Holcim beats forecasts with first quarter figures (updated)

Holcim AG

24/04/2026 05:56

Recasts to add that company is maintaining guidance, adds comment from CEO, CFO

By John Revill and Cian Muenster

ZURICH, April 24 (Reuters) - Holcim HOLN.S said on Friday it is sticking with full‑year targets as the Swiss cement company does not expect a major impact on its business from the Iran war.

Holcim still expects to increase its annual sales by 3-5%, excluding currency effects and acquisitions, and to improve its recurring operating profit by 8% to 10%.

CEO Miljan Gutovic said that regarding the Middle East conflict: "We do have operations in the Middle East, we have operations in UAE, Qatar, and Oman."

"Relatively small operations, they represent 1.5% of the total net sales. So in the grand scheme, it does not move the needle."

CFO Steffen Kindler said: "For the full year of 2026, we are roughly 80% covered on our energy costs through hedges and long-term contracts."

The company reported a 4.8% fall in sales to 3.52 billion Swiss francs ($4.47 billion) in the three months to the end of March, beating analyst forecasts for 3.42 billion francs.

Recurring operating profit (EBIT) fell 11.1% to 431 million francs, ahead of analyst forecasts for 407 million francs in a company-compiled consensus.

The figures were impacted by Holcim’s exit from Nigeria and other markets, wet weather in Europe, and a translation effect from the strong Swiss franc.

Also during the quarter, the company reshaped its portfolio through five transactions, including the acquisition of a majority stake in Peru's Cementos Pacasmayo and an agreement to acquire building materials operations in Colombia.

"With our resilient and proven business model across all economic cycles and market conditions, we confirm our full-year 2026 guidance," said Gutovic, who described the results as robust.

"We are seeing good momentum in Europe, especially on the infrastructure sector, residential, we are seeing some positive signs," he said.

Global construction industry sentiment has softened since the beginning of the year, with the Royal Institution of Chartered Surveyors halving its construction growth forecast for 2026 to around 1–2%.

The Institution's chief economist Simon Rubinsohn said global confidence in residential and non‑residential construction had turned more negative than at the end of 2025.

($1 = 0.7867 Swiss francs)

 (Reporting by John Revill and Cian Muenster, Editing by Friederike Heine, Rashmi Aich and Jane Merriman)

 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net/))