par LAFARGEHOLCIM LTD (EPA:LHN)
Excellent 2025 results, double-digit recurring EBIT growth with industry-leading margin of 18.3%
Holcim Group Services Ltd / Key word(s): Annual Results
“We delivered strong profitable growth in 2025, with a double-digit recurring EBIT increase in local currency1 and an industry-leading margin of 18.3%. Margin expansion was driven by strong cost discipline, operational excellence and the scaling up of our sustainable offering to meet increased customer demand. “Holcim completed 21 transactions in 2025 to focus on the most attractive markets. As previously announced, we signed agreements to acquire Xella, a European leader in sustainable and innovative walling systems, and to take a majority stake in Cementos Pacasmayo, a leading producer of building materials in Peru. Both transactions are subject to regulatory and customary closing conditions. “Building on our strong 2025 results, we are guiding for 2026 toward net sales and recurring EBIT growth in line with NextGen Growth 2030 targets, as well as further expansion of our recurring EBIT margin, free cash flow of around CHF 2 billion, and a >20% increase in recycled construction demolition materials.” 1 Growth in local currency (LC) excluding large M&A. 2 Before impairment and divestments and from continuing operations.
1 Comparative information restated for discontinued operations, except for net financial debt. 2 Growth in local currency excluding large M&A. 3 From continuing operations. Post spin-off, the free cash flow is presented before leases to allow better comparability with peers and align with industry practices.
In the fourth quarter, recurring EBIT rose at an accelerated pace of 12.2% in LC1 compared to the prior-year period to reach CHF 601 million. Fourth-quarter net sales of CHF 3 818 million rose 3.4% in LC1 versus the fourth quarter of 2024. Full-year net sales of CHF 15 724 million for 2025 were up 3.0% in LC1 compared to the prior year. Recurring EBIT reached CHF 2 876 million for 2025, up 10.3% in LC1 compared to the prior year, exceeding the top end of Holcim’s guidance. Holcim’s performance more than offset strong foreign exchange effects, with full-year recurring EBIT up 1.4% in Swiss franc versus the prior-year period. Full-year earnings per share (EPS)2 of CHF 0.70 is impacted by the non-cash realization of currency translation differences following the divestment of Holcim’s business in Nigeria. The EPS before impairment and divestments2 rose 5% to 3.22. 1 Growth in local currency (LC) excluding large M&A. 2 From continuing operations.
Focused investment in attractive markets
Holcim completed 21 transactions in 2025 to sharpen its geographical footprint and focus on the most attractive markets and business segments.
A total of 18 value-accretive acquisitions were completed. Building Materials was strengthened with nine acquisitions; Building Solutions expanded with nine acquisitions.
Holcim further optimized its portfolio by closing three divestments: its businesses in Jordan and Nigeria, as well as Karbala Cement Manufacturing Ltd in Iraq.
In October 2025, Holcim signed an agreement to acquire Xella, a European leader in sustainable and innovative walling systems with projected 2026 net sales of EUR 1 billion. The transaction is subject to customary conditions and regulatory approvals, and expected to close in H2 2026.
In December 2025, Holcim signed an agreement to acquire a majority stake in Cementos Pacasmayo, a leading Peruvian producer of building materials with reported 2025 net sales of USD 0.6 billion. It is expected to close in H1 2026, subject to customary conditions and regulatory approvals.
As part of its growth-focused capital allocation, Holcim is making organic investments with attractive returns and paybacks. Examples already commissioned include the installation of a vertical roller mill in Mexico, a new calcined clay production line in Ecuador, expansion of alternative fuels usage in Croatia, and a new precast factory in Australia.
The company signed an agreement this month with Air Liquide to deepen collaboration on carbon capture technology at the GO4ZERO project at Holcim’s Obourg plant in Belgium. The first phase of the plant's upgrade is in full execution and scheduled for completion in the first half of 2027. This will make Obourg the industry's most efficient state-of-the-art plant, ahead of it supplying near-zero cement at scale.
Sustainability driving profitable growth Customer demand for Holcim’s sustainable offering continued to increase. In 2025, net sales of Holcim’s low-carbon ECOPact concrete increased to 31% of ready-mix net sales compared to 26% in the prior year1, while net sales of ECOPlanet increased to 36% of cement net sales versus 34% in 20241.
Advancing circular construction, Holcim made three value-accretive acquisitions and invested in organic growth to add a combined 12 new circular construction hubs. The company increased the recycling of construction demolition materials by 23.5% to 8.0 million tons compared to the prior year1.
12024 figures have been restated for material changes in scope.
To further unlock value creation as our NextGen Growth 2030 strategy gains strong momentum, Holcim today makes the following appointments to its Executive Committee, effective 1 March 2026.
Simon Kronenberg, currently Region Head Central and East Europe, is appointed Region Head of Latin America. Joining Holcim in 2007, Simon previously served as CEO of Switzerland, Italy, South Germany, and Haut-Rhin. He succeeds Oliver Osswald, who decided to pursue new opportunities outside of Holcim. We sincerely thank Oliver for his 30 years of service to the company.
Xavier Guesnu, currently Country CEO France, is appointed Region Head Central and East Europe. Joining Holcim in 2010, Xavier previously served as CEO of Poland.
As Holcim expands its high-value sustainable offering, Dragan Maksimovic, currently Region Head West Europe, is appointed Group Head of Building Systems. Dragan joined Holcim in 2021 as CEO of Holcim UK, a position he held until April 2024.
Grant Earnshaw, currently Area Manager Middle East and Africa, is appointed Region Head West Europe. Having joined Holcim in 1999, Grant has held General Management and CEO roles across Europe, the Middle East and Africa.
Guidance 2026 Holcim’s NextGen Growth 2030 strategy is expected to continue to drive superior performance and value creation. Building on its strong 2025 results, Holcim expects for FY2026:
Group results by product line Holcim’s two customer-focused product lines are Building Materials and Building Solutions, which together provide customers with end-to-end solutions from foundation and flooring to walling and roofing, across the built environment from infrastructure and commercial to residential.
Building Materials covers an extensive range of cement and aggregates for customers, focusing on decarbonized cement and circular aggregates. Building Solutions comprises energy-efficient building systems and high-performance concrete and surfacing.
1 Comparative information restated for discontinued operations and new management structure. 2 Growth in local currency excluding large M&A.
Europe Recurring EBIT growth accelerated in the fourth quarter, rising 12.8% in LC1, to finish up 7.4% in LC¹ for the full year. There was a strong 140 basis point expansion in margin for the full year, driven by customer demand for Holcim’s sustainable offering, and an acceleration in decarbonization and circular construction. Strong activity in infrastructure, as well as a surge in residential building permits, is expected to drive continued profitable growth. 1 Excluding large M&A.
1 Azerbaijan, previously reflected under Europe, is now reported under the geographical region of Asia, Middle East & Africa to align with the new internal management structure. This change has been applied retrospectively, and prior-year figures have been restated accordingly. 2 Comparative information restated for new management structure. 3 Growth in local currency excluding large M&A.
Latin America delivered double-digit net sales growth in LC1 in 2025 with a recurring EBIT margin above 30%. Disensa, the region’s largest construction materials retail franchise, continued to grow strongly with 460 additional stores opened over the year, reaching a total of 2 365. A good pipeline of infrastructure projects is expected to accelerate growth in Mexico, with Central America and newly acquired operations also driving growth. 1 Excluding large M&A.
1 Comparative information restated for new management structure. 2 Growth in local currency excluding large M&A.
The region delivered a strong 14.1% rise in recurring EBIT in LC1 in 2025, with an outstanding 220 basis point growth in margin. Performance was driven by government spending and substantial residential market growth in North Africa, as well as customer demand for Holcim’s sustainable offering across the region. Holcim is well positioned to benefit from large-scale infrastructure projects across countries. Strong demand in North Africa is expected to continue and there is a positive outlook in Australia. 1 Excluding large M&A.
1 Azerbaijan, previously reflected under Europe, is now reported under the geographical region of Asia, Middle East & Africa to align with the new internal management structure. This change has been applied retrospectively, and prior-year figures have been restated accordingly. 2 Comparative information restated for new management structure. 3 Growth in local currency excluding large M&A.
Other Profit & Loss Items Restructuring, litigation and other non-recurring costs for 2025 stood at CHF 98 million, Net financial expenses for 2025 were CHF 281 million versus CHF 379 million in the prior year1. The effective income tax rate before impairment and divestments was 24% for 2025. Net income Group share, before impairment and divestments2, increased by 3.9% to CHF 1 779 million and EPS, before impairment and divestments2, was up 5.0% from CHF 3.07 to CHF 3.22 for 2025. Net capital expenditure for 2025 was CHF 973 million. 1 Comparative information restated for discontinued operations. The reconciliation to the Group accounts can be found as an attachment (PDF) to this document and on our website. Additional information Alternative performance measures definitions Some alternative performance measures are used in this release to help describe the performance of Holcim. A full set of these alternative performance definitions can be found on our website.
Analyst presentation and 2025 Integrated Annual Report The analyst presentation of the results and the Holcim 2025 Integrated Annual Report are available on our website.
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2282500 27-Feb-2026 CET/CEST