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(Bloomberg) — Holcim Ltd. increased its profit margin guidance as the Swiss cement giant benefited from strong construction activity across all regions.
The Swiss manufacturer forecast a recurring profit margin before interest and taxes for the full year of above 18.5%, up from a previous guidance of 18%.
“Our leading sustainable building solutions position us as the partner of choice for large-scale projects like infrastructure and data centers,” Chief Executive Officer Miljan Gutovic said in a statement Friday.
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Still, first-half sales slightly missed estimates, and the outlook was lowered to low single-digit growth in local currency terms from a previous guidance of 6%.
For more details from the first-half results, click here
Holcim’s Solutions & Products division reported the strongest net sales growth for the first half, driven by its roofing business.
Sales in North America have doubled in the past 10 years, with the company the region’s top supplier for cement and third-biggest for roofing. It aims to roughly double sales again to about $20 billion by 2030. Holcim sees strong market fundamentals in place in the region, saying it has secured more than 100 infrastructure projects between 2023 and 2026.
The world’s biggest cement maker is seeking to tap rapid US market growth as builders race to relieve a chronic lack of single-family homes and meet regulatory pressures for more energy-efficient buildings. Holcim has come through a period of acquisitions and divestments to reduce carbon emissions.
Holcim continued its M&A execution with 11 acquisitions and four divestments in the first half.
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