Holcim profit rises 16.8% in third quarter as company raises annual outlook
Key Facts
Holcim said on 23 October that recurring operating profit for the third quarter of 2026 rose to 976 million Swiss francs, beating the average analyst forecast, and raised its estimate for full-year organic growth in the measure. Profit in the corresponding period of 2025 was about 836 million Swiss francs, according to the company's earnings statement. The year-on-year increase in Swiss franc terms was 16.8%, while organic growth in recurring operating profit was 12.2%. Analysts had forecast recurring operating profit of 949 million Swiss francs for the third quarter, according to consensus estimates published by Holcim. The consensus for the third quarter and full year was based on 13 estimates and was last updated on 8 October 2026. Reported profit therefore exceeded the level analysts had expected before the results, as the company raised its target range for full-year organic growth.
Holcim set its new outlook for organic growth in recurring operating profit in 2026 at 10%-12%, according to its statement. Its guidance following the first-half results had targeted organic growth of about 10%, making the revision specific to this measure. Third-quarter sales rose 15.5% in Swiss franc terms. Organic sales growth was 5.1%, compared with a faster pace of organic growth in recurring operating profit over the same period. The recurring operating profit margin rose to 20.9% from 20.7% in the third quarter of the previous year, according to figures released by the company. The margin improved by 20 basis points, alongside year-on-year growth in profit and sales for the quarter.
For the first nine months of 2026, Holcim reported organic growth in recurring operating profit of 11.8%, according to the earnings statement. The company-wide margin for the measure reached 19.2% over the period. In Asia, the Middle East and Africa, sales rose organically by 7.9% over the nine months, according to the company's presentation to analysts. The region's operations recorded organic growth in recurring operating profit of 22.3% over the same period. The regional recurring operating profit margin was 26.1%, exceeding Holcim's company-wide margin for the nine months. In Europe, the company attributed growth in recurring operating profit over the period to "strict cost discipline and flawless execution of our strategy". The explanation appeared in the nine-month results presentation to analysts as part of the company's discussion of its regional performance.
As part of its plans to boost earnings, Holcim expected its acquisition of Xella to generate annual savings of 60 million euros in earnings before interest, taxes, depreciation and amortisation. The company targeted the third year after the acquisition to achieve these annual savings, according to the deal statement. For 2026, Holcim is targeting organic sales growth of about 5%, according to its third-quarter results presentation to analysts. It is also targeting free cash flow of about 2 billion Swiss francs for the year, alongside its guidance for earnings growth. The company is scheduled to report full-year results on the following 25 February, according to its published investor calendar.