Holcim Ltd

Holcim reported H1 2026 organic net sales growth of 5.2% and Q2 organic net sales growth of 6.4%. Recurring EBIT grew 11.5% in H1 and 13.1% in Q2, while EPS increased 7.4% in Swiss francs year over year. Management said group margin in Q2 was flat versus the prior-year period, mainly due to divestments, and reiterated full-year free cash flow guidance of around CHF 2 billion. The company upgraded 2026 guidance to high end of its NextGen Growth 2030 targets: 5% organic net sales growth, 10% organic recurring EBIT growth, further recurring EBIT margin expansion, and continued above-proportional growth in recycled construction and demolition materials. Management also said leverage should be back to around 1.6x by year-end, close to the 1.5 target level, after the announced transactions and bolt-ons.

Miljan Gutovic framed the first half as a period of accelerating momentum, especially in Q2, and linked the outperformance to customer demand for sustainable offerings, strict cost discipline, and operational excellence. He stressed that Holcim’s strategy is centered on sustainable premium brands, circular construction, and value-accretive M&A, with Xella and Pacasmayo cited as examples that support NextGen Growth 2030. His tone was upbeat and confident, but he repeatedly tied the optimism to execution rather than broad macro assumptions.

Steffen Kindler focused on the mechanics behind growth and cash flow. He said organic sales growth represented almost CHF 390 million, recurring EBIT grew on the back of commercial execution and disciplined cost management, and foreign exchange translation effects softened in Q2; he also reiterated positive price over cost in all regions for the 17th consecutive quarter. On cash and capital allocation, he said free cash flow is still on track for around CHF 2 billion, leverage should return to around 1.6x by year-end, and the company remains committed to margin expansion, with Q2 flat year over year mainly because of divestments such as Nigeria.

Analysts pressed on Europe pricing, EU ETS changes, Latin American volumes and margins, corporate cost savings, Xella’s contribution, cash flow, and the balance sheet. Management said the EU ETS reforms look positive for Holcim and could create new opportunities in decarbonization, while pricing in Europe is already at mid-single digits and Q2 price over cost was positive by roughly EUR 90 million across all regions. On LatAm, management said margins should remain above 30% as a portfolio, with Pacasmayo integration causing some near-term dilution, and on cash flow and leverage it said the company remains confident in around CHF 2 billion of free cash flow and roughly 1.6x leverage by year-end despite acquisitions.