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Holcim upgrades full-year guidance after Q2 profit beat

Holcim's?second-quarter sales and earnings were better than expected on Friday, as the building materials manufacturer upgraded its outlook for the full year.

The Swiss company reported that it was seeing an increase in demand for its low-carbon cement products and recycled demolition and construction materials. All of these factors boost profits.

Holcim also saw a rise in sales in Germany and Switzerland as well as in Spain, Eastern Europe and Mexico. Demand for housing and infrastructure in Mexico, Peru, and Central America was also strong.

Holcim's sales grew 6.4% in the second quarter to $4.41 billion Swiss Francs ($5.46 billion), exceeding expectations of 4.27 billion Swiss Francs, according to a consensus within the company.

Recurring Operating Profit (EBIT), which is a measure of recurring profit, rose by 13.1% to 1.01 billion Francs. This was higher than the forecasted 958 million Francs.

In a press release, CEO Miljan Gutovic said that "building?on our results?and on our resilient and proven model across all economic and market conditions we upgraded our guidance for the full year 2026."

Holcim is a manufacturer of cement, roofing and walling products. It now expects to achieve a 5% growth in organic sales by 2026. This will be adjusted for currency effects and acquisition effects.

It expects its recurring EBIT to increase by 10 percent over its previous guidance, which was for an increase between 8% and 10%.

The results were in contrast to those of rival Heidelberg Materials, who on Thursday cut its profit forecast for 2026, citing inflation and high financing costs as factors that would continue to impact global residential construction. Energy costs are also a major factor. $1 = 0.8070 Swiss Francs (Reporting and Editing by Miranda Murray, Mrigank Dhaniwala).

(source: Reuters)