already between 80% - 100% alternative fuel use 28% 39% 2022 2025 8% 11% 2022 2025 9 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Note: Figures as reported 1 6lternative fuels as %, also known as Īhermal Substitution Rate (ĪSR), is the ratio of thermal energy consumption of alternative fuels to the total amount of thermal energy consumption in the cement kiln system 2 Fuel & electricity costs as a % of sales FURTHER EXPANSION OF INDUSTRY-LEADING MARGIN 17.7% 17.0% 2 869 2 822 2 784 18.1% Q1 Recurring EBIT and margin ʘ1 2024 ʘ1 2025 ʘ1 2026 12M rolling recurring EBIĪ (CHF m) % 12M rolling recurring EBIĪ margin 10 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE DIVERSE PORTFOLIO DRIVING PROFITABLE GROWTH Europe Latin America Asia, Middle East & Africa 30.6% -230 bps 22.0% +100 bps -2.3% -7.1% +7.6% +0.1% +8.9% +26.3% 1 902 767 701 236 119 164 -60 bps 6.2% RECURRING EBIĪ M6RGIN & V6RI6NCE NEĪ S6LES Īo external customers (CHF m) RECURRING EBIĪ (CHF m) % ORG6NIC GROWĪH / DECLINE 11 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Note: Margin expressed as recurring EBIĪ divided by total net sales French West Indies, previously reflected under Latin 6merica, is now reported under the geographical region of Europe to align with the current internal management structure STRATEGY UPDATE New picture 12 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE NEXTGEN GROWTH 2030 DRIVING SUPERIOR PERFORMANCE Enhancing our leading positions with our sustainable offering powered by premium brands Decarbonization and circular construction driving profitable growth Expansion of high-value Building Solutions capturing new profitable market segments INDUSTRY-LEADING RECURRING EBIT MARGIN 18.1% in ʘ1 2026 1 Continuous value-accretive M&A with focus on the most attractive markets Embedded performance culture delivering superior financial performance 13 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE 1 12M rolling recurring EBIĪ margin SCALING SUSTAINABLE OFFERING TO MEET CUSTOMER DEMAND Simone Veil Bridge in Bordeaux, France Built with ECOPlanet inside Cardinales Cofico in Córdoba, 6rgentina Built with ECOPact inside 31% 39% Q1 2026 Q1 2026 % of ready-mix net sales % of cement net sales 29% 35% Q1 2025 Q1 2025 14 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Note: 2025 figures are restated for discontinued operations and other material changes in scope SCALING SUSTAINABLE OFFERING TO MEET CUSTOMER DEMAND Eco-district in Pontcharra, France ECOCycle is being used to rebuild 90 social housing units 1.8 +24% Q1 2026 (million tons) Volume of recycled construction demolition materials (CDM) 1.5 Q1 2025 15 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Note: 2025 figures are restated for discontinued operations and other material changes in scope WELCOMING CEMENTOS PACASMAYO TO THE HOLCIM FAMILY Holcim completed its acquisition of a majority stake in Cementos Pacasmayo in March 2026. Īhe acquisition is a milestone in Holcim's Latin America expansion, bringing a complementary portfolio of building materials and solutions in Peru. EXPANDING IN LATIN AMERICA 16 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE 5 VALUE-ACCRETIVE TRANSACTIONS CLOSED Strengthening leadership in Building Materials Expanding in high-value Building Solutions 6cquisitions Cementos Pacasmayo Peru (cement mainly) Uranus Pluton SRL Romania (aggregates) Divestments Holcim Liban S.A.L. Lebanon & Cyprus (cement) 6cquisitions New pic Jacobs NV Belgium (ready-mix concrete) Ready-Mix business of Stevenson Group New Zealand (ready-mix concrete) 17 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE AI UNLOCKING GROWTH AND VALUE CREATION LOGISTICS Optimizing supply chain and distribution network COMMERCIAL Enhancing customer experience across the full value chain PRODUCTION By 2028 CHF 200 m Rec. EBIĪ powered by 6I initiatives 1 Driving manufacturing and procurement excellence ADMINISTRATION Simplifying processes and boosting productivity Growth investments of ~CHF 20 million per year to accelerate AI adoption at scale 18 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE 1 Net benefits includes cost reduction and cost avoidance AI DEPLOYMENT PROGRESSING AT SCALE - KEY INITIATIVES PRODUCTION EXAMPLES 10 initiatives HOLCIM 6I-powered prediction models for equipment performance, optimizing maintenance efficiency and driving operational excellence LOGISTICS 10 initiatives 6I-powered forecasting models for sales and inventory, optimizing fleet and network utilization COMMERCIAL 8 initiatives 6I-powered customer platform for integrated demand forecasting, planning, ordering and delivery with real-time tracking 24/7 ADMINISTRATION 10 initiatives HOLCIM 6I-powered talent marketplace, matching Holcim's people to business opportunities to create value and nurture talent 19 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE OUTLOOK 20 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE GUIDANCE 2026 2026 growth in line with NextGen Growth 2030 targets: 3% to 5% organic net sales growth 8% to 10% organic recurring EBIT growth Further increase of recurring EBIT margin Free cash flow of around CHF 2 billion >20% growth in recycled construction demolition materials 21 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE Unlocking significant growth opportunities in Europe, L6Ī6M & 6ME6 and Building Solutions 3 Best positioned to profit from powerful megatrends shaping the future of construction 2 Leader in the most attractive markets with a sustainable offering powered by premium brands 1 HOLCIM: A HIGHLY COMPELLING INVESTMENT Driving shareholder value through growth-focused capital allocation and attractive cash returns 5 Embedded performance culture delivering superior financial performance with industry-leading margins 4 22 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE UPCOMING EVENTS AND CONTACTS 6nnual General Meeting Half-year 2026 results ʘ3 2026 trading update Full-year 2026 results May 13 July 31 October 23 February 25 Holcim Investor Relations Email: [email protected] Phone: +41 58 858 87 87 Bernd Pomrehn Head Investor Relations [email protected] Bénédicte Mayer Senior Investor Relations Manager [email protected] Īia Oreskovic Investor Relations Manager [email protected] 23 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE APPENDICES 24 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE HOLCIM'S ESG LEADERSHIP RECOGNIZED BY RATINGS AGENCIES SUSTAINALYTICS RECOGNIZES HOLCIM AS #1 IN THE SECTOR A List, Climate & Water Only 4% of companies rated reached the double 6 List in 2025 Low Risk Rating Ranked #1 out of 119 companies in the sector A Score, Leader Best-in class in governance, scope 3 and value chain engagement B-, Prime Status Ranked in the top 8% vs companies in the sector AAA Leader among construction materials sector ESG Index Inclusion Significantly exceeded the industry average score 25 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE GLOSSARY Definitions Organic growth: Organic growth information factors out changes in the scope of consolidation (such as divestments and acquisitions occurring in the current year and the prior year) and currency translation effects (current-year figures are converted with prior-year exchange rates in order to calculate the currency effects). Abbreviations Bps: Basis points CDM: Construction demolition materials EBIT: Earnings before interest and taxes TSR: Īhermal substitution rate 26 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE DISCLAIMER By accessing this presentation (and the information contained herein), you agree to be bound by and liable for breach of the following terms and conditions: Īhe presentation (and the information contained herein) is provided to you by Holcim Ltd ("Holcim") and/or any of its subsidiaries or affiliates (together with Holcim, collectively, the "Holcim Group") on a confidential basis. You hereby undertake, unconditionally and without any limitation or restriction (i) not to disclose, re-distribute, pass on and or make available, whether directly or indirectly, all or part of the presentation (and the information contained herein) to any third-party (including, but not limited to, the press) and (ii) not to publish or reproduce all or part of the presentation (and the information contained herein). Īhe information contained in this presentation has been prepared as of the date of this presentation. In providing this presentation (and the information contained herein), no legal entity of the Holcim Group undertakes any obligation to (i) provide you with access to any additional information, (ii) to update the information contained herein or any additional information or (iii) to correct any inaccuracies in the information contained herein, which may become apparent. Īhis presentation does not constitute, or form part of, any offer or invitation to (i) sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of any legal entity of the Holcim Group, or (ii) to enter into any contract, agreement or commitment whatsoever with any legal entity of the Holcim Group. Īhis presentation is for informational use only and does not constitute a prospectus within the meaning of the Swiss Financial Services 6ct ("FinS6") or under the applicable laws of any other jurisdiction. Neither this presentation (nor the information contained herein), nor any part of it, (i) constitutes investment advice, and/or (ii) should form the basis of, or be relied on in connection with, any purchase, sale or subscription of any securities of any legal entity of the Holcim Group and/or (iii) should be relied on in connection with any contract, agreement or commitment whatsoever. Īhe information contained herein has been obtained from sources believed by Holcim to be reliable. Whilst all reasonable care has been taken to ensure that the information stated herein is accurate and that the opinions and expectations contained herein are fair and reasonable, neither have been independently audited, reviewed and/or verified and no representation or warranty, expressed or implied, is or will be made by any legal entity of the Holcim Group with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information, opinions and/or expectations contained herein. In particular, certain of the financial information contained herein has been derived from sources such as accounts maintained by management of Holcim in the ordinary course of business, which have not been independently verified or audited and may differ from the results of operations presented in the historical audited financial statements of Holcim and/or any other legal entity of the Holcim Group. No legal entity of the Holcim Group, nor any of their respective directors, officers, managers, employees, consultants, advisers, agents or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of this presentation (and the information contained herein), or any action taken by you or any of your directors, officers, managers, employees, consultants, advisers, agents or representatives on the basis of this presentation (and the information contained herein) or otherwise arising in connection therewith. Īhis presentation (and the information contained herein) may contain forward-looking statements, estimates and projections. 6ll statements herein, other than statements of historical fact, are forward-looking statements, including, but not limited to, forward-looking statements regarding the Holcim Group's business, earnings performance and opportunities for potential growth, all of which are based on Holcim's management's current plans, estimates, forecasts and expectations. Īhese forward-looking statements are subject to a number of assumptions and entail known and unknown risks and uncertainties, which may cause actual results, performance and developments to differ materially from any expected results, performance and developments expressed or implied by such forward-looking statements. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation and/or warranty that such trends and activities will continue in the future. 6lthough Holcim believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ. 6s a result, you should not rely on any forward-looking statements. No legal entity of the Holcim Group undertakes any obligation to update or revise any forward-looking statements in the future or to adjust them in line with future events or developments, except to the extent required by applicable law. Holcim makes no representations or warranties as to the accuracy of any projections, statements or information contained in this presentation. It is understood and agreed (i) that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond Holcim's control, (ii) that no assurance can be given that any particular financial projections ranges, or targets will be realized, and (iii) that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, Holcim believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. Īhe assumptions and estimates underlying the projected, expected or targeted results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. Īhe inclusion of financial projections, estimates and targets in this presentation should not be regarded as an indication that Holcim or its representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events. Photo credits slide 15: 6rchitects: GĪB 6rchitecte Īechnical consultant: SOR6EĪEC Īechnical consultant: ĪERRE ECO Contractor: ĪDM 27 24 6pril 2026 ʘ1 2026 ĪR6DING UPD6ĪE