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Sika (SIKA) investor relations material

Sika Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary24 Oct, 2025

Executive summary

  • Achieved 1.1% sales growth in local currencies for the first nine months, despite a double-digit decline in China's construction market and a -4.9% FX impact from a weaker US dollar.

  • Organic growth was flat year-to-date, with acquisitions contributing 1.1% to growth; excluding China, organic growth was 1.7%.

  • Five acquisitions and seven new factories strengthened the market position; MBCC integration completed with synergy realization on track.

  • Launched the Fast Forward investment and efficiency program, targeting CHF 150–200 million in annual savings by 2028, with significant restructuring in China and up to 1,500 job reductions.

  • Fast Forward program includes CHF 120–150 million in investments and CHF 80–100 million in one-off costs, focusing on digital acceleration and operational excellence.

Financial highlights

  • Net sales declined 3.8% to CHF 8,578.1 million, mainly due to FX impact.

  • Gross margin increased to 55.0% (up 30 bps YoY), driven by MBCC synergies and operational efficiencies.

  • EBITDA margin rose to 19.2% (up 10 bps YoY), but absolute EBITDA fell 3.3% to CHF 1.645 billion due to FX effects.

  • EBIT margin decreased to 14.4%; net profit margin declined to 10.1–10.2% of sales, with net profit at CHF 870.9 million.

  • Operating free cash flow was CHF 630 million, down 25.9% year-over-year, mainly due to FX and higher working capital.

Outlook and guidance

  • 2025 outlook: modest net sales increase in local currency and EBITDA margin of ~19%, including one-off Fast Forward costs.

  • Medium-term (2026): EBITDA margin guidance of 20%+; 2026–2028 net sales growth expected at 3–6% in local currency.

  • Cash conversion target of >10% of net sales reaffirmed for 2025 and 2026.

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Frequently asked questions

Sika AG manufactures and supplies specialty chemicals for construction and industrial applications. Its products include admixtures, sealants, waterproofing systems, adhesives, and structural reinforcement materials. The company serves sectors such as building, automotive, and infrastructure. The company is headquartered in Baar, Switzerland, and its shares are listed on the SIX.

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