Holcim (HOLN) Q3 2024 TU earnings summary

Executive summary

• Achieved record Q3 recurring EBIT of CHF 1.674 billion with a margin of 23.5%, up 170 bps year-over-year, driven by strategic focus and execution.

• Nine-month net sales reached CHF 19.933 billion, up 1.2% in local currency, with broad-based growth across all business segments and regions.

• Six value-accretive acquisitions in Q3 expanded Solutions & Products and strengthened positions in Europe, Latin America, and circular construction.

• Advanced sustainability initiatives, including a 23% increase in recycled construction and demolition materials and securing a seventh EU-funded carbon capture project.

• On track to achieve full-year 2024 guidance, with strong performance across all markets.

Financial highlights

• Q3 recurring EBIT increased by 9.1% in local currency and 4.6% in CHF, reaching CHF 1.674 billion; margin improved to 23.5% from 21.8% year-over-year.

• Nine-month recurring EBIT up 11.1% in local currency and 6.6% in CHF, reaching CHF 3.884 billion; margin at 19.5%, up 160 bps year-over-year.

• Net sales for nine months grew 1.2% in local currency, with organic growth and M&A offsetting FX headwinds; FX impact of -3.5% (CHF 715 million).

• Free cash flow target for 2024 remains above CHF 3 billion, with historical reliability in exceeding this threshold.

Outlook and guidance

• Full-year 2024 guidance confirmed: net sales low single digit in local currency, EBIT margin above 18.5%, strong cash generation, and 10 million tons of recycled materials (+20% YoY).

• North America expected to remain robust, driven by federal/state investments and mega projects; residential recovery anticipated in 2025 with interest rate cuts.

• Gradual price increases expected in 2025, with more details to be provided in early 2025.

• North America business listing in the U.S. on track for H1 2025.