Holcim Raises Profit Growth Target to 10%–12% After Third-Quarter Profit Rises 16.8%
Key Facts
Holcim raised its 2026 organic recurring operating profit growth target for the second time this year, to a range of 10%–12%, after reporting a 16.8% quarterly increase in profit, according to results published on October 23. Profit reached CHF 976 million in the three months ended September, compared with CHF 836 million in the same period last year. It also beat analysts’ estimate of CHF 946.7 million, according to a report published by The Star, citing Reuters. The company had forecast growth of about 10% after its first-half results before raising its estimate again. Holcim now targets organic net sales growth of about 5% and free cash flow of about CHF 2 billion in fiscal 2026.
The increase in nominal profit outpaced its organic growth, which reached 12.2% in the third quarter, distinguishing the impact of growth on a like-for-like basis from the nominal increase. Net sales rose 15.5% to CHF 4.662 billion, while organic growth was 5.1%. The recurring operating profit margin widened to 20.9% from 20.7% a year earlier, an increase of 20 basis points. The company attributed the results to higher customer demand for its high-value offerings, strict cost discipline and operational excellence. These indicators combine sales growth with margin improvement, two of the key elements of performance on which Holcim based its higher annual guidance.
Growth extended to the first nine months of the year, with net sales reaching CHF 12.586 billion, an organic increase of 5.2% from the same period. Recurring operating profit reached CHF 2.414 billion, with organic growth of 11.8%, while its margin was 19.2%, compared with 19.1% in the first nine months of 2025. These figures provide broader context for the quarterly increase, as organic profit growth remained above sales growth over the period since the start of the year. By product, the share of low-carbon ECOPact cement rose to 43% of total cement sales in the first nine months, compared with 36% a year earlier. The share of low-carbon ECOPact ready-mix concrete also increased to 33% of sales, compared with 32% in the same period, and the company said customer demand for its sustainable offerings continued to rise.
Sales performance varied across regions in the quarter, according to the Reuters report, which said Germany, Greece, Romania, Spain and Switzerland led growth in Europe. By contrast, sales declined in Asia, the Middle East and Africa during the same period. At the product level, the company said its high-value solutions were among the drivers of results, while the increased share of low-carbon cement and concrete products reflects their growing presence in sales. This regional divergence puts the quarter’s results in the context of markets that did not deliver uniform performance, despite the increase in overall sales. The report gave no figures for growth or declines in those regions.
The announcement quickly lifted Holcim’s Swiss-listed shares, which rose as much as 6% on Friday, October 23, their biggest gain since April, according to Reuters. An analyst at RBC described the performance as "strong in the face of tough markets." The company’s U.S. depositary receipt closed at $16.12 the same day, according to L7 data. That closing price refers to the U.S. depositary receipt, while the intraday gain refers to Holcim’s shares on the Swiss market. The reaction showed investors welcomed the higher forecast and the earnings beat during the session in which the results were announced.
The company is watching how input costs affect pricing in 2027; Chief Executive Miljan Gutovic said higher costs would affect prices next year. He added that Holcim had begun discussing price increases with customers, saying: "We are entering a phase in which we are talking to our customers about price increases for next year." On expansion, the company said it had completed 11 deals since the start of the year, including 10 acquisitions and one divestment. It also signed an agreement to acquire Vermacell, a provider of wall and flooring solutions, with completion expected in the first half of 2027. The transaction remains subject to customary conditions and regulatory approvals.