Compagnie de Saint-Gobain S.A.

First-half 2026 like-for-like sales growth was 0.7%, with Q2 up 3.5% like-for-like. EBITDA margin was 15.4%, recurring net income was EUR 1.7 billion, and free cash flow was EUR 2.1 billion, with 65% cash conversion on EBITDA and 125% on recurring net income. EPS decreased 2.6% in local currencies. On pricing, H1 prices were up 0.8% and Q2 pricing was 1.6%; management said it was slightly negative on price-cost spread at the time of the call but still expects a slight positive spread for the full year. For 2026, the company expects EBITDA margin of more than 15%, CapEx around EUR 2 billion, and continued like-for-like sales growth in H2, with the Americas expected to grow in an uncertain environment and Asia-Pacific led by India and Southeast Asia.

Benoit Bazin framed the quarter as proof that Lead & Grow is working, citing outperformance in solutions, non-residential, infrastructure, and construction chemicals. He emphasized that Saint-Gobain’s broad offer enables cross-selling, upselling, and specified sales, with management using examples from airports, hospitals, data centers, and climate-adaptation projects. His tone was confident and upbeat, but he also acknowledged a still-uncertain backdrop in North America and the need to keep pushing on pricing.

Maud Thuaudet highlighted H1 sales growth of 0.7%, Q2 like-for-like growth of 3.5%, and pricing of 0.8% in H1 and 1.6% in Q2 as inflation returned. She said the company expects mid-single-digit inflation on its EUR 12 billion raw-material, transportation, and energy bill, but is still targeting a slight positive price-cost spread for the full year. She also pointed to EUR 2.1 billion of free cash flow, 24-day working capital, net debt of 1.6x, EUR 1.4 billion returned to shareholders in H1, and around EUR 2 billion of CapEx for the full year.

Analysts pressed management on whether Q2 volumes were helped by pre-buying, whether North American margins should improve in H2, and how much of Q2 pricing could be carried into the second half. Management said pre-buying was limited, North American margins should be roughly in line with last year or slightly below, and that pricing momentum should carry through, while remaining agile as inflation evolves. They also discussed AI, with management saying the focus is more on growth and outperformance than pure cost cutting, and they addressed North America growth, roofing, commercial roofing, data centers, and the M&A/divestment pipeline.