Holcim (HOLN) Q2 2026 earnings summary

Executive summary

• Achieved strong profitable growth in H1 2026, with recurring EBIT up 11.5% organically to CHF 1,438 million and net sales up 5.2% organically to CHF 7,925 million; Q2 recurring EBIT up 13.1% organically.

• Upgraded full-year 2026 guidance, targeting ~5% organic net sales growth, ~10% organic recurring EBIT growth, further margin increase, and free cash flow of around CHF 2 billion.

• Closed major acquisitions, including Xella (Europe) and Cementos Pacasmayo (Peru), expanding high-value building solutions and Latin America presence.

• Continued execution of NextGen Growth 2030 strategy, focusing on sustainability, innovation, and digital transformation, including AI initiatives targeting CHF 200 million recurring EBIT by 2028.

• Strong performance across all regions, with margin expansion and positive price over cost dynamics.

Financial highlights

• Net sales reached CHF 7,925 million in H1 2026, up 5.2% organically year-over-year; recurring EBIT grew 11.5% organically to CHF 1,438 million; recurring EBIT margin at 18.1%.

• EPS before impairment and divestments increased 7.4% year-over-year to CHF 1.69.

• Free cash flow at CHF 36 million in H1, on track for FY guidance of around CHF 2 billion.

• Net financial debt increased to CHF 7,300 million, up 31.6% year-over-year, maintaining investment grade balance sheet.

• Margin expansion continues, with group margin flat in Q2 due to divestments but expected to rise for the full year.

Outlook and guidance

• Upgraded 2026 guidance: ~5% organic net sales growth, ~10% organic recurring EBIT growth, further margin increase, and free cash flow of ~CHF 2 billion.

• 20% growth in recycled construction demolition materials expected.

• Continued strong infrastructure and residential activity anticipated in Europe, LATAM, and Asia-Pacific.

• Margin expansion anticipated in H2, with positive price over cost expected to continue.