Holcim's Record Q4: Earnings Beat Forecasts, EBIT Margin Expands

Holcim, the Swiss building materials and solutions company, has reported record financial results for the fourth quarter of 2024, beating analysts' earnings forecasts and expanding its industry-leading recurring EBIT margin. The company's strong performance was driven by its differentiated value strategy, advanced branded solutions, and commitment to decarbonization and circular construction.

In the fourth quarter, Holcim's recurring EBIT rose 9.9% in local currency compared to the prior-year period, reaching a record CHF 1,165 million. Fourth-quarter net sales of CHF 6,473 million rose 1.6% in local currency versus the fourth quarter of 2023. Holcim's performance more than offset strong foreign exchange effects, with full-year recurring EBIT up 6.1% in Swiss franc versus the prior-year period.

For the full year 2024, Holcim's net sales were up 1.3% in local currency compared to the prior year, while recurring EBIT reached a record CHF 5,049 million, up 10.8% in local currency. The company's recurring EBIT margin expanded to a record 19.1%, driven by its differentiated value strategy and advanced branded solutions. Holcim's free cash flow after leases for the full year rose 2.6% to reach a record CHF 3,801 million, with a cash conversion ratio of 57%.

Holcim's CEO, Miljan Gutovic, attributed the company's record performance to its strategic priorities, including the expansion of its industry-leading EBIT margin, the growth of advanced branded solutions, and the continued momentum in value-accretive M&A. The company closed 27 transactions in 2024, focusing on the most attractive markets and expanding its presence in key regions.

Holcim's commitment to decarbonization and circular construction also contributed to its strong performance. The company achieved its 2025 target of recycling 10 million tons of construction demolition materials a year in advance, reaching 10.2 million tons in 2024. Holcim's advanced branded solutions, such as ECOPact and ECOPlanet, grew to 36% of total net sales in 2024, up from 30% in 2023.

The company's strong performance and cash flow position have enabled it to consistently deliver superior shareholder value. Holcim completed a CHF 1 billion share buyback and proposed an 11% increase in its dividend to CHF 3.10 per share. The company's planned listing of its North American business on the NYSE by mid-2025 is expected to create significant value for shareholders, as the North American market is a key growth driver with a strong outlook and a 24.9% EBIT margin in 2024.