Holcim posts record 2025 margin after spinoff, signs two deals

Swiss building materials giant Holcim Ltd announced record 2025 financial results on Friday, achieving an 18.3% recurring EBIT margin as it completed the spinoff of its North American business and signed agreements to acquire European walling maker Xella and a majority stake in Peru's Cementos Pacasmayo, continuing its NextGen Growth 2030 strategy. The Swiss company's net sales fell slightly to CHF 15.72 billion from CHF 16.20 billion a year earlier on a restated basis, though growth reached 3% in local currency when excluding large mergers and the North America divestiture effect. Recurring earnings before interest and tax rose 10.3% in local currency to CHF 2.88 billion, while net financial debt more than halved to CHF 3.79 billion from CHF 8.45 billion, with the debt leverage ratio falling to 0.9 times from 1.2 times. Both the Xella and Cementos Pacasmayo transactions remain subject to regulatory approval, with Xella expected to close in the second half of 2026 and Pacasmayo in the first half of the same year. Holcim's proposed dividend was reduced by 45% to CHF 1.70 per share from CHF 3.10, reflecting the smaller post-spinoff scope of the company. The payout requires shareholder approval at the Annual General Meeting on May 13, 2026. Despite the dividend cut, earnings per share before impairment and divestments from continuing operations rose 5% to CHF 3.22. Net income attributable to the group fell 73.4% to CHF 387 million, primarily due to impairment charges and divestment losses. Free cash flow improved to CHF 2.15 billion from CHF 2.12 billion, with cash conversion at 54%. By region, Europe generated recurring EBIT of CHF 1.47 billion at a margin of 17%, up 140 basis points. Latin America delivered a recurring EBIT margin of 30.6%, down 320 basis points, with recurring EBIT of CHF 953 million. Asia, Middle East and Africa posted recurring EBIT of CHF 935 million at a margin of 24.6%, up 220 basis points. Holcim's share price closed at CHF 77.8 on December 31, 2025, a gain of 74.9% for the year, significantly outperforming the Swiss Market Index which rose 14.4% over the same period. The company's market capitalization stood at CHF 44.1 billion.