Saint-Gobain plans to funnel $14 billion into investments, acquisitions by 2030 (updated)
06/10/2025 07:58
Around 20 billion euros to go to investments, acquisitions and shareholder returns Focus on expansion in North America, Asia, emerging countries Adds detail on business goals, share move and revenue in paragraphs 2-3, 5 By Mateusz Rabiega Oct 6 (Reuters) - Saint-Gobain SGOB.PA plans to spend around 12 billion euros ($14 billion) to grow its business through organic investments and acquisitions under its 2026-2030 strategy, while earmarking roughly 8 billion euros for shareholder returns, the French construction group said on Monday. The company will focus on growing its construction chemicals segment, as well as expanding in high-growth markets of North America and Asia-Pacific, as it turns more toward industrial and non-residential sectors, it said in a statement. As part of its strategy, the company wants to seize opportunities, including the demand from rising population and urbanisation in Asia and emerging countries, a potential market recovery in Europe, and strong long-term needs in North America. Ultimately, the group expects high-growth markets to account for close to 60% of its sales in the long term, versus around 50% today. Saint-Gobain shares rose over 1% in early trading before reversing course as French stocks plunged after the unexpected resignation of the country's new Prime Minister Sebastien Lecornu. The shares were down 2.4% by 1138 GMT. Saint-Gobain wants to pay out around 6 billion euros in dividends, and 2 billion in share buybacks, it said. The company also raised the financial targets for the next four years, compared to the ones it had set for 2021-2025, and said it aimed to outperform the wider market with mid-single-digit percentage growth in sales on average. It targets a core profit (EBITDA) margin of between 15% and 18%, up from 13% to 15% expected in the previous strategy. ($1 = 0.8539 euros) (Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak and Emelia Sithole-Matarise) ((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))